Province approves close to $3M in business loans

Teresa Wright
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The P.E.I. Brewing Company received a term loan of over $2.1 million from Island Investment Development Inc. (IIDI), a provincial Crown corporation.

The provincial government has granted almost $3 million in loans to two P.E.I. companies for development and expansion.

The P.E.I. Brewing Company is receiving the lion’s share, with a term loan of over $2.1 million from Island Investment Development Inc. (IIDI), a provincial Crown corporation.

No one from the department of Innovation and Advanced Learning was made available for an interview, but an email response from a department spokesperson says the loan is for the brewing company’s to move and expand the business.

“The Prince Edward Island Brewing Company is expanding their brewery operations by relocating to and renovating the former Cabinetmaster building on Kensington Road in Charlottetown into a full scale micro brewery (bottles and cans), a product research and development kitchen, and a retail beer store,” the department email said.

The company will also be offering brewery tours and entertainment by local musicians to customers once the move to the new location is complete.

“With this expansion, the P.E.I. Brewing Company is ready for opportunities in export markets through increasing production capacity, growing the number of accounts for sales and accelerating the channels of distribution of their award winning ales.”

A request to the company for comment on this story received no response.

The directors of this company, as listed on the federal corporate registry, are well-known Charlottetown businessman Kevin Murphy and Jeffrey Squires.

The terms of this loan were requested from the department, but were not provided.

Executive council also approved the advance of an $800,000 operating line of credit from IIDI to the Cornwall Business Park Inc.

This corporation manages the business park, which houses manufacturing and transportation companies.

In an email response to The Guardian, Rebecca Bruce, a communications officer with Innovation P.E.I., said the business park’s focus on growing the manufacturing sector made it eligible for the five-year term operating line of credit, with a four per cent rate of interest.

Charlottetown developer Tim Banks owns the business park.

“The Cornwall Business Park is driven by growth in the manufacturing sector, a priority sector in accelerating the economy of P.E.I.,” Bruce said in her email.

“Finance P.E.I. assists new and expanding businesses that exhibit strong growth and export potential while contributing to job and wealth creation.”

 

twright@theguardian.pe.ca

Organizations: Island Investment Development, P.E.I. Brewing Company, Department of Innovation and Advanced Learning Prince Edward Island Brewing Company

Geographic location: Charlottetown, Kensington Road

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Recent comments

  • John Getson
    John Getson
    January 04, 2013 - 11:53

    If the province is so damn gung-ho on promoting and funding private businesses at a discount to what normal banks charge, then they should have "total" but temporary beneficial ownership or control over those businesses until the funding is repaid in full with a nominal interest... could even pay the company owners a nominal minimum wage, stipend or small share of profits while they are 'employed' but a significant portion of profits etc would go to payoff the funding... When loans are completely paid off - principle AND interest - then, and only then, would company control be handed back to the original owners. Whoops, better clarify... can't just assume... that, naturally, there would have to be a proven and verifiable existing operating profit in order to pay for the application, since the government is so fond of fees, for funding... as well as to "securitize" the funding and "mitigate" any potential short-term loss due to the new projects. maybe if we use terms that the politicans favor they will see the sense....

    • UPWESTER
      January 06, 2013 - 11:49

      It is very interesting to note that while this government is giving money to Kevin Murphy, there is a 3 page article in the Globe and Mail this weekend about how successful the Murphy families are. Anyone who would like to see just how much they own, should read the article in the Globe & Mail. A real eye opener. To think that this government has to loan Kevin Murphy money is another slap in the face from Ghiz.The Murphys are compared to the Irvings as PEIs' leading earners. After all that PNP money, they are still at the trough. Disgusting.

  • bulldog
    January 04, 2013 - 10:11

    It would be better off giving this money to the Irving Company as at least that would create good jobs and the Government would get their money back plus interest. By the way , how much money did the Government write off last year on bad debts, and wait till we get the write off on the Homburg and Convention Center, I am sure this will be delayed for the next government much like the H.S.T.

