Solid Energy should be partially privatized: Palmer

Thursday 17th June 2010

Solid Energy chairman John Palmer said the state-owned miner should be partially privatized to meet up to $10 billion of capital needs and because it is a lower political risk than other state-owned businesses.

“A partially listed model, similar to Air New Zealand, is really important for Solid Energy,” said Palmer, who also chairs the 75% state-owned airline.

He argued partially privatising Solid Energy would not expose the government to any more commercial; risk than it currently bears and, in his judgment, “the political risks for a company like Solid Energy are very low”.

“This can be one of NZ’s most-important companies,” he said.

“It’s not about selling the family silver, it is about gold plating the family silver that we have.”

Palmer said that without the opportunity of partial private ownership Solid Energy would not only struggle to achieve its commercial potential but would also struggle to attract and retain top management and board talent.

He made the comments in an address in Wellington.

Businesswire.co.nz

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