Session:

3/64

Date:

20 November 2012

No:

4

LEGISLATIVE ASSEMBLY OF PRINCE EDWARD ISLAND

RESPONSES TO QUESTIONS AND ORAL QUESTION PERIOD (PRELIMINARY PROCEEDINGS)

FOR

TUESDAY, 20 NOVEMBER 2012

QUESTION PERIOD

PRELIMINARY PROCEEDINGS

Responses to Questions Taken As Notice

20 November 2012

would have changed the universities act for no reason.

Questions by Members Can the Premier confirm for Islanders if it was on the front nine or the back nine where he offered his friend Richard Homburg over $30 million in taxpayers’ money with no strings attached?

Speaker: The hon. Leader of the Opposition. Holman Grand Hotel Leader of the Opposition: Thank you, Madam Speaker.

Speaker: The hon. Premier. Premier Ghiz: I have absolutely no idea what the Leader of the Opposition is talking about.

A Premier’s job is to mind the public purse, the finances of the province. In the words of a columnist, Jack MacAndrew: “What in the name of all the Saints in Heaven is this or any government going to do with a hotel nobody needs in downtown Charlottetown should Homburg Invest go broke, as it may very well do.”

Speaker: The hon. Leader of the Opposition. Leader of the Opposition: Sure, Madam Speaker, perhaps I’ll go back.

My first question is to the Premier: Will the Premier explain to Islanders what he intends to do with a hotel that Islanders do not want or need that has a $16 million Island taxpayer bill?

Can the Premier confirm for Islanders – we know he likes to golf and we know that his friend Richard Homburg likes to golf. Our question is: Was it on the front nine or the back nine at the golf course that he promised $30 million in taxpayers’ dollars to Mr. Homburg?

Speaker: The hon. Premier. Premier Ghiz: Thank you very much, Madam Speaker.

Speaker: The hon. Premier.

Mr. Myers: (Indistinct).

Premier Ghiz: That’s absolutely ridiculous and totally untrue.

Premier Ghiz: Obviously we have the private sector that undertakes numerous operations across Prince Edward Island. Sometimes they borrow dollars from the province, and we like to see economic development in the province. I know the tourism association sure appreciates the economic development in the province. We hope that we’ll have a resolution to this issue in the very near future.

Speaker: The hon. Leader of the Opposition. Leader of the Opposition: Thank you, Madam Speaker. For the last couple of days we’ve heard the Premier talk about business, but perhaps he doesn’t understand business. After all, $30 million of taxpayers’ dollars, no strings attached, this is not a good deal for Island taxpayers, but it seems to be a good deal for somebody.

Thank you very much. Speaker: The hon. Leader of the Opposition. Leader of the Opposition: Thank you, Madam Speaker.

The Premier continues to defend this deal even after it fails the smell test. My question to the Premier: Why was over $30 million loaned to one company and then this company split it into three afterwards?

I’m sure the Premier is so happy that last year or a couple of years ago he listened to opposition and also to the former president of the university, Wade MacLauchlan, or he

Speaker: The hon. Premier.

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Premier Ghiz: I’m not exactly sure on the hon. member’s details. I think whoever is providing –

20 November 2012

Premier Ghiz: Thank you very much, Madam Speaker. Obviously, we made these loans similar to the other governments making loans in the past, but we did this where we had first right on with – first mortgage with regards to those properties. It’s unfortunate the previous government, when they did a deal with Ocean Choice, they had no first mortgage. We made sure that these properties are protecting the taxpayers’ dollars in the Province of Prince Edward Island.

Some Hon. Members: (Indistinct). Speaker: Order, please! Premier Ghiz: I think whoever’s providing the Leader of the Opposition with information is doing a very poor job of it, Madam Speaker. But I will confirm this. Governments dating back to, I believe, 1979 have been involved with operations, whether or not it’s the Confederation Court Mall, the towers in the downtown. Recently there was a deal done with the hotel. It is not $30 million in loans, I believe it’s a little bit higher. Dating back to all those other governments as well, whether or not it was Liberal or Progressive Conservative governments.

The Leader of the Opposition obviously is getting bad information or has very short term memory. These loans go back to 1979, perhaps the early 1980s. They entail the Confederation Court Mall, two office towers, Madam Speaker, and of course the new Holman Grand Hotel. Speaker: The hon. Leader of the Opposition.

It’s very important to point out that when we did the deals that we did, similar to the deals that the previous Progressive Conservative government did, with regards to downtown Charlottetown, we did it in a much better fashion than the previous government did. When it comes to the Ocean Choice deal down in Souris, where there was no collateral associated with those loans. All of the loans of the Province of Prince Edward Island in relation to anything that’s happening with downtown Charlottetown are all secured through those properties.

