‘Big blow’

Myers says government didn’t do enough to assist DME

The provincial government allowed a large P.E.I. employer to crumble through its inaction, says a PC MLA.

Monday’s announcement that Diversified Metal Engineering (DME) was in receivership dominated the first half of question period Tuesday, with PC MLA Steven Myers criticizing the province for not doing enough to help keep the company afloat.

At least 140 jobs are being affected at DME.

Myers criticized Economic Development Minister Chris Palmer for not offering assistance to keep the company afloat once he learned of the possible closure.

“We just watched a local grown company crumble into the ground, and he didn’t even lift a single finger,” said Myers.

“Losing 140 jobs at DME is a big blow to our economy, especially when so many of those jobs are high-paying, high-skilled jobs.”

Palmer said the province only became aware of the situation over the weekend and accused Myers of making a “political show” of the issue.

“This is a difficult situation for the workers, and we’re here to help them,” said Palmer.

While Palmer did not mention previous provincial grants awarded to DME, he said the province was not in any discussions with the company prior to the weekend.

A spokesperson for the province later told The Guardian that government did make an offer of financing with the previous owner during discussions on the weekend.

Green MLA Hannah Bell asked how the other operating companies in the DME Group were affected by the receivership. The DME subsidiary, Atlantic Systems Manufacturing, has about 10 P.E.I. employees.

Bell also noted that, on a per capita basis, the economic impact of DME’s closure on P.E.I. is about seven times that of Monday’s announcement of the Oshawa GM plant closure for Ontario.

Palmer said the receivership was still in its “early days”, and the province is working with the receiver to “get an understanding of what the impacts would be.”

Palmer also said the province was contacting other employers to help affected workers find other positions.

He also said the province was open to assisting another company with an acquisition of the company.

MITCH MACDONALD/THE GUARDIAN Premier Wade MacLauchlan, left, and Economic Development Minister Chris Palmer chat prior to Tuesday’s question period. The afternoon saw Palmer field questions from both opposition parties on the closure of Diversified Metal Engineering.