PEI government defends loans to Thermoform

BORDEN-CARLETON - The minister in charge of P.E.I. Business Development Inc. is defending provincial government involvement in a local businesses after its bankruptcy.
Quality Thermoform, located in the former Strait Crossing office in Borden-Carleton, recently filed for bankruptcy. A mortgage sale of its remaining assets will be held Friday in a Summerside court.
Earlier this month, the Canadian Tax Payers Federation scolded the federal and provincial governments for handing out ill-conceived loans to operations like the failed plastics company.
"This company experienced difficulties dating back to 2004 because of the rising Canadian dollar at the time, but small businesses, retail or non, have a significant role to play in the provincial economy," said Innovation Minister Allan Campbell.
"We evaluate each situation on a case by case basis, and it shows businesses that the government is there to support them when we can."
The Province and ACOA provided the Toronto-based Quality Thermoform with millions of dollars in loans when it first began operation seven years ago.
The company also received money from two potential immigrants through the Provincial Nominee Program under the previous Progressive Conservative government.
Only $150,000 of the government loans have been repaid by the company, and the intermediary for the PNP file has not been paid its fees.
Campbell said the Province wouldn't rule out future dealings with the company, but it appears as if Thermoform won't be back.
"There is a lot of nervousness in the banking world in regards to taking on loans," he said.
"There are sometimes occasions when another investor comes in with interest. If that happens, we'd have to look at their proposal and see what the best course of action is. But to my knowledge they're not going to reopen."

sbrun@journalpioneer.com