First Session, 45th General Assembly

53 Elizabeth II, 2004

BILL 14

AN ACT TO AMEND THE LOAN AND

GUARANTEE ACT, 1957

Received and Read the First Time

Second Reading

Committee

Third Reading

Royal Assent

HONOURABLE LOYOLA SULLIVAN

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 as follows:

Item 1 - Health Labrador Corporation

Order in Council 2002-297 authorized a loan guarantee for the Health Labrador Corporation as a temporary arrangement to secure the corporation's operating credit requirements while a longer term strategy is being developed for deficit and debt reduction. When a strategy acceptable to both government and the corporation's bank is in place, the guarantee will be withdrawn. To meet the corporation's near term requirements, a guarantee not exceeding $9 million has been put in place. The corporation's ongoing cash requirements may require an increase in the guarantee, which will be ratified through a future amendment to the Act. In the circumstances, an expiry date cannot be determined.

Items 2 and 3 - Torngat Fish Producers Co-operative Society Limited

Order in Council 2002-269 authorized a renewal of a $2.1 million loan guarantee for the Torngat Fish Producers Co-operative Society Limited. The co-operative, most of whose membership are also members of the Labrador Inuit Association, runs a number of fish processing facilities and buying stations along the north coast of Labrador. The co-operative also operates a crab processing plant in Makkovik and holds an offshore shrimp licence which provides a significant portion of the co-operative's revenue. This loan guarantee has been renewed a second time, as approved by Order in Council 2003-351.

Clause 2 of the Bill would amend the

Schedule to the Act, as enacted by

chapter 31 of 1987, by increasing the loan guarantee of the Newfoundland Ocean Enterprises Limited from $4,850,000 to $5,500,000, as authorized by Order in Council 2002-606. This increase is to cover additional environmental remediations at the Marystown shipyard and other divestiture costs for which the province is responsible. This loan guarantee has no expiry date.

Clause 3 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, 2002 to March 31, 2003 as approved by Order in Council 2002-294. A further extension to March 31, 2005 was approved by Order in Council 2003-668.

Clause 4 of the Bill would amend the

Schedule to the Act, as enacted by

chapter 17 of 1999, by increasing the loan guarantee of the Marble Mountain Development Corporation from $1.45 million to $1.7 million as authorized by Order in Council 2002-015. Order in Council 2003-005 approved a further increase to $2.1 million. The increases were necessary to provide additional working capital for the corporation as a result of operating losses in the 2001 and 2002 ski seasons. This operating loan guarantee has no expiry date.

Clause 5 of the Bill would amend the

Schedule to the Act, as enacted by

chapter 21 of 2000, by increasing the loan guarantee of the Newfoundland and Labrador Education Investment Corporation from $75 million to $105 million as authorized by Order in Council 2003-556. This is to facilitate additional financing for the construction of new schools, as well as the repair and renovation of existing facilities.

A BILL

AN ACT TO AMEND THE LOAN AND

GUARANTEE ACT, 1957

Analysis

Schedule Amdt.

2. 1987 c31

Schedule Amdt.

3. 1993 c11

Schedule Amdt.

4. 1999 c17

Schedule Amdt.

5. 2000 c21

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

Health Labrador Corporation

9,000,000

Nov. 6/02

N/A

Torngat Fish Producers Co-operative Society Limited

2,100,000

Sept. 25/02

May 31/03

Torngat Fish Producers Co-operative Society Limited

2,100,000

July 31/03

May 31/04

1987 c31

Schedule Amdt.

2. The

Schedule to the Act is further amended by amending Item 15 - Newfoundland Ocean Enterprises Limited, as enacted by

chapter 31 of 1987 by striking out the statutory amount "$4,850,000" and substituting the statutory amount $5,500,000.

1993 c11

Schedule Amdt.

3. The

Schedule to the Act is further amended by amending Item 5 - Newfoundland Symphony Orchestra Association, as enacted by

chapter 11 of 1993, as follows:

(

a) by striking out the date of expiry "March 31, 2002" and substituting the date of expiry "March 31, 2003"; and

(

b) by striking out the date of expiry "March 31, 2003" and substituting the date of expiry "March 31, 2005".

1999 c17

Schedule Amdt.

4. The

Schedule to the Act is further amended by amending Item 4 - Marble Mountain Development Corporation, as enacted by

chapter 17 of 1999, as follows:

(

a) by striking out the statutory amount "$1,450,000" and substituting the statutory amount "$1,700,000"; and

(

b) by striking out the statutory amount "$1,700,000" and substituting the statutory amount "$2,100,000".

2000 c21

Schedule Amdt.

5. The

Schedule to the Act is further amended by amending Item 3 - Newfoundland and Labrador Education Investment Corporation, as enacted by

chapter 21 of 2000 by striking out the statutory amount "$75,000,000" and substituting the statutory amount "$105,000,000".

©Earl G. Tucker, Queen's Printer