Leader of the Opposition: Thank you, Madam Speaker. We continue to be speaking about Mr. Homburg and the fact that the Premier, when he likes to speak about protecting investments, he forgets that he likes to take care of a select few: $30 million to a friend. The facts are the facts. Islanders deserve the truth from this government. The truth is that this Premier and his administration loaned Richard Homburg’s company, Dyne Holdings, $30 million, $16 million of which was for his famous Homburg Hotel. This is while Island company contractors are still on the hook for millions of dollars because Homburg refuses to pay.

Speaker: The hon. Leader of the Opposition. Leader of the Opposition: Thank you, Madam Speaker. It’s apparent the Premier’s now reading from Geoff Townsend’s creative notes. Anyway, it’s nice to see that he’s actually starting to get to the fact that it was $30 million. This is the Premier giving again to a friend over $30 million of taxpayers’ money with no strings attached.

Question to the Premier: Will you tell us the status, what is it, on the $30 million that’s owed to Island taxpayers? Speaker: The hon. Premier. Premier Ghiz: Thank you very much, Madam Speaker.

To the Premier: Why are you and your government so arrogant and so out of touch to offer this type of money without doing due diligence on this company?

Obviously, all of those properties are guaranteed through a first mortgage. The company is currently under protection. That’s why dollars are not being paid out.

Speaker: The hon. Premier. 39

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It’s unfortunate that the Leader of the Opposition likes to spin innuendo in the House. But the matter of the fact is that all those properties are protected under a first mortgage.

20 November 2012

Madam Speaker, I wish the Leader of the Opposition would stick with facts instead of innuendo. Speaker: The hon. Leader of the Opposition.

Speaker: The hon. Leader of the Opposition.

Leader of the Opposition: Thank you, Madam Speaker.

Leader of the Opposition: Thank you, Madam Speaker.

This Premier continues to evade the question. I’ll perhaps repeat it. Would the Premier table the business plan if one exists?

It’s the Premier that continues to demonstrate how mixed up he is. That money is actually a hold back, but he continues to talk about how knowledgeable he is around business.

Speaker: The hon. Premier. Premier Ghiz: Whatever I’m able to table, Madam Speaker, I will.

Thirty million dollars given to a friend of the Premier, $30 million for a failed investment, and who’s left on the hook? Why, it’s Island taxpayers because this Premier could not say no to another friend.

But it’s important to point out that this is a great development in Charlottetown, regardless of what the Leader of the Opposition says. If we went with the Leader of the Opposition’s approach to the way things are done, the Delta hotel would not be in Prince Edward Island. It would not be in downtown Charlottetown. We would not be going ahead with the new convention centre. We would not have the Confederation Court Mall. We would not have the BDC tower. We would not have the new Homburg tower or the financial services tower.

Perhaps the Premier could enlighten us on the business plan that was submitted to receive such an enormous amount of money from Island taxpayers leaving many Island contractors out in the cold. Premier, if there was a business plan would you table it? Speaker: The hon. Premier. Premier Ghiz: Thank you very much, Madam Speaker.

These things are all guaranteed, all these loans, to what was Homburg International, I believe, that is now under creditor protection, which is totally different than different other Homburg holdings. Mr. Homburg also holds different properties in Charlottetown that are not associated with these properties that do not have any loans associated with the province. But all these properties in downtown Charlottetown have a first mortgage on them, Madam Speaker.

I don’t mind the Leader of the Opposition playing politics in the House, and if she wants to stand up and accuse me of being friends with Richard Homburg, that’s fine. The Member from Georgetown-St. Peters can spew out whatever venom he’s looking to spew out on any given day. But I can assure anybody that I’ve never played golf with Richard Homburg in my life. The only time I’ve really met Richard Homburg has been in my office on probably one or two occasions, and at another time when he made a million dollar donation to the Homburg Theater, would be about it.

Speaker: The hon. Leader of the Opposition. Leader of the Opposition: Thank you, Madam Speaker. In the throne speech this was the Premier that said he was out listening and speaking with Islanders all summer. If he was, he would know they want to know where their money is, especially in regards to this hotel.

If the Leader of the Opposition’s going to call Richard Homburg my friend, I’m going to call Richard Homburg the Leader of the Opposition’s friend because it would be about the same reality of the day.

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Any government that’s going to invest in a business should do due diligence. My question to the Premier: Was a feasibility study done to determine the risk to taxpayers on this project?

