PM called a liar over Hubbard affair

Photo / Sarah Ivey

Prime Minister John Key was called a liar when he fronted a meeting in Timaru last night packed with vocal Allan Hubbard supporters.

The Government placed Mr Hubbard, his wife, Jean, and related companies into statutory management last year.

Hubbard headed the Timaru-based South Canterbury Finance which collapsed on August 31 last year after it failed to get a recapitalisation together.

The Government paid out $1.7 billion to cover investor losses, and loaned a further $175 million to the receivers to repay other investors.

"When I see an old man get rolled and robbed and accused of fraud when in fact he's one of the most honourable men in the country I am concerned," Radio New Zealand reported one man saying at the 500-strong meeting.

Key said South Canterbury Finance had been going to collapse for a long time.

"The entire time I've been Prime Minister I've had Treasury in my office week after week, month after month telling me South Canterbury Finance was going bankrupt."

The Government worked for months to save the struggling finance company, he said.

He said when the Serious Fraud Office got involved he had to be dispassionate.

Someone in the audience yelled the Prime Minister was lying.

"I like Allan Hubbard. I do not get up in the morning trying to find people to go after," Key said.

The Serious Fraud Office began investigating five related party loans involving South Canterbury Finance made between 2005 and 2009 shortly after SCF was placed in receivership.

The office said earlier this month it had agreed to put aside its decision whether to proceed with charges against Hubbard until a legal stoush over who will foot the South Canterbury Finance founder's legal bills is resolved.

Some at the meeting said Hubbard supporters were crazy and were not facing the facts.

"They have blinkers on they can't see that Allan Hubbard has done anything wrong. They don't appreciate that half the money he was giving away he didn't own anyway. It wasn't the bank of Allan, it was the bank of South Canterbury Finance," one woman said.

One woman told Radio New Zealand; "John Key's a w..ker".

Key said he accepted people had different views.

"That's to be understood. In the fullness of time we will see the work of the SFO and people will be able to get the chance to make their assessments."

Key has previously rejected calls from Hubbard supporters for a public enquiry into the Government's handling of Hubbard.

Hubbard was not at the meeting because he was having dialysis treatment.

- NZPA / NZ HERALD ONLINE