The sale of Solid Energy coal mines to a consortium and two private companies shows the government was wrong to sell the state coal miner, says New Zealand First.

“It’s heartening that New Zealand interests have bought some of the mines, although the consortium involving New Zealand company Talley’s is two-thirds overseas owned, says State-Owned Enterprises Spokesperson Richard Prosser.

“The loss of profits overseas is not easy to take when the government could have held on instead of rushing in to put Solid Energy on the market given the price of high-grade coking coal for steel production has doubled in the past year.

“This just proves National used the downturn in prices as an excuse to sell more state assets. It claimed Solid Energy wasn’t viable long-term.

“The world is always going to need steel, and for that it needs high quality coal, which New Zealand possesses in large quantities. The price has recovered. Talley’s and their foreign partners could do well - but the taxpayer will miss out.

“New Zealand First said the National Government should have waited. We’ve been proven right.

“It’s good to see that two private companies on the West Coast and Southland have bought mines and that overall workers are expected to be employed by the new owners.

“New Zealand needs a government with vision for the future of the economy, not one with a the short-sighted approach.”

A NZFirst release