Ottawa is lifting the ceiling on the amount of funds being allocated to the decontamination and rebuilding of Lac-Mégantic – but it also wants proof that the final price tag will indeed be $400 million.
The agreement provides for Ottawa to assume 50 per cent of admissible expenses, with the province footing the other half of the bill. Quebec’s Public Security Department said the total costs incurred in last summer’s train derailment that killed 47 people could top $400 million.
A federal government spokesman said the sum of $400 million put forth by Quebec still has not been detailed.
“Quebec won’t get any reimbursement if they can’t give us detailed expenses,” said the spokesman, who did not want to be identified, adding that Quebec will have to supply the necessary information by 2018.
Quebec said the deal stipulates Ottawa will give Quebec $25 million within 30 days of it being signed. The agreement is in the process of being ratified.
Prime Minister Stephen Harper committed up to $95 million in federal funds last November to help clean up the contamination.
When the train derailed, the crude oil it was carrying exploded, devastating much of Lac-Mégantic’s downtown. (continued.)
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Insurers like
Intact Financial Corp. and Economical Insurance each reported third quarter drops in income, due in part to the rail disaster and the summer flooding in Calgary, Alta. and Toronto, Ont.
Economical Insurance showed a net income of $13.8 million for the third quarter of the year, down $14.7 million from the same quarter in 2012, while Intact Insurance reported a net operating income of $59 million for the third quarter of the year, down a dramatic $63 million over the same period in 2012.
Desjardins General Insurance Group however reported a strong third quarter, posting a net income of $45.4 million, up 117.2 per cent from the same period in 2012.
“The Lac-Mégantic tragedy in Quebec and the severe storms in areas of Ontario and Quebec during the quarter reminded us once again of how the coverage we provide is critical in helping people recover and move on with their lives,” said Sylvie Paquette, president and COO of DGIG at the time.
For more:
Rail disasters test appetite for risk
