Deal over Internet angers Liberal TERESA WRIGHT The Guardian
The president of the Liberal riding association for Stratford-Kinlock has resigned over what he calls an unfair deal struck between the province and Aliant.
Wellington Gay believes the telephone service contract Aliant signed with government in November was not transparent since no other companies had a chance to bid for it.
As an EastLink employee, Gay is so upset at this he has decided to step down as president of District 6.
“The finance minister and the premier had a meeting with some of our staff and at that meeting we were informed that a request for proposals (RFP) would be going out before Christmas for the rural Internet service,’’ Gay said in an interview with The Guardian.
“That RFP never came through.’’
Aliant announced last month it would invest $8.2 million to provide high-speed Internet service to rural Island communities in return for a five-year telephone contract with government. The contract is worth nearly $12 million.
This deal struck between Aliant and government was arranged without the province ever issuing an RFP from other companies, as is customary for government contracts.
EastLink officials came out publicly after the Aliant deal was announced in November, expressing disappointment in the government’s non-competitive selection process for these services.
The province defended the decision, saying they were merely extending their existing contract.
“What happened here is we were able to extend an agreement with Aliant for the next number of years, similarly as to what was done (in the past),’’ Premier Robert Ghiz said in the legislature on Nov. 13, when questioned on the issue.
“What we were able to do is extend it, save the taxpayers $2.5 million, and then get Aliant to build an $8.2-million project so that each Islander could be connected to the Internet.”
But Gay says EastLink was also willing to install rural broadband for Islanders living in outlying communities for free and would also have offered a competitive telephone service for government.
But without the opportunity to bid fairly for the contract, they were shut out of the whole deal, he said.
“While this deal is great news for rural P.E.I., this was not negotiated in an open manner. EastLink was assured that the province’s rural broadband would be an open and fair process similar to what Nova Scotia did in 2007.’’
Gay has sent letters of resignation to all members of his district association’s executive members and to the provincial executive.
Many have written back, expressing disappointment at his decision, but none have been enough to change his mind, because in the end, it’s a matter or principle, Gay said.
“If the premier cannot be open to the residents of P.E.I., we are in big trouble and I cannot sit and ignore such actions,’’ he said.
“With backroom deals like this going on, I, with regret, find it necessary to resign as president of District 6.’’
Gay said another member of the district association executive has also decided to resign, but is waiting to finish some paperwork before announcing it publicly.
In the meantime, Gay intends to meet with the premier and Innovation Minister Richard Brown to ask them why this Aliant deal was struck in this manner.
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sjj jen from chtown, p.e.i. writes: good luck mr gay i doubt if you'll get a meeting they are not nice people
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Dommie Fox from Stratford, pe writes: This is outrageous, unacceptable and needs to be reviewed and cancelled.
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a from PE writes: We are finally getting high speed internet to all Islanders! This is a very positive thing the Liberals are doing. An Island company is supplying this service and all Islanders without high speed will benefit from this. Thank You!!!
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Joe from Crapaud, PEI writes: If more folks took a stand like Wellington, we could actually change the way government works.
My hat is off to you Wellington, now if more people that pretend to have principles would take a stand, perhaps this could be made issue number one that could be changed! Its never too late, and never give up.
Come on people, show your true colors!
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wondering about it from pei writes: That is just a drop in the bucket compared to the untendered computer systems that have been awarded over the years in the Health related Departments.
Someday the auditor general is going to wake up and take a look at the last 15 years and calculate what it has cost the Province for poorly conceived and executed projects in Health and when he does it is going to be a shocker to the people of PEI.
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Sour Grapes from Stratford, P.E.I writes: Talk about sour Grapes! This deal cost the Tax payers nothing! No handouts, Good sound decision on behalf of the tax-payer!
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Buddy The Elf from Candy Cane Lane, Northpole writes: funny....isn't Mr. Gay's opinion a little biased? He works for Eastlink...what would have happened if for Joe Blow Construction ? I bet his opinion would be a lot different. Mr. Gay just wants his employer to reap the benefits so that it will filter down to him; not that I totally agree with what the govern't did with this contract.
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Scott from Prince Edward Island writes: I am not sure why this is even an issue. It is apparent that Eastlink is in no way ready to provide this kind of service. Eastlink is paired with Rogers. Here on PEI, Rogers Wireless service is no where near as good as Aliant's Wireless service.
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I say good bye.
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Lori Trainor from Cornwall, PEI writes: Mr. Gay may be biased but he is correct! A 12 million dollar deal going
out without an RFP! The proince is paying 12 million dollars, how can
you say this isn't costing us anything? They are Just extending an
existing contract that the previous government made. The previous
government made a contract with Aliant before there was competition on
PEI! Eastlink couldn't have bid the last contract as they never had the
infrastructure at the time. At $21/phone line, the government may have
overpaid nearly 9 miilon dollars for the contract.
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JD from PE writes: How do we know that Eastlink would not have provided a similar or even better deal. The fact is that Aliant got something for the contract. Does anyone remember the fact that the Province didnt ban hand held cell phones where you are driving.
Now imagine had we been able to get the same deal from Eastlink and also ban hand held cell phones. It wouldnt have cost taxpayers anything and might have saved a few more lives.
Wonder what price the Government put on a few lives of people taken by inattentive drivers talking on cell phones while driving.
The Aliant deal cost us all something and it maybe your life.
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mg calgary from calgary/ch'town, alberta/pei writes: i really think that we should start allowing other communication companys to start competing on pei.we are getting so ripped of with aliants service back home.solo mobile here in alberta is run by bell,so is aliants service at home,but when i go home i have to change it to aliant and all the free perks with solo out here get thrown out the window(10-4,internet,text messaging)and i am charged for them.time for pei to start changing.
