An inquiry into all aspects of the South Canterbury Finance collapse will be held if Labour wins the election, the party says.
Finance spokesman David Cunliffe says it's already cost taxpayers more than $1 billion because of government mismanagement.
The
company collapsed last year while it was under the government's Retail
Deposit Guarantee Scheme, put in place at the height of the global
financial crisis in late 2008.
Mr Cunliffe says it was New Zealand's biggest corporate disaster and most expensive taxpayer bailout.
"The
government has totally mismanaged this fiasco - in 2010 National
declined a recapitalisation deal that would have limited further
liability to around $500 million," Mr Cunliffe said on Thursday.
"Instead, total confirmed losses may already have reached as much as $1.2 billion and are still climbing."
The inquiry would cover:
* the causes of the failure
* the role of the Retail Deposit Guarantee Scheme and whether people made deposits knowing the company was going to collapse
* whether the timing of the receivership was appropriate.
*
whether there was a recapitalisation alternative to receivership that
would have limited taxpayer exposure to around $500 million
* whether there was a proper process to realise the company's assets to ensure taxpayer exposure was minimised.