Proof was not what was holding up Transportation and Works Minister
Nick McGrath from resigning over the Humber Valley Paving affair; but another shoe has dropped. 
The Minister confirmed, on Wednesday, that the contract for road work in
Labrador, from which Humber Valley Paving was released, will neither be
completed on time nor on budget. In fact, the Minister confirms the additional
cost, to the public purse, is $1.5 million. 
We do not have details as to whether that figure is accurate but the admission, alone, is large enough to invoke bewilderment that the
Minister did not use the opportunity, in front of the media, to accept responsibility
and resign.
I guess Mr. McGrath is not that kind of Minister.

McGrath trotted out his
officials in advance of the news conference to brief the media “stressing”,
according to The Telegram, “that disruptions in the paving schedule was an “act
of God” due to forest fires”. 

To defend his decision, the
Minister again attempted to rely on the unsustainable. 
Readers will remember that
McGrath advanced the forest fire justification when the HVP issue first broke; it
barely played for an hour when someone reminded him the fires had blocked the
road for only 2.5 days, and that he had already awarded HVP a one year Contract
extension in consequence of the fires.
The Government could have levied the Company
tens of thousands of dollars in penalties, as it consistently and contractually
demands from other Companies that cause project delays, but it did not in the case of HVP.
For over a year HVP failed
to invoke ‘force majeure’ (a clause common to most contracts) presumably because
it had no such case to advance.  Indeed,
even had the Company possessed justification to declare force majeure such clauses often 
“do not excuse a party’s non- performance entirely, but only suspends it for the duration of the force majeure”.  But the Company didn’t just want a break.  It wanted relief. 
McGrath made other claims,
too, none of which held up to scrutiny.  
Indeed, yesterday’s revelation was a complete vindication of the President
of Surety Canada, a group representing Bonding Agencies, who reminded McGrath that any
change of Contractor would cause delay, but that the purpose of the Bonds was
to ensure that the taxpayers of the Province were saved additional cost by
HVP’s failure to perform the work.
As if to leave no doubt about McGrath’s intervention,
the Official called McGrath “irresponsible” and stated, according to the
Telegram, “he doesn’t know what he’s talking about…”  
The claims of Mr. McGrath
are all on the record.  The only consistency that holds is that he has successfully demolished the underpinnings
of each one.
Nick McGrath is not a
credible Minister. Every contractor in the Province (and just about everyone
else) who is either knowledgeable or who has participated in the Public
Tendering system believes he has not told the truth; they believe he has dishonoured
his Ministry. In Parliamentary Government we are all aware of the price a Minister expects to pay for having failed in his duty.  
The Nick McGrath story does
not end there.
While Tom Marshall hopes,
within a few weeks, to escape from ultimate responsibility for the HVP affair, he
should know that the stench will follow him. 
That the public is asked to
bear the cost of a $1.5 million favour for a political friend is offensive
enough.  But that Premier Marshall
supported the decision and likely was a party to it, though he denies
culpability, will constitute an unfortunate legacy for such a briefly tenured
This Blogger does not
frequently get phone calls from former senior Cabinet Ministers of the Moores
and Peckford Governments but, occasionally, the voice of exasperation is heard
over the wires as to how badly the current lot are making a mess of things. 
One recent phone call echoed
much of what I had written about Tom Marshall in May in a piece entitled
POLITICAL COVER-UP OR DYSFUNCTIONAL GOVERNMENT.  “You know perfectly well, Des”, stated the
former senior Minister, “Nick McGrath did not make that call on his own”.
While much was said, much
went unsaid in that conversation; we both knew that decisions of this magnitude fell well outside the ambit of a single Minister, even a capable one,
which Nick McGrath is not.
As it stands the very
person who has acknowledged having personally benefited from the decision is
getting ready to head the Government.
A $1.5 million favour is a
pretty rich advance for one seeking public service.

Her Majesty will not be

Des Sullivan
Des Sullivan
St. John's, Newfoundland and Labrador, Canada Uncle Gnarley is hosted by Des Sullivan, of St. John's. He is a businessman engaged over three decades in real estate management and development companies and in retail. He is currently a Director of Dorset Investments Limited and Donovan Holdings Limited. During his early career he served as Executive Assistant to Premier's Frank D. Moores (1975-1979) and Brian Peckford (1979-1985). He also served as a Part-Time Board Member on the Canada-Newfoundland Labrador Offshore Petroleum Board (C-NLOPB). Uncle Gnarley appears on the masthead representing serious and unambiguous positions on NL politics and public policy. Uncle Gnarley is a fiscal conservative possessing distinctly liberal values and a non-partisan persusasion. Those values and opinions underlie this writer's views on NL's politics, economy and society. Uncle Gnarley publishes Monday mornings and more often when events warrant.


Bill left public life shortly after the signing of the Atlantic Accord and became a member of the Court of Appeal until his retirement in 2003. During his time on the court he was involved in a number of successful appeals which overturned wrongful convictions, for which he was recognized by Innocence Canada. Bill had a special place in his heart for the underdog.

Churchill Falls Explainer (Coles Notes version)

If CFLCo is required to maximize its profit, then CFLCo should sell its electricity to the highest bidder(s) on the most advantageous terms available.


This is the most important set of negotiations we have engaged in since the Atlantic Accord and Hibernia. Despite being a small jurisdiction we proved to be smart and nimble enough to negotiate good deals on both. They have stood the test of time and have resulted in billions of dollars in royalties and created an industry which represents over a quarter of our economy. Will we prove to be smart and nimble enough to do the same with the Upper Churchill?


  1. Nick McGrath should resign, however, he is but one cog in the wheel. I believe Marshall was involved from the very get go on this. I also think others within cabinet knew about the issue given the potential political fallout and how it would play out in the media. What we don't know but can only speculate on is who was the driving force behind this whole affair. Could it be that the king himself who put pressure on Marshall and McGrath to make this happen? One can only wonder, given his concerted effort to see Coleman take over the reigns as premier' I think it quite possible that there was direct interference and pressure by the backroom team to make this happen.

    Frank Coleman for his part is no better than any of the others. He went along with the deal knowing beyond a doubt, that his company had been let off the hook at the taxpayers expense. The current lot running this province are without ethics and Coleman hasn't shown himself to be any better.

  2. I am not overly certain about the ethics of politicians in general, in light of various scandals and partisan pork-barrelling, witnessed over several decades. However, the current PC administration in NL is acting with impunity and expecting that a naive and gullible electorate will fall for their incomprehensible explanations. I shudder to think that we would be that naive!!

    McGrath is a complete buffoon and doing a major disservice to his Cabinet position but for anyone to think he did this all on his own is beyond the pale. Others had to have known and, in collusion with him, exercised appalling judgement or were so disdainful of the rest of us that they simply do not care. Either way…we have to deal with gross incompetence or corruption or both….and this administration deserves to be confined to the scrap heap of history for this and many other lapses and poor governance.