MP says superyacht builder an inside trader

By VERNON SMALL deputy political editor

Bill Lloyd, whose Sovereign Yachts development at Hobsonville was touted as a triumph for the Government's "jobs Machine", was an insider trader banned from being a director in British Columbia, Act MP Rodney Hide said in Parliament yesterday.

Documents tabled by Mr Hide show that six years ago the Securities Commission in British Columbia, Canada, found Mr Lloyd, an expatriate New Zealander, failed to disclose share trading in Templar Resources, a company listed on the Vancouver Stock Exchange.

At the time he was its president and a director.

The commission found he had "showed a reckless disregard of his obligations as an insider" under securities law, and the market was "seriously prejudiced" by not knowing about his share trading.

He was fined $20,000, banned from being a director of publicly listed companies for five years, and ordered to complete a course in the duties and responsibilities of company directors and officers.

The ban was still in effect on February 4 last year when luxury yacht builder Sovereign Yachts was launched in New Zealand with huge political fanfare.

Mr Lloyd's investment was tipped to create 300 jobs and hundreds of million of dollars in export earnings.

At the time, Prime Minister Helen Clark said she was "delighted that Mr Bill Lloyd had returned to do business in New Zealand" and that his return was like a "dream come true", Mr Hide said.

So far it has produced 40 jobs, and construction of the one yacht being built, Cloud Nine, has been delayed.

Deputy Prime Minister Jim Anderton said the company had spent $7 million on land, buildings and plant at Hobsonville and planned a $5 million purpose-built paint shed.

A second yacht was on the way which would create another 30 jobs.

"In view of the apparent success of this project I do not have any concerns. I applaud the company," he said.

The Government had put no money into the venture, but Mr Anderton's Ministry of Economic Development and the Waitakere City Council had helped smooth its way and cut through red tape.

Mr Hide said heads should roll at the ministry because checks of Mr Lloyd and his company had been inadequate.

Mr Anderton said the company's register was checked and the previous two years' financial statements were made available. He and officials had met Mr Lloyd and other directors when they presented plans for the Hobsonville Air Force base site.

At the time of the launch, Mr Lloyd was facing six lawsuits in Canada involving a total of more than $1 million.

Mr Hide has given the Herald a letter from yacht designer Ward Setzer, written last week, claiming that he was owed more than $200,000 in fees by Sovereign Yachts in Canada and New Zealand.

He also wanted copyrighted design documents for the Cloud Nine returned.

"Unintentional as it may be, we believe Sovereign Yachts has dampened American and possibly international client, designer and supplier interest in the New Zealand boat building industry," Mr Setzer said.

Mr Anderton said the claims against Mr Lloyd were commercial disputes and Mr Lloyd had deposited money with the courts until the issues were resolved.

Mr Hide was being fed information by competitors and those in dispute with Mr Lloyd.

He said Mr Lloyd did not owe "one single cent" in New Zealand.

Mr Lloyd could not be contacted yesterday.

nzherald.co.nz/marine