The appointment of a business associate of Premier Danny Williams to the board running a provincially-owned industrial yard smacks of cronyism, an Opposition critic says.

The Newfoundland and Labrador government this week appointed Bill Fanning to the board of the Bull Arm Site Corp., which manages the yard that built the Hibernia platform.

Kelvin Parsons finds the appointment of a business associate of Premier Danny Williams too close for comfort.
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Fanning is the chief executive officer and general manager of Spectrol Energy Services, a company in which Williams has been a director. As well, Williams privately gave a loan guarantee to the company before becoming premier.

All of the premier's assets were put in a blind trust when he took office in 2003.

Nonetheless, Opposition house leader Kelvin Parsons said Fanning's appointment is questionable.

Chuck Furey, the commissioner for members' interests, said there was nothing wrong in Bill Fanning's appointment.
(CBC)

"No doubt he will become party to inside information and investment opportunities," Parsons said.

"When a person, a personal friend of the premier's, is put on the board and has access to that kind of information, it raises eyebrows," said Parsons.

But Chuck Furey, the commissioner for members' interests at the provincial legislature, said there is nothing untoward in Fanning's appointment.

"There's no conflict of interest. None whatsoever," said Furey.

"This is simply the government appointing somebody who they believe has the necessary skills to fulfil a job on a board as a volunteer."

Furey acknowledged that legislation governing the house of assembly does not take into account whether it is appropriate for business associates of politicians to benefit from appointments.

The governing Progressive Conservatives are dismissing the Liberals' claims.

In a statement, Natural Resources Minister Kathy Dunderdale said the Liberals have no understanding of how a blind trust operates.

"To suggest that Mr. Fanning would use his new position to benefit his private interests is not only offensive, it actually calls into question the integrity of every private citizen who is appointed by the government to a board or agency," Dunderdale said.

The Bull Arm yard was built in 1990, and was used for construction of components of the Hibernia platform. The government has been attempting to lure international contracts to the yard.