$1M security bill for idled ferry, N.L. taxpayers pick up tab

Newfoundland and Labrador taxpayers forked out more than $1 million on round-the-clock security costs for an idled ferry docked at a government wharf in Lewisporteforjust over two years before the province finally sold the vessel last fall.

That works out to roughly $1,300 a day in security costs 24 hours a day, seven days a week, 365 days a year.

The Sir Robert Bond was sold in October for $615,000 plus HST.

I don't think it's good value, and I think that's a good question that should have been asked to the previous administration, why they would have done that.- Transportation Minister Al Hawkins

The sale price was hundreds of thousands of dollars less than it costtaxpayers to have someone keep an eye on it.

Asked whether he could make some sense of those numbers, Transportation Minister Al Hawkins said: "Not really."

Hawkins stressed that the contract dates back to 2014, and a decision made by the previous Tory administration when the Sir Robert Bond was declared a surplus vessel.

"The option that they decided to do was not to divest of that property at the time," Hawkins said. "Certainly not a decision that I would have made."

Hawkins acknowledged that the spending may not be viewed as the most cost-effective use of public funds.

"I don't think it's good value, and I think that's a good question that should have been asked to the previous administration, why they would have done that," Hawkins said.

"When we took office, we were faced with many, many challenges, and this is one of the challenges we were faced with."

Costs obtained through access to information

CBC News obtained details of costs associated with the Sir Robert Bond through access to information.

Hawkins said the incoming Liberal government inherited the decision, and the Sir Robert Bond situation was one of the first things he looked at when he became minister just over a year ago.

The anticipated refit cost for the ship which was built in 1975 came in at between $3 million and $5 million, and would have taken roughly a year to complete.

Hawkins said it "didn't make business sense" to do that refit work, adding that the size of the ship meant it was too big to be used as a swing vessel for many ports.

He said officialsmoved as fast as they could to put the Bond on the market.

The security contract was continued on a month-to-month basis until the ship was sold last fall.

'Warm lay-up status' prior to sale

Before its sale, the Sir Robert Bond had been in "warm lay-up status" in Lewisporte since the ship left service in the spring of 2014.

It was declared a "surplus asset" after a contract was awarded for year-round ferry service on the Labrador Straits using the MV Apollo.

The province didn't do any scheduled maintenance on the vessel after that, according to government documents, but periodically started up its machinery.

In July 2014, the Department of Transportation and Works issued a tender for certified marine engineers to perform 24-hour security services on board the vessel.

According to provincial officials, Ship to Shore Services won the contract, as the lowest compliant bidder.

Those services began on Sept. 14, 2014, and ended on Nov. 19, 2016.

Last summer, the province issued a disposal of assets tender for the Sir Robert Bond, to sell off the ship.

Beausejour Peat Moss Inc. of New Brunswick submitted the highest of the four bids received. The sale went through in late October, for $615,000 plus HST.

The Sir Robert Bond left the government wharf in Lewisportein December.