Nipissing MP hopeful Ontera sale will be overturned.
Author | Ross, Ian |
Position | Bell Aliant |
The one-month delay in the $6-million sale of Ontera to Bell Aliant has Nipissing-Timiskaming MP Jay Aspin holding out hope that the publicly-owned telecommunications provider may still remain in the fold of the Ontario Northland Transportation Commission (ONTC).
Aspin successfully petitioned the federal Competition Bureau this past summer to investigate whether the Ontario government's sale of Ontera will reduce competition, cut service, and increase prices to consumers in northeastern Ontario.
The federal tribunal agreed to review the proposed merger following a complaint lodged by Aspin and regional and labour leaders that a monopoly situation could be created.
Ontera is the only business unit of the five divisions of the ONTC that's being divested by the Wynne government. More than 40 unionized positions would be chopped over two years.
The final closing date for the Ontera sale, originally slated for Sept 2, has been extended to Oct. 1.
City council in North Bay, the home headquarters of Ontera, wants the sale stopped or stalled.
In a second follow-up letter filed with the bureau, Aspin said should the sale proceed, the new entity will be required to pay taxes and dividends to shareholders resulting in skyrocketing costs for consumers in northeastern Ontario.
But Aspin said he finds some solace in the Competition Bureau's recent decision in August that killed the $26.5-million sale of municipally-owned Bruce Telecom to media giant Eastlink.
The federal bureau, which has the legislated responsibility to review mergers and acquisitions, concluded that the Eastlink purchase would have lessened cOmpetition in...
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