O'Connor Damien: Debate on Crown Entities Public Organisations and State Enterprises — In CommitteeText is incorporated into the Bound VolumeO'Connor Damien: Debate on Crown Entities Public Organisations and State Enterprises — In Committee[Sitting date: 14 May 2013. Volume:690;Page:9907. Text is incorporated into the Bound Volume.]Hon DAMIEN O’CONNOR (Labour—West Coast - Tasman):If you ever want a perfect case study of incompetent National Government oversight then this is it. In 1998 when the last National Government was in power it was determined to start selling off State-owned assets. It indicated to Solid Energy that it wanted it sold and this company was brought to its knees. It was bailed out by the Government in 1998. Labour came in in 1999 the Labour Government said “Get on with the job of mining.” and this company became an export leader with prizes and recognition for its export growth. And 5 years into the next Tory Government this company is on its knees because the Tory Government the National Government refused to provide proper oversight.Yes there are challenges in the coal industry. There are a number of coalmines operating profitably surviving on the West Coast but not Solid Energy. The problem with it is that the miners are the ones who have paid the dear price for the incompetent oversight by the National Government. We had a company running around like a bunch of drunken sailors spending money all over the place—bonuses for example—when there were clear indicators of challenging times in the international coal market. This is a classic case of Tory oversight.Bonuses were offered to employees—a fact that was told at the Commerce Committee. Where did that money go? Well $1.3 million went to employees on collective agreements. Who are they? They are the miners risking their lives day in and day out. What about the $9.7 million that went to employees on individual contracts? The managers the people sitting on their chuffs in the palace in Christchurch got the $9.7 million and that Minister and the National Government approved that and signed it off. No wonder the company is almost $400 million down the gurgler because the Ministers were asleep at the wheel.We had the chairman of the Commerce Committee quoting Mr Palmer and Mr Elder on what they told us at the select committee. The only reason they were there is that the Labour members on the committee insisted that they turn up. It was Mr Ford and Mr Diack who came along to the committee first up and said that Mr Elder did not want to come along. That was a lie. That was a lie and the Labour members do not accept the explanations given. Mr Palmer also said that they were not setting up Solid Energy for any sale process. Well clearly in the documents that was one of the objectives of the shareholding Government and Ministers and Mr Palmer has been a long-time champion of part-privatisation. I like John Palmer and I respect him and he has been out on the front foot in the media championing part-privatisation. I do not believe for a moment that that objective was not part of the problem that Solid Energy got itself into.It was trying to do two things. Firstly the Ministers insisted on gearing the company up so they could get a greater dividend which put pressure on a mining company. That is not traditionally the way you run a mining company. The board objected the Ministers insisted and so the gearing went up. At the same time it was trying to—had been told to—set the company up for part-privatisation. That formula was disastrous. The chief executive and the company were trying to diversify at a time when again the National Government stepped in and took off the mandatory obligation of biofuels and undermined what could have been a good initiative. It was admitted by the chairman the former chairman and the chief executive that biodiesel might have worked if the mandatory obligation had not been taken away by the National Government.There was $400 million down the gurgler. Almost 500 miners have lost their jobs on the West Coast and a few managers have lost their jobs. In fact the last announcement was 109 people. Half those people lost their jobs in the regions of New Zealand where they mine. Only half of those about 59 lost jobs in Christchurch. I feel sorry for those people but the reality is that the West Coast and the miners the people who risk their lives in Spring Creek Mine and all the other mines were the people who were not getting the bonuses. They were the people who got kicked out of work—[Bell rung]—and the chief executive and—The CHAIRPERSON (Lindsay Tisch): Order! [Interruption] Order! Otherwise the member will take another call.Report noted.