20 November 2012

Mechanical limited: $265,000. J & S Sheet Metal limited, $265,000. Island companies. Question to the Premier: Why did you choose to loan $30 million to a friend with no business plan, no feasibility study, leaving all these companies and their employees and taxpayers out on a cliff?

Speaker: The hon. Premier. Premier Ghiz: There’s always due diligence done, Madam Speaker, and there are always risks associated with any projects that go ahead.

Speaker: The hon. Premier.

But I’m confident that we’re going to come to a conclusion for these properties in the downtown in the very near future, and that all these properties are guaranteed through a first mortgage. We’re protecting the taxpayers’ dollars. Plus I’m sure that if you looked at all these loans associated with Liberal and Progressive Conservatives of the past, where these loans have been paid, Madam Speaker, the Province of Prince Edward Island has probably made millions of dollars off these loans dating back the last 30 years as well.

The hon. Leader of the Opposition’s friend has been a good businessperson in the Province of Prince Edward Island for a long period of time. If the private sector chooses to do business with another private sector employer, even if it is the hon. Leader of the Opposition’s friend, so be it. That’s their responsibility. What we’re doing as a government is trying to ensure that we work out a deal that’s going to protect the taxpayers of this province.

Premier Ghiz: Thank you very much, Madam Speaker.

We’re very happy that all loans that our government either gave out or that the previous government gave out, Madam Speaker, are all guaranteed under first mortgage.

Mr. Myers: So, it’s okay, now, is it? Speaker: The hon. Leader of the Opposition. Mr. Myers: It’s okay now.

Speaker: The hon. Leader of the Opposition.

Leader of the Opposition: Thank you, Madam Speaker.

Leader of the Opposition: Thank you, Madam Speaker.

Actually, we’re speaking about this Premier and his record, his record on who he lends money to and how much. I need not remind Islanders or the House, this is the same Premier that was so convinced he was going to change the University Act. Only until Wade McLaughlin and opposition came forth and showed him that that was just not the right thing to do. He finally had to retrack.

We certainly know how this Premier likes to take care of a select few. This (Indistinct) Homburg, wage subsidies to MphasiS, that was $9.3 million, and I think he did create one job. Mr. Myers: Are you sure? Leader of the Opposition: And, of course, his favourite one of all, where he allowed ministers and deputy ministers and MLAs to participate in the PNP before private sector businesses.

The facts are the facts and the truth is very clear. There was no feasibility study done, and I’m sure there was probably no business plan done, because the Premier was simply doing a favour for his friend.

Madam Speaker, can the Premier tell Islanders how much of the $16 million loan to Homburg hotel is still outstanding?

The truth is Island companies are owed millions. Fitzgerald and Snow: 1.75 million. DBA Solar Electric Inc: $458,000. Precision

Speaker: The hon. Premier.

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20 November 2012

Premier Ghiz: Thank you very much, Madam Speaker.

Leader of the Opposition: Thank you, Madam Speaker.

It’s a bit of a fairy tale day over there for the Leader of the Opposition. She should know –

A little hint to the Premier: get rid of your backroom. Get rid of them pretty fast. You might still get to stay till the end of this term.

Mr. Myers: Every day’s like that for you. Some Hon. Members: Oh, oh! Premier Ghiz: She should know that – Leader of the Opposition: Madam Speaker, let’s make sure that Islanders know the truth.

Speaker: Order, please! Premier Ghiz: – that the rebate program that is in place for MphasiS to set up jobs in the Province of Prince Edward Island is the same rebate program that the previous Progressive Conservative government delivered on, Madam Speaker.

The truth is that Island taxpayers and companies are owed every penny, and that this government handed all this money over to Richard Homburg for his famous Holman Grand hotel. Can the Premier tell Islanders how they’re going to get their $16 million back?

No dollars go out until there are wages paid in the Province of Prince Edward Island. She should know that, but she chooses to play politics. She chooses to put her own political ambitions to retain her Conservative party leadership over the best interest of Islanders. She will sacrifice anyone who wants to get in her way. She knows full well that under the PNP any member of government that was associated, that did receive PNP units, it was all reviewed by the Auditor General, and –

Speaker: The hon. Premier. Premier Ghiz: Thank you very much, Madam Speaker. Currently, right now, we have those assets that are under creditor protection. There are different interested parties. Unfortunately, the Leader of the Opposition did not put in a bid. If she had, there’d be Islanders standing up. She’d be standing up complaining that I’m trying to help out my friend the Leader of the Opposition.

Mr. Myers: (Indistinct). Speaker: Order, please!

