Thank you, Mr. Speaker. This is a bit of a drawn out story, but as everybody knows, Rowe’s was working as a subcontractor to ATCON, who was the contractor to the Deh Cho Bridge Corporation, and when ATCON went into bankruptcy, Rowe’s submitted five claims to the receiver and also to the Department of Transportation. The receiver who was looking after ATCON’s bankruptcy action did not evaluate Rowe’s Construction claims as there was no evidence of a formal contract between ATCON and Rowe’s. The legal review by DOT and our legal division concluded that the Government of the Northwest Territories was not liable for any of the claims that were submitted. However, Rowe’s Construction is pursuing a political solution, so our government reached an agreement with the principals of Rowe’s Construction to hire a referee to independently review the claims and make a recommendation, so I think all our stories are coinciding.
The first report prepared by the referee noted that the GNWT probably has no legal liability to pay the Rowe’s claim, but if there is surplus funding available after all deficiency work is paid for, there could be a possibility of paying. Also, they noted that there were deficiencies in work that was done by Rowe’s, and if there was any work that had to be done to fix deficiencies, those should be offset against those claims.
There was a second report filed by the referee, who concluded that two out of the five had merit, so that both claims came up to about $722,000. The deficiency fund, backed up by the Government of New Brunswick, was to fix deficiencies, and any, the referee concluded again in the second report, that there should be a set off for any deficient work, and a condition that if there is going to be any payment to Rowe’s that there be unspent funds in the ATCON deficiency fund. They also recognized that there is at least one other company that is in the same situation. There is approximately $700,000 to $800,000 left in the deficiency fund. I am not aware of any other holdbacks for the bridge.