21 Sep 2010

Sth Canterbury Finance inquiry not needed - PM

7:01 am on 21 September 2010

Prime Minister John Key says there is not a need for a public inquiry into the failure of South Canterbury Finance.

The lender, which was owned by Allan Hubbard, was put in receivership on 31 August, after it failed to attract fresh capital to rectify a breach of its Trust Deed.

The Government has since paid $1.75 billion to investors who were covered by its retail deposit guarantee scheme, as well as other creditors.

Mr Key says the receivers are still working to claw back value from the company's assets, but he has not had any up-to-date advice on how it is progressing.

But, he says, Finance Minister Bill English plans to issue as much paperwork about the collapse as soon as possible.