Letters to the Editor EDC defends sale

I am writing in reply to your editorial Still Another Bad Move Out of Ottawa in your Jan 19 issue. You criticized the decision by the Export Development Corp. to finance the sale of a sulphuric acid plant and storage facilities by Fenco Engineers Inc. of Toronto to a buyer in Mexico.

Your objection that EDC is increasing the federal debt by financing this transaction is not accurate. This is a commercially viable deal; and while I cannot divulge the terms and rates due to commercial confidentiality, I can as sure you that EDC fully expects this loan will be repaid in full, with interest. EDC operates on a self- sustaining basis and has never yet failed to record an operating profit.

What happens if EDC were to refuse financing for this transaction? Fenco Engineers would lose the sale and a foreign competitor — supported with financing from an export credit agency similar to EDC — would make the profit instead. The result for Canada would be lost jobs; if exports create jobs, loss of exports loses jobs.

I hope I have been able to clarify this issue and I hope you will do so for your readers. EDC’s mandate is to support Canadian exporters and we do this without adding to the national debt. R. L. Richardson President and Chief Executive Officer Export Development Corp.