New Zealand Labour Party

Solid Energy debacle a sad indictment of Government incompetence

The liquidation of Solid Energy is a sad indictment of Government incompetence, which has destroyed the once valuable company, says Labour’s spokesperson on State Owned Enterprises David Parker. 

“Today’s announcement of the sale of the company’s coal mines represents the culmination of the inept direction of Solid Energy by National.

“National Government Ministers told Solid Energy they had to pay higher dividends and embark on more risky ventures with no extra capital. 

“They were even warned by Solid Energy’s Chairman in writing at the time that the extra debt being incurred was very risky. The National Government told them as shareholders, however, to go ahead regardless. 

“Now National’s chickens have come home to roost. The SOE’s mines, once a public asset, are now being sold to Bathurst Resources, the Talley group and Birchfield Coal Mines Limited. 

“We wish the new owners and their workers well, but record our dismay at this debacle. 

“This sorry saga has cost many hundreds of jobs, and damaged communities across the country. It has cost taxpayers and banks billions of dollars in losses, “says David Parker.