Government fails to sort out mess

The Government has clearly known about the difficulties faced by South Canterbury Finance for a long time, and serious questions need to be asked on behalf of New Zealand taxpayers, Labour Finance spokesperson David Cunliffe says.

“In particular, the Government must be transparent about what information has been available to them, and when it became available,” David Cunliffe said.

“Today’s announcement by South Canterbury Finance is a reflection of the National Government’s failure to produce a plan to lead the country out of the recession.

“Were there indications of significant difficulties or mismanagement before the original guarantee was made or extended in April this year, and how serious were those problems?

“What advice to the Government was provided by directors and trustees? When will the Government make what it knows about this whole sorry saga transparent to taxpayers who have been asked to foot a bill for hundreds of millions of dollars?”

David Cunliffe said the most important consideration at the moment, apart from transparency and honest answers to a huge range of questions, was being mindful of the health of the wider South Island community.

“Labour recognises the delicacy of the situation, and the importance of the Government taking into account the balance between effective use of taxpayer money, and the broader impact on the economy of the South Island. Taxpayers need to be assured that all relevant considerations have been taken into account.”

ENDS

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