Key rejects claim govt to blame for SCF’s woes
"South Canterbury's deterioration in balance sheet were the makings of Mr Hubbard and his senior management team and had nothing to do with the government," Key told reporters at his post-Cabinet press conference. SCF had been in a downward trend for some months, and Key rejected assertions that the statutory management had impacted on the lender's solvency.
Cabinet was briefed on the status of the financier by Finance Minister Bill English, who has put off travel plans to Asia by at least a day in case he has to deal with the fall-out relating to the company.
Prime Minister Key refused to be drawn on whether the government will bail-out the finance company, though he said that the government is not just focused on investors covered under the retail deposit guarantee scheme, but also on the cost to tax-payers and impact on the wider economy.
He said SCF is still an operating company, and the government will not get involved unless the trustee decides not to extend its waiver to the trust deed breach, which expires at the close of business on Aug. 31.
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