  • FedUp
    January 03, 2013 - 19:29

    Lord help us please !! Aren't we, as taxpayers the owners of this government? Am I missing something here? In reality, they are all working for us, which I do believe, so..... we provide for their wonderful spending and foolish decisions and ideas...Bankcruptcy is soon happening. So let me add.... For any CFO/CEO/Principal Owners of any buisness out there, that would continiously see a gradual deficit in their operation and stupidity like we are experiencing, wouldn't these people get canned, fired?? PEI's population will decrease rapidly if this keeps up, and then we will be in deeper crap ! Didn't we have a Rhino Party running years ago? - If so, will you please stand up??? I bet you would do a much better job at running this now Tea Party we are into !!!

  • Ghoulman
    January 03, 2013 - 13:02

    Just to comment on the large round of comments this article has attracted... There's no difference between what the current provincial government is doing compared to any previous government for at least the last 30 years. Complaining about 'this government' is just the usual partisan bickering. If you truly want change you'd have to confront decades of graft, money laundering, patronage, and influence peddling - which is how PEI is run. Get over it.

    • candrayo
      January 03, 2013 - 15:01

      I know that is what they want you to believe. Good luck finding your hope again!

    • Let's do nothing and all will be okay . . . right?
      January 03, 2013 - 15:19

      Get over it? Ghoulman, are you really our Premier?

  • Reality check
    January 03, 2013 - 12:52

    Gov't must invest in business to create an economy. Any business that has the potential to create jobs and revenue must be encouraged. It is sorely needed to cover the costs of the ballooning social services. Without the handful of successful businessess that are willing to expand or locate in PEI there would be no jobs.

    • Reality Check
      January 03, 2013 - 14:54

      Sorry but supporting a business that produces a product that cripples so many PEOPLE...How can the government support that? Can you tell me how a BREWERY stimulates an economy? SERIOUSLY?

    • Reality check commentor
      January 03, 2013 - 17:53

      Breweries make sales, hire people, pay taxes and pay back loans. It is called business. Products {booze, drugs, guns, smoking, junk food} do not cripple people. Bad choices cripple people.

    • Then
      January 03, 2013 - 17:58

      Then you try to get a $10,000 loan from the govt to start a small business. You would be turned down flat, no matter what you show them in order to get yourself started let alone hiring down the road. Why? you would be turned down because you are not a Liberal friend.

    • Reality Check...Indeed
      January 04, 2013 - 08:07

      like bad choices from government to loan money to a company that makes alcohol...instead of investing MORE in the health care system here. we have been fighting drinking and driving since 1923,(or that is as far back as I have been able to find) nothing has worked for government so far...I think they should take a stand on that one and have nothing to do with alcohol....PERIOD I want my tax dollars to have nothing to do with ALCOHOL...EVER...not even so much as a bottle of wine bought with our money.

  • Alexander Keith?
    Alexander Keith?
    January 03, 2013 - 12:45

    Good move... seriously... lets support our local brewers and add a 20% import tariff on any and all alcoholic beverages brought into the PEI liquor stores that can't be produced here (brands are irrelevant)... use those funds raised to fund a publicly owned distillery that runs a bleeding-edge treatment center.

    • bulldog
      January 03, 2013 - 15:36

      It is obvious that you know very little about business by saying to apply a tariff on all alcohol coming into the Province. This is against CAnadian and international law. What if the rest of the Provinces apply a tariff on potatoes, fish, and other Island products, we would not sell tmany of these items. I think with all the bad investments this GOvernment has made , it is time to get out of the lending business and maybe invest in two more cancer DOctors.

    • UPWESTER
      January 06, 2013 - 11:41

      BULLDOG... Little you know about business. There is already a tariff against bring in booze from other provinces. Didn't you read just last month that the PEI government upped the amount of beer, wine etc. you can bring in from another province. Check your facts before spouting off. And no, Timmy's is not a place for accurate info.

  • Gerry
    January 03, 2013 - 10:01

    To all those Liberal die-hards, you reap what you have sown. Thanks!

