47

 

Third Session, 44th General Assembly

50 Elizabeth II, 2001

BILL 47

AN ACT TO AMEND THE LOAN AND
GUARANTEE ACT, 1957

Received and Read the First Time

Second Reading

Committee

Third Reading

Royal Assent

HONOURABLE JOAN MARIE AYLWARD

Minister of Finance and President of Treasury Board

Ordered to be printed by the Honourable House of Assembly

 

 

EXPLANATORY NOTES

Clause 1 of this Bill would amend the Schedule to The Loan and Guarantee Act, 1957 as follows:

Item 1 - Consumer Protection Fund for Prepaid Funeral Services

Order in Council 2001-433 authorized a $200,000 loan guarantee for the Consumer Protection Fund for Prepaid Funeral Services, administered by the Department of Government Services and Lands. The credit facility is needed to honour prepaid funeral contracts of funeral homes which may cease operations after November 1, 2000. Costs and other disbursements made from the fund are offset by assessments paid by funeral homes offering these services. The loan guarantee has no Expiry Date and the Date of Issue is not yet available as the Guarantee Agreement has not been executed.

Item 2 - Torngat Fish Producers Co-operative Society Limited

Order in Council 2001-318 approved a $2,100,000 loan guarantee for the Torngat Fish Producers Co-operative Society Limited. This co-operative runs a number of fish processing facilities and buying stations along the north coast of Labrador. It also operates a crab processing plant located in Makkovik and holds an offshore shrimp licence which provides a significant portion of the co-operative's revenue.

Clause 2 of the Bill would amend the Schedule to the Act, as enacted by chapter 31 of 1987 as follows:

(a) by increasing the loan guarantee of Newfoundland Ocean Enterprises Limited from $1,250,000 to $4,850,000 as authorized by Order in Council 2001-185. After the province sold the assets of Marystown Shipyard and assumed $70.9 million of the $72.15 million operating loan guarantee in place at that time, a $1.25 million line of credit was left to cover environmental and other divestiture costs. This increase to $4.85 million was approved to cover additional costs for which the province is responsible at the site. The loan guarantee has no Expiry Date.

(b) by increasing the loan guarantee of A.L. Stuckless & Sons Limited to $1.2 million as approved by Order in Council 2001-257. The guaranteed loan had previously been converted to term debt and paid down to approximately $800,000. The guarantee increase was requested by the company due mainly to a legal dispute with its major woodchip customer. This dispute put a severe strain on the cash position of A.L. Stuckless & Sons and forced the company to temporarily shut down operations. The guarantee has no Expiry Date.

Clause 3 of this Bill would amend the Schedule to the Act, as enacted by chapter 11 of 1993 by extending the loan guarantee for Newfoundland Symphony Orchestra from March 31, 2001 to March 31, 2002 as approved by Order in Council 2001-276. The amount of the guarantee remained at $50,000.

Clause 4 of this 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 $1.1 million to $1.45 million as authorized by Order in Council 2001-316. This operating loan guarantee has no Expiry Date.

Clause 5 of this Bill would amend the Schedule to the Act, as enacted by chapter 21 of 2000 by increasing the loan guarantee of Newfoundland and Labrador Heritage Corporation from $40 million to $47.5 million as approved by Order in Council 2001-275. This increase was authorized to cover additional construction costs of The Rooms. The guarantee has no Expiry Date.

 

 

A BILL

AN ACT TO AMEND THE LOAN AND
GUARANTEE ACT, 1957

Analysis

1. 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

Consumer Protection Fund for Prepaid Funeral Services

$

200,000

N/A

N/A

Torngat Fish Producers Co-operative Society Limited

 

2,100,000

Aug. 31/01

May 31/02

1983 c31
Schedule Amdt.

2. The Schedule to the Act is further amended by amending the Schedule, as enacted by chapter 31 of 1987, as follows:

(a) Item 15 - Newfoundland Ocean Enterprises Limited

(i) by striking out the statutory amount "$72,150,000" and substituting the statutory amount "$1,250,000", and

(ii) by striking out the statutory amount "$1,250,000" and substituting the statutory amount "$4,850,000"; and

(b) Item 22 - A.L. Stuckless and Sons Limited - by striking out the statutory amount "$1,000,000" and substituting the amount "$1,200,000".

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, 1993, by striking out the date of expiry "March 31, 2001" and substituting the date of expiry "March 31, 2002".

1999 c17
Schedule Amdt.

4. The Schedule to the Act is further amended by amending the Schedule, as enacted by chapter 17 of 1999, in Item 4 - Marble Mountain Development Corporation, by striking out the statutory amount "$1,100,000" and substituting the statutory amount "$1,450,000".

2000 c21
Schedule Amdt.

5. The Schedule to the Act is further amended by amending the Schedule, as enacted by chapter 21 of 2000, in Item 4 - Newfoundland and Labrador Heritage Corporation, by striking out the statutory amount "$40,000,000" and substituting the statutory amount "$47,500,000".

 

 

 

 

 

 

©Earl G. Tucker, Queen's Printer