Both the Tories and NDP have allowed this company to shaft Manitoba taxpayers: Gerrard

Winnipeg – Manitoba Liberal MLAs used the last day of the Manitoba legislative session to lambast both the Manitoba NDP and Progressive Conservative Parties for their role in allowing a $17 million dollar taxpayer loan to devalue to under $2 million.

 “Manitoba taxpayers have had their pockets quietly picked by the NDP and Tories on this deal,” said Gerrard.  “This was a questionable deal when Gary Filmon backed it in 1994 and today, under the NDP, the deal is still shady.”

 Gerrard said that the Manitoba Liberals recently learned that Inspyre Solutions Inc. (formerly known as Faneuil) is failing to meet obligations outlined in a NDP plan that saw the company’s debt to the province restructured in 2001. 

 Under the restructuring plan, the NDP replaced the government loan to Faneuil in return for 10.4 million Class B preferred shares.  Also part of the restructuring plan were commitments by Faneuil to maintain its head offices in Winnipeg and to employ no less than 400 people in the city.  Additionally, the NDP deal required that Faneuil provide up to $750,000 in services to the Province or a provincially designated organization for a minimum of five years or until the Class B shares were redeemed in full. 

 “As of December 31, 2009 the consolidated financial statements for Inspyre Solutions Inc. show that the government’s shares are now worth a paltry $1.8 million,” said Gerrard.   “Reports also indicate that Inspyre has less than 175 people working in the city.  Manitoba taxpayers were setup by the Tories to lose on this deal and the NDP have allowed the loss to continue through their failure to hold this company accountable.”  

 The Manitoba Liberal Party has raised the issue of Inspyre Solutions Inc. as part of their commitment to fiscal responsibility and the protection of taxpayer investment.

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 For more information, or to receive a copy of the  Inspyre Solutions Inc. financial statements for December 31, 2009, please contact Michelle Nyhof, Communications Officer for the Manitoba Liberal Caucus at Tel: (204) 771-2513 or email at michelle.nyhof@leg.gov.mb.ca .