NDP questions PCs’ pre-election ‘dark of night’ $18-M rail port infrastructure grant

The provincial government is investigating why its predecessor did not publicize an $18-million contract that was finalized in the leadup to the 2023 election campaign.

Finance Minister Adrien Sala confirmed Monday that the province — for the second time in three months — is looking into the Progressive Conservatives’ dealings with JohnQ, an economic development corporation run by 12 municipalities in Manitoba.

Under the leadership of then-premier Heather Stefanson, the PC government awarded a hefty grant to JohnQ in August 2023 to develop a regional rail port south of Winnipeg.

“Why, in the dark of night, did the former government send $18 million out the door without any kind of an announcement or any type of press release?” Sala said Monday.

“That is something that should worry the average Manitoban.”

The multimillion-dollar agreement appears to have been settled during the 60-day blackout period for the fixed election held on Oct. 3, 2023.

Asked about pre-election advertising rules, Sala suggested there was “a window of time” during which the Tories could have announced the deal.

The sum was spent on purchasing a plot of farmland located in the Rural Municipality of Ritchot for a future rail park.

The cash also covered the cost of now-complete engineering and environmental assessments on the site west of Highway 75.

Concerns about the brokering of that Aug. 29, 2023 deal have become “more prominent” in recent weeks, Sala said.

The finance minister did not elaborate on the timing of the inter-departmental probe that is underway in his office, as well as in the Transportation and Economic Development departments.

Premier Wab Kinew’s team wants to ensure taxpayers are getting “good value for money,” he said, noting that proceeding with this project would involve costly infrastructure upgrades.

Sala released JohnQ’s last progress report, which is more than a year old; the July 10, 2024 document recommends modifications be made to nearby roadways and a ring dyke be constructed.

“The NDP’s current fascination with JohnQ… is nothing more than a fishing expedition,” PC MLA Wayne Ewasko said in a statement.

The representative for Lac du Bonnet has defended the former government’s agreements with JohnQ to build a rail port and 22 stand-alone child-care facilities.

The conglomerate was founded to promote collaboration and best practices when building infrastructure “to avoid costly duplication,” added Ewasko.

Deputy education minister Brian O’Leary flagged concerns about procurement processes related to the nearly $100-million 2022 child-care construction deal in a letter to the auditor general in April.

Sala’s office indicated the province has not requested the auditor general also look at the rail park deal, but that is a possibility if more information is not uncovered internally.

JohnQ’s chief executive officer said the 2023 agreement included “clear deliverables and timelines” that have been met to date.

“The mayors and reeves who lead JohnQ view this as a significant opportunity for true regional collaboration and regional economic development,” Colleen Sklar said in a text.

Sklar said her team is committed to working with all governments to move the rail port forward “responsibly and transparently” within the parameters of current agreements.

Citing confidentiality requirements, she declined to provide specific details about the project.

Sala indicated that he is concerned about the former government’s operations, rather than any specific vendor.

“Manitoba does stand to benefit from leaning into our central position and we certainly do see opportunities around us becoming a transportation-logistics hub here in Canada. However, whether or not this particular rail port has a role in that is not yet clear to us,” he said.

The finance minister accused the PCs of having “a record of questionable decision-making,” citing the Sio Silica scandal.

Stefanson and two of her ex-cabinet ministers were recently found to have disregarded the caretaker convention after losing the 2023 election and attempting to approve a controversial sand mine.

The “JQ Rail Oversight Committee” was formed in October 2023, the same month as the last provincial election.

maggie.macintosh@freepress.mb.ca