Loyola says federal money is in the Fibre Optic Deal!

Deal for Fibre Optic Plan - not a Done Deal

The Fibre Optic fiasco is not a done deal yet. According to Finance Minister Loyola Sullivan - the money for the "funds for friends" project must survive the budget debate next spring before the money can be spent. Therefore it is possible for the people to lobby to have this plan stopped - go through a public process of discussion and then RFP or Tender Process before any like plan would proceed. Here's what the Minister said yesterday on CBC's Cross-Talk in response to a caller asking if the money was coming from current budget:

"No it was not - that's money that government announced that their willing to participate over the next two years beginning in 07-08 budget and following in 08-09 budget - not a penny spent nor will be until it goes through the budget in the budget approved next spring."

It also makes you wonder - if the plan was such a good one - why it was not put forward to be discussed during the pre-budget consultations (currently postponed) - because the consortium must wait until they get the money - considering its subject to a vote in the House of Assembly. Or is government so arrogant that they think the debate is nothing more than window dressing?

The Opposition is looking for the professional studies conducted for the business case on the deal and say:

"It is incumbent that everyone in the province have a chance to review the recommendations and determine whether $15 million of taxpayers money should have been used to subsidize companies with close ties to Premier Danny Williams."

I want to remind the Opposition that the money is not yet approved by the HOA!

So far the new NDP leader Lorraine Michael is mum on the whole works - that's not a good start to a promise of keeping debate on issues of importance to the public - in the public.

Notwithstanding all of this - the Minister of Finance has ACOA and others in the deal!
Loyola Sullivan says:

"It was an investment I think by other companies of in the vacinity I think the total project I remember is about 55 million of which government would have an equity part of 10 million and the expenditure by the companies I think would be in the 35 (million) range by ACOA and the Federal Government ah one of the Federal Government departments to around 10 (million) and the province would be 10 (million) and it would be 35 (million) of private money from these other companies."

What federal money is the Minister talking about? This is the Finance Minister right? He voted in Cabinet on this? What is he talking about? Must be more to come that we don't know about yet!