(The Canadian Press circulated the following story by Dirk Meissner on March 3.)
VICTORIA — The losing bidders in the $1-billion B.C. Railway deal said Wednesday it’s too early to put the agreement on hold even though it’s been mentioned in a police investigation.
The Opposition New Democrats and labour unions have called the deal tainted and want it stopped in its tracks. The union representing hundreds of railway workers facing layoffs is calling for a public inquiry.
But a spokesman for CP Rail, one of the failed bidders, said the release Tuesday of court documents that summarize reasons for a police raid on the B.C. legislature last December proves little so far.
“Until one really has the conclusion of whatever legal action may take place, it’s still speculative to say if anything should change,” said CP spokesman Paul Clark from Calgary. “It’s early for people to call for anything.”
CP Rail pulled out of the bidding last year after complaining to Premier Gordon Campbell about the fairness of the process.
Competitor CN Rail won the bid last year to take over the operations of B.C. Rail.
Clark said the complaint filed by CP was a personal matter, but it’s been reported the railway was concerned the government’s handling of the sale was prejudiced.
“We made our concerns known to the British Columbia government,” he said. “The case is closed as far as we’re concerned.”
Police raided two offices at the B.C. legislature to investigate possible breach of trust by two government officials, says a summary of information used to obtain the search warrants.
The court brief released Tuesday said police are investigating whether the officials were offered or accepted personal benefits for “their co-operation, assistance or exercise of influence in connection with government business, including B.C. Rail.”
Clark said CP Rail was not unduly influenced or approached inappropriately during the bid negotiations.
“We had a very direct relationship,” he said. “The process was established and we followed the process. We did not have any reason to be outside the process and no one approached us outside the process.”
A spokesman for OmniTRAX, another failed bidder, said the Denver-based railway company did not find the process unfair.
“When we were notified that we didn’t win the bid, we moved on,” said Tom Henley. “We were obviously upset because we felt we had the best offer out there.”
But a railway partner with OmniTrax on the B.C. Rail bid had concerns about the fairness of the bid process, he said.
Burlington Northern Santa Fe made its concerns known to the government, said Henley, who did not repeat the concerns.
A spokesman for labour unions representing B.C. Rail workers said the deal must be halted until the police investigation is completed.
“Certainly when there’s a direct link to a criminal investigation, somebody has to put the brakes on this thing,” said Lance Yearley of the Council of B.C. Rail Trade Unions. “I would hope that the government would, but that doesn’t seem to be along their agenda.”
A cabinet minister from northern B.C. said the deal was controversial, but the government made the right decision in accepting CN’s bid.
The court documents support the government’s decision because they make no mention of CN Rail, said Pat Bell, minister of state for mining.
“It actually validates the process, because clearly if you have the successful proponent not being the one that may have conferred any benefit you have an example of something that was thoroughly managed and effectively handled,” he said.
A report by a government-commissioned consultant concluded the bid process and deal was fair.
Police said the legislature raids came about as a result of information learned during a 20-month drug and organized crime investigation.
The suspension of a Victoria police officer last December is also connected to the investigation.
David Basi, ministerial assistant to B.C. Finance Minister Gary Collins, was fired the day after the raid and Robert Virk, ministerial assistant to former transportation minister Judith Reid, was suspended with pay.
Collins has rejected opposition calls to resign over the police raid in his former assistant’s office.
The police have consistently said the investigation does not involve elected officials.
Basi, in statements released by his lawyer, has said he looks forward to the day his name is cleared and he can return to his normal duties.
Basi and Virk are both well-known organizers for the federal Liberal party.
CN agreed to pay $1 billion to hold a lease of up to 90 years on B.C. Rail, which runs from North Vancouver to Prince Rupert.