News Release - January 15, 2010

VICTORIA - A major shift in how B.C. Hydro contracts are awarded could force the closure of more than 30 small businesses around the province, costing dozens of family-supporting jobs, the New Democrats said today.

"Supporting small businesses is a vital part of an economic recovery, but just as we are starting to turn the corner, the B.C. Liberal government is making it nearly impossible for small businesses that keep power lines clear to bid on B.C. Hydro contracts," said John Horgan, Opposition Energy Critic.

Horgan noted there are 32 locally owned and operated "vegetation management" contractors established around the province, each with between 3 and 30 employees. They exist almost exclusively to provide service to B.C. Hydro, and have specific training and equipment to work around live power lines so electricity does not need to be shut down while maintenance is being completed.

Contractors are saying that changes in the tendering requirements put small businesses at a disadvantage. These changes, which will be brought in with a request for proposals that closes today, include a move toward bidding on hourly rates instead of performance-based work and delaying payment by up to three months for work that has already been completed.

"There's no way we can do business under these conditions," said Steve Lush, a consultant contractor with Arborwest Consulting in Greater Victoria and spokesperson for the affected contractors. "Doing hourly contracts will not only cost B.C. Hydro more in the long run, but it will also leave them with a pool of the least productive contractors."

"We're going to see these local businesses get squeezed out by the corporate giants favoured by the B.C. Liberals. You can bet once the little guys are gone, costs will rise as the big players will be the only companies left to bid in the next round," said Horgan.

"Competitive bid processes only work if there are multiple suppliers to keep prices in check. This is a terribly short-sighted move from the B.C. Liberals that will reduce competition and ultimately increase costs to ratepayers."

Carole James and the Official Opposition are advocating for positive solutions to build a sustainable economy, including a Green Bond to develop green jobs while retrofitting homes and public institutions to become more energy efficient.

- 30 -

Media Contact: Mike Lowe  250-886-7064