Transport Canada first wants a deal signed to turn over the facility to Central Elgin, possibly next year
By CHIP MARTIN

ST. THOMAS -- Transport Canada won't dredge a silt-filled and contaminated Port Stanley harbour until a deal is signed to turn it over to Central Elgin, possibly next year.

In the meantime, Central Elgin Mayor Sylvia Hofhuis said yesterday, any deal with the federal department will ensure liability for contamination of the harbour remains with the federal agency.

Transport Canada had said earlier it was poised to dredge the harbour last year but ran into logistical problems with provincial environment regulations.

At a news conference to provide an update on four years of harbour divestiture talks, Hofhuis said she now hopes an agreement and dredging will occur in 2010.
 
The harbour, which has not been dredged in eight years, is filled with silt. The only deep water harbour on the north shore of Lake Erie, it is essentially out of business as a commercial port of call.

Reports show coal tar and mercury from the harbour area are flowing into the intake for the Elgin-area water system that supplies 100,000 residents with drinking water in parts of Elgin County and south London.

Other reports list toxic chemicals in harbour lands including arsenic, toluene, selenium, polychlorinated biphenyls (PCBs), lead and other contaminants.

Water officials say the water supply is safe but they are conducting studies to assess threats posed by the chemical stew in the harbour.

Hofhuis insisted Central Elgin negotiators "are on top of this (port contamination) issue."

Hofhuis, joined by other members of Central Elgin council and by MP Joe Preston by teleconference call, said it was no surprise there was no money for work on the harbour fixup in this week's federal budget, which contained $12 billion for public works projects.

"We have always said there is going to be a potentially large financial contribution from Transport Canada," she said, adding "we are not going to back a deal that isn't in the best interests of Central Elgin."

She said the municipality has hired environmental engineer Andrew Wilson of Dillon Consulting to review environment reports before a deal is signed.

That prompted Port Stanley activist Dan McNeil to challenge Hofhuis about hiring a firm that has worked extensively for Transport Canada, the party on the other side of the divestiture talks.

"It is probably not in the best interests of the taxpayers of Central Elgin for them to hire the same consultant that works for Transport Canada," he said.

"That would be a conflict of interest."

But Wilson said he wasn't sure how much work Dillon Consulting does for Transport Canada.

Preston said he's working to ensure "Central Elgin acquires an asset, not a millstone . . . it's not about a fast deal or a cheap deal, it's about getting it right."

He said nearly completed risk assessment reports will show where federal money will have to be spent on the harbour.