CTF Documents Minister Baker's Breakneck Backpedaling Pace CTF Stands By Its Research Findings on ACOA Grants, Loan Status and Loan Writeoffs CTF Challenges Minister to Debate ACOA Findings

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OTTAWA: The Canadian Taxpayers Federation (CTF) today produced evidence to counteract the "misleading and factually inaccurate" assertions made by the Hon. George Baker - Minister responsible for the Atlantic Canada Opportunities Agency (ACOA) - yesterday during and after question period in the House of Commons.

"While Minster Baker may be quick on his feet with meaningless sound-bites, his command of the facts is shockingly weak," said CTF federal director Walter Robinson. "Before he goes one step further in criticizing our research based on data provided by his agency, he might wish to advertise for new researchers of his own."

"Whether it is his back-pedaling on the status of ACOA grants since the Liberals came to power or his obfuscation of the facts about ACOA loan write-offs, the Minister is becoming very economical with the truth in his responses to legitimate questions," added Robinson.

Minister Baker on ACOA Grants - (From Hansard and Public Comment)

"The Minister has revised his answers on the status of ACOA grants three times in the last seven days," said Robinson. "At this rate of Ministerial back-pedaling, he could be in agreement with our position on shutting down ACOA and its sister agencies by Friday."

-- May 2, 2000 (Hansard) --

Hon. George Baker: Mr. Speaker, the reason I am asking the official opposition to examine the facts is because for years there have been no grants, as the hon. member calls them, available under ACOA. When the Liberals took over the first thing we did was to cancel all of the grants and bring in a system of loans for business.

-- May 8, 2000 (Hansard) --

Hon. George Baker: Mr. Speaker, again, the official opposition does not understand exactly what ACOA does. Since the Liberals took over in 1993, ACOA only gives out loans and not grants in its core funding.

-- May 9, 2000 (Outside the House of Commons) --

Finally, during media questioning in the foyer of the House of Commons the Minister admitted that grants were still being given out by ACOA, precisely as CTF research had indicated: but only, in his words, to "non profit" agencies.

Minister Baker on Loans (From Hansard)

-- May 9, 2000 --

Hon. George Baker: Mr. Speaker, I want to reiterate to the hon. member that when the Liberals took over the first thing we did - was to change all grants and forgivable loans to simply loans. Today, and for the past five years, we have been giving loans which have to be paid back. For the last five years that has been the case for every business, for every commercial enterprise.

"The Minister should double check his briefing binder before repeating this zinger in the House again, it is very misleading," asserted Robinson. "Access documents reveal over 211 provisionally repayable contributions (many to commercial enterprises) totaling $67 million since 94-95. These types of loans are not guaranteed. The loans are only paid back if certain conditions are met. And government experience with these wannabe loans is abysmal."

Minister Baker on Loan Write-offs (From Hansard)

-- May 9, 2000 --

Hon. George Baker: Mr. Speaker, on the write-off question, the hon. member says it is 34%. The actual write-offs contained in the public accounts show that since 1995 the write-off of loans by the Government of Canada is 0.4%. Since 1987, the write-off has been 4.2%.

"Now Canadians see why it is called question period, and not answer period. In the process, he exhibited what is sadly becoming standard operating procedure for government Ministers under fire, mislead the House," said Robinson. "Each year the Public Accounts, in section 3.25, debt forgiveness and departmental write-offs are clearly accounted for. If the Minister is in doubt, I can fax him the relevant pages in an instant which point to 34% loan write-offs over 10 years."

"Instead of the Minister continuing to parse his words, ignore the facts and hide behind misleading statements in Parliament'; it's time that he stepped forward into the public square and debate us on this issue," concluded Robinson.