Mr. Speaker, on Friday I asked a question of the Minister of Transport about untendered contracts on a highway 104 project in Nova Scotia which is being done under a federal-provincial agreement. The minister's reply was basically that it is a provincial issue. I take exception to that. It is not a provincial issue.
Under normal conditions perhaps a highway is a provincial issue, but this deal is anything but normal. It is not normal because the federal and provincial governments have contributed money to set up a business to operate a highway at a profit of $151 million.
It is not normal because the province of Nova Scotia gave up control of the speed limits and fine amounts. It gave up control of who can drive on the highway. It even gave up the right for the financiers, Newcourt Credit, to establish their own police force on this highway. So it is not normal.
It is not normal because this is the only highway in and out of the province of Nova Scotia and it will affect every person in Nova Scotia and also Newfoundland because it is the only highway that serves Newfoundland.
This is a screwball agreement. The reason we have it is because there is no national highway program, which we will get into later. If we continue with projects like this one, we will have a hodgepodge of agreements all across the country if we do not have a national highway funding program.
Today the issue is the untendered contracts. The minister said that it was a provincial issue. I will read from the agreement where the federal government and provincial government put $55 million into it.
Clause 5.1 states that the $55 million agreement will be managed by two members of a management committee, one member appointed by the federal minister and the other appointed by the provincial minister. It goes on to say that all decisions of this management committee will be in writing and shall be acted on only if they are unanimous. So every decision had to be approved by the federal government, it had to be unanimous and it had to be in writing.
Also leading on into the agreement another clause states that all contracts shall be awarded to the qualified and responsible tenderer submitting the lowest evaluated bid.
Considering it is very clear that all the contracts had to be tendered and also it is clear that all decisions had to be agreed to by the federal government, did the federal government agree to issue $113 million of contracts untendered, or did the province circumvent the terms of the agreement and do it by itself? It is either one way or the other.
If the feds did agree, we would like to have a copy of that decision because in the agreement it says that all decisions will be in writing.
There are a few other little things we would like to have from the hon. minister concerning this agreement.
Section 5.3 says that the management committee will be responsible for issuing annual reports to the minister on the progress achieved by this agreement. We would really like to have copies of those progress reports.
Section 5.5 says that decisions of the management committee will be in writing and will be acted on only if they are unanimous. We would like to have copies of all the decisions.
Section 11.2 says that progress reports will be made public frequently. We would like to have all those progress reports. We would like to have copies of the untendered contracts. We would like to know exactly how the $27.5 million of federal money was put into the Atlantic highways improvement program.
Basically we want to know if the federal government agreed to allow $113 million of untendered contracts to go through and, if so, why.