Australian-based ex-Blue Chip boss Mark Bryers will be arrested if he returns to New Zealand but the Government is powerless to extradite him to pay outstanding fines, according to Minister of Justice Simon Power.

Bryers was bankrupted in October 2009 owing personal creditors $230 million. Last May, he was convicted on 34 bookkeeping and record-keeping charges. He was sentenced to 75 hours' community work and fined $37,500 which he has not yet paid.

Gray Eatwell of lobby group EUFA told Power the Government would fail in its market regulatory reform if it allowed ineffective enforcement of existing laws.

"Given the stark contrast between the official actions taken to protect the investors of the Hubbard companies and the ongoing non-action to hold Mr Bryers to account, surely we should be forgiven for suspecting some form of corruption must be involved," he said.

But Power reiterated Blue Chip was not in the Crown Retail Deposit Guarantee Scheme, exposing taxpayers to liability.

He said failure to pay a fine was not enough to trigger extradition but an arrest warrant had been issued for Bryers.

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