19

 

 

First Session, 46th General Assembly

57 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 from participation in the Government of Canada's redesigned business 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


        1.   Schedule Amdt.

        2.   1993 c11
Schedule Amdt.

        3.   2004 c7
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".

ŠEarl G. Tucker, Queen's Printer