A $400,000 government loan to a business owned by the premier of Newfoundland and Labrador didn't represent a conflict of interest, the commissioner of legislative standards for the province said Wednesday.

The commissioner looked into whether Premier Dwight Ball broke the rules when his company, Jade Holdings Ltd., accepted the forgivable loan from Newfoundland and Labrador Housing.

"It was clearly apparent after reviewing the financial information that the subsidy provided to Jade Holdings Ltd. is a subsidy attributable to the tenant who would not otherwise be able to afford to reside in the new housing development but for the subsidy," stated the report by commissioner Bruce Chaulk, who also determined that Ball was not in a conflict of interest.

The tenants are paying rent in accordance with NLHC rules, and market rents in the area are 36 per cent higher than those charged at the property in question, the report continued.

"Without the subsidy, the rent charged is not financially feasible."

Chaulk also stated in the report that there was no evidence that Ball received special treatment or preference from the then-PC government when the loan proposal was accepted.

Loan was an issue in the House of Assembly

Ball applied for the loan in 2014, when he was an opposition MHA, to build 10 affordable apartments in Deer Lake through the company, and received the money with an agreement to rent those units to low-income tenants at a reduced rate.

The cheque wasn't given to the company until Ball, who said he delayed the process until his business interests were put into a blind trust, was premier.

In February, Paul Davis, then the PC leader, called for a review of the grant, which Ball ordered.

"Since the beginning of this process I have been proactive and transparent. I initiated a review by the Commissioner of Legislative Standards to ensure all rules were followed," Ball said Wednesday in the media release.

"Despite the Opposition parties' intent to attack my integrity, I am pleased the Commissioner has confirmed my consistent position that I acted appropriately and that the benefits of the loan agreement go directly to tenants."

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