Sunday, December 14, 2008

What's wrong with being "Rich"....

It must be some evil word on PEI... "Rich".. wouldn't it just be awful that some of our Island business people might get rich... I guess most of them that had the guts to start a business were just doing it out of the goodness of their heart..... anyway I generally agree with the story, and I think if you look at one of my previous posts I believe I said the business recipients’ received somewhere between $32,000 to $42,000 per $200,000 unit. If they only got as little as $10,000 to $15,000 per unit as this story indicates then they should ask PEI Business Development to investigate their agent. I'm sure there can be a lot things improved in how the program was managed by both administrations but overall I agree with the members of the P.E.I. Business Directory that the program was a much needed and worthy program for Island businesses... as I understand it this program didn't cost taxpayers any money and it certainly brought a lot of new investment to our Province...
Firms didn’t get rich: group
TERESA WRIGHT
The Guardian
Small business owners on P.E.I., who received investments through the Provincial Nominee Program, are upset their financial benefits from the program are being erroneously reported, says the president of the P.E.I. Business Directory. Peter Trainor, who heads up this business association, said many of his 850 members have received money from the PNP, but not nearly as much as has been reported by government and media. Some received as little as $10,000, he said. The Provincial Nominee Program is a federal-provincial program in which potential immigrants invest in a local business in return for a Canadian visa. The immigrant purchases $200,000 worth of shares in a local company. Of that total, $100,000 is taken by the province and put in trust to be paid back after a period of time — usually five years. Another $50,000 goes toward lawyers and broker fees. The remaining $50,000 goes into a local business. But Trainor says some business owners who legitimately received money through this program actually received only $10,000 or $15,000 after all legal and accounting fees were paid. “It’s only a fraction of the investment that actually gets to the business community,’’ he said, adding many small business owners are dismayed at the perception a lot of money was injected into small businesses via the program. A large part of that impression is being created by the province, Trainor said. Innovation Minister Richard Brown, whose department oversees the PNP, has been publicly defending the program against public concerns both in the legislature and at public accounts committee meetings. “Monies from foreign investors (were put) into private companies in this Island to the tune of $200 million,’’ Brown said during legislature question period on Dec. 3. “Since the program started in 2001, millions of dollars have been invested in 1,423 companies — 1,423 small businesses out there have accessed this program,’’ Brown said during the last public accounts meeting. Trainor says it was the lawyers and accountants that brokered the investments between the immigrants and the businesses that benefited most from the PNP. “Why does it cost $50,000 for a lawyer to do this work? We’re not talking about a major transaction here, it’s basically setting up a simple trust fund. I can go down and get that done at the bank for free.’’ He believes government should have policed these administration fees more thoroughly, especially considering additional legal and accounting fees were deducted from the businesses’ shares. That’s why some businesses got only $10,000. “Why would the lawyers or the accountants get more money than the businesses?’’ Trainor asked. “It sounds shady.’’ However, local businesses owners are wary of coming forward with these concerns. Many fear they will be viewed as having done something wrong by their mere involvement in the PNP.

2 comments:

Anonymous said...

Yeah, nothing wrong with being 'rich' especially if someone else is paying...

Anonymous said...

Check out -

'closedcorporations.org' for who's trying to get rich on someone else's good faith investment in PEI's dirty little secret.

You'd be surprised who's financing their family with Chinese money !!