  • Bill Kays
    Bill Kays
    January 03, 2013 - 09:50

    The OLD BOY'S CLUB is alive and well and functioning as normal. Could there possibly be a need in PEI for a WOMEN'S HOMELESS SHELTER. By this time next year we will need more mens and womens shelters. Of course it is more of the same corporate welfare that should never be allowed. When government marries business it is called fascism. People it is time to take our disgust at this government's "to hell with what the people want, we know better attitude" to the streets. WAKE UP. Letters to the editor no longer cuts it. Tell government to get out of the private sector. Tell them to start doing the will of the people, not the will of the corporations they now serve.

  • AMAZING
    January 03, 2013 - 09:48

    This Government has become so arrogant thatr they not longer even try to hide or cover up the money they are giving their loyal millionaire backers. Canada a democratic country ( except PEI )

  • Billy
    January 03, 2013 - 09:39

    Why don't those Murphy's and others go on Dragon's Den to get the money. I should say try to get the money. It seems the only people getting anything out of this government is those with money and those with none. When does the middle "income" earner start to get a return on his /her dollar????

  • forget about corruption for a Min
    January 03, 2013 - 09:36

    people....you do know that we are at WAR with drinking and driving right? am I crazy here, or is that the common feeling towards alcohol right now? If I am not crazy then, that means somebody else just might be....can we not request an evaluation? Starting to SERIOUSLY wonder if Ghiz is all there. I wish I was kidding.

  • lola
    January 03, 2013 - 09:27

    OMG......my taxes are involved with the promotion of alcohol When did it take anything more than common sense to know this is a conflict of interest? So if COMMON SENSE is not even alive and well in our government...are we not just a little bit concerned.... without even mentioning the obvious "connection" as a "problem"

  • Not up to date with who's who
    January 03, 2013 - 09:21

    Can somebody please give me a list of places to boycott. I do not know the inner workings enough, and I want to be accurate. I want to make sure none of my own money goes to the MURPHY group and anyone else proven to be corrupt in the eye of the Honest Islander. I would rather be safe, than sorry...so leave none out

    • It's where where who's who . . .
      January 03, 2013 - 15:05

      To find out who's who you have to first know where's where; the Dragon's Den show doesn't get its name by accident. There's a few venues where the puppet masters do become visible, but you have to know the secret handshake - wink, wink. There used to be Catholic / Protestant venues but that's faded. Now it's a few homes, bars, and offices - but even that's going digital. The only thing that amplifies the visibly here is the fact that everything is amplified; on PEI if the pavement guy eats beans the coffee guy farts and the building guy gets bad breath (and vice versa). Sad thing is that the common guy's stomach just continues to rumble . . .

  • Mommy...What was Democracy like?
    January 03, 2013 - 09:15

    Ghiz, not only are you perpetuating the Drunk Driving, you are stealing people's belief in Democracy. Could you please define for us, in your real language, what the term DEMOCRACY means to you. And then when you are done, perhaps you could let Webster's Dictionary know, so the rest of us can keep up with the times. Much appreciated....just an ignorant female looking for some advice to tell my daughter who is 16 and able to VOTE SOON!!!

  • martyr
    January 03, 2013 - 09:14

    I left the restaurant industry here in PEI for reasons reminiscent of this situation. My conscience could not handle working in any MGR or MurphyInc. property knowing what oligarchical activity they are involved in. Makes me sick to know what hardships everyone goes through while these Liberal buddies sip proverbial champagne and watch from above their little roost. 3 Million just adds to the long list of useless expenses that we as a province will be dealing with. --Hey Kevin, next time you take out a loan, do it on your own account, literally.

