Legislative Assembly fitting those ships. The operation of the whole complex was not expected to be a profitable venture until the end of 1967. In 1966, the operating deficit of the company, Foods, was expected to be $600,000, but this would decrease by the end of 1967 to about $100,000.00, and by 1970 it was estimated that Foods alone, not including Bathurst Marine, would show a profit of 1.5 million dollars. I think it is clear, therefore, that operating capital was needed for the years 1966 and 1967. It was at this point that the new Government seized upon this in order to try to strangle the Georgetown operation. Attempts were made by Foods to interest other financial interests in investing some capital when it became apparent that the Government of Prince Edward Island would not support this industry daring this temporary period. But it is not surprising that outside investors insisted on some government participation in loans, and that co-operation was refused by the Government of Prince Edward Island . The issue is purely political and the campaign against Mr. Moe and the Shaw Government began in the spring of 1964. The first documented evidence that I have seen of Liberal subversive activities in this regard is a quotation from a letter from the Island correspondent tc Norinvest, the Norwegian financiers, in April 1965. The Island correspondent at that time happened to be Mr. Alex Matheson , Leader of the Liberal Opposition, and at that time he wrote and I quote: "The position of the Prince Edward Island Industrial Corporation is very doubtful. The recent Session of our Legislative Assembly (This is in 1965, April 15th) passed an Act called THE INDUSTRIAL ENTERPRISES INCORPOR¬ ATED. This new Act is supposed to replace the Prince Edward Island Industrial Corporation, although the new Act does not state so specifically. The new Act is to come into force on Proclamation and the sponsor of the Bill informed the Legisla¬ ture that this Act would be proclaimed not later than May 31, 1965. I received a copy of the new Bill last week, consequently, I thought it wise to look into the new legisla¬ tion before answering your question. (The questions which he was answering was being asked by Norinvest, in Norway ). Let me answer now these specific questions. The Prince Edward Island Industrial Corporation is a Crown Company and the Di¬ rectors are five in number, three are members of the Government, one is a member of the Legislature supporting the Government, and the fifth is the Deputy Minister of Industry. The Act was set up in 1949, and is now Chapter 121 of the Revised Statutes of this Province. The Government holds 90% of the shares of the capital. According to the original Act no member of the Government was to be appointed a Director; this Section was repealed in 1964 and the Government directors are appointed by Order-in- Council. The Corporation has the power to pledge the credit of the province up to the sum of five million dollars. The last report of the Corporation available to the public shows pledges of almost three million, this report is for the year ended March 31, 1964. Since April 1, 1964 I believe the additional two million dollars has been pledged for industries in Georgetown and Montague. (Now this is the significant paragraph which Mr. Matheson wrote to Norinvest, in Norway ). The honouring of the guarantees by any Government may depend upon information with which a new Government will uncover by investigation under the Inquiries Act or by a Royal Com ¬ mission. The Public Accounts Committee of the Legislature in 1964 checked some aspects of the administration. The information which was given to this Committee was not satisfactory and suggested a complete inquiry at a later date." Now if anyone doubts that this campaign is of recent origin let them refer to this letter written by Mr. Matheson on April 15, 1965, and if the Premier wants it tabled I would be glad to do so. So, Mr. Speaker , you can easily see that the campaign against the Georgetown Industries began a long time ago, and the present plight of these plants is not due to recent developments. During the election campaign in May of last year, I told the people in Eastern Kings that their industries were the real issue in the election, and I warned them that a Liberal Government would force the closure of one or more plants, and that these would probably re-open only when the Liberal ministery of patronage was firmly in¬ stalled in office. Some of the people thought my predictions were election propaganda. They will not be fooled next time, they will not believe again when the Premier states he will do everything possible to help the Georgetown Industries as he said in May 1966. And for the benefit of the people of Eastern Kings , I am going to read his letter again. "Dated May 25, 1966, dateline Summerside, P.E.I. Dear Residents of Georgetown :" —380—