But what this boils down to is that we do business with the private sector. But when we do business with the private sector on this side of the House, we make sure that we guarantee Island taxpayers’ dollars. We made sure that we have a first mortgage on all the properties in downtown Charlottetown. Unlike the previous government that lost $30 million on Polar Foods, did a $10 to $15 million deal with Ocean Choice, and did not ask for a first mortgage, Madam Speaker.

Premier Ghiz: – and everything was done above board. But the Leader of the Opposition chooses to still attack those people. Perhaps she should check out her brother-in-law’s files, Madam Speaker. The Leader of the Opposition is nothing more than talking out of one side of her mouth on one issue, the other side on another issue, and it’s time that the Leader of the Opposition of this province, if she really wants to hang on to the leadership of the Progressive Conservative Party in this province, start at putting the interests of Islanders first instead of her own political interests.

Speaker: The hon. Leader of the Opposition. Leader of the Opposition: Thank you, Madam Speaker.

Some Hon. Members: Hear, hear! This is the Premier that likes to govern for a select few, and we all know what that means.

Speaker: The hon. Leader of the Opposition. 42

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The minister of innovation indicated that there was a buyer for the Holman Grand since Island taxpayers have rather a large stake. To the innovation minister: Could the minister of innovation tell the House if in fact the sale of the hotel has occurred? Who bought it and for how much?

20 November 2012

Some Hon. Members: (Indistinct). Speaker: Order, please! Premier Ghiz: Thank you very much, Madam Speaker. Again, the Leader of the Opposition should get rid of the political innuendo. She knows full well that, as a government, we do business with, regardless who the individual is, not based on their political belief or whether or not they’re friends.

Speaker: The hon. Minister of Innovation and Advanced Learning. Mr. Roach: Thank you, Madam Speaker. We certainly do have interest in the hotel and I look forward to making an announcement on that in the very near future. At this time, it certainly would be inappropriate for me to make any further comments with respect to any ongoing negotiations. That certainly involves Cominar, who is the protection agency that oversees this file in Montreal.

In fact, one of the largest intermediaries in the province for the Provincial Nominee Program happens to be the president of the Progressive Conservative Party of Prince Edward Island. If you went with the Leader of the Opposition’s thought process on this, that could never be a reality. But we do not care what your political belief is. We care on making Prince Edward Island a better place for each and every Islander. As the hon. minister of innovation has indicated, there are currently bids taking place, and we hope that we’ll have an announcement in the very near future with regards to the future of those downtown projects.

Thank you. Speaker: The hon. Leader of the Opposition. Leader of the Opposition: Thank you, Madam Speaker. The Homburg hotel was handed over $16 million from Island taxpayers to build a luxury hotel. There was no business plan, no feasibility study. Now it appears that Kevin Murphy and Mike Arnold, both who are connected to the Premier, have decided to buy this hotel. Apparently they’ve offered $8 million.

Speaker: The hon. Member from TignishPalmer Road. Mr. Perry: Thank you, Madam Speaker. Some Hon. Members: (Indistinct). Holman Grand Hotel (further)

Some Hon. Members: Oh, oh! Mr. Perry: Minister of innovation. Leader of the Opposition: My question to the innovation minister –

Minister, can you tell us who from IIDI in 2007 and 2008 recommended to the Treasury Board that the $16 million loan to Dyne Holdings for the Holman Grand Hotel be approved?

Speaker: Order, please! Leader of the Opposition: – would the innovation minister confirm that this is who’s purchasing the hotel?

Speaker: The hon. Minister of Innovation and Advanced Learning.

Speaker: The hon. Premier. Mr. Roach: Thank you, Madam Speaker. Premier Ghiz: Madam Speaker – I certainly wasn’t here in 2007 and 2008, and if I can I’ll bring that information back to the House.

Mr. Myers: You only got to answer one question. One question!

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20 November 2012

Thank you.

there, they’d go through Cabinet, and it would be approved by this government.

Speaker: The hon. Member from TignishPalmer Road.

Thank you, Madam Speaker.

Mr. Perry: Thank you, Madam Speaker.

Some Hon. Members: Hear, hear!

I notice with some interest that Melissa MacEachern, the former deputy minister of tourism – the former deputy of tourism who violated Treasury Board rules and failed to due diligence on $8.2 million in tourism contracts – was a board member of IIDI at that time.

Speaker: The hon. Member from TignishPalmer Road. Mr. Perry: Thank you, Madam Speaker. This is why Islanders deserve to know who was involved in approving the $16 million loan to a luxury hotel.

Question to the hon. Minister of Innovation and Advanced Learning: Did her signature appear on any of the documents relating to this project?

Was it Ms. MacEachern or was it Mr. MacMillan who had a – you know, both of them have a rather lengthy record of not doing due diligence, of not following rules, and she’s still a deputy minister and he’s still in senior management. Their names are back on another failed and costly project.

