Next in Line - Our Minister of Business

See if you can figure out what the deal is...

After this post we will go to Loyola's statements and then the Premier's - to see if we can figure out what is happening.

Kevin O’Brien November 10-06 Open-line

Sue’s Blog has transcribed the Minister’s words exactly.

Kevin:

I see this myself and from the Department of Business perspective as a huge step forward ah be honest witchu – because ah opens up ah yaknow whole new world of investment ah yaknow opportunities ah in regards to you must remember ah that the lot of the companies and we have 22 files in the Dept. of Business right now ah yaknow they all have a shopping list in regards to what they needs ah yaknow that would ah entice them to establish their self ah in Newfoundland and Labrador. And ahh and one of it is IT services and ah and when they look at the IT services and having just one carrier – well then certainly then you haven’t got the competitive nature – you haven’t got all the services that’s offered in other jurisdictions across Canada. Ah so then yaknow some of them just drop off the table right off the bat. And ah so we yaknow took the step ah we have an equity position an ownership position ah yaknow with a dedicated fibre optic lines for government that will …

Randy:

Whoa Whoa Whoa Whoa Whoa – you have an equity position?

Kevin:

Well its we have an ownership position – ah we have ah we have ah an owner position of dedicated fibre optic lines to government – is what we have right? – I shouldn’t say equity…

Randy:

And that 15 million dollar investment means you’re never going to have to pay any money for the use of those services?

Kevin:

That’s correct. That an that that’ll also utilize ah will be utilized as we roll out our broadband initiatives right? And ah which opens up a whole new yaknow in rural ah Newfoundland and Labrador and we all know the challenges in rural Newfoundland and Labrador in regards to ah yaknow em ah in attracting investment there.

Randy:

Yah so how much money will it save you? Obviously it means that there’s a chunk of money that you currently pay out to the supplier today – being Aliant – that you’re no longer going to have to pay out – how much is it do you know?

Kevin:

No I don’t be honest witchu – that would ah really ah lie in ah in Finance ah they’d be able to do the drill-down on that I guess and ah see what we’re paying out as compared to what we pay out in the future. Ah But the bottom line of it is that ah yaknow the competitiveness will reduce it um as we go along here – ah as is shown in all the other jurisdictions across Newfoundland and Labrador. Ah yaknow and um er ah across Canada I mean and ah yaknow that that’s a big piece ah yaknow you had a consortium of companies that are also going to invest 37 million into this – ah yaknow so – ah it’s quite a investment that ah yaknow there will be job creation in the front-end in regards to the construction phase etcetera and then also in the ah the back-end in regards to maintenance of the lines etc – so you know um it certainly has ah in my mind and the Department of Business’s – ah it’s certainly something that ah yaknow I thought and ah and believed that we should have done long ago ah because ah yaknow we’re certainly not competitive we’re not at the infrastructure level in the IT sector in the fibre optic lines as the rest of Canada and that that has a negative effect in regards to attracting business.

Randy:

Some people are going to say to you though that by investing in this business the way you have – and setting up basically a competitor for Aliant – who currently has two cross-province fibre optic cables anyway – that are apparently from all reports not near their capacity – that has a lot of utilization available in those lines yet – not yet taken advantage of – that what you’re doing by setting up this competitve situation is – you may create some employment with the Roger’s Consortium or the Persona Consortium but you’re going to lose it on the other end with Aliant.

Kevin:

Well I don’t see it that way at all…

Randy:

That’s there’s no sum gain here.

Kevin:

Yeah – no – I don’t see it that way at all be honest witchu ah Randy – because you know Aliant are yaknow are in other jurisdictions across Canada ah they have ah yaknow they deal with this type of competitive market ah elsewhere you know in Canada. This is the only area in Canada this is the only area in Canada that has only one provider ah so yaknow taking that as an example Aliant is ah very capable ah very sound company ah that can compete in a competitive market..

Randy:

Don’t you think the Vice-President or President or whoever it is that’s running the show at Aliant wouldn’t say to Kevin O’Brien and wouldn’t say within the community at large – “listen if you guys want another line and if you guys wanted dedicated services for government and you guys needed all of that – why didn’t you give us a chance to bid on it.”

Kevin:

Well the chance the see it’s different than that ah Randy be be honest witchya right? It’s a yaknow you’re bringing three more providers to the province – you know in business wise – I mean if I opened up a drugstore today and I only dispensed medications and I didn’t provide a front store well then I’m certainly putting my eggs in just one basket – so if Randy Simms and um and ah everybody else didn’t come in and get their prescriptions filled well then I’m out of business. I have nothing else to support it. Ah you know when you have three more ah added providers that’s going to provide enhanced services – ah better services – different services – well then you get competitiveness within the nature of that world - right?

And on it goes…..