Tuesday, April 26, 1967_

roll on any community or area is substantial. Assuming that each individual working in the industry' will be contributing to a family’s support. this means that a very large number of people will gain their primary support from this industry.

Thirdly, there are so-called fringe benefits from such an industry. For example, it is a well known fact that every time a job is created in primary and secondary in- dustry, an additional job is created in the so-called service trades-stores, utilities, restaurants, etc. In addition to this, the purchases made locally as a result of such a plant are substantial and continuing.

Finally, there is Georgetown to be considered. This is a community in a fine setting for a fishery operation. However, its overall development picture is currently at a low level. It takes very little imagination to picture the transformation that will come about if our proposed plant is located. We see Georgetown as a rapidly growing community, with careful lanning and thou htful development contributin to its growth. In fact, we visua ize that under me an impetus Georgetown wou d become one of the major towns or cities of the Province. This is an example of the transfor- mation that has been made in economically “slow” communities when growing industry has entered the scene.

In simple form, we believe that the addition of this industry to the Province will mean a substantial lifting of a major industry and the transformation of a commun- ity.

Now, this company was set up and the first President was Jens Moe, the Execu- tive Vice-President was Donald F. Rennie, the Vice-President and Director, John L. Field and Director, Patrick Cavanaugh, three large names in the financial field of Canada. And where the they to-day? They didn't stady very long, they saw how things were being conducted, they were business men an they immediately removed themselves from that organization. We have biographies on each and every one of these individuals, but as I said before, removed themselves, they are no longer with it, they just couldn't allow their names to be associated with an undertaki of this kind. They had been promised certain things; those things were never broug t about and they looked with suspicion upon every move that was bein made. So therefore, rather than be hooked in and have their financial records hlemis ed they moved away from the scene. They were not the only ones. In the course of three years, if I am not mistaken, there were at least three sets of Directors until finally the Directors came down to Moe and a few of his own personal friends.

When this Georgetown affair was first spoken of, the Government of the day was supposed to give them, at least 0 to the bank and secure $750,000.00 for them. They were to put in $250,000.00. As r. Rennie said that they will “pay all costs of erection and completion of phase one of the plant in access of $750,000.00, which said sum is as subject as hereafter set forth to be rovided for the Corporation hereunder." They would put in $250,000 and while it may shown that the Moe Industries raised some money to put in the Gulf Garden Foods, it will probably be just as readily shown that these monies very quickly found a way out of the Gulf Garden picture and into other Moe endeavours.

It is impossible at this time to give an exact figure, Mr. Speaker of the total cost of the project, compared to similar intergrated processing plants built in Norway. It was assumed that the cost of installation, and the building, and the machinery, and the equipment for the first stage would be in the order of a million." This figure can only be confirmed when the detailed engineering and estimating is completed, after the signing of the contracts between the Corporation and the Development Organiz- ation, and when consultants have completed their work and bids have been obtained from contractors. We realize, that the total estimate cost is of the greatest importance in the assessment of this matter, both from the Co rations and on the Development Organizations point of view. All efforts will be m e to keep the overall cost within the above mentioned figure of one million. However, if we can rove a larger expend- iture is justified, additional capital will he raised elsewhere.” at was their promise!

“We have decided that the estimated cost of a million does not include the items listed in the auction to be made available to the project of the Government of Prince Edward Island or the Corporation outside the amount of the contract between the Cor- poration and the Development Organization. We realize, that the Government has agreed to make an additional amount of $600,000 available for the second stage of the

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