Opposition questions process but minister says certain exceptions allowed

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By Mary Moszynski
Times & Transcript Staff

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FREDERICTON - The Opposition is questioning why two public relations companies with ties to the Liberal party didn't face the same restrictions when bidding on government contracts as those applied to a local construction business.

Claude Williams, Progressive Conservative MLA for Kent South, said two public relations companies have been awarded more than $1.5 million in untendered contracts.

"The people of Kent County want to know whether the construction company that is building mobile homes is being treated the same as the company with public relations and advertising," he said.

Earlier this week, the president of a union local at Kent Homes questioned why a $700,000 contract to build 10 mobile classrooms for the New Brunswick government was awarded to a Mississauga, Ont., company. The company outbid Kent Homes by less than $5,000.

The union questioned why Premier Shawn Graham didn't fight to keep the jobs and money in New Brunswick as the spin-offs and taxes would have exceeded the difference between the two bids.

Graham has said he was unable to interfere with the tendering process because of an interprovincial agreement on fair trade that prohibits provinces from showing favouritism towards local companies.

During question period yesterday, Williams asked why provincial communications firms bidding on different government contracts didn't face the same restrictions as Kent Homes.

"If you look at the connection with the companies and the previous people that were working there and now they're occupying some very high-level positions in the government, it begs some serious questions," he told reporters.

According to government documents, communications firm Colour/Couleur NB was awarded five untendered contracts totalling more than $740,000 last fiscal year.

Revolution Strategy was awarded nine untendered contracts totalling more than $900,000 last fiscal year.

Maurice Robichaud, the deputy minister for Communications New Brunswick, worked at Colour/Couleur NB, while Doug Tyler, the deputy minister of strategic priorities, was an employee of Revolution Strategy.

"It looks like if you're in public relations and advertising, you're exempt, you don't need to go through the process," said Williams.

However, Williams acknowledged the previous Conservative government also awarded untendered contracts to communications firms.

Jack Keir, acting Business New Brunswick minister, said all rules were followed when the contracts were awarded to the communications firms.

Under provincial legislation, exemptions to the tendering process can be given to businesses if there's a tight deadline for a project, if it's an emergency, if the project requires a specific skill-set or if a company has already received a contract for a similar project and it's easier to extend the existing contract.

"It's unfortunate that a New Brunswick firm lost the bid but it was a fair and level playing field," Keir said.

Keir couldn't say which exemptions applied to the communications firms.

"There's four reasons you can get an exemption and it hasn't changed," he said. "It's been the same for many, many years. Certainly the previous government had the same policy in place."

When asked about the issue in the legislature, the premier responded by talking about the importance of trade and road repairs in Kent County.

"I sympathize that this is an issue that does strike close to home. I live in Kent County. No jobs have been lost in this. It is approximately two weeks of work for the (employees) in the plant," he said.

"The reality is that Kent Homes sells its products outside New Brunswick and it needs to continue to market outside the province. I know it is bidding on certain things for the Baffin Islands project."