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