Debates of June 7, 2012 (day 11)
QUESTION 105-17(3): DEH CHO BRIDGE PROJECT COST OVERRUNS
Thank you, Mr. Speaker. The Minister of Transportation’s reply to one of my questions was that it wasn’t going to cost any more money. I think my colleague Mr. Dolynny tried to bring up that issue a little more clearly, but we didn’t get any clear answer. My next question for the Minister of Transportation is: What’s the point of having a negotiated contract when we’re asking for somewhere between $7.2 million and $9.5 million more, and explain to maybe the House why that isn’t actually costing more money, because it sure sounds like real money and new money to the taxpayer?
Thank you, Mr. Hawkins. The honourable Minister responsible for Transportation, Mr. David Ramsay.
Thank you, Mr. Speaker. In negotiating a way forward, and negotiating with Ruskin on the completion of the Deh Cho Bridge, I mentioned this earlier in response to another question, if we don’t open the bridge in November, it’s an immediate $9 million hit to the Government of the Northwest Territories. What we’ve done is negotiated our way out of a number of construction claims on the project that run in the millions of dollars, somewhere probably around $10 million. This way we’re going to move forward. Yes, it is going to cost us some more money, but we’re getting budget certainty and schedule certainty, and we know what we need to get the project done. That’s the most important thing, is that we’re protecting the public purse. This is the best decision, best course of action the government can take on the project at this date.
I’m trying to get a sense of who is actually in the driver’s seat of this particular problem. The Minister has just said if we don’t meet the fall deadline, it’s going to cost us $9 million. He says we have to pay potentially up to $10 million to make sure we comply. I’m confused that the negotiated contract isn’t being implemented. Did Ruskin agree, if we paid more money, they would comply with the original direction provided by Associated Engineers to comply with the fall deadline, again, if we paid more money?
It became clear in March that Ruskin would not be able to complete the bridge in November. We entered into a series of negotiations between the contractor and the Government of the Northwest Territories that would see the negotiated and outstanding construction claims and would ensure that the project was complete in November. I’m not sure if I can make that any more clear than that.
Maybe I can’t make it any more clear from this side of the House, which is what’s wrong with our contract in this particular regard? We keep asking why doesn’t the department, and use our legal division in the justice system to implement and force this contractor to comply with the contract. The simple ask is this: What’s the problem with our contract that we’re being held hostage by paying more?
This contract dates back a number of years. I wouldn’t be able to comment on the decision of the previous government.
Thank you, Mr. Ramsay. Final, short supplementary, Mr. Hawkins.
Thank you, Mr. Speaker. These words will sound familiar to the Minister, but what’s the point of having a contract if the Minister isn’t going to be responsible? Therefore, the question simply is: Who is responsible for the failure of the implementation of this contract? We need a name and someone to take responsibility. I’m sure that sounds familiar.
I’m responsible for decisions made during my tenure as Minister of Transportation. This is a decision that I have made, with the support of my Cabinet colleagues, to move this project forward to ensure that the bridge is complete in November. This was the best course of action that the government could take at this time. It’s not easy coming back and asking for more money, but this is the best that we can do. I assure Members that we are doing all we can to ensure that the project is complete this November and that we get the budget surety and certainty that we’re after.
Thank you, Mr. Ramsay. The honourable Member for Weledeh, Mr. Bromley.