Edi­to­rial misses main point

The Guardian (Charlottetown) - - EDITORIAL -

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

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