"Shouldn't have come to this"

06-09-2010 | Annette Scott

Every day Martin Mehrtens puts on his overalls and heads out to make an honest dollar. But last week's fall of his financial backer now has him re-thinking.

In 1998 Martin Mehrtens was forced off his South Canterbury cropping farm. "It all went bust and I was devastated. I was deciding whether to go to Australia or milk cows when I was persuaded otherwise."

South Canterbury Finance (SCF) stepped up.

"It was Allan Hubbard who gave me, like hundreds of others, the economic confidence to go on."

But it wasn't in farming, a qualified engineer, Mehrtens established his own automotive engineering business in the Waimate district and fitting with his farming experience he also runs a baling and silage contracting business.

"And for 20 years I have had SCF backing me. I have put overalls on, I have sweated, I have fixed tractors - every dollar loaned has been an honest dollar spent. What happens now that the government has let the wheels fall off SCF?"

Mehrtens blames the government for the demise of SCF, suggesting it had the deal stitched up and the cheque written out three months ago.

Meantime he has been left holding the paperwork for the application he had planned to lodge last week with SCF for a loan that may have been up to $250,000 to purchase two silage loader wagons and a new tractor for his agricultural contracting business.

He admits there were probably times when he had money when it was a "bit borderline" but said he could hold his head high in that everything always worked out in the end.

"But that was on a trusting and honest relationship built over many years."

While he acknowledges there will be other lending opportunities, he has concern.

"This (SCF receivership) has left a lot of uncertainty. There will probably be others lending but they will be very careful who they lend to and I don't know if I will qualify. The company (SCF) has stood by me understanding my business in ways the banks have been less inclined too."

It is not unusual for Mehrtens to be left "swinging the cat" for $35,000-$40,000 on any one job that goes through his workshop.

"That's the nature of my business, the work comes in, it goes out, the bill goes out and the money often takes time to come in. Farm lending needs s bit of flexibility and understanding."

The machinery is just one of the projects now in doubt for Mehrtens who was also planning extensions to his workshop and the possibility of employing more staff to cope with the long list of jobs farmers have waiting for him.

The current uncertainty has seen him put his spending plans on hold, a decision he says will have a snowballing effect in the rural community.

"And it all shouldn't have come to this. No money was owed to investors initially. The system wasn't broken so why did the government need to bring in the heavies? The government has tried to split open the piggy bank and we have been left struggling in the wake. I think it is just so wrong," Mehrtens said.

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