Nova Scotia miners blame Government for low profits

The Mining Association of Nova Scotia (MANS) said Thursday that government-run paving operations are as inefficient as the its money-losing Tim Hortons franchise.

“Private paving companies run efficient operations that provide the best value to taxpayers,” said Sean Kirby, MANS’ Executive Director.  “The government should stop competing with private sector companies and focus on getting its own house in order.  The best way to lower paving costs is for the government to issue RFPs earlier and to group small projects together so they are more economical.  Better tendering, combined with a competitive, free market, are the key to getting better value for taxpayers.”

“The Department of Transportation should stop competing with the private sector and let the experts do the quarrying and road-building,” said Kirby.  “Government-run paving operations are as inefficient as government-run Tim Hortons.”

Media reports revealed in January that Capital Health expects to lose $1.4 million on its retail food service, including a Tim Hortons franchise, in 2012-13 due to labour costs that are approximately 25% higher than in the private sector.

Industry representatives believe that the government’s paving labour costs are higher than those of private companies, while its production has been well below business plan targets.  The government’s chip sealing operation completed only about 50% of its business plan target in 2012 and its paving operation completed only 60% of its target.

Nova Scotia’s mining and quarrying industry is a key creator of jobs and prosperity for Nova Scotians.  It provides 6,300 jobs, mostly in rural areas, and contributes $500 million to the province’s economy each year.  Mining is the highest-paying natural resource industry and one of the highest-paying of all industries in the province,