Environment Minister comments on used tire recycling contract

Environment Minister Ralph Wiseman today commented on the used tire recycling contract awarded to Municipal Recyclers Limited last week.

"Municipal Recyclers Limited was awarded a contract for the used tire recycling program based on a request for proposals conducted by the Multi-Materials Stewardship Board (MMSB) in accordance with the Public Tender Act. All proposals were evaluated and rated using set criteria by a committee of professional people who determined Municipal Recyclers Limited had the best proposal," said Minister Wiseman.

"Government was aware, prior to awarding the contact to Municipal Recyclers Limited, that company president Harry Spurrell is charged with defrauding the Atlantic Canada Opportunities Agency," he said. "Government did seek legal advice which stated there was no basis for government or MMSB to refuse to enter into a contract with Municipal Recyclers Limited as a result of the charges. Furthermore, under our legal system, all individuals are innocent until proven guilty, and I will not pre-judge any situation.

"With respect to the other legal actions facing the company, government became aware of the allegations after the contract was awarded. However, these are still charges and again, government will not pre-judge any situation. The legal process must be allowed to proceed to a conclusion."

Minister Wiseman also explained that as with any contract, the contract with Municipal Recyclers Limited does contain cancellation provisions which stipulate that if the company is unable to fulfill its obligations, the contract can be revoked. As stated in the proposal call, the company is also required to secure a performance bond of $150,000 or deposit $75,000 cash with MMSB. This ensures that MMSB does not face any financial risk should Municipal Recyclers Limited default on its obligations.

The minister also commented on the recent reports the used tire contract will negatively affect the operations of individuals and companies currently dependent on used tires. "As MMSB has stated, the contract contains provisions to ensure that those individuals and companies which are currently re-using and recycling used tires will still have access to the product. This contract is not intended to hurt any existing businesses, nor will it."

Media contact: Diane Keough, Communications, (709) 729-2575.

2002 02 13                         1:20 p.m.