The Canadian Taxpayers Federation (CTF) says Nova Scotia’s government owned paving crews ran way over budget to do less work than promised.

According to documents obtained by the CTF through the Freedom of Information and Protection of Privacy Act, government road crews costs taxpayers $7,371.97 per km of work completed in salaries, benefits, overtime and expenses, while government business plans predicted it would cost $3,666.59 per km of work. In total government spent 2 1/2 times the amount budgeted to do half the number of km of work.

“The government has failed to meet the commitments it made to taxpayers when it set up the government run paving boondoggle. It’s time for government to get an independent review to ensure taxpayers’ money is protected,” said Kevin Lacey Atlantic Director with the CTF.

“This is important since money wasted on this government paving scheme means less money for fixing Nova Scotia’s pot hole filled roads,” adds Lacey.

Government operations only hit 61 per cent of its paving targets and 47 per cent for chip seal or in total about half of what it committed to doing. Documents show the government did 226.8 km of work (chip seal/asphalt), it committed in its business plans to doing 456 km.

“When the government set up this paving business they made lots of promises. Two years later, they have failed on every score,” added Lacey.

Government chip seal operation labour costs (including salaries, benefits and overtime) during the 2012 paving season came in 18 per cent higher than business plan projections ($608,896.99 in business plan, compared to $715,816.46 actual), and 24 per cent higher for asphalt work ($771,987 in business plan, compared to $956,148.35 actual).

But salaries were not the only problem.

Government highway workers racked up some big expenses too. When you add together meals, accommodations, per-diems, etc. the workers spent over 161 per cent more ($65,686 in business plan compared to $171,458 actual) than the government budgeted in their business plan for its chip seal operations and 21 per cent higher for asphalt ($156,816 in business plan compared to $189,294).

The Federation wants to see the government launch an independent third-party review of its paving and chip seal operations.

“If the government insists on continuing this venture, even in the face of mounting evidence of its failure, then taxpayers deserve to have a third-party review it and see if it passes muster,” added Lacey.

The CTF first raised the issue of the ballooning costs of the government road paving work when it released the government’s business plans used to justify getting taxpayers into the paving business. The documents were obtained under the Freedom of Information and Protection of Privacy Act in 2011.

Link to documents obtained through FOIPOP can be found HERE

Chip seal and government asphalt business plans can be found HERE and HERE

Crib sheet on calculations HERE