Transportation department defends paving plant decision

Senior bureaucrats in Nova Scotia's Department of Transportation and Infrastructure Renewal are defending the province's decision to get into the paving business by buying an asphalt plant and chip sealing equipment.

In 2011, the provincial government announced it was buying a mobile paving plant, saying it would save taxpayers millions every year. The government said private contractors were charging too much to pave rural roads.

Road builders have roundly criticized the move as unfair competition but deputy minister of transportation Paul LaFleche said taxpayers are better off.

He points to earlier tenders calls and better planning as improvements to the process.

But the leader of the Nova Scotia Liberal Party, Stephen McNeil, remains critical of the decision and took LaFleche to task at the legislature on Wednesday.

"You're not doing it cheaper than the private sector, is that right?" asked McNeil.

"Well, no, we've talked about our goal. Our goal was to not out-compete the private sector. Our goal was to lower the prices," said LaFleche.

"If you can't do it cheaper than the private sector, how are you driving down the price of paving in the province of Nova Scotia?" McNeil asked.

"Well there's a threat that we could do it cheaper,"said LaFleche.

LaFleche said the result has benefitted Nova Scotians as a whole.

"All of those things combined with the fact that we do have a plant in reserve, both chip seal and asphalt, have resulted in lower prices - and as you can see since '09 there's been a dramatic lowering - have been effective in getting more road work done for Nova Scotians," he said.

LaFleche admits the first year of operating an asphalt plant has been difficult.

He attributes that to the learning curve. He's promising better results in the coming years.

Grant Feltmate, executive director of the Nova Scotia Road Builders Association,told CBCNewslast Julythathe never believed the government could build roads at a lower cost than private companies.

"We have less business for our guys," Feltmate said, "Plus, we feel, there's no question in our mind we can do it more effectively, cheaper and we think better."