HALIFAX, NS: New documents obtained by the Canadian Taxpayers Federation (CTF) under the Freedom of Information and Protection of Privacy Act reveal that the Nova Scotia government’s agreement to give $304 million in grants and loans to Irving Shipbuilding also included a $200 million loan guarantee.

In March 2012, the Nova Scotia government announced it would provide Irving Shipbuilding with a $260 million forgivable loan, a $44 million repayable loan and “loan guarantees, if needed, as the contracts are finalized.”

According to a recently obtained letter from Acting Deputy Minister Sandra MacKenzie to Irving Shipbuilding on January 10, 2012 in addition to the $304 million in grants and loans the deal includes “a guarantee not to exceed $200 million.” 

Until now, the amount of that loan guarantee has been kept secret from taxpayers.

In previous FOIs by the CTF, the loan guarantee amount was redacted on the basis that the information was “out of scope” or breached 3^rd party confidentiality. 

“After all of these years, and the millions given to the Irvings, it’s time for the government to open up this secret contract. If the government thinks this deal is so great, make the deal public and defend it,” said Kevin Lacey Atlantic Director with the CTF.

In 2012, the CTF asked through Freedom of Information for the terms and conditions of the Irving deal. The government refused the request. After the CTF publicly criticized that decision, the government relented and released some but not all of the agreement.

“The government owes it to taxpayers to tell them what else they’re paying for and what strings are attached to the hundreds of millions they’ve given to the Irvings,” added Lacey.

The CTF has appealed to Freedom of Information Commissioner Catherine Tully urging her to review the file and recommend to the government that the entire deal be made public.

The redacted version of the January 2012 letter can be found here. The new, un-redacted version of the January 2012 letter can be found here.