Speaker: The hon. Minister of Innovation and Advanced Learning. Mr. Roach: Again, Madam Speaker, I was not a member of the Legislature at that time, and if I can bring that information back to the House, I will.

Minster, we want to see whose signatures are on that loan. Will you tell us? Speaker: The hon. Premier.

Thank you. Premier Ghiz: Thank you very much, Madam Speaker.

Speaker: The hon. Member from TignishPalmer Road.

I can indicate any loan that goes out for that amount of dollars, the only people responsible are myself and whoever else is in Cabinet at the time.

Mr. Perry: Thank you, Madam Speaker. The minister’s going to have to catch up with his files someday. It’s the same response he’s had since last fall. Every question I’ve asked him, he doesn’t have an answer for it, he’s going to bring it back, he’s never brought it back yet. It’s about time that he gets up to speed on his portfolio.

Speaker: The hon. Member from TignishPalmer Road. Mr. Perry: Thank you, Madam Speaker. Okay, question back to the Minister of Innovation and Advanced Learning. Let’s talk about Brooke ‘MacMillion,’ I mean MacMillan.

My question is to the same minister: Was it Melissa MacEachern or was it Brooke MacMillan who was pushing government into this project?

Some Hon. Members: Hear, hear!

Speaker: The hon. Minister of Innovation and Advanced Learning.

Some Hon. Members: Oh, oh! Mr. Perry: He was a chair person of the IIDI board. You remember Mr. MacMillan. He was a deputy minister of innovation at that time, the deputy who changed the rules of the Provincial Nominee Program and was forced to pay back the money that he had received for his garden shed.

Mr. Roach: Madam Speaker, again, I was not a member at that time. However, I am fully aware that any decisions that were made would go from

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Minister, is his signature on that loan?

20 November 2012

Speaker: The hon. Premier.

went and chose to do business with another private sector enterprise, not with the Government of Prince Edward Island.

Premier Ghiz: Again, Madam Speaker, all loans that are approved for that amount, the only people responsible are myself as Premier and whoever else is in Cabinet at that time.

My number one goal in this whole file is to protect the interest of the taxpayers of the Province of Prince Edward Island, Madam Speaker, and that is exactly what our government is going to do.

With regards to rules that were changed in the PNP, they were changed because your government had no accountability in the program whatsoever, so any changes that were made, Madam Speaker, were to bring more accountability to the program.

Speaker: The hon. Member from TignishPalmer Road. Mr. Perry: Thank you, Madam Speaker. I find it ironic that when the information came out about the loans for this project people told me, and they speculated, that the property would end up in the hands of a friend of the Premier. Surprise, it happened. No need for a fortune teller here. It seems that money seems to flow freely for friends of the Premier and friends of his inner circle.

An Hon. Member: That worked. Speaker: The hon. Member from Some Hon. Members: (Indistinct). Speaker: Order, please!

Question to the Minister of Innovation and Advanced Learning: After Kevin Murphy and Mike Arnold get this hotel for a bargain basement price, will Island taxpayers be paid in full, and will the loans and liens be settled?

The hon. Member from Tignish-Palmer Road. Mr. Perry: Thank you, Madam Speaker. Accountability. Island companies are owed millions of dollars. Richard Homburg was handed a pile of cash, and now we see another friend of the Premier being handed more cash to buy this hotel. Is this fair for Island taxpayers, and is this fair for the contractors that are owed money? FitzGerald and Snow, DBA Solar Electric, Precision Mechanical and J. & S. Sheet Metal, owed millions of dollars.

Speaker: The hon. Minister of Innovation and Advanced Learning. Mr. Roach: Thank you, Madam Speaker.

Minister of Minister of Innovation and Advanced Learning, is this fair for Island taxpayers and is this fair for the contractors who are owed money?

The Member from Tignish-Palmer Road can speculate all day about who’s friends to who and who gets what. But in reality, as I said earlier, there is a process in place right now. We hope to be making an announcement in the near future, and at that time we’ll gladly talk about who and what company or whoever it is that’s going to get the hotel and the details.

Speaker: The hon. Premier.

Thank you very much, Madam Speaker.

Premier Ghiz: Again, Madam Speaker, it seems to be innuendo and slander day on that side of the House.

Speaker: The hon. Deputy Speaker.

I’m not really sure why they choose to do that, but I’m not looking out for any friends. What I’m looking out for is the taxpayers of the Province of Prince Edward Island. These other businesses that he’s talking about, yes, we hope they get taken care of, but they

Ms. Biggar: Thank you, Madam Speaker.

