First

Session, 46th General Assembly

Elizabeth II, 2008

BILL 19

AN ACT TO AMEND THE LOAN AND

GUARANTEE ACT, 1957

Received and Read the First Time ...................................................................................................

Second Reading .................................................................................................................................

Committee ............................................................................................................................................

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

THOMAS W. MARSHALL, Q.C.

Minister

of Finance and President of Treasury Board

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

Clause 1 of the Bill would amend the

Schedule to The Loan and Guarantee Act,

1957 by adding the Newfoundland and Labrador Immigrant Investor Fund Limited. Newfoundland and

Labrador Immigrant Investor Fund Limited is a Crown corporation established in

April 2005 to receive and invest the province's monthly allocation of funds received

immigration program. Money received from

immigrant investors is repaid by participating provincial funds after 5 years,

and each province provides a guarantee of repayment. This guarantee of $18,613,874 for Newfoundland and

Labrador Immigrant Investor Fund Limited secures the repayment of the total of

the monthly allocations received by the fund during the 2006/07 fiscal year.

Clause 2 of the Bill would amend the

Schedule to the Act, as enacted by

chapter 11 of 1993, by extending the $50,000

loan guarantee for the Newfoundland Symphony Orchestra Association from March 31, 2007 to August 31, 2010 as approved by

Order in Council 2008-077. The extension

is necessary to secure an operating line of credit from the Newfoundland Symphony

Orchestra Association's bank.

Clause 3 of the Bill would amend the

Schedule to the Act, as enacted by

chapter 7 of 2004, by increasing the net

provincial exposure from $9 million to $14 million for the Labrador-Grenfell

Regional Integrated Health Authority. Under authority of Order in Council 2002-297

the former Health Labrador Corporation put in place an operating line of credit

of $14 million, of which the province was guaranteeing drawdowns in excess of

$5 million, for a maximum net potential liability of $9 million. This guarantee, with no stated expiry date,

was ratified in an amendment to the Act in 2004. The Labrador-Grenfell

Regional Integrated Health Authority subsequently assumed all of the assets and

liabilities of the former Health Labrador Corporation and, in 2007, it was recognized

that the existing banking arrangement was no longer sufficient to meet peak

operating funding requirements of the new integrated health authority. Consequently, in October 2007, the authority

renegotiated its banking arrangements and increased its operating line of

credit to $24 million with the province guaranteeing drawdowns in excess of $10

milllion.

Clause 3 of the Bill would also amend

the

Schedule to the Act, as enacted by

chapter 7 of 2004, by extending the $2.1

million loan guarantee for the Torngat Fish Producers Co-operative Society

Limited from May

31, 2007 to May 31, 2011 as approved by Order in Council 2007-317. The Torngat Co-op runs a number of fish

processing facilities and buying stations along the north coast of Labrador . The co-op also operates a crab processing

plant in Makkovik and holds an offshore shrimp licence which provides a

significant portion of the co-op's revenue.

A BILL

AN ACT TO

AMEND THE LOAN AND

GUARANTEE ACT, 1957

Analysis

Schedule

Amdt.

2. 1993

c11

Schedule Amdt.

3. 2004

Schedule Amdt.

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

1957 No.70

as amended

1 . The

Schedule to The Loan and Guarantee Act,

1957 is amended by adding the following:

Company

Amount

Date of Issue

Expiry Date

Newfoundland and Labrador Immigrant Investor

Fund Limited

18,613,874

Apr. 29/05

May 30/11 to

Mar. 30/12

1993 c11

Schedule Amdt.

2. The

Schedule to the Act is further amended by

amending Item 5 - Newfoundland Symphony Orchestra Association, as enacted by

chapter 11 of 1993, by striking out the date of expiry "Mar. 31/07"

and substituting the date of expiry "Aug. 31/10".

2004 c7

Schedule Amdt.

3. The

Schedule to the Act is further amended by

amending the Schedule, as enacted by

chapter 7 of 2004, as follows:

(

a) Item 1 - Health Labrador Corporation

(

i) by striking out the company name "Health Labrador Corporation"

and substituting the company name "Labrador-Grenfell Regional Integrated

Health Authority",

(ii) by striking out the statutory amount "9,000,000" and substituting

the statutory amount "14,000,000", and

(iii) by striking out the date of issue "Nov. 6/02" and substituting

the date of issue "Oct. 23/07"; and

(

b) Item 3 - Torngat Fish Producers Co-operative

Society Limited by striking out the date of expiry "May 31/07" and

substituting the date of expiry "May 31/11".

Earl G. Tucker, Queen's Printer