Key must make agencies pay Pike compensation

John Key must require the Government-owned shareholders of Pike River Coal fulfil their moral duty to ensure the families of the men killed at Pike River get their full court-ordered compensation payment, says Labour Leader David Cunliffe.

“John Key has washed his hands of the Pike River families. Most of the shareholders in Pike River Coal have refused to pay their share of the compensation ordered by the court, despite the company receiving a total of $80 million in insurance payouts.

“The worst examples of this are the government-owned and controlled ACC and NZ Superannuation Fund. They are hiding behind the corporate veil to avoid their moral responsibilities to ensure the court-ordered compensation is paid out.

“As Prime Minister, John Key should pressure the government entities to pay compensation. He should also call all the significant shareholders of Pike River Coal and tell them in no uncertain terms to fulfil their moral obligations.

“That’s exactly what I will do as Prime Minister.

“The Royal Commission of Inquiry put much of the blame on government agencies as well, saying the Department of Labour ‘should have prohibited Pike from operating the mine until its health and safety systems were adequate’. That is another reason for the Government to use its power and influence to ensure a just outcome for the families.

“The Prime Minister has lost his moral compass. He is happy to call Tiwai Point and Chorus and do deals with them, but will not pick up the phone to tell ACC and the NZ Super Fund to do their duty.

“The Government must not hide behind legal arguments. It should do what is right. It is a time for moral leadership,” says David Cunliffe.

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