    • ME TOO
      January 03, 2013 - 09:39

      I too left government because I had a conscience...I have to believe I am not alone. you're not alone...your're not alone....YOU ARE NOT ALONE...... oops sorry...thought I was alone

  • RECALL LEGISLATION
    January 03, 2013 - 09:05

    we should be all working towards bringing this law to PEI

  • bulldog
    January 03, 2013 - 08:48

    The report on CBC stated that the Provincial Government owns the building and the brewery leases same. Maybe your reports can f industry out who is paying for the massive renovations? Kevin very rich man getting this money(how much is grant money) and on top of the millions in P.N. P. Monies. This will be another down the tube business.I wonder if the Department have even looked at the past statements of the brewery.

  • robert mac donald
    January 03, 2013 - 07:38

    And Tim does not even have to create any jobs by the looks of it, he became eligible just for owning the Cornwall Business Park. - Great stuff, $ 880.000 gift. Just to round out the lucrative business realtionsship he has had since Ghiz got in. Starting with getting rid of the Pool Corner building on lucrative terms, thanks to the government grant to the new owner, which of course later left the taxpayers holding the bag, but Tim got his profit. He has 'managed' almost every major job that has taken place, and with McLean's Construction build half of everything. Tim's Nova Scotia company wrangled as a the gift of the land on North River Road, where we, the taxpayers, owned the old seniors housing and the land it sat on, - it goes on and on, thanks to the taxpayers of PEI. Democracy at its best, - Tim's invest in the liberal party sure has paid off. I often wonder why politicians make it their business to create wealthy people, and then keep on giving them more and more, is there something in it for them ????

  • SG
    January 03, 2013 - 07:28

    Also Too Bad we don't have an Opposition with enough members to do something!

  • peter
    January 03, 2013 - 07:23

    What can you say ??

    • RECALL LEGISLATION
      January 03, 2013 - 09:55

      RECALL LEGISLATION should be the only thing on ALL Islander's lips!

  • kevin
    January 03, 2013 - 07:21

    Are these three great business men what is common called corporate welfare bums? Apparently they will keep coming to 'the well' as long as there is 'water', - and we 'hewer' can be forcced to draw it for them. ---They don't care they got the money, and Ghiz don't care, he thinks that is his job, making sure his friends continue to garner wealth. Wonder how his own private retirement fund is doing with all this activity?

  • mac
    January 03, 2013 - 07:15

    The banks don't care that the Government is the middle man here. The Government borrow from the bank, lend it to the businnesses and take the risk when the loans are not paid back. The idea was to entice new businness that would otherwise not get off the ground for lack of start up capital. All looks good on paper, but then enter stupidity and protronage via unscrupulous polititans and ' business begars' of the same color. End result: the taxpayers are taken to the cleaners at every turn. Property tax, income tax, and now at the request of businesses, the HST, - all this topped with increased fees for everything related to government services and permits. This would not have happened had Islanders not joined in the stupidity and elected and re-elected Mr Ghiz. We are now reaping the neglect and punishment for this. Hopefully we can contain ourselves until the next 'apparently delayed' election. Meanwhile, let's hope for compassion and that the liberal 'beggars' will not try to totally is maximize on our backs before that day. Please have a bit of mercy, you mercenary beggars - pretending to be great business men.

    • huh
      January 03, 2013 - 10:02

      Do people really, truly, think that Banks and Murphy, who have been around for ages, never secured a loan or public money from a Conservative government?

    • HUH....SIMPLY
      January 03, 2013 - 10:39

      since when did 2 wrongs equal a right MATH ON PEI is worse than I thought...or is that parenting that promotes that kind of response... either way....unproductive to complaining about who else has done wrong...IT HAS TO STOP SOMEWHERE!!!

    • huh
      January 03, 2013 - 12:49

      Actually, my comment was more directed to the statement "This would not have happened had Islanders not joined in the stupidity and elected and re-elected Mr Ghiz.". My point is: yeah it would.

    • Huh...
      January 03, 2013 - 14:45

      I do not doubt it...all government is corrupt in my eyes...but I can not sit here and fight every battle on the premise of it will never stop. Or I become defeated completely. I do not accept that this is the way it has to be!!! And criticizing my fellow Islander's intelligence is not going to get me anywhere...unless you are in government...because insulting them right now is the only satisfaction I can get out of them. But I get where you are coming from...hope is a hard thing to lose.

