Question Period, 6 April 2016
Source: Legislative Assembly of PEI

Executive Council loan authority

Dr. Bevan-Baker: Thank you, Mr. Speaker.

Question to the Premier. Can you inform this Assembly as to whether the Executive Council has the authority to take the initiative to directly grant a loan to a private company without it being submitted for proper authorization in the first place by a competent agency?

Some Hon. Members: Oh, oh!

Speaker: The hon. Premier.

Premier MacLauchlan: Mr. Speaker, in the normal course, Finance PEI and IIDI have their own processes for considering loan requests, and then those come forward through the board, in the case of Finance PEI, and through Treasury Board.

In the normal course those would eventually come to Executive Council.

Thank you, Mr. Speaker.

Speaker: The hon. Leader of the Third Party, first supplementary.

Dr. Bevan-Baker: Thank you, Mr. Speaker.

In the normal course that may be the case. But on October 28th, 2008, Executive Council approved a $30 million loan granted by Island Investment Development Inc., though nothing indicates that IIDI had supported that loan request and the loan application was not presented to the IIDI board of directors for prior approval to Executive Council’s approval.

Mr. Trivers: Shame!

Dr. Bevan-Baker: The Auditor General also pointed out that no proper security and no proper guarantees were sought.

A further question to the Premier: Can you please explain this apparent contradiction?

Speaker: The hon. Premier.

Premier MacLauchlan: Mr. Speaker, as I said previously, in the normal course – and I can assure you that that is the course that we pursue in government, is if loans are coming forward we would look for and value the opinion and advice and position of the board of IIDI.

Thank you, Mr. Speaker.

Speaker: The hon. Leader of the Third Party, your second supplementary question.

Dr. Bevan-Baker: Thank you, Mr. Speaker.

My understanding is that Executive Council authorizes loans submitted by lending agencies like IIDI, but not that they initiate them and that’s what I’m trying to get at here.

Homburg loan status

Another question to the Premier: Can you inform this Assembly on the current status of this particular loan?

Speaker: The hon. Premier.

Premier MacLauchlan: Mr. Speaker, I wonder if the hon. member could be more precise when he makes reference to “this particular loan.”

Speaker: The hon. Leader of the Third Party.

Dr. Bevan-Baker: It’s the one outlined and highlighted in the Auditor General’s report, the $30 million to Homburg Inc.

Speaker: The hon. Premier.

Premier MacLauchlan: Mr. Speaker, I’ve read, as I confirmed earlier, the Auditor General’s report.

She provides in her report an indication of the amounts involved in that transaction as of March 31st, 2015. It’s my understanding that the loan is still in good standing.

Thank you, Mr. Speaker.

 

3 Comments

  1. Bill Kays 11 April 2016 at 2:59 pm

    It would appear to me, Mr Bevan Baker, that you left the Premier off the hook on both questions. More follow up questions should have been asked to nail Old Wadey Boy, and his merry band of Liberal thieves, to the wall. Scripted theater is what it appears to be, and poorly written at that.

     
  2. Megan Glover 12 April 2016 at 10:29 am

    Mr. Kays: Dr. Bevan-Baker is only allowed one question plus two follow-up questions per Question Period. So as much as he may have wanted to, Dr. Bevan-Baker couldn’t ask any more questions than he did. However, the. Official Opposition (PC caucus) is allowed unlimited follow-up questions during the allotted time for Question Period.

     
  3. One Question Allowed? 12 April 2016 at 2:38 pm

    What a crock that the third party can ask only ONE QUESTION?????? and TWO FOLLOW-UP QUESTIONS???? PER QUESTION PERIOD????? That leaves no room for further investigation of the problems initiated by the government. No wonder the Liberals are laughing all the way to the bank while taxpayers go hungry.

     

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