Mr. Speaker, the answer is as follows:
a) This group, FRCC and later 3302881 Canada Ltd., has received funding from Western Economic Diversification Canada,WD. There are five previous contracts, and one ongoing contract, as follows:
Approved Date | Federal Funding Approved | Type of Assistance |
July, 1996 | $365,000 | Conditionally Repayable Contribution (Loan) |
June, 2002 | $100,000 | Non-repayable Contribution |
Sept, 2003 | $200,000 | Non-repayable Contribution |
Oct, 2004 | $117,000 | Non-repayable Contribution |
Apr, 2005 | $195,000 | Non-repayable Contribution |
Current Assistance | ||
Sept, 2005 | $375,000 | Non-repayable Contribution (Loan) |
TOTAL ASSISTANCE | $1,352,000 |
b) Third parties working for FRCC were not paid any funds directly by the government. The expenditures made by FRCC, which qualified for government assistance, did include payments to third party consultants. While FRCC did pay lobbyists as well, these payments were not included in the expenditures reimbursed by WD. The lobbyists were paid by funds received from other sources.
c) The first and last contracts, conditionally repayable contributions, consisted of loans: $365,000 and $375,000. Repayment is conditional upon 3302881 Canada Ltd., or subsequent company formed for this purpose, being successful in purchasing, leasing or otherwise acquiring possession, use or control of all or any portion of the federal fleet, for subsequent leasing to the railroads.
FRCC, 3302881 Canada Ltd., has a fiscal year ending July 31. Repayment is to begin after they have operated for one complete fiscal year after receiving the railcars from the federal government, either through ownership or lease-to-purchase, with the first annual payment due on August 1, 2007. Repayments will be made in five equal annual installments of $148,000.
d) As mentioned, FRCC did hire lobbyists. However, these expenses were not included in the expenditures reimbursed by WD. The funds for the lobbyists came from other sources.
e) No.
f) All funds that were provided are listed above.
g) The terms of payment of the funds to FRCC are that the funds be used to assist FRCC to negotiate transfer of the grain cars from the federal government to FRCC. Terms of repayment are as noted above.