web analytics

English refuses inquiry into $1.7bln SCF bailout

Written By: - Date published: 11:00 am, September 11th, 2010 - 34 comments
Categories: accountability, public services - Tags: ,

Bill English has ruled out an inquiry into the SCF affair. Think about that: the government is forced to spend the annual Police budget in a single morning and it isn’t even interested in learning what could have been done better.

Compare that to the public service’s response to the earthquake, on the other hand, which will doubtlessly be subject to numerous inquires. It’s just good governance to examine how things went in a major event so that they can be done even better next time.

Imperator Fish, whose a lawyer, has a piece on the SCF bailout that says the Crown was legally obliged to pay out New Zealander depositors, would have been obliged to pay out existing depositors even if it had kicked SCF out of the guarantee scheme, and was under no legal obligation to pay out the foreign depositors or the other creditors. It seems to me that means if the government had kicked out SCF earlier and only paid who it had to then tens or hundreds of millions could have been saved. Imperator Fish is largely pro the bail-out yet calls for an inquiry. It’s just good practice.

What good reason could there be for not investigating the SCF bailout? When there’s billions of dollars on the line, it’s irresponsible not to try to learn from experience.

PS. If you haven’t been already, you should check out Brendon Burns‘ accounts from on the ground in Christchurch. Brings a far more human angle than what I’ve seen in the msm.

34 comments on “English refuses inquiry into $1.7bln SCF bailout ”

  1. Draco T Bastard 1

    Of course he does – he knows damn well that the SCF bailout should never have happened and wouldn’t have if they’d been held to the terms of the agreement that the government guarantee scheme enforced. Which means that he, himself, would be found culpable for it.

    RWNJs – preach personal responsibility but refuse to take any themselves.

  2. JJ 2

    The SCF bailout shouldn’t have happened, as no finance companies should have been covered by the guarantee – risk free rate of return much? But this is a thing that should have been debated when finance companies were included into the guarantee, not now when the governments hands are (in the opinions of legal experts) unquestionably tied. I generally support an inquiry into the matter.

    This talk of 1.7 billion is mislreading rubbish, of the money injected (I thought it was 1.6 billion) the majority will be recovered thus the net bailout will be closer to $300-600M.

  3. Loota 3

    And when is Labour going to start promising a top to bottom inquiry into SCF?

    • Tigger 3.1

      Hang on, Labour is the government?

      But Loota, got to assume you agree an investigation is in order.

      • Draco T Bastard 3.1.1

        They’re not the government ATM but they can promise an investigation for when they get in power again.

        • Tigger 3.1.1.1

          Yea, they can promise to promise to do it, not actually do it. We need the investigation now. Labour need to hammer this one in the House until this lot are forced to do it.

      • Loota 3.1.2

        With over a billion dollars handed out I think the term “Inquisition” would be better suited than “inquiry” 😛

  4. nzfp 4

    What, hold on didn’t Winnie get investigated by the Police, Parliamnet, the SFO for his involvment with a Billionaire? Yet the collapse of the largest Finance company leading to the largest bailout – bigger the the Maori Waitangi Tribunal settlements by the way – in NZ history doesn’t require an investigation? What country is this?

    I mean come on the liquor store down the road gets ripped off and that gets investigated but this doesn’t?!?

  5. kriswgtn 5

    The tories cant afford for ANYONE to poke around into this
    so do as you’re told and accept “”NO investigation””

  6. Anne 6

    Yes. Another Winebox (any old chardonnay will do) is in order. And if Labour, the Greens and other interested parties don’t pick up the ball, then it’s game on for Winston Peters?

  7. tea 7

    sorry to be a prat Eddie- any chance you could change ‘whose’ to ‘who’s/who is’ – hang over state it is bugging me. cheers

  8. jbanks 8

    “It may seem unfair that some people are getting the benefit of a guarantee not designed for them, but the alternative is to risk getting much less during the receivership. English’s position on this matter is at least defensible, and may in fact be financially prudent.”

    Like the Govt. has been saying all along, SCF’s collapse would have damaged the economy a whole lot more than the cost of paying out investors.

    Financially prudent = Good

    • Loota 8.1

      Like the Govt. has been saying all along, SCF’s collapse would have damaged the economy a whole lot

      How?

      Small investors could have been paid back in full. Large speculators could take a sharp haircut and be made to eat some losses.

      Any businesses who had been promised credit or cover of cashflow by SCF could still have had credit extended to them fully underwritten by the Govt.

      Financially prudent = Good, only problem is != Bill and John’s antics in draining the public purse.

      • jbanks 8.1.1

        Excluding some investors most likely would have ended up in years of litigation at the taxpayers expense. Also this would have been devastating to our image of being a desirable place for foreign investors to bring capital. The effects of not paying out ALL the investors would have been shooting our economy in the foot.

