No Govt funding for Pike River lawyers

The Government has ruled out funding Pike River receivers to participate in a Royal Commission of Inquiry into last year's deadly mine disaster.

The company's lawyer, Stacey Shortall, yesterday told the commission's preliminary hearing into the mine disaster, which took the lives of 29 men, that it was unable to provide written witness briefs, compilations of documents and other requirements.

Pike River Coal receiver John Fisk, of PricewaterhouseCoopers, said the receivers had written to Attorney-General Chris Finlayson asking for Government assistance so the company could to provide written evidence and other material to the commission.

The company was put into receivership in December 2010.

Prime Minister John Key did not agree that the company could not pay for legal representation.

"From our analysis they had $10.9 million before they went into receivership, they've spent $5 or $6 million, so we think they've got $4-$5 million left, so if they want to fund representation they can," he told reporters.

"It's not an adversarial court, it's an inquiry process, and our view is that the company has the resources to actually pay its own legal bills if it wants to."

Mr Key doubted the Government would change its mind.

"That's our view at this time and its not likely to change. We've funded legal representation for the 29 families, we've funded legal assistance for the contractors and employees of pike river but our view is that the company itself and the receivers have resources."

In Parliament Labour's Damien O'Connor asked if Mr Key would be satisfied with the inquiry's outcome if the company did not participate fully.

"The company doesn't need lawyers to fully participate," Mr Key said.

"It's our view the company already has resources to pay for its own legal representation."

Labour leader Phil Goff agreed.

"We have to know the answers and the Pike River company has to front up and the receivers, but they should be paying for that themselves.

"Too often we're finding the taxpayer is saddled with the cost that should be met by the private sector. They capitalise on their profits but they like to socialise their responsibilities and their costs. That's not good enough."

After yesterday's hearing, Grey District Mayor Tony Kokshoorn told NZPA the company's stance was disappointing.

"I felt that they should have been transparent and open and available to actually give all the evidence that was required...

"To actually get up there and say 'well, we haven't got any money, what are you going to do about it?' is not a good look for them," he said.

The commission's hearings will be held over four phases, the first of which will examine New Zealand's regulatory environment and the geography, approval and development of the mine.

The second phase will explore the search and rescue operation, and the cause of the deaths, the third phase the cause of the explosions and Pike River Coal's practices, while the last will focus on policies governing mining.

The commission would have the power to obtain relevant documents or compel witnesses to give evidence if necessary.