P.E.I. government approves $540,000 loan to Trout River Industries

Teresa Wright
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A P.E.I. company that used Premier Wade MacLauchlan’s voice in a commercial advertisement has been approved for a $540,000 provincial loan.

In late December, cabinet approved the loan to Trout River Industries from Island Investment Development Inc.

Economic Development Minister Heath MacDonald says the province wants to see Island companies like this one grow and prosper, and is happy to help with its lending agency.

“We’re committed to the success of Island companies and entrepreneurs and especially Trout River. It’s in rural P.E.I., it employs up to 80 people and it’s in a very important sector for us.”

MacDonald noted P.E.I. has led the country in exports and had strong manufacturing sales figures.

He says this is due in part to support from government’s loan portfolio.

“I think it’s very important to the economy of P.E.I. and it’s important that we continue to do it,” he said.

RELATED: Wade MacLauchlan voices Trout River Industries commercial

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Trout River Industries made headlines last fall after Premier Wade MacLauchlan voiced an advertisement for the company.

Opposition MLA Steven Myers raised concern about a possible conflict of interest with the premier actively promoting companies that receive government money.

Trout River Industries has been the beneficiary of other government assistance in the past.

But MacDonald says the decision to approve this loan was based on Trout River Industries’ business plan and prospects.

“Anytime you have a premier lend his voice to a company, I think wow, he’s trying to promote P.E.I. as a whole. He’d likely do it for anybody, for that matter,” MacDonald added.

A spokeswoman for the premier’s office says the loan went first through treasury board and then to cabinet, where it was approved by consensus.

The loan is a five-year term loan, amortized over five years at four per cent interest.

The money will be used for equipment purchases.



Organizations: Trout River Industries, Island Investment Development

Geographic location: P.E.I., Iceland, Trout River

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Recent comments

  • AL
    January 07, 2016 - 13:52

    I am just waiting for Murphys to announce that they have decided to go ahead with their new Stanhope resort. Then watch for another loan from our surplus funds to help them out.

  • Just Asking
    January 07, 2016 - 10:46

    Trout River Industries could have borrowed this money from any bank, and probably at a slightly better interest rate. Will this be another of the millions in loans that get written off every year? Why is their loan loss rate so high? I'll answer that, it's because they lend money based on politics and not good business plans or collateral.I'm sure any bank would have been glad to loan Trout River money as they seem to be very successful. Why do all these successful companies have to use taxpayers money to expand or buy new equipment?

  • sentance
    January 07, 2016 - 10:40

    Like airforce1 I have questions about the loans program the government seems to have. In fact I would be as or more interested in having the provincial auditor study the giving out of these loans as the forgiving of some of them. I can see that there might be a reasonable rationale in that the banking system isn't always as forthcoming with credit as it should be, and there are industries that by their nature don't fit neatly into some banks pigeonholes. But given the controersy that usually arises when these things do leak out, I think we need a third party assessment to reassure Islanders that there is a need for these loans and that they aren't being given out on the basis of cronyism.

    January 07, 2016 - 09:51

    Will it ever stop??? If these companies, Trout River, Mussel King, ADL, and many many more are so successful, why can't they get loans like we have to. I am very tired of paying taxes that are quickly and quietly handed over to these so called successful companies. Soon I believe you will see an addition in the dictionary, Under Organized Crime you might see PEI Political System.

  • airforce1
    January 07, 2016 - 09:02

    What a bunch of B.S. Heath MacDonald is long winded and blowing his own horn, which isn't much different then anyone in the provincial government. (FACT) These people are masters of deceit. Say anything to make themselves look good while screwing over everyone else. This looks like another so called successful PEI company like the Mussel King, the only thing they are successful at is taking handouts from the government (taxpayers). I have a business that I have been running for years and never have I thought of going to the government for loans (which most of the time is really a no re-payment handout) to finance purchases of equipment, etc. Anything I needed for purchases was money loaned from a little place called the Royal Bank of Canada. Why would the people of PEI finance a company that can't run itself because this is another that can't obviously do that otherwise they wouldn't require a loan??? Why is the government acting as a lending agency in the first place? Just another slap in the face to the good people of PEI. Use our tax dollars to fund a business that we have to in turn pay to use or make purchases from... I'm sure there was nothing else that money could have been used for like road repairs, health care, education..... This crap has to stop.