        Thankfully the current Govt. were the ones making the decisions here as Labour’s lack of financial and economic knowledge could have been tragic for New Zealand.

        • Puddleglum 8.1.1.1

          “Also this would have been devastating to our image of being a desirable place for foreign investors to bring capital. The effects of not paying out ALL the investors would have been shooting our economy in the foot.”

          So, you’re telling me that we have a system in which we need to keep foreign investors sweet by periodically providing them with government guaranteed, above bank rate returns for investments in finance companies that are known to be in financial trouble? Is that a good system?

          • jbanks 8.1.1.1.1

            No. I’m telling you that IF an institution covered by the Guarantee Scheme fails – then paying out all investors is the ‘financially prudent’ decision.

            Whether Labours Guarantee Scheme is good or not is no reason to make bad decisions regarding foreign investors.

            • Loota 8.1.1.1.1.1

              Whether Labours Guarantee Scheme is good or not is no reason to make bad decisions regarding foreign investors.

              Oh, I see what you did there.

              Labour put the scheme together to help mum and dad investors, National ran the scheme to payout big time financial speculators.

              no reason to make bad decisions regarding foreign investors

              its these bad decisions regarding NZ taxpayers you need to be worried about, and how we are all being ripped off to provide corporate welfare to foreign investors.

              • jbanks

                How is the decision to pay out all investors not a good decision for tax payers given that not doing so would cost them a lot more?

                Your idea that National wants to take our money and give it to foreign investors for “welfare” sounds like some kind of wacky conspiracy theory.

                • Puddleglum

                  jbanks, do you think that the decision in April regarding SCF and the guarantee scheme was a good one?

  9. ron 9

    four words for Double Dipton – brooooook, brook, brook, brook………………………………….

  10. Treetop 10

    Year two of the National Government’s three year term. This government is shaping itself to be the government of avoiding inquiries as too much would be exposed. SCF is the tip of the iceberg. Beneath this iceberg will be the EQC.

    This government also needs to be aware of their excessive borrowing which will lead to one of the biggest deficits this country has known within a three year term. The recession cannot be blamed for the bail out of SCF or decisions the EQC make.

    • Loota 10.1

      The recession cannot be blamed for the bail out of SCF or decisions the EQC make.

      Watch them try their line about Labours 9 years of economic mismanagement over and over and over and over again.

      • Treetop 10.1.1

        Loota you mean like buying Kiwi Rail back (even though a broken arse when brought, at least we own it) and Kiwibank, (I’d like to give Michael Cullen the oppertunity to grow it).

        • Loota 10.1.1.1

          I have a feeling that Kiwibank should be hugely grown, and be used to force the private financial sector to take less money out of the productive economy. They’ll hate it, but too bad.

  11. Tanz 11

    English is just trying to be fair and to play fair. Give him a break.

    • Puddleglum 11.1

      “English is just trying to be fair and to play fair.”

      ‘Fair’ in what sense? And to whom? (to non-investors in SCF?)

  12. Jum 12

    We wait til the election runup and ask Bill English the same question: what does his government have to hide in not having the enquiry? If Bill English was indeed the feeder of emails for the Hollow Men, and he’s not dishing out emails now, it means his fingers are all over this pie, like they were with the betrayal of ECAN and the Pacific funding without paperwork. This guy, along with JKeyll and Hide and Brownlee is going to give New Zealanders not only a giant headache but a giant bill to pay because of him and his government’s betrayal of Kiwis to big business mates. Auckland ATA’s pretence of open and transparent governance in the wake of giving Auckland’s IT computer contract to international mates would have had Hide’s and JKeyll’s sign-off.

    They’re all pond-scum feeding off New Zealanders and betraying us in the process. I should hope these betrayals and more to come will be writ large in the sight of all Kiwis come 2011. The rugby world cup outcome should be the least of this corrupt government’s worries.

