1 Sep 2010

SCF vital to South Canterbury - mayor

9:31 am on 1 September 2010

Timaru Mayor Janie Annear says the viability of South Canterbury Finance is crucial to both the region and the country.

She says the company owned by Timaru business Allan Hubbard plays a large role in the economic wellbeing of the area and is necessary to its recovery from the recession.

Ms Annear says the inquiries into some of Mr Hubbard's businesses are taking a toll on the morale of the city.

The Government placed Mr Hubbard and his wife under statutory management on 20 June, along with seven charitable trusts, Aorangi Securities, and later, Hubbard Management Funds.

The statutory managers said last week the value of investments has been overstated by 25% and that some investors in Aorangi Securities might lose their money.

The Serious Fraud Office is also investigating.

The Timaru Retail Association says spending has dropped since the Government's inquiries began.

Association chair Tim Small says the uncertainty is affecting spending in all sectors.

Ms Annear says the situation is upsetting for the community, where Mr Hubbard is highly respected.