In October, John Baird, the President of the Treasury Board, demanded an unprecedented and inappropriate meeting with Siemens Canada to question its officials about Siemens’ contract with the City of Ottawa for the O-Train. At one point he announced that his review intended to look at the potential for cost overruns, even though the federal government is not a party to the contract.
The move threw the $880 million project into doubt after two-and-a-half years of due diligence and a municipal bid competition overseen by a third party.
Peculiarly, Mr. Baird gave the ‘value for money’ rationale for his meeting even though the Liberal government capped O-Train federal funding at the agreed $200 million and the City required that the entire contract be delivered at a fixed price. The company bears the risk of cost over-runs associated with the project.
On Friday in the House of Commons, I had the opportunity to ask Mr. Baird questions about his meeting. At that time, he refused to explain why he was spending his time and energy on a contract under which the federal government bore no risk. He further failed to comment on any additional legal or financial responsibilities which he may have committed the federal government to by his circuitous actions.
‘Accountability Guy’ Risks Millions of Taxpayer Dollars
Similar projects, with partial federal funding, are coming to fruition in Edmonton (LRT - $108 million), Vancouver (RAV - $450 million), and Toronto (TTC - $350 million), yet the O-Train is the only one being held up by such scrutiny on the part of the Conservative government.
If the federal government has a legitimate issue with the process at this point, I would expect the lead department – in this case Infrastructure Canada – to get involved with the parties. But Infrastructure Minister Lawrence Cannon has shown no concern and has given it the green-light. In fact, eight federal departments – all apart from the Treasury Board – have already given their sign-off on the $200 million allocated to the O-Train under an iron-clad Contribution Agreement.
Coming in the midst of a municipal campaign that features the O-Train as a central issue, Mr. Baird’s involvement in the issue is, at best, extremely ill-timed. And contrary to his stated ‘accountability’ aims, his interference may cost taxpayers as much as $60 to $80 million if the October 15th deadline for approval is missed and work is set back over winter.
I, along with many neighbours in Ottawa South, am looking forward to riding the new O-Train. The sooner service begins, the better.