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Keep South Canterbury in perspective: NZIER chief economist

Tuesday 31st of August 2010

"Farm debt in New Zealand is $47 billion, on a total farming business of around $120 billion," he said. South Canterbury's liabilities, at $1.6 billion, were equivalent to just 3.4% of total farm lending, and just 1.3% of national farm assets.

By comparison, SCF's $1.6 billion in total liabilities - and a likely net Crown exposure of perhaps $700 million - was less of an economic shock than the high profile of the issue might imply, Eaqub said.

"We need to keep this in context, relative to the stock of debt. For the local economy, particularly around Canterbury and Timaru, this will have some big financial and confidence impacts.

"But it's the confidence aspect that's important, and the potential loss of confidence through to investing in general that I worry about. I don't think there needs to be," Eaqub said.

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Latest Comments
FMA outlines its latest expectations for advisers
Paul Flood: The danger is that the 'goalposts' (regarding what is acceptable or unacceptable adviser conduct) may be susceptible to change. Our 'Principles based' legal/regulatory environment lends itself to “prevalence-induced concept change” over time, perhaps not so much in the written laws and Code, as in the interpretation of the prescribed principles.
2 days ago Steve Wright
FMA outlines its latest expectations for advisers
Just a tip, if you use more than six, six letter words in a sentence you lose most Kiwi's. So avoid client/adviser confusion when writing your post or article if you would like it read and understood. Ironically, my last sentence was not likely read.
2 days ago Backstage
FMA outlines its latest expectations for advisers
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4 days ago Jon-Paul Hale
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4 days ago Jon-Paul Hale
FMA outlines its latest expectations for advisers
To correct errors in my previous post: "policies, templates, and controls" should read "policies, processes, systems and controls", and "is more conductive" should read "is more conducive".
5 days ago Paul Flood