South Canterbury Finance Limited

[minimoke]

Take out the property development loans and SCF has been a good financial institution for small Island businesses and companies over the years.

But if there are bits of SCF that look like Aorangi the these business are highly geared, supported by second tier loans with seasonal and fluctuating income and assets which have no or little demand should they need to be liquidated. Add to that capitalised interest on depreciating assets in a market that will recover - but not necessarily quickly. Why should the tax payer be involved. Let them go to the banks for cash and let their financial position speak for itself. If not the banks then head over to Marac or somewhere for the equipment leasing. If these people can't get money from a variety of traditional sources why should th tax payer support their obviously high risk business?

If there is a good book - flog it off and use the cash to repay the tax payer for the Govt Guarantee. Likewise for Helicopters and Scales. Since when should the taxpayer get involved in a helicopter Business - it ain't no Air NZ. If I want a part of Helicopters I''ll buy shares. If I don't why should my elected representatives have a dabble - jeez they can't even flog off the Skyhawks.

Most taxpayers have to be in a sufficiently finacially sound position to borrow money. What makes South Island dairy farmers so special?

[Balance]

But if there are bits of SCF that look like Aorangi the these business are highly geared, supported by second tier loans with seasonal and fluctuating income and assets which have no or little demand should they need to be liquidated. Add to that capitalised interest on depreciating assets in a market that will recover - but not necessarily quickly. Why should the tax payer be involved. Let them go to the banks for cash and let their financial position speak for itself. If not the banks then head over to Marac or somewhere for the equipment leasing. If these people can't get money from a variety of traditional sources why should th tax payer support their obviously high risk business?

If there is a good book - flog it off and use the cash to repay the tax payer for the Govt Guarantee. Likewise for Helicopters and Scales. Since when should the taxpayer get involved in a helicopter Business - it ain't no Air NZ. If I want a part of Helicopters I''ll buy shares. If I don't why should my elected representatives have a dabble - jeez they can't even flog off the Skyhawks.

Most taxpayers have to be in a sufficiently finacially sound position to borrow money. What makes South Island dairy farmers so special?

Minimoke, matey - I agree with your sentiments 100% but it's a question now of limiting the loss to taxpayers.

I believe taxpayers are best served by SCF being owned by the Crown. Like Air NZ, it will be managed by professional managers, not someone from the government.

[Anna Naum]

http://www.nzx.com/news/4067597/SCF-...f-new-investor

[minimoke]

Minimoke, matey - I agree with your sentiments 100% but it's a question now of limiting the loss to taxpayers.

I believe taxpayers are best served by SCF being owned by the Crown. Like Air NZ, it will be managed by professional managers, not someone from the government.

Hasn't Treasury already got around $850m provisioning for net loss under the Deposit Guarantee. National Finance have just taken $130m gross of that . SCF would clearly be a big gross hit - but there is some value in there to reduce the tax payer overall exposure.