Editorial misses main point
I think the Guardian’s editorial on the loan to Trout River has missed the main thing that is wrong with the loan, which is that the government is loaning money to a private company that in your words is successful, has a sound business plan and prospects.
If this is the case, why doesn’t Trout River raise the capital through private means? Why should the government be involved, can’t Trout River access commercial loans or solicit new investors?
Another question to ask, is what the terms of the loan are compared to what is available in the private sector?
Will the interest be lower or other terms easier than the private sector would provide? At the very least, by not loaning money to Trout River, the government could have saved a few dollars of interest.
Since the province has a deficit, any money loaned to Trout River by the government will increase the government debt and interest payments for the life of the loan to Trout River. Bill Chester, Crapaud