Minister Noel presents consumer concerns at CRTC hearing in Hull

In Hull today, Walter Noel, minister responsible for consumer affairs, made a formal presentation to the CRTC objecting to a proposal by Aliant Telecom Inc. which would result in higher telephone rates in our province, if approved.

Minister Noel said he was extremely concerned about the manner in which telephone rate increases have been approved and hearings conducted. 

The minister said: "I strongly urged the CRTC not to approve any rating structure that would result in different basic telephone service rates for residents living in different areas of this province. Secondly, I opposed any price ruling that would set basic telephone rates in Newfoundland and Labrador at the same rate as those in the rest of Atlantic Canada.

"Newfoundland and Labrador is a geographically distinct area and all of our residents are dramatically affected by CRTC decisions. In light of this, I feel that I and others should have had an opportunity to make presentations in our home province rather than having to travel to Hull."

The minister said that consumers see the current regulatory regime as something that is "complex and complicated" and that they often wonder, under such circumstances, if their interests are, or can be, truly protected.

"Consumers, undoubtedly, are at a distinct disadvantage here as they lack expertise in the process and they do not have the detailed business information which companies use to justify their requests.

"I made my presentation today to help ensure that the interests of consumers in my province are protected and that their concerns are voiced. I also want to make it clear that we believe that there is a need for a more open, transparent and understandable process."

The minister said that he was not against fair and just decisions, but argued that those decisions must fully consider all views, especially those of the consumer.

"If the CRTC accepts the pricing rule proposed by Aliant that the basic residential prices across the Atlantic region be consistent with the price in Nova Scotia, which is $25 a month, then Newfoundland and Labrador residents will pay an additional $3.05 a month or a 14 per cent increase in 2002.

"After 2002, Aliant has proposed that pricing rules allow the company to charge an additional $1.65 a year for high cost rural areas moving toward a common price of $29.95 by 2005. If approved, this will affect approximately 95 per cent of our communities and 43 per cent of our population.

"Basic telephone service is a necessity for all of our residents and should be available to all at the same rate. It is simply not acceptable for residents in this province who live in rural areas to pay more for this basic service than those who live in urban areas." 

Media contact: Rick Callahan, Communications, (709) 729-4860.

2001 10 01                                        4:55 p.m.