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Opposition wants answers on broadband deal $10 million goes to Premier's former business partner December 12, 2005
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Roland Butler, Opposition Education Critic and MHA for the District of Port
de Grave, is questioning the process which provided $10 million in
government funding to a company partly owned by Dean McDonald, a former
business partner of the Premier. Butler raised the questions in House of
Assembly this afternoon. Dean McDonald, who is president and part owner of Persona Communications, is a former business partner of Premier Williams in Cable Atlantic and has been appointed to several government boards since the conservatives came to power in 2003. "I was very disappointed with the lackluster responses given by both the Minister of Education and the Minister of Innovation, Trade and Rural Development earlier today," said Mr. Butler. "It is amazing that such an expenditure of public money could be made and these ministers not be able to provide information on the issue. Even through the Access to Information Act, most of the documentation was blacked out. What is government trying to hide? "There is obviously a close relationship between the Premier and Mr. Macdonald. Given this close relationship, there needs to be a layer of openness and accountability in this process. As a result, I feel there are a number of questions that need to be asked. Will all of the documents related to this file be released to ensure that this company is not being given special treatment? Will government be purchasing any bandwidth or other services from Persona for things such as medical diagnostic services? Were these future purchases used as leverage to get increased coverage under this agreement? Will the company be disclosing financial information related to the profitability of this venture? Was the information gathered used to determine the potential profitability of this venture for the company, and if so, will the Minister release that information? How will the addition of these customers impact on the future value of the company in the event of it being bought out? The Opposition MHA says he certainly supports expenditures of funds on broadband initiatives, but there is a need to be sure we are getting the most for our money. "If government feels this was the best business arrangement available, I am asking them to provide all of the details for full public scrutiny."
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