Back in February 2011, Bill Estabrooks Nova Scotia’s Minister of Transportation announced the government’s move into the paving business. He says the province will save about $2million dollars a year.

But new documents obtained by the CTF through Freedom of Information tell a different story. The documents show this plan is nothing more than a hail-Mary policy move. That could potentially cost taxpayers more money and could mean less competition for road tenders.

Two things in these documents should worry taxpayers.

First, the government has been colluding with the CUPE (Canadian Union of Public Employees) since at least May 2010, well before the Minister’s February announcement. Given that Unions and government have been working together who can expect to be the real beneficiary of this project, taxpayers or union leaders?

(See page 20 of the Chip Seal Report, attachment FOIPOP paving 1.)

Second, the lowest-paid person on the proposed government road crew – the person carrying the flag to control traffic - would earn $275 a day in wages and benefits. Lets not forget that this includes generous public service benefits plan including pension and health that accounts for 40% of the overall package.

(See Asphalt costs of the Provincial Asphalt Plan Operation, called FOIPOP paving 2.)

The government even admits they’ll try to poach workers from the private sector by “promot(ing) the benefits of working for government versus the private sector. Offer the option of seasonal or year round work to attract the right individuals.”

(See page 21 Chip Seal Report, attachment FIPOP paving 1.)

The Government’s Department of Transportation and Infrastructure Renewal, thinks it can run a more efficient road company with the help of its allies at CUPE. (If you believe this, I know about a closed government steel plant in Sydney you might want to revive.)

No sensible taxpayer will buy any of this, of course, let alone want to pay for this misadventure out of her own purse.

At the CTF, we have a better idea for lowering the costs of building Nova Scotia roads - three of them, in fact.

One: Governments could place a maximum dollar amount on value of tenders to ensure that costs are reasonable.

Two: Governments could simply refuse to award a contract if bids are unreasonable.

Three: The civil servants and CUPE members who think they can offer competitive road-building services can quit their day jobs, raise money, buy equipment, hire workers, and bid for road contracts on their own. But first, course, they would have to write a real business plan to take to the banks.

Nova Scotia certainly has seen its share of provincial government owned businesses, and those have costs taxpayers millions with little or nothing to show for it. Why now would we want to try it again?

Originals of the documents can be found here:

/media/FOIPOP paving 1.pdf

/media/FOIPOP paving 2.pdf