News Release
Office of the Official Opposition

Unfair treatment of businesses by government: Opposition
November 29, 2006

Roland Butler, MHA for the District of Port de Grave and Liberal Opposition Critic for Education, has criticised government for its unfair investment practices as it relates to funding businesses in this province. 

The Liberal MHA says he has run across several examples in his own district where any new business looking to establish itself and requires government funding has been turned down by the local office of the Department of Innovation, Trade and Rural Development.   The prime reason put forth by government=s officials is that these businesses will compete with existing businesses within a two or three hundred mile radius.    

AI guess this justification has been accepted by most of these businesses, but now that government has bent its own rules for the fibre-optic deal,  people are starting to question government=s integrity and the mixed message it is sending to the business community,@ says Butler.  AIt is natural that people would feel disturbed and frustrated by the preferential treatment offered to this large multi-million dollar consortium, when smaller home-grown businesses cannot receive as much as a dollar to help subsidize their operations.@ 

The Liberals have been challenging government in the media and in the House of Assembly during the past several weeks on ignoring its own rules to push through the fibre-optic deal, which would see $15 million of taxpayers= money invested in a deal headed by proponents who are friends and former business associates of the premier.   The government=s own website states that those ineligible for government financing include those to assist a business to gain market share from other local companies; and / or result in a local market becoming further fragmented. 

AThis is exactly what is happening with this proposed cable deal and the premier and his ministers can put all the spin they want on what is transpiring.  The reality is that out in rural Newfoundland and Labrador, businesses are not being offered the support they need, while this consortium is favoured. Business people perceive this as unfair and unethical.  If government chooses to ignore this grievance, then come election time, they will certainly have to answer for this mismanagement of taxpayers= money.@

Media Contact:
Kim Ploughman
Caucus Communications
Office of the Official Opposition
709-729-6427