One of the energy companies the Government intends to partially sell warns it faces significant business challenges.
Solid Energy says it faces uncertainty created by the Government's emissions trading scheme.
Radio New Zealand's political editor says the coal company outlined a series of strategic challenges it faces, in a letter to written on 28 February to State-Owned Enterprises Minister Tony Ryall.
As well as uncertainty over the price of carbon, it says other key issues include the recruitment, retention and development of staff and how it can obtain specialist capabilities to develop new large scale natural resource projects.
The letter also raises concerns about how the company manages its long-term investments while managing cash volatility.
Labour says that's reason enough not to sell a stake in the company.
Solid Energy says the fact it is facing significant business challenges should come as no surprise.
Chief executive Don Elder told Morning Report on Wednesday this letter is sent to the minister every year.