N.B. businesses wonder if Atcon deal sets precedent for government aid

The head of a New Brunswick business organization says his members want to know if the strings attached to the three loan guarantees to the Atcon Group will start being attached to all future government deals.

The Liberal government announced on Wednesday it had agreed to three loan guarantees worth a total of $50 million for the Miramichi-based construction company. The deal included what the province called a "level playing field" rule.

That rule bans Atcon from pursuing in-province contracts with the government. Atcon will also need approval for major decisions from an oversight board that will include a government representative.

Louis-Philippe Gauthier, the president of the Conseil économique du Nouveau-Brunswick, a francophone business group, said it's unclear whether the Atcon deal will set a precedent for other businesses who need help.

"That's what can be dangerous here. So going in uncharted territory in uncommon times during a recession can be acceptable, but let's just make sure that the rules of the game are known by everybody," Gauthier said.

He said some of his members say they need the kind of financial help Atcon is getting as they try to weather the economic storm.

And Gauthier said those businesses want to know what the criteria will be for getting any government help and whether the same conditions will apply to them.

"Businesses, especially small businesses who don't have the resources to be able to reach government through lobbyists or through direct communication, have to know how the game is played," Gauthier said.

Acting Business New Brunswick Minister Jack Keir wasn't available to respond to those questions on Thursday.

A government spokesperson said the Atcon deal was unique and does not set any precedents for future assistance.

Robbie Tozer, the president and chief executive officer of Atcon, said in an interview after receiving the financial aid that the company was having trouble getting credit from banks. And he said a recession was no time for the company to stop growing.