Burin-Placentia West MHA Clyde Jackman claims the talks with Peter Kiewit Offshore in Marystown are not going anywhere.
Burin-Placentia West MHA Clyde Jackman
He fears the construction of a third provincial government ferry for its intra provincial ferry fleet will end up being built elsewhere, and possibly outside the province.
“Although Kiewit has the capabilities (to build this ferry), I’m not holding out a lot of hope. And the impact on the workforce and the economy in Marystown, and on the Burin Peninsula, will be major.”
Mr. Jackman said the provincial government is willing to negotiate with Peter Kiewit and “willing to give a bit more above and beyond but we don’t have an open purse.”
He was referring to negotiations for the third vessel and the widening gap on costs.
Peter Kiewit built the first two ferries in Marystown for the provincial ferry replacement strategy but a dispute arose over additional costs for the two ships. Both sides agreed to set aside their dispute on the cost overruns for those vehicles while negotiations were underway surround the third construction.
Mr. Jackman charged the company was trying to “hold the government hostage.”
He said government realizes Marystown is the only location these vessels can likely be built in Newfoundland and at the same time it’s being pressured by communities serviced by provincial ferries looking for new vessels to provide a better service.