Addiction services

My question is for the Minister of Health and Wellness. Mr. Minster, you announced last week there’s going to be a review going on for addiction services and mental health 45

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services, which is I think is a great thing. But there’s also a high need for addiction services at the present, and I don’t think we can wait until the review is in to address some of those.

20 November 2012

mental health and addictions. As a result of that work that was done from an operational level, we’ve been able to make inroads and improve access to in-patient detox beds, particularly our main referral facility in Mount Herbet, and we’ve made substantial inroads. Average wait time for a detox bed I think is around four days.

Specifically, access to addiction beds and the methadone program. Could you please update the House on the present status?

We’ve made improvements. We had access to about 85% of our intox beds this summer. That was reduced down to 70% based on behavioral issues and individuals bringing drugs into the facility. We are making inroads, and as minister I recognize the important work that needs to be done to improve access. As we saw in the Speech From the Throne that’s one of our priorities in the next 12 to 18 months, Madam Speaker.

Speaker: The hon. Minister of Health and Wellness. Mr. Currie: Thank you very much, Madam Speaker. The Methadone Maintenance Treatment Program is a very important program for Islanders dealing with addictions here in the province. Currently today we have approximately 215 individuals using the Methadone Maintenance Treatment Program. Last spring I called for and have been working very closely with Health PEI to do an internal review and to create a work plan to look at ways that we can be more efficient in the delivery of the harm reduction program, methadone, here in the province. They have completed the work plan and that work plan is going to be acted on.

Thank you. Speaker: Second supplementary, the hon. Deputy Speaker. Ms. Biggar: Just further, Mr. Minister: What kind of access is there as outreach programs in the community? Speaker: The hon. Minister of Health and Wellness.

We’re currently working with physicians in the province to support the program in communities across Prince Edward Island. But also looking at ways that we can engage other health professionals to support the treatment of the methadone program.

Mr. Currie: Thank you very much, Madam Speaker. There are current reviews and assessments and efficiencies being looked at in mental health addictions across the province. But I do have confidence in the access to community-based mental health services, outreach services, post-treatment, and we’re going to continue to support those in communities all across Prince Edward Island.

Thank you. Speaker: Supplementary question, the hon. Deputy Speaker. Ms. Biggar: Could you please address, Mr. Minster, the access to addiction beds for alcohol abuse?

Thank you, Madam Speaker.

Speaker: The hon. Minister of Health and Wellness.

Speaker: The hon. Government House Leader.

Mr. Currie: Thank you very much, Madam Speaker.

EI changes and government input Mr. Gallant: Thank you, Madam Speaker.

In 2009 Health PEI undertook an internal system’s review. As the department we’re currently undertaking a broader comprehensive inter-government review of

Over the past number of months I’ve had the privilege to talk to many Islanders about the employment insurance act and the negative 46

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effects these changes will have to the act and to hard-working Islanders.

20 November 2012

Speaker: The hon. Premier. Premier Ghiz: Thank you very much, Madam Speaker.

During the summer months I chaired a committee that went around the province and heard from Islanders who are going to be negatively affected by these changes.

I thank the hon. member for that question. It’s kind of fitting that today’s style of Question Period, where the opposition seems to say one thing because they believe in it even though it’s not correct. It was brought up to the attention that we’ve been saying absolutely nothing, and I’ve been saying absolutely nothing.

Can the Premier update this House on what steps government has done to ensure Islanders were heard in Ottawa when it comes to the changes to the employment insurance act? Speaker: The hon. Premier.

I’ve had the opportunity to be on Power and Politics with Diane Finley arguing for the rights of Islanders, Power Play with Don Newman, the Business News Network. The Atlantic premiers spoke vehemently against the changes to EI. At the COF meetings I led the charge when it came to saying that these EI changes were not correct. I’m meeting with the prime minister on it, and I’m going to table here 20 to 30 news articles, after Question Period, when you’re allowed to table documents, indicating that our government, the Government of Prince Edward Island, has been leading the charge against these EI changes that Ottawa is trying (Indistinct).

Premier Ghiz: Thank you very much for that question. This is obviously an issue that is going to have a huge impact on the Province of Prince Edward Island, Madam Speaker. Every province is not created equal. Some provinces have huge amounts, an abundance, of natural resources. In Prince Edward Island our three largest industries are still seasonal in nature: agriculture, fisheries and aquaculture, and tourism. These industries are extremely important to the backbone of our economy, they’re still the main drivers in our economy and they’re still seasonal in nature.

Some Hon. Members: Hear, hear!

