The Honourable Don MacKinnon noted today the government's decision to make an offer of a loan guarantee to Polar Foods International reflects the province's strategy to support the vital fish processing industry in Prince Edward Island.
The Minister's comments follow cabinet's decision to provide an additional loan offer guarantee, in concert with private sector loans to Polar Foods, to create jobs and stabilize the company's production processes through the acquisition of lobsters and other species from off-Island resources, including New Brunswick, Nova Scotia and the New England states.
The Minister said Polar Foods has arranged an estimated $12-million in additional operating credit with their bankers. He said that cabinet agreed to provide a guarantee to Polar's bank for $3.5-million. The guarantee, which is endorsed by Enterprise PEI, will continue to February 28, 2000.
"Our government is different in that we wanted to support the vital fish processing industry here in Prince Edward Island," said Minister MacKinnon. "By making this strategic investment we are supporting the Polar Group's ability to hire employees, to process lobsters and other species sourced off Island, and increase fish processing activity on PEI during times which would otherwise be slow processing times."
Minister MacKinnon said that while some individuals do not agree with these objectives, it is imperative for the government to support the fishery and communities. "As has been noted, Polar Foods International is on a solid footing and is creating jobs in PEI."