Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


CANA Cheering: Southland Coal Will Be Left in The Hole


Coal Action Network Cheering At News That Southland Coal Will Be Left In The Hole

For immediate release

22 February 2013—The Coal Action Network Aotearoa is celebrating the end of the nonsensical lignite project plans in Southland, after Solid Energy Chairman Mark Ford confirmed on national radio this morning that the company will drop the project.

When asked on radio about the lignite projects, Mr Ford said: “I think that is part of the non-core assets that we will be exiting from.”

“This was a ridiculous project from the outset: dirty, low-grade coal being turned into a product nobody wanted, digging up prime Southland farmland for coal that would simply end up in the sky, adding to the looming climate crisis,” said Kristin Gillies, CANA spokesperson.

“The people of Southland, just as the people of the West Coast and Huntly, have been sold broken promises by an industry that will do nothing for our economic future. Coal is a sunset industry and we need to wake up to this reality.”

Co-spokesperson for Coal Action Murihiku, Dave Kennedy, said there would be a huge sigh of relief from the growing local opposition to the project, which had so far only produced six local jobs, and would be taking the region in the wrong direction.

“Southland has so much to offer a green future for New Zealand, and we’re very happy that the coal here will be left where it belongs – in the hole, and the fertile soil can continue to be productive for generations to come.”

It is also highly doubtful that the briquetting plant in Mataura will be able to be sold: it has suffered a number of problems, has yet to be commissioned, and there is no market for the briquettes.

CANA also pointed out today that it was wrong for people to put Solid Energy’s financial woes down to its investments in renewable projects.

Renewable investments were tiny compared to the other things that lost Solid money. P45 of the 2012 annual report discusses "impairments" (the reduction in capital value of parts of the business - similar to a write down?)

- Biodiesel resulted in an impairment of $9m;
- Natures Flame $24.5m, Switch $1.6m.
- total renewable impairment $36m.

Meanwhile:
- Spring Creek resulted in an impairment of $64.3m,
- Huntly coal seam gas $18.5m,
- Huntly East $33.5m,
- they wasted $29m on the Southland lignite briquetting plant that may never work and may never have markets, though this is not marked as impaired in the accounts.

Even without the lignite projects (and the Annual Report notes impairment and loss from the whole Iignite project) total coal impairment is ~$116m, 3.5 x that of the renewable losses.
“To blame renewable energy for Solid’s woes simply doesn’t stand up,” said Gillies.
Solid bought 49% of the shares in Spring Creek as recently as Feb 2012, closed it temporarily to upgrade the mine, then closed it permanently later in the year. They spent a capital outlay of $64m - and they never got any coal out of it.

The failure of the renewable energy plants can be laid at the door of the govt. The investments were made under the Labour govt when there was a biofuel obligation coming on all motor fuel sales; this was then replaced by National's subsidy, then that was cancelled.

Coal and gas would have been more expensive under the 2008 ETS and there would have been a better market for pellets. The company also made the mistake of going for the export market for pellets when they could have developed a good market in NZ.

CANA on Twitter
We are on Twitter, and we encourage you to follow us there and retweet our tweets (thanks to everyone who has been doing so!): https://twitter.com/#!/coalaction

CANA on Facebook
Join our main facebook group
Already a member? Please advertise it on your newsfeed and invite friends to join – and if you're not, go there and sign up!
"Like" our Leave the Lignite, Save the Soil page
Say No To Fracking in NZ Facebook group:

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On Winston Peters’ Latest Bout Of Immigrant Bashing

So in the latest 3News-Reid Research poll, New Zealand First and the Conservatives have been the big winners. It is only one poll, but rather than cannibalising each other’s vote, Colin Craig and Winston Peters do seem to be managing to find the room to co-exist...

Poll fixation though, is a symptom of horse race journalism. To date, the focus has been on the poll numbers for New Zealand First – at 6.3% in this latest poll – and the power that this puts in Peters’ hands. Few are questioning how he’s got to this happy place, and what it says about the mood of the electorate. Yet as sure as night follows day, Winston Peters is once again peddling bile at the immigrants in our midst. More>>

 

Parliament Today:

Collins 'Misinterprets Media Reports': "Too Compromised To Remain Justice Minister"

Bizarre claims by Judith Collins this morning that she had been cleared of inappropriate behaviour by the Privacy Commissioner demonstrates she is too compromised to remain Justice Minister, Labour MP Grant Robertson says. More>>

ALSO:

Labour On Climate Change: Focus On The Now For The Future

A Labour Government will put in place a comprehensive climate change strategy focusing on both mitigation and adaptation, establish an independent Climate Commission and implement carbon budgeting, says Labour Climate Change spokesperson Moana Mackey. More>>

ALSO:

Gordon Campbell: On National’s Housing Assistance Plan

So, as many as 90,000 people could derive some benefit from National’s housing assistance plans for low and middle-income earners... Yet in reality, the benefits seem likely to be insignificant, and they will be skewed towards those at the top end of the income group that’s supposedly the target. More>>

ALSO:

Election Data Consortium: National’s Worst Case Scenario At Stage One?

A month out from the general election and ipredict traders are still forecasting National’s vote to slip below current polling levels and there is potential for it to fall further. More>>

ALSO:

From The Scoop Video Archive: PM Says SIS "Told Me" About OIA Release

In a press conference immediately following an controversial OIA release of notes on an SIS briefing to then Labour leader Phil Goff, Key said "at that point [Tucker] told me he'd release it ...". Since the release of Nicky Hager's 'Dirty Politics' Key has denied being personally informed and said references by officials to 'the PM' being told briefed referred to his office. He now says the same about his own statement. More>>

ALSO:

  • Scoop Video in the news - New questions over Key claims | NZ Herald News - Stuff.co.nz
  • Earlier - Felix Marwick: Laying out facts over SIS documents - Newstalk ZB
  • Labour - Director’s letter contradicts Key’s claims
  • ACT - The Letter - 26 days to go
  • TV3 Video - Housing issue nudges Dirty Politics aside - David Cunliffe: Key's SIS explanation 'defies belief' - SIS leak came from Key's Office - Goff - Key 'categorically denies' Slater OIA discussion - Video: Key faces more Dirty Politics questions

  • TVNZ - Winston Peters: ‘Dirty Politics' is a new low
  • The Nation - Debate Between Grant Robertson And Russel Norman
  • NZ First - “The Words Mean What I Say They Mean”
  • Schools, PPTA Sign Up: Primary Teachers And Principals Vote Down Govt Plan

    Teachers and principals have voted overwhelmingly against the Government’s controversial “Investing in Educational Success” policy, including proposed highly-paid principal and teacher roles. More>>

    ALSO:

    Gordon Campbell: On The Usual Round Of Mud Slinging And Name-Calling

    This week gave an interesting example of how hard it is to untangle the reality from the slanging matches. The issue that emerged early this week could hardly be more important. Does the government intend to cut spending in health, education and on the environment if re-elected, or not? More>>

    Earlier:

    Electionresults.co.nz: National and NZ First Rise in Roy Morgan Poll

    National has bounced back in the latest Roy Morgan Poll but the big winner has been New Zealand First who rise to their highest level of support since September 2013. More>>

    ALSO:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
    Politics
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news