7 Apr 2011

Hubbard supporters say Govt knew SCF risks

9:00 am on 7 April 2011

A supporter of businessman Allan Hubbard says the Government knew the risks when it agreed to cover his company, South Canterbury Finance, in the extended Retail Deposit Guarantee Scheme.

The Government estimates its liability for losses stemming from the company's collapse last year will be up to $1.1 billion.

Hubbard supporter Noel McPherson says emails from the Treasury and the Reserve Bank show serious concerns were raised about the company as early as 2009, months before its application for cover under the extended scheme was accepted.

He says ability of experts to decipher the health of the company's finances has to be questioned in the light of what's happened.