Thank you, Mr. Speaker. Mr. Speaker, my question is again for the Minister responsible for the Financial Management Board Secretariat and has to do with loan guarantees. Yesterday in the House, the Minister confirmed that the government had had to make good on a loan guarantee for $2.6 million. I was wondering if the Minister could confirm if there has been a definite payment schedule set up with the company that is making good on that loan guarantee.
Debates of Feb. 28th, 2003
This is page numbers 405 - 436 of the Hansard for the 14th Assembly, 6th Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was social.
Topics
Question 130-14(6): Loan Guarantee Payment Schedule
Item 6: Oral Questions
February 27th, 2003
Page 419
Question 130-14(6): Loan Guarantee Payment Schedule
Item 6: Oral Questions
Page 419
Return To Question 130-14(6): Loan Guarantee Payment Schedule
Question 130-14(6): Loan Guarantee Payment Schedule
Item 6: Oral Questions
Page 419
Return To Question 130-14(6): Loan Guarantee Payment Schedule
Question 130-14(6): Loan Guarantee Payment Schedule
Item 6: Oral Questions
Page 419
Supplementary To Question 130-14(6): Loan Guarantee Payment Schedule
Question 130-14(6): Loan Guarantee Payment Schedule
Item 6: Oral Questions
Page 419
Charles Dent Frame Lake
Thank you, Mr. Speaker. Could the Minister advise the House whether or not the payments have started to be received or are the payments on schedule? Thank you, Mr. Speaker.
Supplementary To Question 130-14(6): Loan Guarantee Payment Schedule
Question 130-14(6): Loan Guarantee Payment Schedule
Item 6: Oral Questions
Page 419
Further Return To Question 130-14(6): Loan Guarantee Payment Schedule
Question 130-14(6): Loan Guarantee Payment Schedule
Item 6: Oral Questions
Page 419
Joe Handley Weledeh
Mr. Speaker, the schedule was worked out recently. I am not sure of the exact date. It was within the last few months. However, I don't believe the first payment has
come due yet. So the company is not in default at all in their payment schedule.
Further Return To Question 130-14(6): Loan Guarantee Payment Schedule
Question 130-14(6): Loan Guarantee Payment Schedule
Item 6: Oral Questions
Page 419
Supplementary To Question 130-14(6): Loan Guarantee Payment Schedule
Question 130-14(6): Loan Guarantee Payment Schedule
Item 6: Oral Questions
Page 419
Charles Dent Frame Lake
Thank you, Mr. Speaker. Mr. Speaker, does the government have any recourse, if the company should not make payments as scheduled?
Supplementary To Question 130-14(6): Loan Guarantee Payment Schedule
Question 130-14(6): Loan Guarantee Payment Schedule
Item 6: Oral Questions
Page 419
Further Return To Question 130-14(6): Loan Guarantee Payment Schedule
Question 130-14(6): Loan Guarantee Payment Schedule
Item 6: Oral Questions
Page 419
Joe Handley Weledeh
Mr. Speaker, we would have the same recourse we would have with any company that didn't continue to make the payments that are owed to the government. We could seize the assets, for example. Thank you, Mr. Speaker.
Further Return To Question 130-14(6): Loan Guarantee Payment Schedule
Question 130-14(6): Loan Guarantee Payment Schedule
Item 6: Oral Questions
Page 419
Supplementary To Question 130-14(6): Loan Guarantee Payment Schedule
Question 130-14(6): Loan Guarantee Payment Schedule
Item 6: Oral Questions
Page 419
Charles Dent Frame Lake
Thank you, Mr. Speaker. Is the value of the security, the assets that we have in place, enough to cover the amount of the $2.6 million? Thank you.
Supplementary To Question 130-14(6): Loan Guarantee Payment Schedule
Question 130-14(6): Loan Guarantee Payment Schedule
Item 6: Oral Questions
Page 419
Further Return To Question 130-14(6): Loan Guarantee Payment Schedule
Question 130-14(6): Loan Guarantee Payment Schedule
Item 6: Oral Questions
Page 419
Joe Handley Weledeh
Mr. Speaker, yes, the company has had to show us that they have the ability to pay it and I don't think there's a problem in terms of the worth of the company to be able to back that up. Thank you, Mr. Speaker.
Further Return To Question 130-14(6): Loan Guarantee Payment Schedule
Question 130-14(6): Loan Guarantee Payment Schedule
Item 6: Oral Questions
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Question 131-14(6): Loan Guarantee Interest Liability
Item 6: Oral Questions
Page 419
Brendan Bell Yellowknife South
Thank you, Mr. Speaker. My line of questioning is the same as Mr. Dent's to the Minister responsible for the FMBS. He indicated yesterday in the House that we would have to absorb some interest because there would be an interest-free period for the first five years at least. What is that computed to be? What is the amount of the interest that we will absorb over those five years? Thank you.
Question 131-14(6): Loan Guarantee Interest Liability
Item 6: Oral Questions
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Return To Question 131-14(6): Loan Guarantee Interest Liability
Question 131-14(6): Loan Guarantee Interest Liability
Item 6: Oral Questions
Page 419
Joe Handley Weledeh
Mr. Speaker, I would have to work that out. The cost would be whatever the $2.6 million would have earned us given the borrowing rates the government will have over the next five years. I don't know exactly what that will be, not being able to project the interest rates we are looking at.
Return To Question 131-14(6): Loan Guarantee Interest Liability
Question 131-14(6): Loan Guarantee Interest Liability
Item 6: Oral Questions
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Supplementary To Question 131-14(6): Loan Guarantee Interest Liability
Question 131-14(6): Loan Guarantee Interest Liability
Item 6: Oral Questions
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Brendan Bell Yellowknife South
I am curious about the assets involved as security. Could the Minister indicate what these assets are, if in fact they are assets that are now being operated by another company doing same or similar work. If we were to seize those, we would basically be putting another operation out of business. Can the Minister give us some assurance that the assets are not those and they are something else? Thank you.
Supplementary To Question 131-14(6): Loan Guarantee Interest Liability
Question 131-14(6): Loan Guarantee Interest Liability
Item 6: Oral Questions
Page 420
Further Return To Question 131-14(6): Loan Guarantee Interest Liability
Question 131-14(6): Loan Guarantee Interest Liability
Item 6: Oral Questions
Page 420
Joe Handley Weledeh
The payments are secured by revenue that the parent company has that are, in our view, secure. It's not based on a third company, so I don't think we are going to put anybody else out of business. Thank you.
Further Return To Question 131-14(6): Loan Guarantee Interest Liability
Question 131-14(6): Loan Guarantee Interest Liability
Item 6: Oral Questions
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Supplementary To Question 131-14(6): Loan Guarantee Interest Liability
Question 131-14(6): Loan Guarantee Interest Liability
Item 6: Oral Questions
Page 420
Brendan Bell Yellowknife South
Thank you. So when we talk about the parent company and the security, if we had to seize assets, we aren't talking about going in and seizing a building that's being used for cutting and polishing or something like this. It's some other group of assets? Thank you.