Since the federal announcement of changes to EI our federal counterparts have had major discussions with the Minister of Innovation and Advanced Learning. I’ve done major press conferences all across the country. I’m meeting with the prime minister on the issue. We’ve raised this issue numerous times. This is something that, as a government, we’re going to continue to make sure that we’re representing the best interests of Islanders.

Speaker: The hon. Member from TignishPalmer Road. Holman Grand Hotel (further) Mr. Perry: Thank you, Madam Speaker.

Speaker: The hon. Government House Leader.

Premier, you took great pride in being such a close friend with your billionaire buddy, Richard Homburg. You like to think big, and so does he. I mean, you even said it. I guess that’s why he’s gone bust and our province is now $2.4 billion in debt. When will all the loans be paid back, Premier?

Mr. Gallant: Thank you, Madam Speaker.

Speaker: The hon. Premier.

Supplementary to the Premier. Last week we heard from the opposition that the Premier and this government had not done a thing to alert the federal government of these changes and the negative impact it would have on Islanders. Can the Premier inform the House what government has done to communicate this to Ottawa?

Premier Ghiz: Thank you very much, Madam Speaker. Richard Homburg is a business person who has done a lot of great things in the Province of Prince Edward Island. It’s shame that the Member from Tignish-Palmer Road would try to discredit a business person in our 47

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province, a friend of the Leader of the Opposition and mine, who we know has made a donation of $1 million to the Confederation Centre theatre, which is a very important part there. He sat on the Confederation board for a number of years. It could have even been, and I’m not sure, the previous government that actually appointed him to that position. So the hon. member should be careful when he discredits individuals on the floor of the House when he doesn’t have all the correct information. But, Madam Speaker, we have a first mortgage on all those properties, and our number one goal is to protect the interests of taxpayers.

20 November 2012

province that they look out for their own interests, and they have the courts to pursue that. But any deal that we’re looking at making, our number one priority is to protect the interests of the taxpayers of this province. It’s also to look out for those small businesses in our province, and it’s the vision of Prince Edward Island, Madam Speaker, on where we’re taking this province with regards to product development when it comes to retail and when it comes to tourism in our province. Speaker: The hon. Member from StratfordKinlock.

Speaker: The hon. Member from TignishPalmer Road.

Mr. Aylward: Thank you, Madam Speaker.

Mr. Perry: Thank you, Madam Speaker.

Some Hon. Members: Hear, hear!

I can stand here all day. I’m protecting Island taxpayers’ dollars. There’s $16 million in loans that went out to the Holman Grand Hotel, and now there’s speculation from reliable sources that they’re in talks to selling it to two Island businesses for almost half of what Island taxpayers put into it.

Mr. Aylward: I certainly appreciate all the applause from that side of the room. I don’t know – Some Hon. Members: (Indistinct). Mr. Aylward: I don’t know if the previous MLA from Stratford-Kinlock had such great acknowledgement from her peers.

Premier, we want to see copies of all the loans made to Dyne, all the loans made to Richard Homburg, to Homburg Invest, to Mike Arnold, to the Fitzroy Tower. Now we’re thinking big here, Premier, we’re thinking big losses for taxpayers, another example of how out of touch and how arrogant this government is.

Some Hon. Members: Oh, oh! Some Hon. Member: Hear, hear! Speaker: Order, please! Buffaloland Provincial Park

Tell us today, Premier, how much money is loaned out and how an end to all these individuals, and when will Island taxpayers and contractors have their money back? Speaker: The hon. Premier.

Mr. Aylward: My question today, Madam Speaker – it’s my pleasure to bring it on behalf of Island Voices – and it’s from Jonathan from Montague, and it’s to the minister of tourism.

Premier Ghiz: Thank you very much, Madam Speaker.

Minister, can you please update us on your plans for the buffalo park?

First of all, Island taxpayers are protected by the first mortgage on all of these properties, these properties where all governments over the last 30 years have been involved in developing the downtown and other properties across our province. With regards to the other lien holders, it is their responsibility when they go into business with another private enterprise in the

Speaker: The hon. Minister of Tourism and Culture. Mr. Henderson: Thank you, Madam Speaker. Yes, I can inform the House a little bit about where we’re at with that. As you might recall, back in the spring, during our budget 48

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20 November 2012

management plan, we decided to see if we could put out an expression of interest for the Buffaloland Provincial Park, which we did. By midsummer we received no responses back from that. After that, we received one proposal that had come in, of which we’d started negotiations with an organization.

This government is clearly out of touch with that philosophy as demonstrated in their backing of the Homburg hotel, and the Premier’s friend, Richard Homburg.