  • Mark
    January 03, 2013 - 07:06

    This is just another huge example of party patronage at it's finest. Why does Kevin Murphy need more money anyways, didn't he get enough from the PNP? This is just absolutely ridiculous. I cannot believe what is going on with this province's leadership. If he needs money to expand, let him get his own loan through the proper channels such as a bank loan. Let me guess, he is unable to get one, so he has to apply to the bank of Ghiz. How many Friday night card games did it take to talk him into that one Mr. Murphy?

  • Good Luck with the business
    January 03, 2013 - 06:26

    I have both admiration and respect for the Murphy Boys and most of their gang. However, our government has already legislated incentives that enable corporate advancement - sometimes to the determent to it's core mandate. So, I too am confused about these loans. Since companies (and their owners) directly benefit from our tax dollars it seems only fair to know how these loans directly benefit Islanders. This government does a horrible job explaining (if it's possible) how they represent the interest of Islanders. Whether it's right or wrong, most Islanders now expect to be planb'd over and over again. Pushing those legitimate concerns aside, Good Luck with the business!

  • DAVID
    January 03, 2013 - 06:17

    ATT;;what a shame to see this going on giving our tax dollars to some one dose not need it 'i hope you all see what these people are like 'you voted them in and know look at us 'this goverment is just helping there self 'we live here and iam not proud of this goverment 'they will tell you what you want to hear 'these so called goverment do as they like' they help out there buddys not us as tax payers i will make sure they dont get in power again '.you will find out how its done when time comes .

  • Justine Thyme
    January 03, 2013 - 05:51

    Islanders buy $95 million worth of booze ... more taxes for the Liberals to spend on their friends.

    • It really was
      January 03, 2013 - 18:00

      It really was that the cost of the booze went up quite a lot. That was why the $ totals were more.

  • Joe Blow
    January 02, 2013 - 23:58

    What a complete slap to the face of Island taxpayers!!!! We have no money for healthcare or to finish schools and jobs are being cut every week, but there is always money to throw around to millionaires THAT DO NOT NEED IT!!!! Kevin Murphy and his brother Danny and Tim Banks and people like them DO NOT NEED to receive loans from the government or PNP money because they are already filthy stinking rich. Does this stupid Ghiz government even think before they shoot themselves in the foot with dumb decisions like this one?? What ever happened to a person spending some of their own money when they decide to expand their business of open a new business here on PEI??? This Ghiz government has to go NOW!!! They are simply helping to make their friends and families rich off the backs of taxpayers. I for one....will never touch a Murphy Breweries product again as long as I live!! I cannot in good conscience support people like Kevin Murphy who gets loans from government when his bank account is spilling over in money!!! This kind of garbage only happens on PEI and it has to come to an end NOW if we ever want to run our province properly and get out of debt. Decisions like this one are why the province is in a massive debt. Wes Sheridan couldn't keep books for a lemonade stand!! Idiots....the whole lot of them!!

  • Makes Sense
    January 02, 2013 - 23:41

    IIDI is setup to do exactly this, lend money to businesses they feel will repay at a competitive interest rate. This is not a grant but a repayable loan over a certain period of time. From a lenders perspective with proper collateral these loans makes sense while employing people in the community and promoting island products on and off the island. Albeit not accepted by traditional lenders they should benefit the province in the long term. Great to see our provincial agencies supporting local small businesses.

  • disgusted
    January 02, 2013 - 22:26

    Yet, the line up at New Years Levee was 10-20 minutes, whats wrong here? Stand up for g** * sake before all our young people leave in disgust!!!

    • already happening
      January 03, 2013 - 09:01

      just moved home after being gone for 10 years...WOW...can not believe it is the GOVERNMENT that is going to be the basis for my decision to leave. Lost hope in my Federal representatives, only to find that there is NO HOPE for my Provincial ones either.

