Burry's Shipyard not in receivership, owner says

Burry's Shipyard in Clarenville isn't in receivership, according to owner Glenn Burry, but the business has no work in sight after losing a government contract to refit a ferry.

The shipyard was counting on the government contract to repair the MV Gallipoli, and didn't prepare to take on any other work in the spring, according to Burry. He says he's had to lay off more than 100 employees, because the government contract was pulled.

"We have nothing in sight at this time. It's very serious for the area, and us, to say the least," he wrote in an email to CBC News Wednesday.

These are trying times, said Terra Nova MHA Colin Holloway, whosaid he spoketo Burry Tuesday night.

"He is feeling a lot of pain and trying to, you know, figure out a path forward."

The Newfoundland and Labrador government terminated a contract with Burry's Shipyard in May for the MV Gallipoli, a provincial ferry which services Ramea, Grey River and Burgeo.

The vessel was undergoing arefit which was about halfway complete when, in February, the cradle underneath the ferry partially collapsed, leaving it stalled at the water's edge.

There were no injuries, and the vessel was eased back into the water.

Transportation and Works Minister Steve Crocker said that after the incident, the companysent the government proposed schedules to complete the rest of the refit, buta third-party assessment showed that the timeline Burry's Shipyard was promising was not achievable.

"They quite clearly said that Burry's were not able to complete the work," Crocker said.

"We decided, you know, we had a vessel that we needed repairs toso we had no choice but to move that vessel to Newdock."

The refit of the MV Gallipoli was brought to Newdock St. John's Dockyard Limited.

A decision MHAColin Holloway didn't agree with then, and still doesn't now.

"If Burry's Shipyard had been able to continue with this work, the timeline of having the boat back in the water would have been towards the end of August [for the refit to be complete] ...I don't think there was any need to take the boat out of Clarenville," Holloway said.

'Doesn't add up'

Without that provincial government contract, Burry's Shipyard is at risk of shutting down, according to Clarenville Mayor Frazer Russell.

The shipyard has operated under several different names since 1942, and the family has been in the business for more than 100 years.

"I would not be surprised that the fallout of the loss of this contract, and the loss of business that they have had while this whole episode has been going on, would not lead to their failure," Russell said.

Russell said that the shipyard had other financial issues, but the withdrawal of the Gallipoli contract was very disappointing.

"There's something that just doesn't seem to add up there, and you have a provincial government that has been preaching the development of rural Newfoundland, they're not practicing really what they have been preaching," he said.

Crocker said it's unfair to claim that a government decision is the cause of any hardship at the company. He says the shipyard was promised $1.5 million under their original contract, but were paid upwards of $2 million after change orders came in.

"This contract would not be affecting the financial issues at Burry's," he said.

Can Burry's Shipyardsurvive?

"I don't know the ins and outs of their finances, and things like that, and nor should I," said Holloway.

"I think they are trying to regroup, I think they are trying to move forward."

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