A disagreement between the Finance Minister and the former chair of Solid Energy Pip Dunphy led to her resignation.

The difference was over the viability of the energy company which was, just a few years ago, one of the jewels in the Government's asset crown.

Bill English has told media today the circumstances behind the February resignation tendered by Pip Dunphy.

"She came to the point of view that she'd done about as much as she could. We felt more could be done and she made a completely professional decision that it'd be better if she strep down as chair."

Labour's energy spokesman Clayton Cosgrove has a different viewpoint of the resignation and believes the situation is now a sorry mess.

"These guys should've been circling the wagons like every other international minerals company within days of their markets and the coal price drying up. Ministers knew about this, ministers did nothing and now we've lost yet another chairman. It is looking a bit like a funny farm in Solid Energy."