4 Apr 2011

Govt urged to disclose offers for failed finance company

6:49 pm on 4 April 2011

The Labour Party is renewing its call for the Government to release all documentation relating to offers to buy South Canterbury Finance.

The Government on Monday announced a $300 million increase in losses from bailouts of finance companies to $1.2 million.

The blow-out comes as the Government received new information about loans by South Canterbury related to the failed finance company's former owner Alan Hubbard.

Labour's finance spokesperson David Cunliffe says the blow-out shows the Government was wrong to put the finance company into receivership in August last year.

But Prime Minister John Key says offers to buy South Canterbury Finance came with too many risks and the taxpayer would have faced losses just as large.

Mr Cunliffe says the Government should release documents relating to offers for the company and let the public make up their own minds.