Takhini Transport owner Pat Jamieson is in good spirits after being awarded seven school bus contracts last week.

On Friday, the Star reported Takhini did not bid on the public works tenders. However, Watson Lake Bus Lines of Whitehorse, which made successful bids on seven of the 10 available bus regions, does business as Takhini Transport.

Norline Coaches Ltd. of Whitehorse, which bid on just five, was awarded the remaining three, while Southland Transportation out of Calgary was shut out after being the highest bidder on all 10 contracts.

"The difficulty was there was no fuel-escalation clause in the (previous) contract," Jamieson said this morning. "There is now... (so) we don"t have to be fearful of where fuel"s going."

In April, the Yukon government released Takhini from its five-year contract one year early. The decision was taken after the company made the request, citing soaring fuel prices that made its operation unprofitable.

According to Jamieson, the escalation clause sets a base fuel price, and anything over that will be covered.

"Should it go below that, we would reimburse the government," added Jamieson.

The news is also good for more than 60 drivers employed by Takhini, who will return to work for the company in September.

"They knew that. The only reason that we had given them the (layoff notices) we did, was to cover the company," said Jamieson. "As they were given the slips, they were advised, were we successful in the tender they would all be rehired."

Drivers can also expect a raise but Jamieson would not comment on the extent of the pay increase. As of September 2007, bus drivers for Takhini were paid $20.38 per hour.

The contracts awarded Friday are for a period of three years. According to government tender results, all were awarded to the lowest bidder for each region.

Under the deal, Watson Lake Bus Lines (Takhini) will provide school bus service to Whitehorse, Carcross, Mayo, Dawson City, Teslin, Pelly Crossing and Watson Lake. The cost to the YTG will be $8.6 million, not including any increase in fuel prices

Norline Coaches will pick up the remainder of the contracts, previously held by Takhini, and these include Carmacks, Haines Junction and Destruction Bay.

The total value of these is $510,176, again without taking into consideration potential fuel increases.

Premier Dennis Fentie, the MLA for Watson Lake, and his government took considerable heat from opposition parties during the spring session of the legislature for allowing Takhini out of its contract - in light of Friday"s announcement - essentially renegotiating the contract.

"Do we say, "Tender anything at all and if it doesn"t work out, we"ll open up the contract again?"" charged Liberal MLA

Eric Fairclough during question period at the end of April.

"This is no way to conduct the people"s business."