English must resign over SCF mishandling

National’s mishandling of the South Canterbury Finance collapse is a disaster of epic proportions and Finance Minister Bill English must resign, says Labour’s Finance spokesperson David Cunliffe.

“Bill English and company turned down recapitalisation offers that would have limited taxpayer costs for SCF to around $500 million,” David Cunliffe said.

“Instead National insisted on throwing it into receivership. National has grossly mishandled the issue.

“Losses have already reached $1.2 billion and are still climbing,” David Cunliffe said. “The extra $700 million lost to the taxpayer is in effect roughly equivalent to all the new money John Key has just cut out of this year’s budget.

“It just doesn’t stack up. Reputable bidders like the New Zealand Super Fund, Ngāi Tahu and a major international investment bank were turned away. Assets were left to rot in receivership, and it’s no surprise their value collapsed.

“I said this would happen six months ago, and I’m sorry to say it’s come to pass,” David Cunliffe said.

“Bill English must resign immediately, or release all the offer documents and advice he has so far withheld.”