Liberal Party of Newfoundland and Labrador
 
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News Release
Office of the Official Opposition

   

 

More unanswered questions on fibre-optic deal

December 5, 2006

Opposition Leader Gerry Reid says government’s inability to answer basic questions on the fibre-optic proposal, such as the amount each partner in the consortium is investing, further adds to the distrust and negativity surrounding this project.

The Liberal leader questioned government today in the House of Assembly on the financial commitment of each of the three partners in the $52 million dollar fibre-optic project. Government has indicated that it is willing to invest 30 per cent, or $15 million of taxpayers money, into this untendered and unsolicited proposal. Persona, Rogers and MTS Allstream are identified as the private partners in this business venture, but no breakdown of each company’s share has been provided.

"When neither the minister nor the premier can answer a fundamental question as to what each partner in the consortium is investing, then it is little wonder that this proposal is being met with such skepticism.

While government continues to stay on their benefits message, it is of concern that they cannot provide satisfactory answers to basic questions.

"When questioned about details of the contract, Minister Taylor suggests reading the Electronic Warfare Associates (EWA) report. The EWA report states that they weren’t given enough information to even determine if Persona was solvent, let alone pay for any cost overruns on this project. The minister’s response is nothing more than an attempt to deflect from his inability to provide answers.

"The premier has committed this province to a questionable deal and has not been able to adequately defend it on the floor of the House of Assembly. Many questions remain unanswered, including just how many fibre-optic strands we will secure with our large chunk of money. Is it any wonder why we need a public review of this deal?"

 

Media Contact:
Darrell Mercer
Director of Communications
Office of the Official Opposition
709-729-6151 or 709-687-0477