MEDICINE HAT — Opposition parties are demanding the government reveal details of the contract awarded to a private company that is handling the full administration of flood claims in Alberta.
The province has paid out a total of less than $25 million on claims to homeowners and business for damage suffered in the June flooding in the southeastern portion of the province.
It falls significantly short of the $200 million promised by the provincial government in mid-July. And the process has left many claimants scratching their heads.
The program originally capped claims at a maximum of $300,000 per individual, but in one case a man who had two homes plus outbuildings severely damaged was offered just $30,000 — well short of what he says are the rebuilding costs — and with no explanation of how the payment was calculated.
“This method (with a for-profit company processing the claims) makes it much easier for the government to pass the buck,” said David Swann, leader of Alberta Liberals. “It also causes much more frustration for the flood victims waiting to have their claims processed.”
Brian Mason of the New Democrats called it “disturbing” that the government would pass off its responsibility to a for-profit company.
“That they would then keep it under wraps is an irresponsible approach,” said Mason.
He suggested a private company would have different interests in handling the claims procedure.
Edmonton-based LandLink Consulting Ltd., run by president Barry Giffen and managing partner Rick Thrall, was the only respondent to a public Request for Proposals in 2008.
It was handed a five-year contract to handle disaster recovery programs, said an Alberta Municipal Affairs spokesman.
Two of the company’s senior experts are former high-ranking Alberta government officials, according to LandLink’s website.
“Contracting out is not necessarily a bad thing,” said Danielle Smith, leader of the Wildrose Alliance. “It works best when there is competitive delivery. In this case it’s been poorly handled from the beginning.”
Smith recalled talking to flood victims in Irvine and discovered almost universally there were complaints and comments about the process not being transparent.
The southeastern Alberta flood recovery program carries expected administration costs of $10 million, said Municipal Affairs Minister Hector Goudreau.
The minister’s office said even though LandLink is paid by the hour it does not have a vested interest in delaying claims.