Legislative changes improve transparency on loan write-offs
Amendments to the Financial Administration Act were proclaimed October 22 as part of government’s ongoing commitment to enhance transparency and accountability.
“Our government is committed to openness and transparency, and believes Islanders should have access to information on how provincial money is being invested,” said Premier Wade MacLauchlan. “Lending programs provide 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.”
The changes ensure that, moving forward, all loan write-offs above $25,000 are disclosed to Islanders through orders-in-council. This new legislation was recommended by the Auditor General in her 2015 review of the province’s loan portfolio.
More than $370 million in provincial loan capital is at work in the Island’s economy today. The businesses supported by these loans generate in excess of $1.3 billion in revenues with direct wage impacts in excess of $221 million annually. This represents approximately 12,000 jobs either directly impacted or indirectly impacted by provincial financing programs.
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 businesses supported by those loans represent almost $100 million in annual provincial tax revenue.
Acting Director of Communications