Right now the federal government has put up about $15.5 million through various programs but doesn’t want to give more support until the provincial government gets more involved. The province has pledged $3 million in support.

The provincial government has backed the project in the legislature and at a closed meeting in Kemptville, but a concrete commitment has not materialized.

Chairman Bud Atkins says the province’s point man, MPP John Baird, has been so busy with hydro problems he hasn’t gotten around to the ethanol plant. Seaway has requested a meeting with Ontario premier Ernie Eves.

Last month, the city of Cornwall told Seaway to either get on with building the proposed plant or the city will have a motion before council to buy the land back.

The city normally requires that city property must be built on within a year after it has been sold. However, the ethanol plant has been six years waiting for a lead lender, with about $27 million needed. Several times it has been on the verge of a deal, only to have the deal collapse at the last minute.

If the decision is not made to go ahead with construction, the city would buy the land back at 90 per of the initial cost.

The decision of the Cornwall council won’t have anything to do with whether or not the ethanol plan is constructed. The membership at the annual meeting in Kemptville gave the executive 90 days to find a lead lender or else have a vote to determine the fate of the cooperative. The 90 days expires on January 20, 3003.

Two month from now, the federal government in its budget is expected to provide money in support of the Kyoto agreement. Ethanol plants are expected to be on the list.

The plant has been turned down by three potential lead lenders, all fearing the volatility of the corn and petrol market. If the spread between the two becomes too narrow, profit disappears.

Three ethanol plants are underway in Saskatchewan, financed by the provincial government in conjunction with venture capital companies in the US.