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Copyright © 2001 Eastern Ontario Farmers Forum Inc. All Rights Reserved

Cabinet supports Seaway

Four Ontario Cabinet ministers, federal officials from minister Vanclief’s office and Farm Credit Corporation (FCC) met with Seaway Valley Farmers Energy Cooperative at a closed meeting in the board room of the Kemptville Hospital.

Seaway was told at the meeting the Ontario cabinet had already given support to the project.

During question period at Queen’s Park, John Cleary (Stormont-Dundas-Charlottenburgh) asked the minister of energy, John Baird, the government’s position on the proposed $48 million ethanol plant.

Baird responded that he along with the minister of public security, Bob Runciman; minister of environment, Chris Stockwell; and minister without portfolio, Doug Galt, met with Seaway executive members to determine the specific requests of the cooperative. Three other ministries also had representation. .

Minister of agriculture, Helen Johns, couldn’t make the meeting because her plane had been grounded by the fog. In the morning, Stockwell had chaired the nutrient management meeting on regulations, across the street at Kemptville College.

At the hospital boardroom meeting, FCC, according to a reliable source, said it could legally be the lead lender. About $27 million is needed to go with the $16,248,000 raised through member shares.

Ontario cabinet ministers were told they would be asked to provide $10 million, probably as a loan, in addition to the $3 million already pledged.

"It’s an issue (financing the plant) I’m tremendously concerned about," Baird said, pointing out that the Chair of the alternative fuels committee was present at the Kemptville meeting.

He added that "Doug Galt," minister without portfolio, "signaled this is an important issue."

In a supplemental question, Cleary told the House that the project required 66 million liters of alcohol and would provide 30 full-time jobs. The plant had pre-sold product for 10 years.

Shareholders writing letters have had some effect. Cleary quoted a letter by Ron, Margaret, Ian and Brian Harrison, who said they were appalled government officials were so ignorant of the project.

Seaway is still dealing with a German bank but talks have dragged on so long that the agreement is expected to fall through.

The biggest enemy now is time. Seaway has been running low on operating money this last year, with directors taking a credit chit in payment for mileage and other expenses.

At its annual shareholder meeting, the membership agreed to come together on January 20 to determine the fate of the cooperative.