The war of words between Denver-based Omnitrax and the federal government seems to be reaching the next level as Ottawa says they’re planning on following through with legal action.
The federal Liberals told Omnitrax back on October 13th to fix the rail line to Churchill in 30 days or else.
Now that the deadline is passed, Ottawa says they will make good on their threat of suing Omnitrax over breach of contract.
The federal government says that Omnitrax is in breach of a contract, signed in 2008 with the Federal and Provincial government.
Churchill Mayor Mike Spence said that they expect swift action from the Government, as gas prices in the northern community are over $2.00/L and the cost of living continues to rise.
A resident of Churchill says that two bags of groceries cost over $130.00.