Nelson will feel pain of failure

BY KAREN GOODGER

The fallout from today's South Canterbury Finance announcement is expected to shake Nelson, where its tentacles spread in various directions.

As well as owning the Nelson-based Helicopters NZ, South Canterbury Finance has a branch in Montgomery Square and is thought to have a "reasonable portfolio" of local investors and businesses.

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If you have a business relationship with South Canterbury Finance or are involved as an investor, we would like to hear from you. You can email us at chiefreporter@nelsonmail.co.nz

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Dairy Holdings, of which South Canterbury Finance is a big shareholder, has one farm at Murchison and five around Springs Junction.

Earlier this year, The Nelson Mail reported that SCF provided a 100 per cent loan to Monaco Village developer Scott Sanders and his business partner Claire Davies to buy Raetihi Lodge in the Marlborough Sounds for $2.225 million.

Nelson MP Nick Smith said SCF's loans to businesses in Nelson, Marlborough and Tasman were mainly in the agriculture and horticulture industries.

"Since National has been government and there's been underlying nervousness, I have had contact with both depositors seeking assurances and businesses that are affected in having been financed by South Canterbury Finance," Dr Smith said.

"The business does have a reasonable portfolio. It's not necessarily as significant as the exposure in Canterbury and Otago."

South Canterbury Finance's most significant interest in the region is Helicopters NZ which employs more than 200 staff, about 35 of those in Nelson.

It has between 45 and 50 helicopters, servicing a wide range of contracts in countries such as Antarctica, Australia and Cambodia.

Dr Smith described it as a "superbly successful business of which the region should be hugely proud".

"I'll be working to ensure that there is the least damage possible to Helicopters New Zealand in being caught up in the South Canterbury Finance storm," he said.

- © Fairfax NZ News