Former Solid Energy chairman John Palmer has backed Prime Minister John Key's claim the company's ambitious plan to become a "national resources company" would have cost the Government at least $1 billion.
Mr Key made the claim last month when it was revealed Solid Energy was on the verge of collapse because of high debt levels and low coal prices.
But Labour pounced on comments this week by Mr Palmer that the company never sought cash from the Crown to pay for its plans.
Mr Key yesterday released documents detailing the company's plan, including estimates it would require $2 billion to $3 billion of capital investment a year for a decade.
Labour's state owned enterprises spokesman, Clayton Cosgrove, said the documents failed to show Solid Energy had sought money from the Government.