Minister comments on Aliant�s decision to retain xwave

Joan Marie Aylward, Minister of Finance and President of Treasury Board, today commented on Aliant�s decision to retain, restructure and continue operation of xwave. Government was officially informed of Aliant�s decision earlier today.

"Government welcomes this decision by Aliant as it provides certainty about the operation of xwave and will enable the company to focus on growing and strengthening its business," said Minister Aylward. "Aliant has assured government that the restructuring of xwave will not have any negative impact on its Newfoundland and Labrador based operations and that the company remains fully committed to meeting all of its obligations under its Industrial Benefits Agreement (IBA) with the Government of Newfoundland and Labrador."

Under the terms of the Industrial Benefits Agreement, xwave has committed to bring new business to the province, create new jobs within the company�s Newfoundland and Labrador office, and subcontract work out to the local IT industry. The company is currently on track with all of its commitments as reflected in its remediation plan submitted to government earlier this year."

Minister Aylward added: "Government will continue to work with xwave to generate new employment and growth in the IT industry which will benefit xwave�s operation in the province and other local IT companies."

Government renewed its initial 1994 seven-year contract with xwave in July 2001 for an additional term that will now expire on March 31, 2007. A comprehensive Industrial Benefits Agreement was negotiated as part of the contract extension. Government and xwave agreed on a remediation plan earlier this year to address short-term employment and subcontracting shortfalls in the IBA.

Media contact:

Josephine Cheeseman, Executive Council, (709) 729-0329 or (709) 687-3353
Tansy Mundon, Industry, Trade and Rural Development, (709) 729-4570 or (709) 682-0366

2003 06 19                                       5:45 p.m.