WINNIPEG — Premier Brian Pallister came out swinging Thursday afternoon, calling out the former NDP government and Omnitrax for making a secret closed-door deal last year.
Pallister released an agreement that was signed between the former provincial government and Omnitrax CEO Merv Tweed.
READ MORE: Port of Churchill layoffs are ‘devastating to the community’ says town’s mayor
The document, which was signed ahead of the 2015 grain shipping season, shows a commitment for Omnitrax to “open and operate the Port of Churchill for the 2015 season,” while the government “committed to offer limited financial support.”
The premier calls the agreement a “bailout” using taxpayer dollars. Although Pallister said he was bound by legalities not to disclose more details of the agreement, he said it was worth between $800,000 to $1 million for that season.
He said the company came back this year with a letter suggesting it wanted another agreement.
Pallister said the last NDP deal was a bailout based on a threat and “I don’t respond to threats.”
When the new Tory government wouldn’t agree, Pallister alleges Omnitrax followed through on its threats.
“The agreement that the provincial government entered into last year was nothing more than a subsidy bailout done as a consequence as a threat,” said Pallister. “Now that threat is being repeated this year and I want to be very, very clear that I don’t respond, ever, to threats.
On Monday, Omnitrax laid off dozens of employees with no notice.
READ MORE: Port of Churchill lays off staff, shuts down shipping season
“It would appear that there is a certain amount of leveraging going on here,” said Premier Brian Pallister.
Pallister said they are not interested in offering subsidies to big businesses that behave this way but they are concerned about residents.
In an email the NDP said Pallister’s comments “…made clear that even though he is prepared to provide a public subsidy for Bell Canada…he would not do so to ensure the Port of Churchill remains open. Our government was resolved to ensure the port stayed open while transition to a new sustainable ownership model. We worked in good faith, and were prepared to be part of the solution.”
On Wednesday, Flin Flon NDP MLA Tom Lindsey said the provincial Tories need to “show some leadership” in light of OmniTrax’s decisions, which included cutting freight shipments back from twice a week to once starting Friday.
“It’s going to increase costs for freight, it’s also going to limit their ability to have fresh food delivered on a timely basis,” Lindsey said. “It’s only coming once a week, it’s not going to be all that fresh when it gets there, and we know that less availability will drive costs up.”
However, there was no mention of any prior deals the NDP had agreed to with the company.
When asked if it was time for government intervention, Lindsey responded by saying it was too early to say that but that something needed to be done.
“I’d like the government to show some leadership and really let the people of Manitoba — the people specifically in the affected communities — know that they’ve taken charge and are trying to get answers,” Lindsey said.
Global News has reached out to Omnitrax multiple times for an interview but they have not returned any of our calls or emails.
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