Cabinet approval will be required for all loan write-offs and cancellations providing greater transparency for Islanders, says Minister of Economic Development and Tourism Heath MacDonald.
The Auditor General recently noted that write offs of amounts owing to government should be authorized in a consistent manner.
“Islanders expect and deserve insight into government’s decision-making processes,” said Minister MacDonald. “Requiring cabinet approval for future loan write-offs will increase transparency.”
To further improve transparency, government will enact legislative changes in the fall to allow for proactive disclosure of the names of companies whose loans are written-off, and the amount owing at the time.
“We are confident that by requiring cabinet approval, and enacting legislative changes to allow for proactive disclosure, we are making our government more accountable to the people of Prince Edward Island,” said Minister MacDonald.
The Province and its Crown agencies offer lending programs to encourage investment and optimize business opportunities across Prince Edward Island. Loans currently held by government total almost $440 million.
These programs are a vital way to support for our primary industries. They help those industries grow and increase our exports which surpassed $1 billion in 2014.