The territory's deadbeat debting minister has made an offer to the government on the repayment of his company's loans.

This morning, following the announcement of Premier Dennis Fentie's latest plan to deal with the territory's delinquent debtors, Health and Social Services Minister Peter Jenkins, the owner of one of the biggest deadbeats, was asked about the situation.

'I know, corporately, the firm's solicitors have written and made an offer (to the government),' he said.

Jenkins refused to give the details of that offer.

Jenkins' company, Dawson City Hotels, has not made any payments on its loans in more than eight years.

The company, which operates the Eldorado Hotel in Dawson City, was handed a $50,000-loan in February 1988.

The second loan was given to the company in June 1990 for $75,000.

In total, there were 10 payments made on the first loan and another 13 on the second.

The last payment on the first loan was made in August 1991. The last payment for the second was made in September 1996.

Due to interest, Jenkins' company now owes $109,004.57 for the first loan and $187,964.13 for the second, for a total of $296,968.70.

Both of the loans were under the now-defunct Business Development Fund.

Jenkins, who said he has stayed out of the discussions on loans, was not present for Fentie's press conference to announce his plan for dealing with not just Jenkins' debts, but a total of $2.1 million in delinquent debts.

Last year, the government tried to sell off the loans. Two companies bid to buy all of the more-than $4 million in loans, not just those that are delinquent.

The highest bidder was Dana naye Ventures of Whitehorse, which offered $325,000 to buy all of the $4.46 million in debts.

The government decided to kibosh the plan because it wasn't enough money for all the debts.

The plan Fentie announced today will include Dana naye doing the collection and receiving a lot of the money it takes in. However, the government will receive more than seven cents on the dollar, which was the offer from last fall.

The deal starts with the government giving Dana naye $350,000. Of that money, $50,000 will be for collecting the debts and the rest will be for a fund Dana naye can use to give loans to small businesses in the Yukon.

The first $350,000 collected by Dana naye will all go straight to the government to cover the initial advance.

After that, of the money Dana naye can collect from the delinquent borrowers, 85 per cent of it will stay with it for loans, while the other 15 per cent will go into the government's coffers.

Dana naye will be strictly pursuing the delinquent debts, not the $2.3 million-worth of loans that are in good standing.

Those loans will continue to be collected by the government. However, if any of those debtors become delinquent with their payments, the government would hand them to Dana naye.

Any of the money Dana naye takes in for its own loan fund is its to keep, and does not have to eventually go back to the government.

Fentie was happy with the deal that had been struck.

'We feel this is the most responsible approach the government can take,' said Fentie.

He believes Dana naye can do a better job collecting the loans than the government.

Bruce McLennan, the deputy minister of Finance, echoed the premier's sentiments.

'Financial institutions have a better track record of doing this,' he said.

'They just are in a better position than government.'

Dana naye's Wayne McLennan (no relation to the deputy minister) said the first step will be to inform financial institutions about these delinquent loans, something the government hasn't done.

'It will show up on your credit bureau (record),' he said.

After that, the government will try to collect on security pledged on the loans such as property mortgages or personal guarantees.

'Failing that, we'll take them to court.'

Wayne noted that after going to court, one option may be garnisheeing the debtors' salaries.

Fentie was asked if Jenkins' salary could be garnisheed.

'That'll be the choice Dana naye Ventures makes,' he said.

Wayne admitted that not all of the $2.1 million will likely be collected.

However, he added that Dana naye is used to making high-risk loans and attempting to collect them.

The company believes it can bring in some cash.

'We probably wouldn't be doing this if we didn't think it'd be worth our while.'

Bruce indicated that while Dana naye is looking after it, these debts will still be on the government's books so the public will still be informed of who owes what.

Meanwhile, neither opposition party is happy with the government's solution for dealing with this problem.

NDP boss Todd Hardy called it 'an abdication' of the government's responsibilities.

One problem is there's no guarantee that Jenkins, or the other cabinet minister who owns debting companies, Archie Lang, will pay up. Lang's companies' debts are now in good standing.

Hardy feels this was the easiest way for the government to walk away from its responsibilities.

'There's no indication this agency will be able to collect,' he said.

Liberal Leader Pat Duncan called it 'a backroom' deal.

She noted that nobody was informed that the government was trying to strike this deal with Dana naye.

She believes the deal is worse than the one that was rejected last summer. In that deal, the territorial government was to get $325,000.

This time, Dana naye will have to collect $350,000 before the government starts making anything back.

'It's not a good deal for taxpayers,' she said.