My Member’s statement today is my letter to Sheila Fraser, the Auditor General of Canada.
“As a member of the 16th Legislative Assembly of the Northwest Territories, I wish to bring to your attention concerns regarding the process relating to the proposed bridge over the Mackenzie River at Fort Providence.
“During the 14th Legislative Assembly a piece of legislation called the Deh Cho Bridge [Corporation] Act was passed. The information presented to Members at the time contemplated a self-financing bridge with a capital cost of around $60 million. The bridge would be paid for over 35 years, based on a commercial tonnage toll. The extent of the G.N.W.T.’s contribution would be the current budget for a ferry and the construction and maintenance of an ice bridge at the Mackenzie River crossing at Fort Providence. The G.N.W.T. would also provide a loan guarantee for the initial cost of planning and design to the Deh Cho Bridge Corporation. The corporation would also have an opportunity to raise up to $5 million on that amount on which they would receive a rate of return.
“During the 15th Assembly many updates and briefings were undertaken at numerous points. Members were assured that the amount of the loan guarantee would not be increased, but it was. At another point we were assured that the project would not proceed without a significant federal government infrastructure contribution. That contribution never materialized, yet the bridge is still proceeding.
“The bridge project is now estimated to cost $160 million. The amount of the G.N.W.T.’s input will be at least $2 million per year indexed over 35 years, plus the annual budget of the ferry and ice crossing, and the G.N.W.T. will spend at least $750,000 per year collecting the toll from the commercial traffic.
“After the initial passing of the Deh Cho Bridge [Corporation] Act, the Members of our Legislature have not had an opportunity to vote in favour of these many changes to the original program which I’ve indicated, the most substantive changes being the cost of the project and our government’s financial participation in the project. As this project has progressed, the information has been difficult to get to.
“To add to the appearance of an accountability shortfall, the very important concession agreement with the Deh Cho Bridge Corporation was signed on September 28, 2007, three days before our October 1 Territorial election. This was during a transition period when it is traditionally agreed that Ministers continue to hold off but do not do things which are above and beyond routine, status quo maintenance activities in their departments — let alone signing our government up to a multi-million dollar–35 year financial commitment.”
Mr. Speaker, I would like to seek unanimous consent to conclude my statement.
Unanimous consent granted.
Thank you.
“Public/Private Partnerships are a vehicle by which other jurisdictions have acquired major capital infrastructure; however, this has not been a practice of our government. Therefore no policy regulation or legislation previously existed that would have guided this process. It is very significant in that this proposed bridge will be the single most expensive piece of capital infrastructure which our government has ever undertaken.
“When information or accountability were called for, the government has retreated to a response of confidentiality because of a third-party proponent, which is the private corporation. The equity of the proponent has also been brought into question by the fact that all the work on the project to date has been covered by a loan guarantee. Even after seven years the project’s equity is very limited. And the shareholder that they have attracted to join with them is none other than the general contractor for the bridge.
To the Auditor General: I respectfully request that you examine all documents, Hansards, transcripts, briefings and other materials related to this project. As a Member of the Legislative Assembly, I have a public duty to the public interest to ensure that the business dealings of our government are transparent, accountable and lawful.”
