Bernard Hickey discusses this question in the video clip and related article. He looks at how closely involved SCF and Hubbard are in the South Island economy. Overall Hickey suggests the bullet should be bitten and SCF put out of it’s misery.
Yet, I wonder if the government is prepared to grasp that political nettle. The next few days will let us know one way or the other.
- Intriguingly, what would be the reaction if any potential white knight turned out to be Chinese or Indian?
- What would be the reaction if the means of propping up SCF, by the ‘white knight’ was via a purchase of dairy farms strugging to make their loan repayments?
- What would be the public reaction then?
- Would we see a demand for taxpayer support of Hubbard and SCF?
- Is there justification for taxpayer support of SCF?
- Would government rescue result in greater taxpayer losses in the longer term?
- Would a government rescue send the wrong message to the economy at large?