N.B. government won't release documents on Atcon loan

New Brunswicks economic development department is refusing to turn over documents related to a controversial loan given to the Atcon Group.

Last month, the public accounts committee of the legislature voted to demand documents about loans and loan guarantees to the Atcon group of companies.

In 2009, the New Brunswick government extended three different loan guarantees to Atcon worth a combined $50 million. Those were on top of earlier loan guarantees and loans, which elevated the provincial government's exposure to roughly $70 million.

The company was placed into receivership in March 2010.

On Wednesday, Business New Brunswick, a provincial government department, officially refused the request from the committee of MLAs, saying the information is subject to cabinet confidentiality.

Business New Brunswick also said the information is exempt from release under the Right to Information Act, which deals with requests from the public.

In March, Bill Levesque, deputy minister of Business New Brunswick, refused to answer questions about what advice he gave the former government on whether or not the loan was too risky. Levesque said it would be inappropriate to reveal confidential advice.

Progressive Conservative MLA Dorothy Shepherd, who asked Levesque for the information, said the people of New Brunswick deserve to know the answer.

"I don't think it's inappropriate at all to answer that question," she said.

Despite Wednesday's refusal, the public could still get the inside story. The province's conflict of interest commissioner continues an investigation into whether the former premiers personal connections played a role in the loans.