Solid Energy boss will front Parliament

Former Solid Energy boss Don Elder confirmed late last night he will go to Parliament to answer questions about the company's problems.

But in a strongly worded statement, Dr Elder also lashed out at the stricken state owned coal miner saying it was always his intention to appear before MPs but he was prevented from doing so by the company itself.

Dr Elder resigned as chief executive early last month just two weeks before the company revealed it was in talks with the Government and its banks over a crippling $389 million debt burden.

His absence from the company's financial review before Parliament's commerce committee last week fuelled controversy over his management of the company and led to Opposition calls for him to front.

Last night he said he had "always been willing to answer any question members of the committee may have about Solid Energy and my time as its chief executive".

"I made myself available to assist the Solid Energy team at last week's sitting of the committee, but was advised that I was not required to be present," he said in the statement.

"I have never refused to cooperate. I will endeavour to help the committee in any way I can, subject to the lifting of obligations imposed on me by Solid Energy."

The committee had previously asked that Dr Elder attend last week's financial review of Solid Energy if the company thought it "appropriate", but he did not appear.

At that review, it emerged Dr Elder was still on Solid Energy's payroll and chairman Mark Ford said he would have no problem if he appeared.

Solid Energy last night confirmed it would place no constraint on Dr Elder appearing but it could not compel him do so.

Dr Elder's statement last night was in response to a formal invitation issued to him via the company by the committee.

Labour's state-owned enterprises spokesman Clayton Cosgrove, who claims the Government was "asleep at the wheel" while Solid Energy made a series of poor investment decisions, has led calls for Dr Elder to appear.

He is also calling for a parliamentary inquiry into the company's problems.

Meanwhile, a spokeswoman for the company said reports that Dr Elder was still receiving a $1.3m salary were incorrect. She said Dr Elder's $850,000 base salary before performance-based incentives was more likely to reflect his current pay rate.

Committee chairman Jonathan Young issued the invitation to Dr Elder yesterday after other National MPs agreed to support the call.

"In response to the public interest I felt that it would be good to invite him sooner rather than later," Mr Young said.

"I think a simple invitation extended to him is appropriate.

"I would assume that he would want to appear, because he has received a lot of criticism - I don't think it will be an easy appearance for him by any means. I think he deserves the right to put his side of the story," said Young.

In response to Mr Cosgrove's calls for a Parliamentary inquiry, Mr Young said he wanted to first hear what Dr Elder said at the committee hearing which will take place on Thursday.

Dr Elder is scheduled to appear for 45 minutes but Mr Cosgrove and other Opposition MPs are likely to call for that time to be extended.

Prime Minister John Key, who has said Solid Energy's problems began under the previous Labour Government, said last week he was "relaxed" about Dr Elder appearing before the committee.

SOE Minister Tony Ryall, whose oversight of the company has been questioned by the Opposition, said he didn't care "either way" whether Dr Elder appeared.

- Adam Bennett of the New Zealand Herald