Solid Reasons for Saving Solid Energy

New Zealand First is urging the Government to act to save Solid Energy from the free market scrapheap.

“Government needs to step in, take over Solid Energy’s bank debts, and put them on a long-term repayment programme along with other necessary restructuring of the company,” said State Owned Enterprises Spokesperson Richard Prosser.

“Clearly the problems facing Solid Energy are beyond their control. They have no ability to influence world market pricing for coking coal, no ability to alter the requirements of the commercial banking sector, and no ability to counter the Government’s unwillingness to provide further financial assistance.

“We have a plainly insane situation where we are closing mines and laying off miners while the Huntly Power Station, which sits on a coal field, brings half its coal in from Indonesia. The Glenbrook Steel mill and dairy giant Fonterra can also import coal.

“It makes no sense that New Zealand is spending overseas funds on importing coal while our own reserves sit in the ground and our people disappear offshore to find work or join the ever-growing number of unemployed.

“The free market model simply has not worked.

“Government needs to see sense, abandon its present failed economic model, and put the real needs of New Zealand and New Zealanders first.

“Strategic enterprises such as Solid Energy are too important to be allowed to simply fall over because of a neo-liberal economic agenda.

“Saving Solid Energy is not a frightening prospect – its common sense,” says Mr Prosser.

ENDS

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