6 Sep 2010

Taxpayer bill for collapse $300m to $400m, says Government

6:25 pm on 6 September 2010

The cost to taxpayers of the collapse of South Canterbury Finance will be between $300 million and $400 million, the Government now says.

It will pay out $1.6 billion to the finance company's investors, and intends to recoup much of that in the next three to four years.

About $900 million has been set aside to cover liabilities under the Retail Deposit Guarantee Scheme.

Prime Minister John Key says Cabinet was briefed on Monday by Finance Minister Bill English.

Mr Key says financial institutions have paid about $500 million between them for cover under the guarantee scheme, which leaves a taxpayer deficit of $300 million to $400 million.