P.E.I. officials can approve higher loans without executive council approval

P.E.I. Innovation Minister Allan Campbell and senior officials within a new Crown corporation can now approve much higher amounts in provincial loans without getting executive council approval.

Innovation P.E.I. is the newly formed Crown corporation that is the successor to P.E.I. Business Development Inc., or BDI.

The new lending agency also comes with some new rules.

The CEO of Innovation P.E.I., Neil Stewart, has been granted the ability to approve loans of up to $500,000 without having to obtain approval from Treasury Board. Previously, the head of BDI could only approve up to $100,000.

The minister's loan approval amount has also been increased. Any loan over $500,000 previously had to be approved by executive council, but Campbell now has the authority to approve up to $1 million.

The change in approval limits was discussed in the legislature recently when Campbell was going through second reading of amendments to the Innovation P.E.I. Act.

When questioned by Opposition critic Mike Currie on the new limits, Campbell said they were revised to reflect the new market economy.

"If you look back to when you were minister, the economy has changed a lot," Campbell told Currie. "Those numbers were dated and it's just a reflection of where the economy is going at this time."

But Currie questions this logic.

"Yes, times have changed, but if anything the economy has gotten worse and those limits should be looked at even more closely," Currie said in an interview Monday.

Currie believes Treasury Board's previous approval policy was better for reducing risk.

"Treasury Board is there for a reason," Currie said.

"To have Treasury Board review documents and expenditures further questions and protects, and is the second set of eyes on taxpayers' money."

Opposition Leader Olive Crane was also critical about the fact that Stewart was chosen as the new CEO for Innovation P.E.I. and given increased spending limits in this new role.

But Campbell defended Stewart, saying he had every confidence in his new CEO.

(Charlottetown Guardian)