December 15, 1998
(Development and Rural Renewal)

The following statement was issued today by John Efford, Minister of Development and Rural Renewal (Acting). It was also read in the House of Assembly:

In view of recent events related to the Canadian Blood Bank, I wish to take this opportunity today to update the House on the status of the province's investment in that company. As honourable members are already aware, a loan guarantee of $500,000 was provided to the company earlier this year by the Department of Development and Rural Renewal. This investment was made following significant management changes in the company and was intended to bridge the company while it was attempting to restructure itself financially.

This investment was secured by an assignment of a mortgage on a commercial building in St. John's. This building has an appraised market value of $1.2 million. This was previously indicated to members by the Minister of Development and Rural Renewal during Question Period on November 19 when he stated that our security is in the form of real estate, not in equipment and supplies used by the blood bank on a day-to-day basis.

I want to reassure the people of Newfoundland and Labrador that the security for this investment is still in place. The building in question has recently been listed on the market. We have discussed this with the bank involved and have every reason to believe that the investment is not at risk. We will continue to monitor this very closely to ensure that the province's investment remains fully protected.

1998 12 15                         2:30 p.m.