(The Canadian Press circulated the following story on November 24.)
VICTORIA — The economy of northern British Columbia will be dealt a disastrous blow if the Liberal government proceeds with its expected privatization of Crown-owned B.C. Rail, says B.C.’s newly elected NDP leader.
Carole James said Monday she expects the government to introduce legislation Tuesday that permits a private company to take over the maintenance and operation functions of B.C. Rail.
“It continues to provide jobs to the people in areas where we don’t have good employment,” said James, who lives in Prince George.
She was elected head of the provincial New Democratic Party on Sunday.
“I can’t imagine what we’ll see if we see B.C. Rail sold off.”
Premier Gordon Campbell has scheduled a Tuesday morning press conference to discuss publicly-owned B.C. Rail.
The government dismissed as speculation earlier media reports that Canadian National Railway will be announced as the successful bidder to assume operations of B.C. Rail.
Three private companies were chosen as the final bidders for the railway, which runs from North Vancouver to northern B.C.
OmniTRAX, Canadian Pacific and Canadian National were on the bidder short list.
Canadian Pacific officially withdrew form the process last week, saying Canadian National was given the inside track.
B.C. Rail has become a controversial issue in recent months.
The NDP opposition, labour unions, municipal governments and local citizens have been critical of the plan, saying it could result in job and service losses in already struggling northern communities.
Campbell has also become embroiled in the debate for his 2001 election promise not to sell or privatize B.C. Rail.
The government says it will retain ownership of the railway tracks, rail bed and rail right-of-way.
Campbell said the government and communities support the introduction of a private company to breathe new life into the money-losing railroad.
Unions say more than 1,000 people could lose their jobs – up to 60 per cent of B.C. Rail’s workforce – if Canadian National is the winning bid.
Transportation Minister Judith Reid said the government wants to ensure the northern economy is able to stand on its own feet.
“We want to see the people, the communities and the industries of this province well served,” she said.
The government says the railway is $500,000 in debt and needs a private operator to ensure it remains sustainable.