Finance Minister Bill English has responded to claims made by Allan Hubbard that placing him into statutory management dealt a body blow to South Canterbury Finance.Mr Hubbard, the founder and major shareholder of the failed finance company, said today in
Finance Minister Bill English has responded to claims made by Allan Hubbard that placing him into statutory management dealt a body blow to South Canterbury Finance.
Mr Hubbard, the founder and major shareholder of the failed finance company, said today in a statement that he had been sidelined from working to save South Canterbury.
But Mr English said this afternoon that, over the past 12 months, there had been a “lot of discussion” with Mr Hubbard about his own affairs, those of South Canterbury and how he could contribute to sorting out the situation.
“There’s been ample opportunity for the owners of the business to save it," he said.
“Mr Hubbard himself has made considerable personal commitments which I think have been widely respected in the community and in the financial community – however the options have simply run out.”
Mr English made it clear that the decision to place Mr Hubbard’s assets into statutory management was made purely according to statutory requirements.
He hoped that today’s decision to bankroll the receivership would be received with gratitude by depositors and supporters of the company.
“Whatever your points of view about how South Canterbury has been run or the personalities, taxpayers are ending up with a bill of $600 miliion and there are a lot of other things we could have used that $600m for.”
“Without that support, Timaru and South Canterbury could have ended up $600m out of pocket.”
Mr Hubbard, as a shareholder rather than a depositor of South Canterbury Finance, will not receive a payout under the government’s retail deposit guarantee scheme.
