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Meeting Status: Public MEETING STATUS: PUBLIC LEGISLATIVE ASSEMBLY SESSION: 62/2 Motion No: PRINCE EDWARD ISLAND Year: 2005 VERBATIM TRANSCRIPT OF HOUSE COMMITTEE PROCEEDINGS - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - COMMITTEE: STANDING COMMITTEE ON PUBLIC ACCOUNTS, Board Room, Atlantic Technology Centre DATE: Thursday, November 10, 2005 SUBJECT(S) BEFORE THE COMMITTEE: Further Consideration of the 2004 Report of the Auditor General to the Legislative Assembly; and construction of the Atlantic Technology Centre. NOTE: This Transcription has NOT been edited nor subsequently compared with the original tape. It is intended to provide an indication of Committee discussion only and is NOT certified by the Legislative Assembly to be a true copy of the discussion. COMMITTEE MEMBERS PRESENT: Ron MacKinley, Chair Jim Bagnall Wilbur MacDonald Dr. David McKenna Cletus Dunn Wes MacAleer Hon. Robert Ghiz Wayne Collins MEMBERS PRESENT: Richard Brown GUESTS: Part I: Hon. Michael Currie, Minister; Michael O’Brien, Deputy Minister, Development and Technology; Reagh Hicken, PEI Business Development Inc; Allan Smith, Technology PEI Part II: Colin Younker, Auditor General; Jane MacAdam, Auditor General’s Office STAFF: Marian Johnston STANDING COMMITTEE ON PUBLIC ACCOUNTS Boardroom, Atlantic Technology Centre Thursday, November 10, 2005 9:00 a.m. Guests: Part I - Honourable Michael Currie, Minister; Michael O’Brien, Deputy Minister, Development and Technology; Reagh Hicken, Chief Financial Officer, PEI Business Development Inc; Allan Smith, Chief Executive Officer, Technology PEI Ron MacKinley (L)(Chair): Alright, let’s start this went to the - meeting. Wayne Collins (PC): W ith the Auditor General? Wayne Collins (PC): Mr. Chairman. Ron MacKinley (L)(Chair): Yes. Ron MacKinley (L)(Chair): I’m going to call the meeting to order. Wayne Collins (PC): Yes, very well then. That’s my motion. Wayne Collins (PC): Yes, Mr. Chairman. In consideration of the agenda today, I note the Ron MacKinley (L)(Chair): It’s already been arrival at 10:00 o’clock of Mr. Colin Younker, the looked after. Auditor General. We all know it’s been much anticipated the forensic audit of Polar Foods by Wayne Collins (PC): Great. KPMG as ordered by the Auditor General. I feel it would be appropriate and I would hereby move a Jim Bagnall (PC): So the motion’s on the floor motion that we review the Polar Foods then? International Report by KPMG, the forensic audit with the Auditor General upon his arrival here this Wayne Collins (PC): So you don’t need, the morning at 10 o’clock. motion remains on the floor then? Ron MacKinley (L)(Chair): Have we got KPMG Honourable Robert Ghiz (L): Mr. Chair? coming too? Ron MacKinley (L)(Chair): Yes. Marian Johnston (Committee Clerk): No. Honourable Robert Ghiz (L): This is kind of Ron MacKinley (L)(Chair): We really should have interesting, we’ll have to keep looking around. I them here when we go into the next analysis think we should really have the auditor and most because they’re the people that did it. likely KPMG help explain the latest forensic audit. There is new information in there. I’m sure that Richard Brown (L): Good point chairman. our Auditor General is more than capable of explaining it, but since KPMG did the majority of Ron MacKinley (L)(Chair): I mean, they’re the the investigation, especially with regards to looking people who really did the audit. They backed up into, I guess, legal opinions on where the province what the auditor said. will be able to recover funds. They also looked into discrepancies that were presented between Wayne Collins (PC): I do have my motion on the Polar Foods and BDI which falls under the current floor, Mr. Chairman. minister and perhaps information that went to the cabinet level where they approved taxpayers Ron MacKinley (L)(Chair): I know, we’re dollars that obviously turned out to be a bad discussing your motion. I already discussed this investment. I think it would be important if we with your leader, Mr. Bagnall, who was vice- could have KPMG come before the committee as chairman. We thought we could wrap up the well. whole section under ten minutes in the old report because it’s about two years old now. Then we So I’d like to, perhaps if the clerk has some 1 information on what the original motion was that Honourable Michael Currie (PC): If I may, Mr. was put forward, I’d like to amend that motion to Chairman, I would like the opportunity to first make also include KPMG to appear before the hearings. comments on the opening statement and then I did take a lot of time, and staff did too, to the review Marian Johnston (Committee Clerk) We can