Brent Reaney
Northern News Services

Rankin Inlet (July 13/05) - Frustrated by the Nunavut government's renewal of a deal with a shipping company recently charged in connection with three Kivalliq fuel spills, two politicians want the contract returned to its previous holder.

Northern Transportation Company Ltd. (NTCL) shipped fuel to the Kivalliq region for 27 years before Woodward's Oil Ltd.'s won the contract in 2003. NTCL still ships fuel to the Kitikmeot.

Kivalliq MLAs Tagak Curley and Patterk Netser say NTCL has stronger ties to the region than Woodward's Oil, and they remember hearing of fewer problems with delivery.

People want NTCL

"The people that I represent, they want NTCL to be back servicing our area," said Netser. "There's going to be a lot of noises made in the assembly after the charges were laid and they renewed the contract with (Woodward's)."

After investigating, Transport Canada laid four charges against the M.T. Mokami, a vessel associated with Woodward's, relating to two spills in Coral Harbour, and one in Rankin Inlet.

A search by Transport Canada dating back to 2001 revealed no charges laid against tankers owned or operated by NTCL. But both Netser and Curley recognize small spills had happened in the past.

Curley plans to write the government to see if he can get the renewal reversed. "It has not been public," he said of the contract renewal. "They seem to be afraid of consulting. Their way of consulting is very private."

Tom Rich, the deputy minister for the department of Community and Government Services, said the original three-year contract included an option for renewal and did not require a public request for proposals. The deal also contained a clause freezing the shipping prices at the level of three years ago. If negotiated today, rising oil prices would likely mean inflated shipping costs, Rich said.

"As a result of this contract, we're saving millions of dollars," he said.

And cancelling any contract usually involves a financial penalty, Rich said, sometimes as much honouring the entire contract.