Royal Oaks gets $5 million government mulligan
There's wasteful government spending folks, and then there is this:"The Liberal government has decided to erase nearly $5 million in debt from the books of a Moncton golf club - in exchange for a cut of the club's profits.
The move, approved last November but revealed in freshly released government documents, has critics howling.
The Royal Oaks Estates & Golf Club currently owes the province about $4.8 million, stemming from a loan guarantee issued in 1998.
The Liberals have decided to convert that debt into preferred shares in the company, meaning the province has a stake in any profits.
The government will now receive 50 per cent of the club's net profits - until the debt is paid back.
The club's general manager says the debt reduction will allow Royal Oaks to expand its facilities.
In fact, that expansion will require the club - which includes an 18-hole golf course and condominiums - to borrow more money.
Critics say the whole situation is a waste of government dollars.
John Williamson, of the Canadian Taxpayers Federation, says a province with over-crowded classrooms and rising health-care costs should not be fronting money for a golf course.
"That's hardly an activity that is in need of government support," he said. "It's about as frivolous as it gets in terms of spending."
Not sure if using taxpayers hard-earned money to wipe out the debt. of a private golf club will be part of the Liberal tax competitive [Green report] strategy at the end of the month? just sayin'.Anyway, I can see why Greg Byrne was unavailable for comment.
Speaking of corporate welfare for companies that don't need it...
18 Comments:
Just so I have this straight:
The parents who want their kids to learn French in Grade 1 are the elitists?
Why can't we open the golf club to ALL New Bruswickers? If anything's elitist, it's a $1600 yearly golf club membership.
Unbelievable!!! And they want to be taken seriously on the economic file?
Leave it to these jokers to do something like that. So much for self-sufficiency.
BTW, well done on the picture!
I'm a big fan. :)
I find it really hard to imagine a company the size of Irving needs a loan for anything.
Indeed anon. Much like the government's forgivable loan to Rogers last fall. At the time of the announcement in Moncton, they [Rogers] posted first quarter record high profits of $170 million, or $ 40.97 a share.
I just found out that Alan Graham is on the board for Royal Oaks.
http://timestranscript.canadaeast.com/opinion/article/263768
Who cares?
It's just fiat money (1), anyway. Fake money inflated by the pyramid scheme that is central banking (2).
There are technical solutions (3), but I doubt the pensioners who slaved their whole life for their retirement nest egg would be too happy. The millions living on endless credit and the innocent bank tellers would be hard hit as well.
Nor will our foreign creditors ( 4) let us off so easy.
Until the people are at the point where they demand answers and insist on change, we're going to see a lot of to these kinds of 'bailouts'.
On the other hand, if these companies weren't constantly screwing over their employees and 'consumers', then lauding their monstrous CEO pay packages around town, one could make an argument that these public investments are beneficial, even essential, for society.
Shawn Graham is a very weak leader. If he couldn't see that this bailout, on top of the Caisse Pop bailout, raising taxes, floundering around on post secondary education, picking the blister off the language wounds with changes in Education and Health, and hiring all his buddies to drive around New Brunswick on the governments dime, talk to people and then write reports that seem to piss people off, then I am not sure he has enough peripheral vision to see the big picture.
I think back to the last election. whenever the going got a little rough he would disappear and Kelly Lamrock would appear on TV to do the heavy hitting.
This is the chance for the guy to show his leadership backbone, and where is he? He must have solid reasons to support all this turmoil, lets hear it.
Where's the opposition in your province? The Liberals are getting away with murder.
Francis McGuire is cashing on government policy decisions more then Dick Cheney and Haliburton. These guys are criminals,.
Their hands are tied bill:In 2002, the Conservative government of Bernard Lord paid off that loan and the resulting interest. So, instead of owing a bank, the club was in debt to the province. Including interest, the original sum has grown to the current $4.8 million.
Back in 2002, then-Business New Brunswick Minister Norm Betts said refinancing was the only way to preserve a return for taxpayers.
Volpé echoed that on Wednesday.
"It was not as good as expected. That business was supposed to stand up by itself," he said. "I'm not convinced that it's the right decision for taxpayers in this province. I don't think it's the kind of business we want to build in New Brunswick."
Sadly, our two party system in NB encourages this kind of inbreeding. As citizens we need to look at voting systems that might shake the establishment up.
Bill, we have Opposition?
LOL! Sorry spinks I must have mistaken you for the opposition.
Well I was away for one week, and again they have done to us again. Royal Oaks will bring us to self sufficiency with all of the jobs and profit they are planning to create!!!
Our BNB department really know how to manage theses investment project. It is not surprising to hear these things in the media by BNB announcements. We are well on our way the self-sufficient with our government dishing out this kind of money.
These corporations that the Government is supporting are supposed to bring us to the self-sufficiency year of 2026.
What I like about BNB is that when there is a problem with one of their loans projects, they quickly try to defuse the bomb. Saying things that “this is only choice to save the jobs” or “this is the only way that we might get paid for our investment”. Is the Minister of BNB really the guy at the top or is it the New Brunswick Tax Payers. Who is watching BNB?
We need major changes with our policies at BNB at the only way to make changes is to get the media involve in these fiasco’s.
For Starters, the Government is willing to write off over $34,000,000 of the $83,000,0000 in loans and interest to ‘Atlantic Fine Yarns and Atlantic Yarns”. Somebody in the Government has approved the restructuring plan. Who is watching the government with our investment? Are we still going to observe “wait and see” approach? How about some general business sense? A corporation have to make money.
Can anyone find out who is on the board of directors of : Atlantic yarns, Atlantic Fine Yarns and Sunflag Canada Inc?
Just want to find out why a company that is willing to make a major investment in a high risk sector that hasn’t had a major investment project in North America for the last 15 years and no other private bank in the world would touch this project without the government of NB loan guaranties?
Documents can obtain to this address
http://www.pwc.com/ca/eng/about/svcs/brs/atlyarns.html
Anon [Apr 14, 2008 1:27:00 PM]: there is no doubt that once a company gets a government subsidy, there chances of getting another one almost double because the ruling party doesn't want to be the one to shut down a business in a slow growth region as it is very bad PR.
As for Atlantic Yarns, they have been losing money for years while still receiving prop up $$$ from both party's in NB. I think it's time to cut the umbilical cord. on these guys.
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