Links to post

Recent Comments

Recent Posts

  • Tokelau Language Week reminds us to stay united and strong
    Staying strong in the face of challenges and being true to our heritage and languages are key to preserving our cultural identity and wellbeing, is the focus of the 2020 Tokelau Language Week. Minister for Pacific Peoples, Aupito William Sio, says this year’s theme, ‘Apoapo tau foe, i nā tāfea ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • NZ announces a third P-3 deployment in support of UN sanctions
    The Government has deployed a Royal New Zealand Air Force P-3K2 Orion (P-3) maritime patrol aircraft to support the implementation of United Nations Security Council (UNSC) resolutions imposing sanctions against North Korea, announced Minister of Foreign Affairs Winston Peters and Minister of Defence Ron Mark. “New Zealand has long supported ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Pacific trade and development agreement a reality
    Pacific regional trade and development agreement PACER Plus will enter into force in 60 days now that the required eight countries have ratified it. Trade and Export Growth Minister David Parker welcomed the announcement that the Cook Islands is the eighth nation to ratify this landmark agreement. “The agreement represents ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Securing a pipeline of teachers
    The Government is changing its approach to teacher recruitment as COVID-19 travel restrictions continue, by boosting a range of initiatives to get more Kiwis into teaching. “When we came into Government, we were faced with a teacher supply crisis,” Education Minister Chris Hipkins said. “Over the past three years, we ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Border exceptions for a small number of international students with visas
    The Government has established a new category that will allow 250 international PhD and postgraduate students to enter New Zealand and continue their studies, in the latest set of border exceptions. “The health, safety and wellbeing of people in New Zealand remains the Government’s top priority. Tight border restrictions remain ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • First COVID-19 vaccine purchase agreement signed
    The Government has signed an agreement to purchase 1.5 million COVID-19 vaccines – enough for 750,000 people – from Pfizer and BioNTech, subject to the vaccine successfully completing all clinical trials and passing regulatory approvals in New Zealand, say Research, Science and Innovation Minister Megan Woods and Health Minister Chris Hipkins. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • International statement – End-to-end encryption and public safety
    We, the undersigned, support strong encryption, which plays a crucial role in protecting personal data, privacy, intellectual property, trade secrets and cyber security.  It also serves a vital purpose in repressive states to protect journalists, human rights defenders and other vulnerable people, as stated in the 2017 resolution of the ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Ministry of Defence Biodefence Assessment released
    The Ministry of Defence has today released a Defence Assessment examining Defence’s role across the spectrum of biological hazards and threats facing New Zealand. Biodefence: Preparing for a New Era of Biological Hazards and Threats looks at how the NZDF supports other agencies’ biodefence activities, and considers the context of ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Approaches to Economic Challenges: Confronting Planetary Emergencies: OECD 9 October 2020
    New Approaches to Economic Challenges: Confronting Planetary Emergencies: OECD 9 October 2020 Hon David Parker’s response following Thomas Piketty and Esther Duflo. Good morning, good afternoon, and good evening, wherever in the world you might be. I first acknowledge the excellent thought provoking speeches of Thomas Piketty and Esther ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Kaipara Moana restoration takes next step
    A Memorandum of Understanding has been signed today at Waihāua Marae between the Crown, local iwi and councils to protect, restore and enhance the mauri of Kaipara Moana in Northland. Environment Minister David Parker signed the document on behalf of the Crown along with representatives from Ngā Maunga Whakahī, Ngāti ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • New Zealand and Uruguay unite on reducing livestock production emissions
    Agriculture Minister Damien O’Connor and Uruguayan Minister of Livestock, Agriculture and Fisheries Carlos María Uriarte have welcomed the launch of a three-year project that will underpin sustainable livestock production in Uruguay, Argentina, and Costa Rica.  The project called ‘Innovation for pasture management’ is led by Uruguay’s National Institute of Agricultural ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • 3100 jobs created through marae upgrades
    Hundreds of marae throughout the country will be upgraded through investments from the Provincial Growth Fund’s refocused post COVID-19 funding to create jobs and put money into the pockets of local tradespeople and businesses, Regional Economic Development Minister Shane Jones and Māori Development Minister Nanaia Mahuta have announced. “A total ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Health volunteers recognised in annual awards
    Health Minister Chris Hipkins has announced 9 teams and 14 individuals are the recipients of this year’s Minister of Health Volunteer Awards.  “The health volunteer awards celebrate and recognise the thousands of dedicated health sector volunteers who give many hours of their time to help other New Zealanders,” Mr Hipkins ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Community COVID-19 Fund supports Pacific recovery
    The Minister for Pacific Peoples, Aupito William Sio says a total of 264 groups and individuals have successfully applied for the Pacific Aotearoa Community COVID-19 Recovery Fund, that will support Pacific communities drive their own COVID-19 recovery strategies, initiatives, and actions. “I am keen to see this Fund support Pacific ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Community benefits from Māori apprenticeships
    Up to 50 Māori apprentices in Wellington will receive paid training to build houses for their local communities, thanks to a $2.75 million investment from the Māori Trades and Training Fund, announced Employment Minister Willie Jackson today. “This funding will enable Ngāti Toa Rangatira Incorporated to provide its Ngā Kaimahi ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Training fund supports Māori jobseekers
    Rapidly growing sectors will benefit from a $990,000 Māori Trades and Training Fund investment which will see Wellington jobseekers supported into work, announced Employment Minister Willie Jackson today. “This funding will enable Sapphire Consultants Ltd. to help up to 45 Māori jobseekers into paid training initiatives over two years through ...
    BeehiveBy beehive.govt.nz
    3 weeks ago