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Discovery Air Rescued

Bar C

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And know the brown stuff starts to slowly hit the fan quoted from CBC North today



The Northwest Territories government decided to give a $34-million loan to Discovery Air after an independent review deemed the loan presented a "tolerable risk, says Finance Minister Michael Miltenberger.


Questions linger about the loan, which comes from the N.W.T. Opportunities Fund. Terms are expected to be finalized this week, although the company had until Feb. 1 to refinance its existing debt.


Miltenberger, who also chairs the government's Financial Management Board, acknowledged that the bailout loan marks a change for what is usually a low-risk fund.


"What triggered the switch from the passive to being active was those economic circumstances and an unsolicited proposal that got us around the table to say, 'We have to look at this, because this is a big outfit, has lots of northern content, hundreds and hundreds of jobs,'" he told CBC News in an interview.


Independent review


Discovery Air, the parent company of Yellowknife-based aviation firms Great Slave Helicopters and Air Tindi and several other operations within Canada, announced on Jan. 19 that it received the Opportunites Fund loan.


Miltenberger said Discovery Air's proposal for financial assistance was independently reviewed — at Discovery Air's expense, for about $50,000 — and that review's conclusion came in favour of making the loan.


"There was risk, but it was tolerable risk, given the economic circumstances, the value added, and when you look at what would happen, God forbid, if an outfit that big would have ended up going under, packing its bags, leaving the North, whatever," he said.


The final decision to grant Discovery Air the Opportunities Fund loan came on Jan. 14 from cabinet and the Financial Management Board, government officials say.


"My job is to deliver upon the Financial Management Board and cabinet's direction," said N.W.T. Deputy Industry Minister Peter Vician, who chairs the society that administers the Opportunities Fund.


Politically motivated decision, MLA charges


Yellowknife Kam Lake MLA Dave Ramsay said no details about the loan were given to the MLAs' economic development committee, which he chairs.


"There has been no evidence that it wasn't just a politically motivated decision to lend the money," Ramsay said.


"I haven't seen any evidence. Nothing. Zero."


Miltenberger acknowledged that one cabinet minister is a Discovery Air shareholder and declared a conflict of interest throughout the loan decision process, but that's where the conflicts end.


"This type of thing, the friendship stops at the door," he said.


"This is business. This is government making investments, making decisions, trying to provide leadership in difficult times.


Non-cabinet MLAs are expected to bring up the Discovery Air loan when the legislative assembly reconvenes later this week.


With files from Lee Selleck


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This isn't looking good here is another article. Note 1 reason why the vote may happen.



Groenewegen said she and her 10 fellow regular MLAs have lost confidence in Roland and his six-member cabinet, over controversial government decisions ranging from a move to change extended health benefits to the awarding of a $34-million loan to aviation company Discovery Air.




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is the bailout loan really in jeopardy? Is it tabled in this budget and subject to rejection?



The way I understand it .. YES.


The budget was presented today, and tomorrow they will vote on it. If a motion of no confidence is presented and supported, then I think the MLA's would be ousted, the current government would fall, the budget would be defeated and DA deal would die.


I stand to be corrected though.



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i am not sure the loan has anything to due with the budget. If the government gets punted it could stop this i would think as it is one of the major reasons for the vote of non confidence if it happens. The regular MLA's are some pissed about this loan not going in front of the house for discussion and a vote.


The MLA's are also pissed that one of the cabinet has shares in DA.


Should they get the loan every operator that is on the point of bankruptcy should move to Yellowknife

or any where in the Nunavut and always be sure of survival. Pond Inlet sounds like a good spot, or maybe just outside of Alert!!!!!!


They could always be used for our Northern Defense, maybe the RCMP will let them carry guns.


God, it's fun to be a taxpayer and watch the endless waste.


What happened to the REFORRRRRRMMMMMM PARTY.

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