Pressure on government to save SCF increases

There is an NZPA story on the NZ Herald website which would appear to lend some credence to the Greg Ninness story in today’s Sunday Star Times, which I commented on earlier today. A major source would appear to be Allan Hubbard, who appeared as well with similar news on the TV3 evening news.

Bill English on TVNZ’s Q&A this morning confirmed SCF would be discussed at Monday’s Cabinet meeting.

Pressure would appear to be mounting on the Key government.

Federated Farmers has now, according to the NZPA article referenced above, started to exert some pressure:-

The $2 billion company has widespread investments in the South Island’s economy and is a lifeline for many farmers.

Federated Farmers president Don Nicolson said the impact of a collapse would be severe.

“The cascade of a meltdown will not only be felt inside the farm gate but outside the farm gate through the investors and the communities of the region,” he said.

Further, Labour spokesperson on commerce and South Island MP Lianne Dalziel has commented that the government is not responding to questions she has raised. Ms Dalziel has suggested as well that some of the terms of the Deposit Guarantee Scheme have been changed:-

“I was told the Government does not comment on individual entities participating in the Retail Deposit Guarantee Scheme,” she said.

“Although investors have the comfort of the government guarantee, the Government seems to have changed some of the rules of eligibility behind the scenes and the protection may not be there for some who think they can rely on it.”

Exactly what the import, if any, of that comment remains to be seen.

Clearly though pressure for resolution is mounting.

Furthermore, the Hubbard camp would appear to have gone on the front foot in recent days in PR terms.


4 responses to “Pressure on government to save SCF increases

  1. that’s not how I read it, Peter, but I’m not much of a pundit on politics. Bill English appears to be suggesting they’ll be sure to save depositors (which they’ve contracted to anyway) and aren’t keen on saving individual failed institutions. I’ve still got hope!

  2. David

    I think it could go either way. Traditionally farmers have supprted National and many of their MPs represent rural electorates.


  3. SCF is covered by the government’s deposit guarantee. John Key was pretty clear on Breakfast this morning that will be honoured but I wouldn’t expect anything beyond that.

  4. I tend to agree. Yet Allan Hubbard and his supporters have been on the media today Radio Live and ZB pushing their barrow, whilst Sandy Maier, SCF CEO appears to be hosing down stories of a deal with government, but talking up the fact that there are offers out there.

    This story still has some way to go.

    Thanks for the input.

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