Transport Committee on April 30th, 2013

[Terrance Oakey]

Absolutely.

They did public consultations. They said that over the course of 10 years it would be $1.1 billion. For instance, shortly after this happened, they let out a contract, which I referenced in earlier remarks, where by all expert opinion the budget should have been about $29 million. The lowest bid was $53 million—93% over budget—because it was union-only contracting.

You can see the impact of these policies. Largely those policies, remedial certification and others, are provincial. We're making the case through our Merit Ontario organization to change them.

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

Do they apply to federally funded infrastructure projects?

[Terrance Oakey]

Yes. The federal government allows city rules to trump their own rules. The federal government, thankfully, would never allow those sorts of rules if you wholly funded the project, but because you're a partner and you only fund a third, or less than a third in some cases, you allow the city rules to trump your own procurement rules.

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

If the federal government wanted to fund the construction of a bridge, road, or transit project in Hamilton, 94% of previous contractors would be banned from competing on that work—

[Terrance Oakey]

Right.

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

—because four workers signed a petition on a Saturday. The Hamilton bureaucrats, the Hamilton city—

[Terrance Oakey]

City manager.

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

—manager has said that this would lead to price inflation.

[Terrance Oakey]

Absolutely.

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

What did he say? Is there a quote that you have handy?

[Terrance Oakey]

He said that over the next 10 years it would be $1.1 billion. I'm just looking....

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

So within the report by the Hamilton city manager—

[Terrance Oakey]

Yes.

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

—on the elimination of 94%—

[Terrance Oakey]

Yes, they said, “On water/wastewater capital projects” because those are specific, so it was mostly open-shop contractors who were doing that work, so there weren't really any closed-shop contractors who were qualified to do the work. So they said on increased cost, “40% in overall cost”.

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

So a 40% increase in costs to Hamilton for Hamilton-based infrastructure building.

[Terrance Oakey]

Yes. It says, “$1.1 billion over 5 to 8 years; every 1% cost increase is $11 million; 40% cost increase is $440 million”.

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

What document are you reading from?

[Terrance Oakey]

This is the City of Hamilton report.

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

Can you table that with the committee?

[Terrance Oakey]

Absolutely.

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

Thank you.

[The Chair, Conservative, Larry Miller]

Mr. Oakey, could you table that, and there was one other document earlier.

[Terrance Oakey]

I think they also asked for the Cardus study.

[The Chair, Conservative, Larry Miller]

Okay, I'd like to thank Mr. Dumais—