transcripts from the last meeting and we had have debate on that. We can call the (Indistinct). answers to all of the questions that your committee had asked. If that would be acceptable, I would Wayne Collins (PC): If I could have further like to just make a note (Indistinct). discussion on the amendment now which I presume we’re going to have to deal with first. Ron MacKinley (L)(Chair): Is that acceptable to the committee? Ron MacKinley (L)(Chair): Why can’t we just defer this until after we’re done with the minister Unidentified Members: Agreed. and he’s got civil service here, or bureaucrats, that was on the agenda. Right after we’re done of him Honourable Michael Currie (PC): Good morning, then we’ll get into this debate. Mr. Chairman. Thank you for the opportunity to present here today at the Standing Committee and Wayne Collins (PC): Very well. Thank you, we’ll I’d like to begin by thanking the committee for just deter it till then. coming here to the ATC. As Minister of Development, I’m certainly very pleased and proud Honourable Robert Ghiz (L): Sure, 10 o’clock of this facility as what it has accomplished to date sounds great. Mr. Chair? and how far we can go in the future. Ron MacKinley (L)(Chair): Yes. The format I would like to begin with today is with the blessing that I take ten or 15 minutes to make Honourable Robert Ghiz (L): I notice that there a short presentation and then we have compiled all th is only the minister sitting at the table. I’m the questions that were asked on October 20 and wondering if we can have clarification on some of we do have the answers for them. the bureaucrats that he has brought with us today, or with him today. Also, if he could list off who is Since we stated to talk about a high technology currently on the board of directors and why they’re building and the ATC has been more about bricks not at the table and if they’d be willing to sit at the and mortar, it has been more than construction of table to answer questions. an office building. The ATC, Mr. Chairman, is about a vision, it’s a vision that we as a province Ron MacKinley (L)(Chair): Mr. Minister, will you can inspire to by believing in our people and by answer the question? investing in Island businesses and targeted sectors of our economy. Honourable Michael Currie (PC): Mr. Chairman, as a courtesy when I was given the floor, I was As we know, today’s global market place is much going to ask for that, that I be allowed to place different. Sales, contracts, opportunities are only them at the table and they are Mike O’Brien, a click away through information technology. Deputy Minister; Alan Smith, responsible for Companies located in PEI are doing business Technology PEI; Reagh Hicken is also here. throughout the world and never have to leave their offices. Opportunities that were once foreign are Ron MacKinley (L)(Chair): Bring them forward. now available and because of that, businesses You got permission. have had to progress. They have had to change and they have had to diversify. The construction Anyway, I want to thank you for coming here to this of the ATC I believe is one of the great economic thing. As you know, the auditor is very critical of success stories in the last 50 years in this your department and the amount of money you province. It is now a cornerstone of information wasted. Targets were never met. There’s all kinds and technology, a cornerstone of our economy, of examples and I’m sure Mike O’Brien and that we have been able to accomplish in a short yourself are familiar with the way stuff went on time is impressive, but it will be pale in comparison here. to what it will lead to. I would like to share some of 2 those accomplishments. Food Technology Centre and also our PEI Grain Elevators. The list goes on. Capital Investments There are currently 25 businesses located in the were made, operating money annually which is ATC. In total, they employ over 325 employees. budgeted to ensure that they continue and at the The total annual payroll is almost $15 million. end of the day, the investments made has a Combined annual sales of tenant companies is positive impact on our province. about $21 million. The activities of companies account for over $5 million in local purchases. The ATC is the same. It is a development Exported goods and services account for 57.5 per investment that is a catalyst for growth. It is cent of the sales from the ATC tenants. In short, helping to redefine our province. Our job as based on data from a detailed survey of tenants, government is to continue to provide jobs and businesses located in the ATC generate more than opportunity for Islanders.
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