November 19, 1997
(Works, Services and Transportation)

The following statement was issued today by Lloyd Matthews, Minister of Works, Services and Transportation. It was also read in the House of Assembly:

On Monday, November 17, 1997, the Honourable Member for St. John's Centre raised the matter of contracts awarded to Metal World Inc. by government since I became Minister of Works, Services and Transportation. When originally discussed, I was in Toronto representing government at a public, private partnering conference and was therefore unable to respond. The matter was again raised yesterday in the House with respect to the operation of blind trusts and the extent to which they, in fact, protect the public interest.

The Honourable Member referred to the public record regarding registration of companies indicating what my corporate involvement and interests were with Metal World Inc. He said, and I quote, "If an individual is a director of a company and that company does business with Government and if that individual is a Minister of the Government of this Province there's conflict."

As per a minute of company directors' meeting held on August 26, 1994, I am no longer president or director of Metal World Inc. On July 11, 1997, the Registry of Companies acknowledged receipt of advice in the prescribed form of these facts. It is clear I am no longer, and have not since 1994, been involved in the company's operations. I wish to table all documentation related to that change at this time.

I wish to advise Members that immediately after my appointment to Cabinet on August 26, 1994, I sought, under the direction of the Commissioner for Government Members' Interests, to arrange my business and personal affairs in such a manner as to be in full compliance with the Act. In addition to providing full disclosure, I placed all of my business affairs in the hands of trustees, approved by the Commissioner of Members' Interests', Jeffrey Matthews and Stephen Matthews. I want to reiterate, as well, that I have also had no involvement in the management of those companies in which I am 100 per cent owner, since becoming a member of Cabinet.

I have endeavoured to respect both the legal intent and spirit of my blind trust arrangement and as a result I must again affirm that business decisions taken by my trustees and other business partners subsequent to their appointment have been without my knowledge or involvement. I have satisfied all requirements within the context of my blind trust arrangements.

I wish to inform the House that I have today given direction to my solicitor to ensure that I am no longer either an officer or director of any other companies in which I have controlling interest.

The allegations of my being in a conflict of interest are both false and malicious. While I accept fully my responsibility as one who has chosen to be in public life in the province, I cannot accept the aspersions that have been cast upon my family and I would ask the Honourable Member to apologize not to me but to my family.