Government sell-off agenda behind job losses

John Key has all but confirmed Solid Energy’s ‘restructuring’ plan, which will see hundreds of Kiwis losing their jobs, is about the Government readying the company for sale, West Coast Labour MP Damien O’Connor says.

“The Prime Minister’s comments that the job cuts at Solid Energy were not a sign of economic malaise  and that job losses are part of a normal cycle of events cannot be interpreted in any other way, given the company blames the downturn and plummeting coal prices.

“Getting rid of a quarter of its workforce sets Solid Energy up as an attractive business for investment.

“And it is disingenuous for Don Elder to say the asset sales programme was not part of his consideration when his own restructuring document (attached) says two of the company’s three priorities are 1) to ‘maximise medium-term generation and value uplift consistent with our potential listing objectives…’ and 2) ‘preparing Solid Energy for a potential listing at some stage in one to three years (MOM)’.

“The Government could have - if it wasn’t so focused on its one-eyed asset sales agenda – invested some of Solid Energy’s profits back into keeping the company viable and keeping people working.

“Instead its short-term vision will see communities ripped apart and workers heading offshore or onto the dole queue.

“The investment required to retain these jobs is small compared to the value of the coal and the on-going value to the economy.

“The miners who have come to Wellington today represent their families, the communities of Huntly and Greymouth and the thousands of other workers who have lost their jobs because the National Government refuses to step up and help,” Damien O’Connor said.