EUFA Reaction to the Minister of Commerces Speech last night

The Minister of Commerce has taken a swipe at EUFA (Members) and “a number of groups” in her speech last night in Auckland hosted by Phillip Fox.

The Minister continues to overstate the cases where individuals are to blame. This will be a percentage less than 5% and most of the 5% own up to their own responsibility. EUFA have told the Minister this but she has ignored the facts.

EUFA believe the Government have an obligation to the 95% who did due diligence, got professional advice and got cheated.

New Zealand’s financial literacy should have been addressed in the late 80’s when the share market crash happened. This did not happen and 20 years on the Government are blaming the individuals for being naive and too trusting. In New Zealand it would not be naive and too trusting to trust a professional as we believe we have laws to protect us.

The Minster said last night “But the call for the government to set and apply new rules retrospectively continues.” This of course is ludicrous. The calls from all individuals is that the current laws be applied and applied with urgency. EUFA are calling the Government to put in resources to enable the investigations are not stymied by lack of the essential ingredients to allow investigations proceed without taking all the resources’ from other equally important investigations currently underway.

Government Agencies from Police, Commence Commission, etc are always stating they are under funded and under resourced (people) and we are calling on the Government to fund and make resources’ available.

EUFA are also calling on the Government to make available funds to those who can not afford an effective remedy ( a fair hearing) for the laws to be applied. i.e. only 10% of investors can afford the much publicised legal action with Blue Chip. This means 90% are not able to get a fair hearing something even murders are afforded in this country. Legal Aid does not cut the mustard as much as we all like to think it does. It is promoted as accessible to all who should need it. It is not. It is a fantastic scheme for those on the wrong side of the law. On the other hand 90% who have suffered at the hands of wrong doings are denied their human rights of an effective remedy.

EUFA will prove its claims, making the government spin a crock. Sadly there are the chair side critics and ill informed making judgements and statements without knowing the facts. The EUFA RECOVERY ROAD SHOW Report will demonstrate the facts and the critics may become much more sympathetic and understanding. Mrs Suzanne Edmonds said “All politicians should stop listening to the in-house opinions and take considerable notice of what the people (victims) evidence and we are hopeful the EUFA RECOVERY ROAD SHOW Report will be taken seriously and not dismissed with further spin.

Ironically when New Zealanders become chair side critics on street crime we all become totally immerses in sympathy for the victims yet we denigrate victims of white collar crime.

After reading the Ministers speech notes yesterday, EUFA Finance Spokesman Gray Eatwell said from Southland “ The Minister is not actually listening to the people of New Zealand. She can't let go of her eggs in baskets and mortgaging homes, but she fails to accept the reality of the crime. Her statements are based on the smallest group s and she is neglecting the majority in her speeches. Eggs and homes have nothing to do with false prospectuses , false financial figures and false documents that have caused this crisis. He added “Legislation passed since 1999 has not been enforced, so how can the Government claim any parity with overseas. This spin wont wash with the people.”

The Minister also said “Government intervention when things go wrong must remain the last resort if we want to keep confidence in markets and encourage economic growth”

If the Government had acted in a timely way( when the issues and warnings were given) confidence would not be down and we could have fenced the cliff top. EUFA ask the government, if the current crisis is not the time to step in when would they? As undertakers at the bottom of the cliff?