Michael McLeod

I suppose it’s possible to go through that exercise. Right now our calculations are based on the base amount of commercial traffic that comes through regardless of what the industry is requiring, especially the mines, which is fairly stable. We recognize that it’s probably down this year. We also measure the mine traffic which, again, fluctuates on a year-to-year basis, and we understand that number is down this year too.

Mr. Speaker, at the same time to try to incorporate a project that has not yet been brought forward for final approval or recognition is difficult. We also are in a difficult...

Thank you, Mr. Chairman. I should point out that the issue of deficiencies is part of any project that we have on our books. All projects encounter challenges, be it big or small, there are a lot of things that are always being flagged and this project is no different. Every item that, no matter how small, if it doesn’t meet the code, if it’s not done properly, then it’s flagged and it’s either left until it’s rectified or else a solution is found to fix it. And that list changes. Some things get resolved. As the project moves forward, new issues are added to it. That will continue right until...

There have been issues brought to our attention and that’s why they are recognized and recorded as deficiencies. We have inspectors that look at the work that was done. If the quality is not there, if the wrong material is used, if it’s not what the specifications call for, then it’s registered as deficiencies. We do have a little more than $4.5 million to deal with the deficiencies and that’s in the form of a holdback. There is some carry-over from work that was supposed to be done last year that hasn’t been completed. That’s around another $4 million and there is a $3 million contingency...

My understanding is that the calculations for traffic expectations were very conservative. We are now compiling to get some actuals and then looking at what the costs would be required. We expect there is some additional activity planned in this area and we look forward to that. We are currently looking at how accurate our calculations were that were made several years ago and we expect there is some room for change.

As I indicated, there are additional savings on the ferry and ice bridge that we are currently paying. Now, with the Deh Cho Bridge Corporation not receiving the same amount of...

Thank you, Mr. Chairman. The Member, I think, is assuming that we’re not aware of the deficiencies. We’re completely aware of the deficiencies. We’ve probably got the same pictures. If he wants to compare pictures, that will be fine. We have a list of deficiencies. It gets pretty detailed, right from hole size to length of the bolt that’s sticking out. Scour rock was part of it. We are aware of the deficiencies; we’re dealing with the deficiencies; many of them have been dealt with already. If I’m going to be sitting here answering why every one of the deficiencies has been in place, that’s...

Mr. Chairman, I don’t believe with any projects that we discuss in this House that I’ve ever brought forward a list of deficiencies, whether it’s the Inuvik school or any other project. I don’t think the request for that type of detailed information as to bolt holes and bolt sizes and scour rock and things of that nature ever had been debated at this level. If the Member wants, we are compiling, and we do have, a list of deficiencies. I would prefer to provide it to them with some comments as to where they are in terms of resolution and plans to deal with the issues that were brought forward...

I’m not sure what spooked the lenders off, as the Member put it. The lenders had indicated that there was a milestone that they wanted to see met, which was January 29th, to have all the redesign in place and approved by their independent engineer. We feel we met that deadline. We had three different engineering firms approve our design. We formally sent it to the lenders and they responded by saying that it wasn’t something that they were going to approve and were going to issue a notice of default. We had some discussions in February that there was going to be a notice. It did not indicate...

Thank you, Mr. Chairman. We agree that those piers have to be protected. There is some concern being raised that there was a deficiency on some of the scour rock that was provided for the south side. On the north side all the scour rock was appropriate size and of the quality we were looking for. On the south side there was rock that was placed into the water for protection that didn’t meet the standards and we are analyzing that right now. I would point out, though, that a lot of the provision of the rock was stopped right at the pit because it was recognized that it was the wrong dimensions...

Mr. Chairman, this company is bonded as we would bond any other company with our projects. They have a 50 percent performance bond that they provided.

The Member asked about when we were officially notified and I gave him that response. Our last drawdown was in December. We had informed Members that there was some concern that the lenders had issued a notice of default and it may result in complications with the project. Probably around the middle -- I don’t have an exact date -- of February we had some discussions with the lenders. At that time they indicated to us that there was going to be some ability to be flexible and officially we did not have anything in writing until March 1st. We informed the members of standing committee on the...