Formal request made for municipal assistance with $1.1 million debt
TRURO – The Nova Scotia Provincial Exhibition (NSPE) Commission is in such dire financial straits it cannot pay its bills and is no longer a “viable” operation, according to a financial review.
“The Commission is not viable in its current form and it is insolvent,” a financial review conducted by Grant Thornton on behalf of Colchester County reads.
The information was made public during Thursday night’s council meeting, following a presentation by local horseman and businessman Brent MacGrath, regarding an offer to prepare a business-solution proposal to the NSPE’s woes.
“Given the poor operating results, and the Commission’s precarious financial position, the status quo cannot continue,” the report states, in its conclusions and recommendations.
The report goes on to say that the commission, which is cited as being $1.1 million in debt, “does not have sufficient capital to continue operations without incurring debt for which is has no prospect of repaying.”
The review has prompted the commission to formally seek financial assistance from the municipality.
A letter to council from commission vice-chair Steve Karrel confirms the situation is such that the board is “… unable to continue the operation of NSPE and humbly ask that council consider taking over the operation of NSPE in its entirety.”
Council has called a special public meeting for Tuesday evening to further discuss the situation.