Province hoping to fix Caraquet shipyard money problems

Provincial government officials will meet Friday with local representatives to try to resolve financial problems at a troubled, taxpayer-subsidized shipyard in northern New Brunswick.

Three liens worth more than $1.5 million have been filed against the New Brunswick Naval Centre, located in the village of Bas-Caraquet. The three contractors say they haven't been paid for the work they've done.

• Caraquet shipyard CEO promises to resolve unpaid bills
• Caraquet naval centre struggling despite $7.8 million in funding
• Bas-Caraquet shipyard silent on use of millions from government

Michel Beaudry, the shipyard's chief executive officer,told CBC News on Oct. 14 that it was "a question of days" before the problems were resolved.

He said the organization was waiting for its mortgage to be approved by its bank. Once that happened, the province could unblock $4 million in infrastructure funding from the Regional Development Corp.

It's not clear who is attending Friday's meeting.

I've been chasing my money for about two months. I'm being told different stories e very time I call. It's not my responsibility to finance the naval centre.- John Porter, Spec 5 construction consulting

Now, one of the three unpaid contractors says there's a new problem: the centre has invited bids on phase three of construction at the shipyardwithout having paid suppliers for work on the first two phases.

"I don't think it's right that they're leaving people hanging, and not paying us, and they're proceeding with phase three," says John Porter, the president of Spec 5, a construction consulting company near Bathurst.

"It seems to me they should fix their problems before they proceed with phase three. Who suffers in that? The contractors."

Porter's unpaid bill for $43,000 is the smallest of the three. The others are Foulem Construction of Caraquet, which is owed $1 million, and Genibuild Construction of Tracadie, which is waiting for $500,000.

Porter says he doesn't feel he can bid on the new phase three work until he's paid.

"This $43,000 is affecting my daily operations here. I've been chasing my money for about two months. I'm being told different stories every time I call. It's not my responsibility to finance the naval centre. That's my problem. It's a money issue."

Shipyard benefited from other programs

The $4 million from RDC isn't the only money awarded to the naval centre this year.

The Atlantic Canada Opportunities Agency lent the centre $2 million.

Opportunities New Brunswick has promised $3.8 million in payroll rebates to support a Quebec company, Groupe Ocan, that plans to have its ships upgraded at the shipyard.

But Stephen Lund, the chief executive officer ofOpportunities NB,says that money is not at risk, because it is only paid out once the yard is finished and operating.

"This is a payroll rebate," Lund told CBC News this week.

"This is after the fact. It's risk-free. We only pay money out after a company has employed people, after the people have paid taxes."

The naval centre has two yards. Groupe Ocan will use one. The other is building a new type of lobster fishing boat.

The centre also stores fishermen's boats during the winter.

The naval centre's, reached on his cellphone Thursday, said he was in a meeting and would respond to CBC News later. He didn't.

Beaudry, a Quebec management consultant, told Radio-Canada he would not be at the meeting Friday with provincial government officials.

Porter says he's had trouble getting answers out of Beaudry about why the centre is late paying its bills.

"He never got back to me," Porter said. "Why do we have a Michel Beaudry ... who's involved with the Naval Centre? Don't we have consultants in New Brunswick?"

The centre was incorporated by the town of Caraquet and the village of Bas-Caraquet, each of which contributed $400,000 to its operations. It's a non-profit company governed by a board that includes the mayors and administrators of both municipalities.

But Caraquet Mayor Kevin Hach and Bas-Caraquet Mayor Agns Doiron have repeatedly refused to answer questions about the naval centre's financial situation.

A spokesperson for Hach said Thursday he was still not responding to media questions about the shipyard. Doiron did not respond to a message left on her cell phone.