Caraquet shipyard CEO promises to resolve unpaid bills

The CEO of a government-subsidized shipyard in northeast New Brunswick says money problems at the facility will be resolved soon.

"It's a question of days," Michel Beaudry, head of the New Brunswick Naval Centre in Bas-Caraquet, told CBC News.

We'll survive, but it's not fun to lose a million dollars.- Jean-Claude Foulem, Foulem Construction

Three contractors have filed liens against the New Brunswick Naval Centre, which has received millions of taxpayer dollars in the last year. The Gallant government has cited the facility as a key pillar of economic revival in the area.

• Caraquetnaval centre struggling
• Bas-Caraquetshipyard silent on use of millions from government

The companies say they haven't been paid for their work on the site.

"We'll survive, but it's not fun to lose a million dollars," says Jean-Claude Foulem, the owner of Foulem Construction of Caraquet.

He won't say if he feels confident about getting the $1 million he's owed.

"I hope," he says.

On top of that, Genibuild Construction of Tracadie is owed $500,000 and Spec 5 in the Bathurst area is owed $43,000.

Beaudry says he has no problem with suppliers filing liens against the property. "It's something I encourage people to do so they can feel good about it," he says.

Beaudry says the centre's bank is expected to approve its mortgage in the coming days.

Once that happens, he says he can provide a letter to the federal and provincial governments that will allow them to release the money they've promised.

Government funding

The Naval Centre upgrade has been funded, in part, by the New Brunswick government, which handed over $3.8 million in infrastructure funding earlier this year.

"As part of our funding arrangements, all project proponents must submit claims to the Corporation for review and processing," said Bruce Macfarlane, a spokesperson for the Regional Development Corporation. "This process is used to protect the taxpayers investments."

The province is also giving $4 million in payroll rebates to Quebec-based Groupe Ocan, which will be the shipyard's main client.

The federal Atlantic Canada Opportunities Agency lent the centre $2 million earlier this year.

The centrewas created by two municipalities, the town of Caraquet and the village of Bas-Caraquet. Each invested $400,000.

The mayors of the two municipalities have refused to discuss the money problems, referring questions to Beaudry.