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Ministers provide an update on xwave�s remediation plan Joan Marie Aylward, President of Treasury Board and Minister of Finance, and Kelvin Parsons, Minister of Industry, Trade and Rural Development, provided an update today on the status of xwave�s remediation plan that was requested by government to address shortfalls in xwave�s performance under its Industrial Benefits Agreement with government. Xwave presented its remediation plan to the two ministers on February 4, 2003 outlining how it proposes to meet its employment targets and sub-contracting commitments to the local IT industry that were placed in jeopardy in January when it announced the elimination of 42 positions in its St. John�s office and a general downturn in its business outlook. "The remediation plan moves in the right direction, but there are a number of outstanding issues we are still reviewing with both xwave and Nati (the IT industry association in Newfoundland and Labrador). Until we conclude this process, it would not be appropriate to comment on the details of the remediation plan put forward by xwave or speculate on the outcome, other than to say that our decision on whether to accept the remediation plan will depend on the successful resolution of the outstanding issues. A final determination on this matter should be reached in the next week or so," said Minister Parsons. Minister Aylward emphasized that "government�s objective remains the same as communicated earlier - to see that xwave lives up to all of the promises it made in its Industrial Benefits Agreement with government. Xwave has reassured us that it remains committed to this objective as well." Both ministers expressed their disappointment with recent comments from Nati to the effect that the remediation plan was unacceptable to its members. The ministers noted that Nati has been engaged all along in the process to develop a remediation plan that is fully compliant with the Industrial Benefits Agreement and that Nati is fully aware that government is still pursuing discussions on various aspects of the plan with xwave. "In government�s view, Nati�s comments are premature," said Minister Parsons. Minister Aylward also stressed that government is separating the issue of the remediation plan from the possible sale of xwave by Aliant. "Our priority at this time is to hold xwave fully accountable for its contractual obligations under the Industrial Benefits Agreement. If and when a new prospective owner for xwave comes forward, government will deal with the circumstances at that time to ensure the public interest is fully protected as Minister Parsons and I outlined in a press release issued on January 24, 2003. In our view, it would be a mistake to compromise the interests of any party by mixing the two issues right now." Media contact: 2003 02 14 3:30 p.m. |
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