Mr. Speaker, I’m going to speak today about the lack of transparency and accountability shown recently by decisions that were made by FMB in regard to a loan to Discovery Air in the amount of $34 million.
As we heard the news from Finance Minister Miltenberger earlier today that rough times are ahead for our economy, pressure will be put upon this government to continue with the programs and services it delivers to our people. This will be done amidst the backdrop of diminished revenues and an economy that will face some uncertainty. Given these factors, I’m completely amazed at how Cabinet and FMB could make a decision to put $34 million at risk.
It is true that the money comes from an Immigrant Investor Fund and not directly from our own public purse. However, the reality is that the $34 million if not paid back four years from now will mean that will have a very negative impact on our operations at a future date. My issue is not with the government helping keep jobs here in the North. My issue is with the lack of any process or oversight of the loan.
We had the Minister of Finance and the Minister of ITI call a meeting with Regular Members only to tell us that they had loaned the $34 million to Discovery Air. They told us it was coming out of the Opportunities Fund, which prior to the loan to Discovery Air was a passive investment vehicle. At some point, Cabinet made the decision to shift the focus of this fund from a low risk to a very high risk. The fund itself is set up as a society overseen by a group of senior bureaucrats. What I’d like to know, and I think many people in the Northwest Territories would like to know, is what was the recommendation from the society to FMB in regard to this loan? How is it that two Cabinet Ministers could show up to two consecutive meetings with Regular Members of this House to discuss this loan on the Opportunities Fund without giving us a single piece of evidence that it was a good deal?
We had to write to both Ministers with questions and I’d like to thank them for trying to answer the questions, but it only raises many more questions about the process and decision-making surrounding this loan. I’ve heard from many people across the Northwest Territories -- Fort Simpson, Norman Wells, Deline, Inuvik, Hay River, Fort Smith, and here in Yellowknife -- that are upset and very concerned that our government has made this fund available to one company while many others across the Territory face hard times as well.
Mr. Speaker, I seek unanimous consent to conclude my statement.
---Unanimous consent granted
The bottom line remains. Once again Regular Members found out about this loan after the fact. There was no opportunity for us to suggest creative ways in which we could look at using this fund to provide some tangible opportunities for businesses and people in our own Territory. I think what happened here is shameful.
Thank you, Mr. Ramsay. The honourable Member for Mackenzie Delta, Mr. Krutko.
Mr. Speaker, I, too, would like to raise the issue in regard to the government loan to Discovery Air. I’d like to ask the Minister of Finance if he was aware or did he receive any information that the Gwich’in Development Corporation was one of the businesses that loaned Discovery Air the amount of $10 million in regard to share equity in Discovery Air? Also, was the Minister aware that the Gwich’in Development Corporation offered an extension of the loan to Discovery Air based on the terms of the Gwich’in Development Corporation was prepared to accept? Also, was the Minister aware that the Gwich’in Development Corporation approached the board of directors of Discovery Air with a consolidation of lenders to extend the loan to Discovery Air under similar terms? Was the Minister aware that the Gwich’in Development Corporation is now in the process of reviewing the loan equity share in Discovery Air because of its decline in equity that basically the government’s put into it? Also, does the Minister accept the premise that one of the terms of the Gwich’in Comprehensive Land Claim Agreement is that this government will assist the Gwich’in to participate in the northern economy and not to compete against these Gwich’in land claim investments?
During the evaluation of the loan requested by Discovery Air did government officials or Deloitte Touche provide any information about the possible ownership and management options that were available to those individuals and groups that had equity in regard to this loan, the Gwich’in Development Corporation and other private sectors and institutions who were willing to lend money to this organization? Was that even considered?
Finally, I would like to know if this government is prepared to provide the Gwich’in Development Corporation with compensation on the basis of lost equity in a business opportunity that they have made major investments in and now the government investment has taken that opportunity away. At the appropriate time I will ask the Minister with regard to the loan to Discovery Air for $34 million and putting the Gwich’in Development Corporation out $10 million.
Thank you, Mr. Krutko. The honourable Member for the Sahtu, Mr. Yakeleya.
Mr. Speaker, I, too, would like to make my statement, along with the honourable Members from Mackenzie Delta and Kam Lake, in terms of the optics of this loan being discussed with Discovery Air and in terms of the newspaper that printed the story in our communities in the Sahtu.
This afternoon I was on a call from the grand chief of the Sahtu region and I asked him what his thoughts were on the Discovery Air bailout loan and investment. He said, “Where is the government going? What are they thinking? We said we can use a percentage of that type of dollars in our region to help us with our roads and the airports and our infrastructure, even looking at a wellness, a regional health centre in the Sahtu.” The optics out there aren’t very good. As a matter of fact it stinks in terms of how this process rolled out after we had the two Ministers come and meet with us and talk to the Members as to what had taken place, what process was taken in terms of having this loan being discussed with Discovery Air.
We weren’t privy to that information. The transparency wasn’t there. We weren’t told as to what happened. The due diligence was done and how it came to its decision and how the structure was set up through the requirements of the federal government in terms of how this board of directors of senior management have an Opportunities Fund that is at their disposal to help people in the Northwest Territories. We didn’t see that.
I do agree with the Member from Kam Lake that the issue is not about jobs. It’s about how do we help the real people in our small communities like the Sahtu, like the Tlicho, Inuvialuit, Beaufort-Delta, any other regions that need help. Not to help other companies, but to help the real northern people and aboriginal businesses to have a say in their region.
I will have questions for the Minister at the appropriate time.
Thank you, Mr. Yakeleya. The honourable Member for Great Slave, Mr. Abernethy.
