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

   

 

Other Persona deal needs to be examined

November 9, 2006

Roland Butler, Opposition Education Critic and MHA for the District of Port de Grave, says the latest $15 million deal between government and close business associates and friends of the premier emphasizes a need to examine other deals with companies like Persona Communications.

"Last  year  in the House of Assembly,  I asked questions about another $10 million of taxpayers= money which went to Persona Communications on September 15, 2005, and I was not impressed with the answers received,@ says Butler. AWhat was highly striking and suspicious was the lack of information  the Minister of Education and the Minister of Innovation Trade and Rural Development could  provide on this deal when questioned.   Now, here we are just a year later and the same people are receiving a further $15 million from the taxpayers of this province. Given the large amount of money involved and the close relationships which exist, there are a lot of unanswered questions that should be more fully and openly addressed by this government.@

The Liberal MHA says that during question period on December 12, 2005,  he asked two government ministers to provide information related to the announcement that Persona would receive $10 million  to bring broadband access to rural communities in Newfoundland and Labrador.  He further asked government to release other proposals put forward to provide this service and whether Persona  would be required to disclose to the public, financial statements related to the profitability of the venture being undertaken.

 "A year later and government still has not  provided information about this previous arrangement. Incredibly, they are now  entering into another arrangement with the same company, forking over even more taxpayers money.  Whenever there is such a chummy personal and business relationship between the premier and those receiving funding, there is an absolute necessity to have full disclosure and at this point that is not happening.@

Butler says he fully supports the extension of broadband access to rural communities and recognizes the importance of such technological innovations, but he believes there is a need for greater analysis if government funding is required to make such initiatives possible.  AFor a  government that committed to being transparent during the election, it would seem logical for them to fully disclose the information used in the decision-making process in both deals, unless they have something they wish to conceal.@

 

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