The SCF payout

The Herald reports:

Yesterday Mr Hubbard condemned the Government for preventing him working to save South Canterbury by placing his affairs under statutory management two months ago.

This, he said, was “a body blow” for the company.

But Prime Minister John Key said the global recession and the company’s poor-quality lending had “taken us into the situation we’re in today”.

If the gap between assets and liabilities is $500 million, then the collapse was probably inevitable. Mr Hubbard would be well advised to reflect on his own role in costing taxpayers such a huge amount of money, rather than seek to blame those picking up the pieces.

Mr Key said the Government’s finances could handle the payout and credit ratings agencies had assured the Treasury it would not have any immediate effect on the country’s credit rating.

Although the sum involved would appear large to struggling taxpayers, “it is relatively small compared to other losses the Crown has incurred with the deterioration, for instance, in ACC”, Mr Key said.

Sad but true.

Opposition Leader Phil Goff said yesterday’s payout was “a huge cost to the taxpayer for the ordinary Kiwi who’s struggling to save for him or herself”.

“Having to bail out the investors of South Canterbury Finance will come as a huge burden.”

Mr Goff said the company’s fate was “sealed by the Government’s failure to get a proper economic recovery”.

Oh what a pathetic statement. You just look desperate and irrelevant when you come up with such tripe and nonsense.