Nova Scotia cabinet prepared to defend loans, but jobs fund staying put: premier

HALIFAX (CP) — Premier Stephen McNeil shifted his stance Thursday on a controversial business loans program, saying cabinet will continue to control it despite criticism from Nova Scotia’s auditor general that the fund suffers from a lack of management and accountability.

McNeil said his government will ensure taxpayers know where their money is going and is prepared to explain any transactions, eliminating the need for an armslength body to administer the Nova Scotia Jobs Fund — a change he argued for while in Opposition.

“The deals will be put on the table,” McNeil said following a cabinet meeting. “And I know when we have ones that are questionable, we’ll have to defend them and we’ll have to say why we’ve done that particular investment.”

In his fall report released Wednesday, auditor general Jacques Lapointe said he found examples within the fund of unsecured loans and loans that were approved but did not always include the required financial and economic analysis.

Lapointe recommended moving the fund to the arms-length Nova Scotia Business Inc.

McNeil acknowledged the fund under the former NDP government was flawed. But he said plans to introduce legislation increasing transparency on how taxpayers’ dollars are spent and strengthening rules governing public assistance to the private sector should alleviate concerns.