Monday, July 08, 2013

Throwing good money after bad

So, to the long list of things which will supposedly be funded by asset sales cash (schools, hospitals, roads, railways, and a partridge in a pear tree), we can now add bailing out Solid Energy. Key himself denied it on live radio this morning, but the government has now admitted it: money from selling a productive asset will now be "invested" in a ruined one. And this from the party which pitches itself as "good economic managers"...

This is simply throwing good money after bad. Solid Energy is a failed company in an industry without a future. It is neither strategic nor profitable, and therefore should be left to fail.

Meanwhile, Key's response suggests that he is either clueless about the actions of the government he is supposedly leading, or deliberately dishonest. Neither is a good look, and his denial and retration speak volumes about the rot which is setting into this government.