Air New Zealand Proves Solid Energy Can Be Saved
4 AUGUST 2015
Air New Zealand Proves Solid Energy Can Be Saved
With Solid Energy teetering on the edge
of becoming the largest ever State-Owned Enterprise to fail,
Air New Zealand’s recovery provides proof that the
business can be turned around.
“Solid Energy is only in this mess because of incompetence by Treasury’s Commercial Operations Group and National’s hands-off approach,” says New Zealand First Spokesperson for State-Owned Enterprises Richard Prosser.
“It is lucky National wasn’t in government when Air New Zealand nearly went to the wall. Now look at it. The airline is one of the most profitable in the world and it took a government prepared to invest and new management to effect the turnaround.
“There is no reason it cannot be done with Solid Energy but it needs the mountain of debt lifted off its balance sheet. The fact is, Treasury and Ministers are responsible since they did not reign in Solid Energy’s lax financial management. In fact, they enabled them.
“This be a reason why Ministers Simon Power and Tony Ryall jumped ship, yet it leaves the Hon Bill English at the epicentre of this mess. Then again, Mr Key may want Solid Energy to tip over as a sop to his urban ‘Blue Green’ supporters.
“So is Solid Energy worth saving? Hell yes. Coal is central to steel production and we haven’t touched the potential of Underground Coal Gasification, clean coal technologies or the hundreds of years of proven lignite reserves to make us independent in terms of urea.
“The lack of government oversight allowed a pile of debt to be built up. If government was serious about the regions, it would get off its backside and lift that debt burden so Solid Energy under sane management can prosper, just as Air New Zealand has,” says Mr Prosser.
ENDS