Summary#
Bill 18 creates special rules for construction work to rehabilitate the Mactaquac Generating Station. It changes security requirements for contractors, removes the project from New Brunswick’s regular procurement law, waives certain annual fees for approved financing or guarantees, and designates the project as a “major project” under labour law.
The bill appears intended to support and organize a large, complex construction project.
- Contractors may use alternate security instead of standard labour-and-material payment bonds and performance bonds, if the New Brunswick Power Corporation board approves it.
- The project would not have to follow the province’s regular procurement law and its related rules.
- New Brunswick Power could be exempt from certain annual fees on approved loans and guarantees tied to the project.
- Work related to the project in a defined area near the Mactaquac station would be treated as a major project under the Industrial Relations Act.
- The Lieutenant-Governor in Council could later cancel all or part of that major-project designation.
- The contractor-security changes are deemed effective from October 1, 2025. The major-project provisions would start on a date set by proclamation.
What it means for you#
- Contractors and suppliers: Contractors may not need to provide the usual payment and performance bonds. Instead, they must provide another form of security approved by the New Brunswick Power Corporation board. The bill does not state what form or amount that security must take.
- Workers and unions: Construction work related to the project within the area described in the bill would be covered by the special “major project” labour rules once that part of the bill starts. These rules can affect how employers, unions, and collective bargaining operate on a major project.
- New Brunswick Power: The corporation would have more flexibility in buying goods and services for the project. It could also receive exemptions from certain annual fees, but only with approval from the Minister of Finance and Treasury Board in the situations described in the bill.
- Businesses seeking contracts: The project would be exempt from the province’s regular procurement law. The bill does not explain what replacement purchasing rules or public reporting requirements would apply.
- People living near the project: The special labour designation applies within a defined area in the Parish of Bright, near Route 105, the Saint John River, French Village Road, and Kingsclear First Nation property. The bill does not itself change property ownership or create a general right to enter land.
- General public: The bill mainly affects project administration, contracting, financing, and labour relations. It does not directly create a new public program or benefit.
Expenses#
No publicly available information.
- The bill does not provide a total project cost, a government spending estimate, or an estimate of savings.
- Waiving annual fees could reduce revenue received by the provincial government if the required approvals are given.
- Contractors may face different costs depending on the alternate security required by New Brunswick Power. The bill does not state whether these costs would be higher or lower than the usual bond requirements.
- Exempting the project from regular procurement rules could change administrative costs, but no estimate is available.
- The bill does not identify new fines, fees for the public, or direct taxes.
Proponents' View#
No specific statements from proponents were supplied.
Possible arguments based on the bill’s design include:
- The special rules could make it easier to organize and manage a large rehabilitation project at the Mactaquac Generating Station.
- Allowing alternate security could give New Brunswick Power and contractors more flexibility than the standard bonding requirements.
- Exempting the project from regular procurement rules could allow purchasing decisions to be tailored to a large, specialized capital project.
- Treating the work as a major project could establish one set of labour-relations rules for the defined project area.
- Exempting approved federal loans and guarantees from certain annual fees could reduce financing costs for the project.
Opponents' View#
No specific statements from opponents were supplied.
Possible concerns based on the bill’s design include:
- The bill does not explain what alternate security contractors must provide or how the amount will be set. This may raise questions about protection for workers, suppliers, and other unpaid parties.
- Exempting the project from regular procurement law could reduce the use of standard purchasing safeguards. The bill does not clearly describe the replacement rules, oversight, or reporting requirements.
- Waiving annual fees could reduce provincial revenue, although the bill provides no estimate of the amount.
- The major-project designation could change labour-relations rights and duties for employers and unions in the defined area. The bill does not explain those effects in plain language.
- The government could revoke the major-project designation in whole or in part by order. The bill does not require that order to follow the usual Regulations Act process.
- The bill does not provide a schedule for construction, a total budget, or detailed information about how the project will be financed.