News Release
Office of the Official Opposition

Government blocks independent inquiry into fibre-optic deal

Opposition Leader Gerry Reid says he is disappointed that government members refused to pass a motion today calling for an independent inquiry into government’s decision to give $15 million of taxpayers money to companies with close ties to Premier Danny Williams.

The motion was introduced by the Opposition this afternoon in the House of Assembly. It called for the appointment of an independent inquiry with broad and expansive terms of reference to immediately investigate all the details and circumstances of the fibre-optic deal.

"The fact that government has blocked an independent inquiry into this deal once again demonstrates that the premier does not want the public to get the full story," said Mr. Reid. "If this deal is so squeaky clean, it would be logical that the premier and his caucus would welcome this independent review as proof. An independent inquiry would remove any politics from the process, but obviously this government does not wish to have the books opened for public viewing."

This is the second time government has refused to allow an investigation into Cablegate. Last week, the Tory majority on the Public Accounts Committee refused public hearings into the matter.

"Earlier this week, government released a report by Electronic Warfare Associates (EWA) that generated more unanswered questions and deeper concerns regarding this deal. This morning, unlike the media, we had to request a technical briefing from the Department of Innovation, Trade and Rural Development. This briefing, in turn, raised even more questions. We now know that Memorial University does not pay for internet access, as a federal government agency called Canary provides broadband services free of charge to the university. This is contrary to what the premier and minister are proclaiming. In addition, these officials said that the proponents approached government and said they needed $15 million. Government did not do its due diligence to verify that the companies involved indeed needed this subsidy.

"The fact that no tender or request for proposals was issued, that a government commissioned consultant’s report is raising concerns, and that government officials either cannot answer questions or are providing contradictory information, all demonstrates the absolute need for an independent inquiry."

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