HIH liquidator Tony McGrath has fixed the final cost of the company’s collapse – sort of. After months of work, the total loss estimate has been revised upwards by about $1 billion to “between $3.6 billion and $5.3 billion”.

Applying in the NSW Supreme Court yesterday to wind up the 18 companies in the HIH group – only one, FAI Reinsurance, was solvent – Mr McGrath said the process of reviewing and assessing assets and liabilities is continuing, but a reliable estimate of creditor payouts won’t be possible for at least a year. Payouts, if any? Probably another year after that. 

Bad news, except perhaps for Financial Services and Regulation Minister Joe Hockey. He announced last night that Mr McGrath’s latest estimate means the Federal Government won’t have to dig any deeper into its pockets to rescue distressed HIH claimants. “The estimated cost of the Government’s relief package remains at $640 million,” he said.  

The Minister’s statement came in the wake of continued speculation that the rescue payout plan will eventually exceed $1 billion, and may even double the Government’s estimate.