Legislative Assembly

Copy of the Charter is hereby enclosed for your perusal.

Gulf Garden undertook to settle all due and payments to the Board in the usual fashion to allotment of 15% of the value of each and every catch brought in by the vessel until full satisfaction of the indebtedness outstanding was achieved. We under- stand that Gulf Garden is now in arrears to the Board to the extent of about $4,000 on the Howe Bay. Gulf Garden undertook to pay out of hire due us $1,000.00 per month to the Mercantile Bank of Canada in settlement of the loan made for down~payment of the vessel by Motomar.

'This obligation has been neglected with the situation now approaching the point of embarrassment to the guarantors. In light of the latest turn of events at Georgetown, we feel that we can no longer tolerate continued default by Gulf Garden, and are required to find gainful employment for the vessel elsewhere.

We have, therefore, advised Gulf Garden that we consider our relationship with them as broken, in fact, and we have ordered the vessel out to fish under our direction.”

When no response was made by Gulf Garden 9. probe revealed that, that not only had Gulf Garden failed to affect the proper transfer of ownership, but they maintained that the vessel had always been theirs with no authority restin with Motormar. In fact, they now say that the name Motormar is not known to t em. A very peculiar state of affairs.

“We wish to make quite clear that the vessel is the pro erty of Motormar Traw- lers, despite the documentary manoeuvering undertaken by ulf Garden.”

Now, Mr. Speaker, Mr. Moe demanded and obtained boat-building payments be- fore contractural stages were reached. It matters not that the Chairman of the loan Board, that the Secretary of the Loan Board, that the Fisheries Deputy, or that the legal counsel for the Board, it mattered not that these people detailed the many reasons

why this could not properly ’be done.

The Minister directed the Chairman of the Loan Board to issue the cheque and in support of that I want to read a letter which was signed by the late J. O’Connor who at that time was the Secretary of the Fishermen’s Loan Board.

“MEMORANDUM

A meeting was held on March 11th, 1964, in the office of the Deputy Minister of Fisheries to discuss ayments under the contract to Bathurst Marine. In attendance were Mr. A. W. Gau et — the chairman, Mr. E. M. Gorman, Mr. Cobb, Mr. Moe, and Mr. J. O’Connor.

The reasons why payments should not be made were strongly voiced by the Chairman and the Deputy Minister, Mr. Gorman. It was pointed out that the essence of the whole contract was the approval of the subsidy by the Canadian Maritime Com- mission. This approval has not been received, nor have the contracts been before the commission for consideration. The repayment contracts with Gulf Garden Foods was not signed by the signin officers of this com ny. No company minute was received that insurance on the Ru ls is in effect while t e vessels are under construction.

Although the Chairman was strongly opposed to making payment he was direc- ted by the Minister (Hon. Rossiter) to do so.

(signed) . . . John O’Connor Secretary."

And we have in our hand the voucher No. 153 dated the 11th day of March, 1964 auth- orizing the payment for Hull nine of $56,250.00 and for Hull ten $18,750.00 making a total of $75,000.00 which the Member of the Board opposed, which the Deputy Minister of Fisheries ogposed, which everyone of these individuals toward the Government and the Board at eart opposed, yet, the then Minister of Fisheries, the Honourable Leo Roasiter over ruled them and ordered the payment.

Now this brought about another serious situation, and this situation is this. On March 19th, 1965,

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