NEWS RELEASES
MAYOR OF COCHRANE/CHARLIE ANGUS
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COCHRANE – Mayors, Provincial MPP’s, Federal MP’s, opposition MPP’s and MP’s, Employee Associations and aboriginal leaders came together in Cochrane to rally behind stopping the divestiture of Ontera.
Speech after speech highlighted displeasure with the provincial government’s direction, while also highlighting the need as Northerners to stand up and stop the onslaught of divestment by the provincial government in the region.
Leaders from as far as North Bay and Moosonee, are unified in their effort to have the provincial government rethink their unilateral approach to this potentially catastrophic direction.
The current provincial government has divested Ontera to the largest monopolized provider and competitor to smaller utilities in the region, Bell Aliant.
This means the last mile of fiber optics to every community Ontera has publically served for over a century in North Eastern Ontario, is now controlled by a national conglomerate whose main interests lie outside of the region.
Furthermore, we take great issue with the government’s process.
Like the process for the ONTC in general, that the Auditor General described as in fact costing the tax payer $790 million dollars when the government said it would actual save the tax payer $260 million, no one involved regional communities in the discussions of this direction, despite numerous requests to do so and remarkably despite the incredible impact it has on our affairs.
It was even prevented from being part of the Minister’s Advisory Committee struck to address the ONTC divestment initiative and involving regional leaders.
Our fear is that this direction will eliminate competition, set northern communities up for monopolized take over and subsequent catastrophic failure in some cases.
There will be a lopsided control by the monopoly which will further gain from controlling the access to one of the most important technological tools for growing the North, a fiber optic cable with 96 percent capacity available, paid for by the very citizens who will suffer the consequences of this outcome.
Our complete capacity for growth and development are now in the hands of shareholders whose interests are not those of northerners, but their own.
Finally, this company is valued at just under $70 million dollars yet it was sold for $6 million.
The cable that was a “part” of this sale cost the public $20 million on its own.
Ontera provided the region, which is low on customer mass, an opportunity to actually compete with giants like Bell Aliant.
Curiously, we’re left wondering why the government seems to place little value on this critical fact.
We are extremely concerned with this direction and ask the provincial government to put a halt to the process until an objective third party assessment (such as the Auditor General did for the ONTC at large) can either verify or invalidate this very critical decision, especially considering the original divestiture of the ONTC itself was forced to reverse course after the same exercise in prudence.
Quotes:
Cochrane Mayor Peter Politis commented, “We’re extremely concerned with this unilateral decision by our government to divest yet another critical part of our northern infrastructure and the impacts it will have not only on our community, but the region in general. Our phone utility rely’s on Ontera for its provision of phone, internet and as of this year television services. Ironically, we wouldn’t even be in this position without Ontera whose mandate is the northern public. These services combined with our local distribution corporation offset about $1,000,000 worth of taxes in our community which is about 20% of our tax base. Needless to say, this is a critical component of our ability to provide municipal services, concluded Mayor Politis.”
Moosonee Mayor Alfred V. Mitchell commented; “the sale of Ontera is a continued step by Government to further isolate our community and not be responsible for infrastructure development in our community.”
North Bay Deputy Mayor Tanya Vrebosch commented; "The province of Ontario needs to prove that they've done their due diligence for the consumers when it comes to the sale of the Ontera; A company that was built for and paid for by northern Ontarians. Communication has been lacking and residents especially in the far remote and isolated areas are wondering what will happen with their telecommunication services"
Federation of Northern Ontario Municipalities President, and Mayor of Kapuskasing Al Spacek commented; “FONOM continues to request the Province to reconsider the sale of Ontera,” says President Al Spacek and Mayor of Kapuskasing. “It is important that Ontera remain part of the whole ONTC structure moving forward.”
Nipissing M.P.P. Vic Fedeli commented; “The Auditor General has confirmed what I’ve told this government repeatedly -- that this Ontera sale won’t save Ontario taxpayers any money – in fact it will cost them $50 to $70 million. So they’re cutting jobs, reducing competition and driving up the deficit at the same time. It makes no sense to go through with this.”
Nipissing-Timiskaming M.P. Jay Aspin commented; "This sale flies in the face of the competitive telecom forces our government is trying establish in Canada. It will result is significantly higher rates, lower service or a combination of both. Many of these negative impacts effect my constituents. We must stop this sale for the drastic effects it will have on the residents of Northern Ontario."
Ron Marleau district VP for the Steelworkers that represent unionized workers at Ontera; "If the sale of Ontera to Bell and the resulting job loss and monopoly it will create goes through as proposed it will have a devastating and irreversible effect on the economy and communities of the North. The Competition Bureau has a duty to protect our fragile economy and if a monopoly situation was ruled anti competition in southern Ontario as in the Eastlink merger with Bruce Telecom then they cannot possibly ignore this proposed selloff of Ontera to Bell," concluded Marleau.
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Timmins-James Bay MP Charlie Angus stands with Northerners and ONTERA workers who rallied in Cochrane today (Friday) against the impacts of the sale of ONTERA to Bell Alliant on Northerners.
ONTERA’s telecommunications network was put in place as part of a public commitment to connect parts of Northeastern Ontario that were not being covered by the private carrier.
New Democrats share the concern about the impact of the sale on competition and on new players coming into smaller communities in the north.
Angus says this proposed sale still has many questions that haven’t been answered.
“Because of our concerns, New Democrats wrote the Competition Bureau and we stand with Northerners who rallied in Cochrane. If this sale is approved, the question must be asked – what conditions will be applied that will ensure access for small competitors wishing to utilize the former ONTERA infrastructure. ONTERA is pivotal to our region’s need for competition and service affordability.”
ONTERA is currently the wholesale provider of telecommunications services to private companies in our regions which underpin our local economies in the digital age.
This sale reminds northerners of the recent changes to ONTC and the closure of the Northlander train.
Angus says he has heard a wide variety of concerns about the potential impact on competition as Bell Alliant becomes the sole private sector owner of ONTERA’s telecommunications network.
Similarly to standing up for ONTERA, Angus says New Democrats continue to stand by the ONTC and call for the Northlander to be brought back in our region.
“The ONTERA sale is reminding Northerners what they learnt in the changes made to ONTC and the closure of the Northlander Train- that these decisions need to be made with a focus on the impacts on northerners in mind. The future productivity and health of the Northern Ontario economy is reliant on fair and competitive access to the digital economy.”
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