John Baird cancels Ottawa LRT during municipal election, helping ally Larry O'Brien
Former Treasury Board President John Baird (now Environment Minister) has been accused of interfering in the 2006 Ottawa municipal election by cancelling $200 million in federal funding for a light-rail transit (LRT) system in the middle of a hotly contested mayoral campaign [1].
Although Treasury Board and several other federal departments had already approved the funding, Baird was asked to review it by mayoral candidate Larry O'Brien, an opponent of the project and a Baird political ally. The project was strongly supported by former Ottawa Mayor Bob ChiarelliChiarelli, a political adversary of Baird's.
In spite of the fact that the $1 billion project had been approved by all levels of government, John Baird insisted that the project be approved by the new council that would be put in place after the municipal election.
A senior Treasury Board official told the House of Commons Government Operations and Estimates Committee that he didn't see the contract because Baird handled the file personallWouterse Wouters claimed it isn't Treasury Board's role to assess the cost-benefits of such a project [2]. Ottawa City Manager Kent Kirkpatrick said Baird's intervention was "unusual," especially given that there had been years of public discussion, environmental assessments and approvals from seven federal government departments. Testimony also showed that approximately 10 projects from other cities had been before Treasury Board during Mr. Baird's tenure, however the Ottawa LRT was the only one to have its funding pulled in the middle of a municipal election.
The LRT issue is believed to have significantly affected the outcome of the Ottawa mayoral election, and after the election the new city council cancelled the project [3]. The consortium that received the contract is now suing the city for $277 million.
Larry O'Brien, who defeChiarelliChiarelli to become mayor, currently faces criminal charges in a separate matter. References [1] Baird's rail ruling was political, documents show: Decision to pull back funding made despite Treasury Board, Finance support for project, The Ottawa Citizen, January 6, 2007 [2] Baird's interest in rail deal 'unusual,' committee told; Commons panel hears minister handled the file personally, The Ottawa Citizen, February 27, 2008 [3] Council kills light rail, blames federal government: Lack of guaranteed funding meant Ottawa had to hit 'reset button', The Ottawa Citizen, December 15, 2006
