No federal rail money before Ottawa election: Baird

The federal government is withholding its $200 million contribution to Ottawa's proposed north-south light rail project until after Ottawa's municipal election, said Treasury Board President John Baird.

Baird said he has reviewed the city's $778.2-million deal with Siemens-PCL/Dufferin as he said he would on Oct. 5.

The city will get the money committed by the federal government two years ago, Baird said, but not before a new mayor and council are elected on Nov. 13.

He said that will give the newly-elected politicians a chance to approve the light rail project themselves.

'I was misled': Baird

Baird said that according to the contract, the city will not have to pay penalties provided it gets the federal money byDec. 15.

"I was told it was much earlier than that. I was misled,"Baird said.

"But the good news is there is a lot of time for taxpayers to have their say and for the new city council to express its support."

Mayor Bob Chiarelli has said construction costs will go up dramatically ifthe city does not have the money by mid-October and has been pushingto get the money before then.

Chiarelli said Baird is misinterpreting the contract.

"This is delaying the construction projectfor six months and that's going to cost tens of millions of dollars," Chiarelli said.

"The issue is who's going to pay for it."

Baird's electioninvolvement inappropriate: Chiarelli

Chiarellialso said it is inappropriate for Baird to stick his nose into Ottawa's municipal election.

"That is highly improper, extremely unusual to be interfering in the contract in this manner," he said, adding that the government has had an entire year to ask to lookat the contract.

Baird has said he is not trying to interfere with the election.

Two ofChiarelli's mainmayoral rivals, Larry O'Brien and Alex Munter, have promised to review the light rail project if they are elected, and O'Brien specifically requested a review from Baird.

Munter said Chiarelli could end the controversy over theproject by making the city's contract public.

Thecontractisfor Siemens-PCL/Dufferin to design,buildand maintain for 15 years the proposed north-south light rail line from the University of Ottawa to Barrhaven Town Centre. Ottawa city council approvedit in July.