Hide Article Text (OCR)
NovAtel granted $10 trillion to bolster borrowing powerEDMONTON (CP) - The Alberta government is risking another $10 million in taxpayers’ dollars on NovAtel, a money-losing cellular phone company, Liberal finance critic Grant Mitchell said Thursday.He renewed his call for an allparty inquiry into the troubled company, which has already C06t taxpayers almost $200 million,Provincial cabinet approved an order-in-couneil Wednesday increasing NovAtel’s borrowing power to $185 million from $176 million.In a statement, Technology Minister Fred Stewart said the cabinet order does not put any more taxpayers’ dollars at risk.He said when cabinet approved the original borrowing limit last year, it expected to have sold NovAtel by now. But the company found it needed more borrowing power to pay its interest, he said.“This does not increase the {man-. cial support to NovAtel,” Stewart said. “The company continues to operate within the financial frame- ' work previously approved.”Mitchell scoffed at that explanation.“How can he say he isn’t putting more money into NovAtel? Mitchell asked. If NovAtel was mak- • mg money, it would be paying the interest.”The company, which manufacturers cellular phones in its Lethbridge plant, was started up eight years ago as a subsidiary to Alberta Government Telephones — now Telus Corp.It was to be part of the Telus Corp. privatization but the province had to buy it back for $175. million after covering an unanticipated $21 million loss. Tbe province has also guaranteed a $525 million loan for NovAtel.
Newspaper Details
Lethbridge Herald
Lethbridge, Alberta, CA
Fri, Feb 14, 1992
Page 30
Full Page
Clipped by
Chinook A.
AB, USA 28 Oct 2022
Other Publications Near Lethbridge, Alberta
Prairie Post
Lethbridge Sun Times
Lethbridge Herald
Lethbridge Daily Herald
