The NBR provides another argument in favour of the sale of State Owned Assets.
Like other state-owned enterprises under the former Labour government, Solid Energy was encouraged to diversify its core business and take advantage of subsidies encouraging investment in renewable resources and technologies.
To try to put the blame for the company’s plight on National and its assets sales programme is turning reality on its head.
The same goes for Meridian and Mighty River Power having to sell out of similar forays after closer inspection by the Treasury and other as part of the government’s selldown policy.
That has included MRP withdrawing from a project in the US that was driven by government renewable energy subsidies there. . .
Meridian’s decision to withdraw from the Project Hayes wind farm also looked like a proposal driven by politics that didn’t stand up to financial scrutiny.
One good reason for partial privatisation is more financial rigor in the management of these companies.