Tuesday, April 25, 1967

payments and, stated that this called for investigation. He mentions, page fourteen, that it is usual to find five to seven payments in the majority of shipbuilding contracts whereas the Georgetown yard enjoyed eleven progress payments in the case of hulls twelve, fourteen and fifteen, and ten progress payments in the case of hulls sixteen, seventeen and eighteen. In the case of hulls sixteen, seventeen and eighteen the first four payments, amounting to three hundred and forty-eight thousand dollars, were , possible with an expenditure of about one hundred thousand dollars, — these amounts 1 applying to one ship only. In other words. a total of ei ty percent of the payments ‘ could be obtained by the time the vessel was physically ittle more than forty percent complete. His analysis showed that the program was at the moment costing about twice what it should cost for financing. In View of these circumstances he advised the gov- ernment to obtain an independent audit of the books of Bathurst Marine Limited and a complete examination and report on the remainder of the company’s affairs to be carried out by a competent firm of management consultants.

Some Member: Five-thirty.

Honourable Alexander B. Campbell: Mr. Speaker, the Minister may not be too long and this Legislature has been, members of the Opposition have been waiting now for six wle‘elés for this information, and if it might go for another half hour or so until it is finis e .

Walter R. Shaw: According to the rules we adjourn at five-thirty. That’s all, Mr. Speaker.

Honourable Alexander B. Campbell: Well, Mr. Speaker, I ask for the unanimous consent of the House to get the rest of this information which the House has been waiting for because eight o’clock would be approximately Budget time, and I think the speaker will conclude this before then.

Walter R. Shaw: Well if we will be havin six weeks more of this clap-trap it would be all right, but according to the rules of t e House we adjourn and it is five-

thirty. Honourable Alexander B. Campbell: Do we have the unanimous consent?

Some Member: What’s your rush, you’re only one.

Honourable Cecil A. Miller: Then, Mr. Speaker, since we have such full co- operation from those on the opposite side, who always like to boast about their co- operation, I will ask for the adjournment of the Debate.

A cursory examination of the mthurst Marine financial picture last fall indi- cated that of the $1.8 million dollars advanced for the construction of hulls 16, 17 and 18, something over four hundred thousand dollars could be shown as having been de- voted to the construction of these hulls. This leaves a gap of eight hundred to nine hundred thousand dollars to be explained by a more careful audit of these affairs.

But Moe’s slight~of~hand methods were not confined to Bathurst Marine Lim- ited, nor even confined throughout the conglomeration of comfanies which he spawned. These methods spread even into Loan Board financing. Duti ully assisted by the then Minister of Industry, member Second Kings, Mr. Moe was able to practically dictate his own terms; and he started dictating long before January 20th., 1966.

“GULF GARDEN FOODS LTD. Executive Office: Standard Life Building 1245 Sherbrooke St. W. Montreal 25, P.Q. Cana a. PERSONAL — Special Delivery 18th. May 1964

Hon. Leo F. Rossiter,

Minister of Industry & Natural Resources and of Fisheries,

Province of Prince Edward Island,

Charlottetown, P. E. 1.

Dear Leo:

Before our departure for Europe, I would like to ask you to write six letters as per the enclosed draft which we would like to use, if necessary, in our negotiations with these various people. —865——