N.S. cabinet minister quits over conflict of interest

Nova Scotia's minister of economic development resigned Thursday, admitting he was in a conflict of interest over a government loan to a farm that leases land from his family.

"On reflection this week, I now believe that I violated the Ministerial Code of Conduct by being in a conflict of interest," Ernie Fage said in a statement.

"I realize now that I have made a mistake. I accept full responsibility for that, and I apologize to Nova Scotians and my colleagues in the legislature."

Fage had been insisting there was nothing wrong with the $250,000 loan made this week to S&J Potato Farms in Cumberland County.

He defended his actions, saying he had excused himself from any cabinet discussion about the money because of his ties to the farm.

The interest-free loan is only repayable if the number of jobs at the potato farm drops below 25.

The Opposition Liberals questioned why the Department of Economic Development gave out the loan, and called for the province's conflict-of-interest commissioner to investigate.

Premier John Hamm confirmed Fage would give up the economic development post, as well as his roles as minister responsible for Nova Scotia Business Inc. and Communications Nova Scotia.

"Mr. Fage is an honourable man," Hamm said in a statement. "There was no intent for personal gain and no realization of personal gain in his ministerial role. However, he made a mistake and I accept his resignation."

After Thursday's cabinet meeting, Fage told reporters he should have supplied his colleagues with more information, but wouldn't say what he told them initially, nor what more he should have told them.

Premier-designate Rodney MacDonald, who was chosen to replace Hamm in a leadership contest last weekend, had dismissed calls for an independent inquiry and defended the loans as worthy investments.

Fage, who supported MacDonald in the race, was expected to find a place in his cabinet, but that appointment is now in doubt.

Cabinet is now discussing what to do about the controversial loan.