Minister comments on contract awarding and operational investigation

Environment Minister Tom Osborne today stated government�s position on the awarding of the beverage container recycling contract to Nova Recycling by the Multi-Materials Stewardship Board (MMSB) and the beginning of a criminal investigation into alleged past operational discrepancies at Nova Recycling.

Minister Osborne stated that the contract had already in fact been awarded by the previous administration through their public comments and actions, and the new government recognizes that the MMSB has a legal obligation to proceed with awarding the beverage container recycling contract to Nova Recycling. This is supported by a legal opinion, and today�s announcement is merely a formal announcement of a contract that was actually awarded months ago. Government also recognizes that these allegations were made against the company when it was under previous ownership, not the current owners who have since purchased the company.

"There is a responsibility to ensure this recycling program continues in a cost-effective manner and there is a contractual necessity to award the contract at this time. But that does not mean that the MMSB should overlook its responsibility to investigate any past discrepancies to their fullest and monitor contractors such as Nova Recycling," said Minister Osborne.

"We strongly support the MMSB�s decision to call in the Royal Canadian Mounted Police to determine what went wrong," added the minister. "We take very seriously, the allegations against Nova Recycling under the previous owners, and look forward to the results of the RCMP investigation into any operational discrepancies that might have occurred at the company."

Government also announced a review into the performance of the MMSB in dealing with this and other matters in order to determine the organization�s operational future.

"The purpose of the review of the MMSB is to ensure full accountability and operational compatibility with environmental stewardship goals. This review will form the basis for future decisions regarding the MMSB and its operations," said Minister Osborne.

"We, as a government, are very disappointed by the way this situation has unfolded, and the manner in which the contract was awarded by the previous administration. However, we have inherited this situation and we will work to resolve the issues, as we remain fully committed to protecting our environment for the enjoyment and health of our families and future generations," said the minister.

Media contact: Tina Coffey, Communications, (709) 729-5783.

2003 11 21                                        4:25 p.m.