The premise of the whole exercise here is to maintain Buffaloland Provincial Park as a place where the buffalo will stay, where they’ll be viewed by the public, and that any liabilities and expenses incurred would be the responsibility of the organization that takes over Buffaloland Provincial Park, if and when an agreement gets signed.

Speaker: The hon. Minister of Tourism and Culture.

Can the minister of tourism tell the House here today where the tourism feasibility study is for the Homburg hotel?

Mr. Henderson: Madam Speaker, the Homburg hotel is an accommodation that’s here in the Province of Prince Edward Island. We encourage lots of great accommodations here in the province. Many private sector operators provide great service and provide great facilities here. As our tourism industry grows, and with the addition of the convention centre here in Prince Edward Island, we’re going to see a larger need for accommodations in this particular province, Madam Speaker.

Speaker: The hon. Member from StratfordKinlock. Competition between government and private sector Mr. Aylward: Thank you, Madam Speaker. Another question for the minister of tourism: Minister, will you please confirm for the House that you are against government competing with the private sector?

Speaker: The hon. Member from StratfordKinlock. Mr. Aylward: Thank you, Madam Speaker.

Speaker: The hon. Minister of Tourism and Culture.

Again to the minister of tourism: Minister, can you tell this House today why this government saw the need to invest in a standalone tourism business in downtown Charlottetown in 2008?

Mr. Henderson: Madam Speaker, in every situation, every opportunity, that, you know, if government can operate some things very effectively, in other cases the private sector can do a fantastic job of that.

Speaker: The hon. Minister of Tourism and Culture.

That’s the way we operate our park. In some cases, in the golf courses, the province operates them, in other cases the private sector operates them. I don’t see one any different than the other.

Mr. Henderson: Madam Speaker, the department of tourism and the department that I’m responsible for, we don’t really have any specific role in lending money to any businesses or organizations that are out there.

Speaker: The hon. Member from StratfordKinlock.

We provide grants and we provide opportunities for organizations to develop and stuff. Our involvement with the Homburg hotel is nothing more than saying it’s a great opportunity for the accommodation sector to grow here in Prince Edward Island and we’re going to need that when the convention centre gets up running in a year’s time, Madam Speaker.

Holman Grand Hotel and tourism feasibility study Mr. Aylward: Thank you, Madam Speaker. We know this government’s responsibility is to create a climate where business and the economy does well, but must also realize when it cannot stand in the way of business. 49

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Speaker: The hon. Member from StratfordKinlock.

20 November 2012

develop a hotel that was clearly not needed when you couldn’t provide low-interest loans to help fund PEI’s existing tourism product?

Mr. Aylward: Thank you, Madam Speaker. Minister, I have to wonder why your government would want to add an additional 80 rooms in downtown Charlottetown when in 2008, according to your tourism indicating numbers, the existing hotels and motels were recording a roughly 42% occupancy rate. They weren’t even hitting the 50% mark.

Speaker: The hon. Minister of Tourism and Culture. Mr. Henderson: Madam Speaker, once again, the Department of Tourism and Culture, we don’t lend out money to the accommodation sector or really any other private business sector that deals with the tourism industry.

How did you think that Charlottetown could support an additional 80 hotel rooms when over half the rooms in our existing facilities were empty for most of the year? It doesn’t make sense, minister. Can you explain this to me?

But I would say that – An Hon. Member: (Indistinct)! Speaker: Order, please!

Speaker: The hon. Minister of Tourism and Culture.

Mr. Henderson: – those particular programs – Madam Speaker, the government has lots of other different programs.

Mr. Henderson: Madam Speaker, the accommodation sector in this province is predominantly operated by the private sector, and each, whether it’s a bed-andbreakfast, whether it’s a cottage development, or whether it’s a hotel-motel or convention centres of that nature, that’s up to the private business community to decide whether they want to take the opportunity to grow that sector.

Some Hon. Members: (Indistinct)! Mr. Henderson: If I do recall, Madam Speaker – Speaker: The minister has the floor. Mr. Henderson: I saw it under the PNP, there was lots of businesses – I do recall that there’s some businesses that used to work in the former premier’s office that received PNP to build and develop accommodations in this province, Madam Speaker.

It’s totally up to them. Speaker: Final question. The hon. Member from Stratford-Kinlock.

Speaker: End of Question Period. Low-interest loans re: tourism Mr. Aylward: Thank you, Madam Speaker. Minister, our tourism operators have been asking this government for several years now to provide them with a low-interest loan program so that they can upgrade and expand their own existing facilities rather than adding extra burden on to the tourism fixed room accommodations here in Charlottetown. But you told them over and over again that you didn’t have the money. Explain to the House how you could find, how your government could find, $16 million for a friend of the Premier to 50