Under fire Timaru businessman Allan Hubbard continues to fall foul of the Government, as two more of his trusts are placed into statutory management.

Commerce Minister Simon Power announced that Temple Bar Family Trust and the Barns Charitable Trust have joined Aorangi Securities and the seven charitable trusts already under outside control.

Mr Power says the decision is in the public interest, and was made to protect the creditors of Aorangi Securities, which lists both trusts as shareholders on its books.

Business commentator Bernard Hickey says the latest freezes won’t be the last.

“You’d have to expect that there’ll be more that the Government will receive, as it digs through the morass of trusts, and funds and companies that Hubbard has amassed."

Bernard Hickey says despite Allan Hubbard’s reputation as a spendthrift, the statutory managements and the South Canterbury Finance receivership may do irreparable harm to investor confidence.

"He was special in that he gained the trust of a lot of people through his good deeds, generosity and his modest lifestyle.

"I mean, he does drive an old, yellow VW around, and he gave a lot of money to charities.

"At the same time, though, he did use his charitable trusts to funnel money around his empire, and to provide loans to farmers, in many cases on interest free terms.

"In the end, though, many investors will now lose money, and of course it will also affect the taxpayer, who will foot the South Canterbury [Finance] bill.”