Innovation, Trade and Rural Development
May 8, 2007

Opposition Continues Campaign of Misinformation on Fibre Optic Project

The Honourable Trevor Taylor, Minister of Innovation, Trade and Rural Development, says the Opposition is continuing to provide incorrect and misleading statements to the public on the fibre optic project.

"In an effort to score cheap political points, the Opposition is claiming government used its $15 million investment in the trans-gulf fibre optic project to increase the value of Persona Communications before the company was sold to Bragg Communications last week. Nothing could be further from the truth. Government was not involved in the sale of Persona Communications in any manner," said Minister Taylor. "Government invested in this project because it will bring many benefits to the citizens of the province. In fact, a 2005 federal-provincial study stated that broadband has the capacity to create an environment where everyone can have the same opportunities in business, education, healthcare, and government services. This investment will also help us compete more effectively on the international stage and bring research benefits for our academic institutions."

Minister Taylor said consolidation is a trend in today�s telecommunications industry. He said it could take months to conclude the sale, as it requires CRTC approval. Until such approval is granted, Persona will operate under existing management and ownership. During that time, the Provincial Government will continue to negotiate a final contract with Persona.

"As far as government is concerned, it is business as usual with Persona. The company will continue to provide services to customers in Newfoundland and Labrador and it will still be part of the trans-gulf project. Government will purchase assets from the consortium in the form of fibre optic strands. This agreement has not changed," said the minister. "The only thing that has changed is that the owners are no longer an American investment firm and two banks, all of which were also based outside Newfoundland and Labrador, but a private company that has business interests throughout the Maritimes and the rest of Canada."

Minister Taylor said installing fibre optic lines in Nova Scotia is part of the agreement between government and the consortium. When and if the sale, of Persona, is approved by the CRTC, Bragg Communications will be a part of that arrangement.

"This acquisition shows there is considerable interest in investing in business opportunities in Newfoundland and Labrador. This province is a great place to do business and we look forward to the same levels of telephone competition that Bragg has established in places such as Halifax. With Persona, Allstream, Rogers and Aliant each having their own networks in the province, the public can look forward to having one of the most advanced telecommunication infrastructures in the country."

"I�m not sure what we can do to make the Opposition happy with this project. We have given the Auditor General access to the Cabinet documents, which the Opposition cried out for. They still aren�t happy. Persona used to be held primarily by American interests. Now an Atlantic Canadian company is buying the company, and the Leader of the Opposition is still not happy. Many individuals, businesses and groups, such as Memorial University and the St. John�s Board of Trade, understand the benefits of this project, but the Opposition chooses to ignore that," said Minister Taylor. "Newfoundland and Labrador is the only province completely dependent on a single carrier for out of province telecommunications needs. We need to bring Newfoundland and Labrador up to the same standards as the rest of the country."

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Media contact:
Lynn Evans
Director of Communications
Innovation, Trade and Rural Development
709-729-4570, 690-6290

LynnEvans@gov.nl.ca

2007 05 08                                                    11:35 a.m.

 


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