Lambton-Kent-Middlesex MPP Monte McNaughton is asking some tough questions about a provincial grant awarded to Thomas Canning and the fate of farmers left on the hook when the company went into receivership.
The letter to Jeff Leal, the minister of agriculture, food and rural affairs, asks what his ministry plans to do for farmers who lost out on contracts with the Maidstone food processor in 2016.
"To date, I am unaware of any action on your part to address this," writes McNaughton.
Last month, Kent Bridge farmer John Lugtigheid told BlackburnNews.com some farmers had lost hundreds of thousands of dollars, even though they had contracts with other firms.
"I know one grower, for instance, had 100 acres with Thomas and 200 acres with someone else, but in reality, he made zero money last year on his tomato crop, because he only delivered 25% of the Thomas portion," he said.
McNaughton also raises the issue of a $3-million grant awarded to Thomas Canning in 2014.
"One certainty is that the money you awarded to Thomas was not spent on processing machinery that in any way increased the capacity of the canning operation in 2016. Your ministry related to the media that the terms of the grant 'evolved'. I wish to know if the evolution of the terms of a government grant is a usual practice in today's Ontario or if government incentive grants are intended to do what they actually propose."
McNaughton is not the first MPP to raise concerns about the grant or the welfare of tomato producers.
Last month, Essex MPP Taras Natyshak said, "there have been questions surrounding Thomas Canning and its operations for some time -- the public are rightfully frustrated when they see good money going toward bad ventures."
The Liberal government stated it was satisfied with the way the company used the money, despite the fact no new facility was ever built to increase capacity.
On July 20, a lawyer representing nine farmers in Essex and Kent counties confirmed the company was in receivership. The farmers are suing Thomas in a $2.83-million suit alleging breach of contract. The legal action is on hold.
