The McNeil government has quietly handed the $120-million job of connecting thousands of rural Nova Scotians to high-speed internet to a Crown corporation whose primary function is to redevelop land around Halifax harbour.

The arrangement involving the Waterfront Development Corp. was never announced by the province, and was only revealed Wednesday during questioning by an opposition MLA during a Nova Scotia Legislature committee.

Rather than promising high-speed for every single home, the governing Liberals have pledged to connect as many communities as possible using fibre-optic cable or wireless, with the most remote getting internet through satellite.

Up until now, the Business Department has overseen the file. But during a meeting of the public accounts committee, Deputy Minister Bernie Miller was asked by NDP MLA Dave Wilson whether the department was considering using a Crown corporation.

"We are very much of the mind that a Crown corporation has a significant role to play in implementing the strategy," Miller responded.

Under further questioning, Miller said the province had handed the job over to Waterfront Development.

In the budget speech?

Speaking to reporters after the meeting, Miller pointed to an oblique reference in the March budget as an indication the government had already tipped its hand to the change.

The 16-page budget speech dealt with Waterfront Development in just two lines.

"This year, its mandate will expand to become the province's strategic property development corporation," the speech said. "Its mandate will focus on creating opportunities for entrepreneurs in both rural and urban communities."

Miller described the decision to go with Waterfront Development this way to reporters: "The choice was new corporation or remandate an existing corporation."

The Crown corporation has not yet filed a business plan and its current budget is recorded as $2.8 million, down from $22.7 million in 2017-18.

Most of that difference is capital grants last year to waterfront projects, including the Queen's Marque in Halifax and the Centre for Ocean Ventures and Entrepreneurship in Dartmouth. Previous budgets for the corporation have totalled roughly $3 million.

An artist's rendition of the Queen's Marque project, which is being built on the Halifax waterfront. (Queen's Marque)

Miller told reporters the corporation and the province are still working on what the actual budget will be. On the corporation's website there's no mention of its new mandate.

"Waterfront Development exists for the purpose of redeveloping and revitalizing the lands surrounding Halifax Harbour and any other lands designated by its shareholder, the Province of Nova Scotia," is its stated mandate.

It's estimated 72,000 homes in Nova Scotia can't access high-speed internet, and the provincial government has set aside $120 million in a trust to fix the problem. Waterfront Development will be responsible for finding a home for that money, in partnership with private partners.

PC MLA Tim Houston expressed doubts the government would be able to deliver on its promise to connect almost everyone to high-speed internet, given it has handed responsibility for it over to Waterfront Development.

"I just don't see the expertise," he said. "The right people in the right places could turn that into $200 million in value, but the wrong people in those places could turn it into $30 million in value."

New Democrat MLA Lisa Roberts was concerned other public players might be left out of the chance to build their networks.

"Annapolis County is already a couple of years ahead of the province in terms of figuring out how to do this," said Roberts. "They're building the technology. They're going to own the technology.

"So why are we not building from the capacity that exists and also looking at different models across the country that put the assets in the hands of the public, given that we are spending public dollars to create those assets."

Officials with Waterfront Development Corporation, meanwhile, would not do an interview on the subject.

In an email, CEO Jennifer Angel said the Crown corporation is working on an expanded mandate "to include development of strategic economic land and infrastructure to support inclusive economic growth in Nova Scotia."

"As our new mandate has not yet been approved, I think it would be inappropriate for me to provide further comment at this time."