HALIFAX — The delays and cost overruns plaguing the restoration of the Bluenose II are being blamed by auditors on Nova Scotia's decision to hand the job to a department with little experience managing construction projects.
Auditor general Michael Pickup continued to express his astonishment Wednesday that the work was overseen by the Heritage Department, saying its supervision of the project was undermined by a lack of planning and weak management.
"To this day, everybody within government is essentially left scratching their heads as to why this department was in charge," he told a news conference after releasing his report on the project.
"It is baffling that the senior leadership of government allowed this to happen."
When the restoration was announced in 2009 by the province and Ottawa, it was estimated to cost $14.4 million. But Pickup says that has grown to $20 million, with $4 million to $5 million on top of that in dispute.
The original contract called for penalties for missed deadlines, Pickup said, but those were dropped when the project manager, designer and builder told the government they didn't want to face penalties.
The government also rushed to meet federal infrastructure funding deadlines and neglected a number of red flags about the project because it was "optimistic" that things would just work out, he added.
A new set of problems arose when the decision was made to have the replica of the famous racing schooner comply with rules set by the American Bureau of Shipping because the department did not address how that would affect deadlines and rising costs, the report says.
In particular, the installation of a steel rudder as required by the American safety classification agency took far longer than expected and continues to cost the province more money, Pickup says.
A consultant was called in to fix the steering last June after it was revealed the schooner's three-tonne rudder was too heavy to turn manually. A new hydraulic system was completed last month, but the final costs have yet to be calculated.
Premier Stephen McNeil asked Pickup to investigate the restoration a year ago, calling it a "boondoggle."
McNeil put David Darrow, his deputy minister, in charge of fixing the project. Darrow also concluded the wrong department was chosen to oversee the work and said the Transportation Department should have managed it.
The Bluenose II was supposed to return to sailing in the summer of 2012 after an extensive two-year rebuild that had a budget of $14.4 million, about half of which was to come from the federal government.
The 43-metre vessel, launched in 1963, is a replica of the original Bluenose, the 1921 Grand Banks fishing schooner that won worldwide acclaim for its graceful lines and speed.
What you need to know about the Bluenose II and the ship's troubled restoration:
PROUD HISTORY:
The original Bluenose was a schooner launched in Lunenburg, N.S., in 1921 and became a legendary racing vessel, going undefeated before sinking in the Caribbean in 1946. The term Bluenose is well known for describing many things in Nova Scotia, including the people, who sometimes refer to themselves as Bluenosers. The origin of the word "Bluenose" dates back to the 1700s but where it came from is a matter of dispute.
LASTING LEGACY:
The schooner is considered Nova Scotia's sailing ambassador as it sails around the world and an image of the original vessel has graced the dime since 1937, as well as three postage stamps. The original Grand Banks fishing and racing ship won her first International Fisherman's Race in October 1921 and earned the title "Queen of the North Atlantic."
A LEGEND'S REBIRTH:
The Bluenose II was originally built by the Oland family and launched in 1963. It was financed by the family to promote Oland Brewery products but in 1971 they gave it to Nova Scotia.
AMBITIOUS RESTORATION:
A restoration of the Bluenose II was announced in 2009 with a price tag of $14.4 million, but the cost of the project now stands at $20 million with another $4 million to $5 million on top of that in dispute. The project was originally scheduled to be finished in March 2011 but the province is now aiming for it to be open to the public sometime this year.
BUNGLED PROJECT:
A report by the auditor general blames the cost overruns and delays on the province's decision to use the ill-prepared Heritage Department to oversee the project, which is normally responsible for promoting the province's culture and identity and wasn't equipped to handle a large and complex construction project.
