(The Canadian Press distributed the following article on November 20.)
VICTORIA — Canadian Pacific has withdrawn its bid to run Crown-owned B.C. Rail, Premier Gordon Campbell said Wednesday.
The company, selected as one of the three final bidders, sent a letter to the government officially withdrawing its bid, Campbell said.
But he wouldn’t confirm reports that the letter included complaints of unfairness and favouritism to Canadian National Railway, the company reportedly with the inside track on winning the B.C. Rail sweepstakes.
“I understand that they have withdrawn their bid. That’s their choice,” Campbell said.
The government appointed a fairness commissioner to ensure the bid process is fair, he said.
A report released Monday by consultants Charles River Associates, appointed as a fairness advisor by the Liberal government, concluded the process “was fair and impartial.”
But Campbell said the report was written before Canadian Pacific submitted its letter or withdrawal.
“The fairness commission will review all of those things,” he said. “The proponents are totally within their rights to let the fairness commissioner know they are upset with what’s going on, if that’s how they feel.”
Campbell said the government has “been endeavouring to have the cleanest, fairest process we can.”
OmniTRAX was chosen as the third final bidder.
The government dismissed as speculation last week that Canadian National will be awarded the contract to run the operation and maintenance of B.C. Rail.
Campbell said the loss of Canadian Pacific as a bidder does not signal a problem in the government’s attempts to remodel B.C. Rail.
But B.C. Rail has become a dominant political issue in recent weeks.
The Opposition New Democrats, labour unions and municipal leaders are accusing the government of breaking its 2001 election promise to not sell or privatize B.C. Rail.
B.C. Rail runs from North Vancouver to northern British Columbia.
The government says the railway is $500,000 in debt and needs a private operator to ensure it remains sustainable.
The government will retain ownership of the tracks, rail bed and railway right-of-way, but the private company will run the business.
NDP leader Joy MacPhail was ejected from the legislature Monday after she called Campbell a liar for breaking his promise not to sell or privatize the publicly-owned railway
Municipal councils in Prince George, North Vancouver and Lillooet have all passed motions opposing selling or privatizing B.C. Rail.
A union representing most of the unionized workers at B.C. Rail called on the government to halt the sale of the railway.
The Council of Trade Unions said earlier it has seen internal B.C. Rail estimates the 1,100 workers – 60 per cent of the workforce – could lose their jobs if the Canadian National bid is accepted.
“It is time this government step back from this process and start talking to the public about their plans for B.C. Rail,” said Bob Sharpe, union council chairman.
“Mayors, First Nations, business people and workers are all telling the B.C. Liberals that they have done a poor job convincing people this sale is necessary and its time to open up the process,” he said.