  • Aaron Jarvis
    January 02, 2013 - 21:39

    Dragons Den move over we have a new show Liberal Party Den

  • SG
    January 02, 2013 - 21:33

    This Report was covered on CBC this evening also.Their Report stated The P.E.I. Brewing Company would hire 25 employees. Just my Opinion but I don't feel 25 jobs will make much of an impact given our Number of Unemployed Islanders. I also don't feel a $3 million investment in two Businesses will do much in providing our Cancer Centre with another Oncologist that is direly needed or the many other necessities Islanders need that aren't provided currently. I also don't feel it is our Government's responibility to provide funding for Business Entities. Isn't that a Service our Financial Institutions provide? While Islanders are wondering how they will be able survive the financial burden re: HST, the recent changes to our EI Program, the increases on Gas Prices, etc. etc. we read this Report stating that our Government is providing a $3 million loan for two Prominent Island Businesses. Yet our Government couldn't provide $ 30,000. to maintain a Police Officer at Colonel Gray High School who was instrumental in bringing about positive change and decreasing Drug Use among students. Priorities?

    • james
      January 03, 2013 - 04:11

      Why didn't Kevin Murphy and Jeff Squires go to a PRIVATE BANK and get a loan like normal people? Why didn't they put up their own assets - house, investments, other businesses, etc. - as collateral for a PRIVATE BANK LOAN ? Why involve the taxpayers? Just like all the other so-called private sector businesses in PEI...... they are socialist tax money sucking pigs who are anything but private sector. And Gahan beer sucks anyway. Didn't the IIDI idiot loan officers even understand that they were spending OUR money on a brewer of junk beer?

  • candrayo
    January 02, 2013 - 21:21

    Honestly...I do not know how half this government can go out in public...and now this....wow....Robert Ghiz...I wish there was a way I could sue you for taking...no sorry...robbing me of my faith in DEMOCRACY. Every cent I would make off you, would go where it belongs. The Islander that is in Need...not the Islander in Want....not his fault you might say....HIS WATCH PEOPLE, HIS EXAMPLE 3 million......WTF....and a BREWERY....what message are you trying to send FIGHT DUI but give 3 million in loans to a BREWERY!!!!! EVER HEAR OF PREVENTION

    • candrayo
      January 02, 2013 - 22:19

      I formally request that ROBERT GHIZ, my elected ........., answer a question to defend such actions. HOW CAN YOU PREVENT SOMETHING AND ENABLE IT AT THE SAME TIME? PLEASE RESPOND IN ANY WAY YOU FEEL COMFORTABLE....BUT PLEASE GIVE ME AN ANSWER.

    • Honestly....Because
      January 03, 2013 - 09:53

      You are a second class citizen...didn't you know...sorry to break it to you. But take heart in the fact that AT LEAST Robert is honest about that. I will offer you my condolences, and at the same time welcome you to the club!

  • SAP
    January 02, 2013 - 20:50

    Surprise surprise, all the same names, people on boards that give approval to themselves for this money. Can they not get financing through the same means as other businesses do? Oh, yeah, on PEI this is how business is done, with government assistance.

  • liberal party commercial bank of iidi bum loans
    January 02, 2013 - 20:30

    The Ghiz team continues to borrow money on PEI's name to lend money to their friends where no successful bank would ever lend it. No comment? Nobody available to comment? Where are they? Let the bad news out on Friday and duck for the weekend. This is pathetic, Islanders are such great sheep the Ghiz team cannot help but help the friends in the party. Who can stop them??

  • Loan business
    January 02, 2013 - 20:22

    The provincial government has granted almost $3 million in loans to two P.E.I. companies for development and expansion. HM. I wonder what banks think of the fact the government continues to give loans like this to certain businesses....when the ordinary person has to go to a bank for loans. With interest. CAN ANYONE PLEASE EXPLAIN TO ME WHY GOVT IS GIVING TAXPAYER MONEY AS LOANS WHEN THESE COMPANIES CAN GO TO BANKS FOR LOANS????????????????????????????????????????????????????????????????????????????????????????????????????