New Brunswick

Economic activity in province continues to slow amid virus fears

Large sections of the economy have been shutting down in recent days as attempts to slow the spread of COVID-19 ramp up.

Large sections of economy have been shutting down in recent days in an attempt to slow the spread of COVID-19

A concrete tower and lower buildings sit on the edge of the water with a flowering bush in the foreground with pink flowers.
Point Lepreau generating station has been shut down for repairs, inspections and upgrades in April for seven years in a row, but this year's scheduled event is postponed because of the COVID-19 pandemic. (CBC)

NB Power is postponing $53.5 million in maintenance work on the Point Lepreau Nuclear Generating Station planned to begin next month to avoid aiding the spread of the COVID-19 virus

It's the latest blow to New Brunswick's economy delivered by the global pandemic as all non essential activity in the province that involves close human interaction continues to shut down  

NB Power's Marc Belliveau said there are no issues at the plant needing to be addressed immediately but the utility will try to fit the six week shutdown into another window later this year, presumably before the critical winter heating season begins next fall.

The plant will continue to operate as normal until then.

 "While no decisions on a new date have been taken at this time, NB Power is reassessing potential dates for rescheduling later in the year," said Belliveau in an email.

Beyond NB Power

Large sections of New Brunswick's economy have been shutting down in recent days in an attempt to slow the spread of COVID-19.   

Most of the province's $110 million per month restaurant and bar sector, which employs thousands of people, has been shuttered.  Sporting events, concerts, theatres, bowling alleys, trade shows, daycares and other public gathering places  have also mostly gone dark.

A list of closure recommendations was given by New Brunswick's top doctor

5 years ago
Duration 1:16
Public spaces were urged to close by Chief Medical Officer of Health Jennifer Russell.

Other seasonal segments of the economy that normally come alive in spring are still waiting on word of how the virus might affect them.

On Tuesday, the provincial government announced a two week delay in both the listing and opening of construction tenders for building and roadwork - a move contractors and hundreds of labourers and equipment operators who work for them - were left trying to interpret.

NB Power's rate hearing in front of the Energy and Utilities Board in February included testimony about its plans for a six week maintenance shutdown at the Lepreau nuclear plant beginning in April. (CBC)

New Brunswick is one of the last provinces without an electronic tendering system, requiring contractors to hand deliver bids and physically attend public tender openings at government offices.

Tom McGinn with the New Brunswick Road Builders & Heavy Construction Association is hoping the delay is related to that 

"We think it is delayed because it (tendering) is not an essential service," said McGinn, "That's our guess."

Major roadwork in New Brunswick normally does not begin until mid–May and McGinn has heard no talk yet of it not going forward as usual.

The Lepreau shutdown was timed for early April; to take advantage of peak hydro electric generation by river dams to provide replacement power, but will now have to move to a less economical window.    

That will involve rescheduling contractors and cancelling or rearranging employee vacations to undertake the dozens of repairs, inspections and upgrades that have been planned for more than a year, in some cases..   

The $53.5 million budget includes spending $10.5 million on work for outside contractors and $7.6 million on employee overtime - much of which would have flowed into the local economy.

ABOUT THE AUTHOR

Robert Jones

Reporter

Robert Jones has been a reporter and producer with CBC New Brunswick since 1990. His investigative reports on petroleum pricing in New Brunswick won several regional and national awards and led to the adoption of price regulation in 2006.