Crown corporation writeoffs to be more transparent, says province

The procedure by which Crown corporations write off government loans will change, says the P.E.I. government.

Tuesday in the legislature, Progressive Conservative economic development critic Matt MacKay asked why $6.5 million worth of government loans were written off from 2012 to 2014 all without cabinet approval.

• Province writes off millions in loans without cabinet approval

MacKay said that number is high and points to a recent report from the auditor general that suggests the process lacks transparency.              

The Opposition later tabled a motion calling on the legislature to do more to investigate.              

Economic Development Minister Heath MacDonald says the government is reviewing all of its loans and past loan writeoffs.              

"Our new government's commitment to transparency is firm," said MacDonald.

"These changes will be addressed about who approves writeoffs, if that's the question clearly that you're asking, and how they are disclosed. We will be working with the auditor general to resolve this issue. In the coming weeks we will notify the House of our procedures."

MacKay says the total amount of government loans was at $443 million in 2014, up from $228 million in 2005.