Fight for refit costs in court, MP says
Published Tuesday October 27th, 2009
OTTAWA - If NB Power or the Graham government is convinced Atomic Energy of Canada Ltd. dropped the ball on the Lepreau nuclear plant refurbishment, take it to court, says Saint John MP Rodney Weston.
Premier Shawn Graham's government has come out swinging this fall about the 16 months' delay in completing the refurbishment of Atlantic Canada's only nuclear plant.
The Graham government argues AECL, a federal Crown corporation, has admitted it is to blame.
Graham wants an unspecified amount of "fair compensation" from Ottawa to cushion the impact of $800 million in extra cost for replacement power.
Weston says he's seen a lot of politically motivated finger-pointing from the Graham government.
But he isn't convinced that alone will do anything to recover skyrocketing replacement power costs or reduce the eventual pain for ratepayers.
He is also not certain going to court would succeed.
"I'm not familiar enough with the contract to say their only option is to go to court," said Weston.
"Maybe there is some sort of resolution mechanism built in, but I have to believe some of these (risks) were thought of when it was drafted."
Weston has written an opinion article that appears in today's Telegraph-Journal on Page A9.
In it, he points to the contract between NB Power and AECL detailing the terms of what was supposed to be an 18-month, $1.4 billion project.
It's the contract - not efforts to "sway public sentiment-" that may offer hope for New Brunswick's case, Weston argues.
He points to the ill-fated long-term deal for Orimulsion that NB Power had with Venezuela to supply the fuel for Coleson Cove.
"NB Power should (as they did successfully in the Orimulsion case) take the necessary action (legal or otherwise) to recover what NB Power is entitled to as damages," writes Weston.
He said that if NB Power is owed damages from AECL, "so be it, I'm fine with that, but I just want to take the politics out of it and get on with it."
Weston said in an interview that it was Energy Minister Jack Keir whose own opinion article provoked his.
"I don't want to see higher power rates any more than he does," Weston said Monday in Ottawa.
"My constituents are his as well as the premier's.
"So my point is there are more effective ways to go about this.
"Take whatever action is necessary - legal or otherwise - but take the politics out of it.
"Take it to a different level, because this political sparring is not going to achieve what they want."
He also reminds readers that then-premier Bernard Lord, whom he served as chief of staff at the time, consulted widely with other decision-makers before the Lepreau contract was signed and that then-Opposition leader Shawn Graham supported the refurbishment.
Weston also says everybody knew the risks when the contract was drawn up - "especially given that this project was a first of its kind in Canada, first in North America, and actually, a first ever!"
Keir's Oct. 5 article singled out Weston as "noticeably silent" on the issue.
Keir challenged Veterans Affairs Minister Greg Thompson, Weston and the other four Conservative MPs from the province to join the Graham government in its bid for compensation from Ottawa.
On Oct. 10, a column appeared by Britt Dysart, president of the provincial Liberal association, which accused Weston, Fredericton MP Keith Ashfield and Miramichi MP Tilly O'Neill-Gordon of "scurrying for cover" on the Lepreau compensation issue.
Weston said in the interview his opinion article was his own work.
He said he hadn't run his opinion by the offices of Natural Resources Minister Lisa Raitt or Prime Minister Stephen Harper.
"I may find out later I should have," Weston quipped.
"But the fact is, it's my opinion and that's my job.
"And I've held my words for some time."
Weston said he met with Keir after his opinion article had appeared, which had left him "taken aback."
He described their meeting as "a candid exchange of views" but described their relationship as good.
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"Maybe there is some sort of resolution mechanism built in, but I have to believe some of these (risks) were thought of when it was drafted""
Where you not cheif of staff of the premier when the deal was signed? I would think that would be a significant position involved in entering into this sort of contract. And you have no idea about the resolution mechanisms? You think these risks were thought of? Maybe, just maybe, when entering a 1.4 billion dollar contract, for something that has never been done before, these are the types of issues that one would want to spend a little bit of time on! Taking the politics out of it, would involve you, Mr. Weston, to fight for your home riding and province instead of staying loyal to the PC party on this issue. By the sounds of it, there may not be any recourse in the contract except for political actions.