Nov
8
2016

Disclosures under the Financial Administration Act

On October 22, the Provincial Government proclaimed amendments to the Financial Administration Act as part of Government’s ongoing commitment to enhance transparency and accountability.

The Auditor General’s 2015 report included 10 recommendations in regards to government lending, which have all been acted upon.  The recommendations included that Government “should clarify the authorization requirements for write-offs and cancellations of amounts owing to the province.”

Government acted on this recommendation through the changes to the Financial Administration Act that state that the authority for both write-offs and cancellations is reserved for the Lieutenant Governor in Council. Further, the amendments provide clarity regarding public disclosure:

  • The name, address and amount of debt written-off or cancelled will be disclosed by an Order-in-Council, except for:
    • Those under the Social Assistance Act, Student Financial Assistance Act, and Long-Term Care Subsidization Act;  and
    • Those who owe not more than $25,000.

Government lending provides important support to Island businesses looking to expand, hire or develop new products, as we grow our economy. At the same time, good government means ensuring Islanders are kept informed of these investments and any change in their status.

More than $370 million in provincial loan capital is at work in the Island’s economy today. The loan portfolio is self-funding, generating more than $15 million annually in interest revenue. This more than offsets its operating costs, resulting in an annual profit for the province. The write-offs and cancellations are provided for through loan loss provisions and have been accounted for previously, meaning they will not impact the province’s 2016-17 budget.

A recent report from accounting firm Grant Thornton provided a detailed breakdown of the various impacts of government lending on the provincial economy. Some of the key findings of the report include:

  • Companies being supported by government financing generate $1.3 billion in annual revenues
  • Those companies support over 12,000 jobs, either directly or indirectly, and pay direct wages totaling $444-million.
  • Over the last nine years provincial financing programs have returned close to $48-million in  profits  for the Province after all write-offs and expenses have been accounted for.
  • Companies in receipt of provincial financing contributed $818-million to provincial GDP in 2014.
  • Over 60 per cent of the total portfolio supports companies in rural PEI.
  • In 2014 $97-million in provincial taxes was generated from companies and their employees supported by provincial lending.

The names of the companies and the total amount of each debt will be published in Orders-in-Council. The first disclosures include debts dating back to 2001.

 

P.E.I. Century 2000 Fund Inc cancellations:

 

Borrower

Address

Total debt, including interest

Mi’kmaq Confederacy of P.E.I Inc.

Charlottetown, PEI

$1,125,131

Northumberland Community Development Corporation

Murray River, PEI

$202,601

Opacmare Americas Corporation

Pooles Corner, PEI

$273,768

Testori Americas Corporation

Slemon Park, PEI

$6,160,480

Wiebel Aerospace (1995) Inc.

Summerside, PEI

$2,173,269

 

P.E.I. Century 2000 Fund Inc write-offs:

 

Borrower

Address

Total debt, including interest

Cabinetmaster Architectural Woodwork Ltd.

Charlottetown, PEI

$1,251,472

Canadian Mussels Ltd. 

Gaspereaux, PEI

$453,969

Meadow Fresh Mushrooms Inc.

North Wiltshire, PEI

$491,006

Quality Thermoform & Packaging Company Ltd.

Borden-Carleton, PEI

$1,345,497

 

Finance PEI cancellations:

 

Borrower

Address

Total debt, including interest

Mariner Seafoods Inc.

Montague, PEI

$386,862

Beach Point Specialty Foods Inc.

Murray Harbour, PEI

$167,238

John F. Acorn Inc.

Primrose, PEI

$94,828

Danny’s Custom Truck Fenders Inc.

Souris, PEI

$89,824

Ark Bio-Medical Canada Corp.

Winsloe, PEI

$71,256

Hope River Ent. Inc.

Kensington, PEI

$47,471

Global Vetnostics Inc.

Charlottetown, PEI

$30,798

 

Finance PEI write-offs:

 

Borrower

Address

Total debt, including interest

Central Marine Fiberglass Ltd.

Cornwall Business Park, PEI

$604,206

Canadian Mussels Ltd.

Gaspereaux, PEI

$302,875

Fortius Canada Inc.

Charlottetown, PEI

$253,074

Meadow Fresh Mushrooms Inc.

Hartsville, PEI

$178,090

Entegrity Wind Systems Inc.

Charlottetown, PEI

$174,531

Sandstone Shores Inc.

Elmira, PEI

$52,502

Prince Edward Island Culinary Adventures Limited

Cornwall, PEI

$46,606

Summerside Industrial Fabricators Inc.

Summerside, PEI

$46,585

CPI Industries Inc.

Winsloe, PEI

$37,739

J&A Leasing and Holding Inc.

Montague, PEI

$26,572

Fibre-Isle International Inc.

Mount Carmel, PEI

$25,349

Amounts under $25,000

Various

$13,386

 

Revenue Tax Act Accounts Receivable write-offs:

 

Name

Address

Amount of debt

Dwayne Hughes (Dwayne Hughes Truck Repairs)

Harrington, PEI

$90,730.51

AM Aloha Limited (East Coast POS)

Bedford, NS

$25,464.67

100948 PEI Inc. (Pedro’s Island Eatery)

Cornwall, PEI

$42,886

Mitchell MacLeod (MacLeod Law Office)

Charlottetown, PEI

$31,864.91

Amounts under $25,000

Various

$221,097.71

 

Health PEI Accounts Receivable cancellations:

 

Name

Address

Amount of debt

Bruce Nigel Howard (the estate of)

London, United Kingdom

$775,517.90

Amounts under $25,000

Various

$2,590.80

 

Health PEI Accounts Receivable write-offs:

 

Name

Address

Amount of debt

Amounts under $25,000

Various

$61,715.38

PEI Grain Elevators Corporation Accounts Receivable write-offs:

 

Name

Address

Amount of debt

Amounts under $25,000

Various

$930.76

Media Contact:

Andrew Sprague

Senior Communications Officer

Department of Economic Development and Tourism

(902) 368-5535

asgsprague@gov.pe.ca

 

 


 

 

 

 

 

General Inquiries

Department of Economic Development and Tourism
3rd Floor North, Shaw Building
105 Rochford Street
PO Box 2000
Charlottetown, PE C1A 7N8

Phone: (902) 368-5540
Fax: (902) 894-0342

tpswitch@gov.pe.ca