Blue Chip - Help from a Chartered Accountant

Hon Lianne Dalziel Minister of Commerce, Minister for Food Safety Associate Minister of Justice, MP for Christchurch East

15 April 2008

Govt and NZICA joint initiative helps Blue Chip investors

Commerce Minister Lianne Dalziel today announced that the Companies Office is collaborating with the New Zealand Institute of Chartered Accountants (NZICA) to set up a freephone number to connect Blue Chip investors with Chartered Accountants who will provide one hour's free advice on the investor's situation.

"Many investors who've been caught up in the Blue Chip liquidations feel they don't know who they can trust or where they can go for good advice. This initiative involves a professional body stepping up to the plate and partnering with government to offer assistance. The response from NZICA members has been overwhelming, with more than 230 members already offering assistance.

"I congratulate the NZICA members who have offered to work with us to make this very generous offer to help people in financial distress."

The Companies Office has set up a freephone service that will be able to match callers to an NZICA member in their region who has volunteered to provide an hour's consultation on their Blue Chip situation at no charge.

"Investors circumstances are different. Some have more urgent needs than others. This initiative enables people to get some professional guidance specific to their individual situation," Lianne Dalziel said. If investors wished to engage the NZICA member for further advice it would be on a regular commercial basis as agreed between the client and the accountant.

Many investors will have already sought independent advice and will not need to call the freephone number, Lianne Dalziel said.

"At this stage the initiative is aimed only at investors of any of the Blue Chip companies that are now in liquidation, and particularly at those people who are in serious straits and in need of immediate financial advice."

The freephone number was an initiative of the Commerce Minister in consultation with Blue Chip Liquidator Jeff Meltzer who then brought the NZICA on board. Investors seeking help should call freephone 0508 197 510 during office hours, although the service will start at 6pm tonight and operate during the evening of its first day.

Contact: Elspeth (Ellie) McIntyre, Press Secretary
ph 04 471 9397
cell 021 227 9397
All Lianne Dalziel's media statements and speeches are at: www.beehive.govt.nz/lianne+dalziel

Institute offers free advice for Blue Chip investors

Blue Chip investors caught between a rock and a hard place will be pleased with the announcement from the Minister of Commerce, Lianne Dalziel, offering free financial advice from a public practitioner member of the Institute of Chartered Accountants.

Chief Executive Keith Wedlock says Institute members are happy to offer their expertise to the investors which may enable them some breathing space while the situation is sorted.

"We already had one or two colleagues who had discussed positions with financiers to give the investors some time. After talks Blue Chip Group liquidator Jeff Meltzer and the Minister, we agreed this service could be extended to relieve some of the pressure on other investors who may be unsure of where to turn to for help," says Mr Wedlock.

The Institute have compiled a list of public practitioners willing to give an hour of their time to offer advice to investors. Mr Wedlock says this advice is needed urgently for investors, many of whom are elderly, to help them manage mortgage repayments after loss of rental revenue in the coming months.

"We're taking the guesswork out of the equation by putting the investors in front of one of our public practitioners who has the knowledge and expertise to advise them on the best course of action depending on their particular circumstances.

"Our members are always keen to take the lead when it comes to offering the best advice which will benefit the members of their local communities."

Possible options include asking the lender for a three-month deferral of payments or a reduction of interest/principal payments; refinancing off shore loans with a local bank or by liquidating other assets; and obtaining refinancing or funds from family members.

How it works

• Public practitioners have been asked for their assistance; volunteers will provide their time without charge to a maximum of one hour.
• The Institute will maintain a list of practitioners willing to provide advice to Blue Chip investors, to a maximum of three investors per practitioner. This list will be supplied to the Ministry of Economic Development who will forward contact details of investors seeking advice.
• Participating public practitioners will make contact within 48 hours and arrange one hour of free advice to the investor.

For further information, please contact:
Judy Knighton
Communications Manager
judy.knighton@nzica.com
Tel: 04-9175 621
Mob 0274 779 486