Hay River (Sep 27/04) - Jack Rowe, owner of Rowe's Construction, says loans given out by the Business Credit Corporation (BCC) should be secret.

His company was a partner in Naha Deh Enterprises Ltd. that received a $500,000 loan from the BCC in December 1999.

The joint venture with the Nahanni Butte Development Corp. was created in anticipation of construction demand in the Hay River region that never materialized. On May 17, 2002 the company was in default for $487,765 plus interest.

In a document filed with the NWT Supreme Court, the action against Naha Deh and its partners was discontinued without liability for costs on Dec. 23, 2002.

Rowe told News/North the loan was made for a caterpillar tractor. Rowe's company paid out the loan and assumed ownership of the equipment.

He argued that if the names of the companies and the amounts they receive from the credit corp. are publicized, then "the BCC might as well fold up their tent and go home."

"The connotation is a business is weak or not able to obtain credit elsewhere and it might put them at a disadvantage," said Rowe. "If people have a concern, don't provide public funds. If there's too many controls and it becomes punitive, communities up and down the valley have no access to lending institutions.

"What other options are they provided? The concern I have is the perception that those people using the service may be ostracized because of it," he said.

Rowe argued that in a perfect world Northern businesses wouldn't need a financial service provided through public funds.

"The North is far from a perfect setting to do business. These organizations use whatever seed capital they can. It's very difficult," said Rowe.