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Betty from PEI writes: Underhanded and crooket on the part of the leader of this Island, I certainly and wholeheartedly agree with Joe from Crapaud. People are so willing to stand back , talk amongst ourselves and Not VOICE LOUDLY what these leaders and their cabinet are doing to us and telling us in a half truthful way. I certainly respect Mr.Gays reaction and decision and why. How can he work with those that are showing so much unfairness.. Regardless of how strong Eastlink is, They should have had the opportunity to bid on this ...Keep it above the table and do it right and do not leave any openings for negative comments... Be fair,,not Unfair,But then look at the big raises the Liber leader gave himself and his cabinet..while the common folk of PEI struggle to make ends meet...he is stacking OUR TAX MONEY INTO HIS bank account....It is time the People ON PEI stake a stand on these actions, and GET down to HONESTY and FAIRNESS to all.How can these ones who have been voted in by us..accept such raises when their family and friends are suffering from the cost of in living.......Are they this selfish.... There will be another ELECTION !!!
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ed from pei writes: Aliant is not an Island company. It is owned by Bell.
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Consider the source from PE writes: I'll take Weelington Gay's word over Robert Ghiz's anyday of the week
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Jason White from charlottetown, PE writes: I can't believe the government did this, companies have been investing a lot of their own money already to make this happen, and with the invent of Wi-Max technology this was going to happen anyway in the next 2 years on its own without the government giving Bell the contract. Anyone who says that Eastlink would not have done this is wrong, im sure if they were given the right to provide over priced telecommunications service to the province as well, they would have done it. Why should my tax dollars go to fund a company that has a multi-national presence. This company just jet 350 people go in the maritimes, and it suing the Ontario Teachers pension fund 1.2 billion.
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Don't believe the Hype from PE writes: Very biased written headline, but then Ms Wright's peices do seem to always focus on one side at time to elicit reaction. More accurately, this should read, Deal over internet angers Eastlink employee.
Mr Gay had to choose a side and I bet that Eastlink pays more than District Association President of the Liberal party.
Truth is, this may be one of the very few, if not only good decision that the Liberal Government has made so far. And if Eastlink were willing to offer such a sweetheart deal to capture market share, which is what Aliant did, what were they waiting for? While I am no Aliant fan, based on the service I have personally received from them, they schooled Eastlink on how to conduct business on this one.
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mooseman from PE writes: mooseman from PEI ,says to all that it is not only Aliant that is capable of providing this service. It is going to cost Aliant $8.2 million to provide this service. We have a rural service provider right now that gives rural Islanders wireless internet. Eastlink has already provided us with cable across pei for years. Why weren't these businesses given a tender to see who had the best deal. Now we will never know. It appears that the unions are at it again. Something smells here. When will the Premier stand up and do what he said and be fair to all involved in this internet providing service. Way to go Wellington , if the Premier won't stand up to the unions then it is the non-government non-unionized worker who must. Otherwise we are doomed like the Auto Industry.
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ben barr from cornwall, pei writes: proof is in the pudding. when it is free, watch out.
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Bill from PEI writes: Well done Wellington, I'm proud to know you personally & yes every company should have had the same chance to tender. Back room deals should never be done with taxpayers money & to sour grapes, you are a fool if you think Aliant isn't getting Gov money some where in this deal. As a example - Irving got Georgetown Shipyards for $1 a few years back (that was reported in the paper)but the back side of that was Irving Ship building in Saint John got $ 7.5 million from the PEI Gov to train personal in Saint John. That part was never revealed to PE Islanders but was reported in a marine magazine that ship owners recieved. The fact being PEI paid Irving $6,499,999.00 to take over the shipyard. Even the Graphic wouldn't touch that one when given the magazine. LOL What is reported is not allways the full truth of what taxpayers should know.
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mooseman from PE writes: well let's get real here this Company is no longer an Island Company . it's head office is out of Halfix N S have a good day????????????
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Larry from Miscouche, pei writes: Imagine; a deal that cost government nothing and someone with Eastlink complaining; Aliant also has hundreds of unionized employees on PEI and has offices in C'town and Summerside. I see the deal with Aliant as good for our economy as it will keep jobs here. Are Eastlink employees paid as decent a wage as Alaint and do they employ as many on PEI- I have my doubts
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Good move from PE writes: Good for you Wellington. Gutsy move!! Stand up for fairness. It is time to knock some of the good old boys off their game.
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true islander from Charlottetown, PEI writes: Eastlink is at least a Maritime company. Aliant just ships all our money to Toronto.
This backroom deal should be canceled and everyone giving a fair chance.
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Tenders here from charlottetown, pEI writes: A failure to call tenders on government contracts is common practice. Millions could be saved if government followed their own regulations in this regard. I hope this is not to radical a statement of fact for this newspaper. The only thing this government has to offer is an early election. The term to describe them is One Term!
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Bob from PEI writes: Well Done Wellington. As an Islander without high speed internet, I support the need for this service. But the contract should have been open to all companies. Who are we to say the Island taxpayers got the better deal. If we start letting the Gov. get away with these backdoor deals, the taxpayers are going to get burned. If not with this deal then maybe the next one...
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Lori Trainor from Cornwall, PEI writes: Mr. Gay is an Eastlink staff hence, yes he has to stick up for his company but this was a deal to save Aliant. Hundreds of jobs were cut from Aliant a week after this happened in the Maritimes, coincidence, I think not. This government and Aliant are thick as thieves. Islanders may wake up someday and complain. Until then, we deserve what we get.
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Liberal Poll Chair from PEI writes: This is only the first of many Liberals that will becoming forward to voice their displeasure with this government's actions.
Many campaign workers in the west and some down east are already putting the plan in motion to quietly step aside before getting embarrassed in the next election.
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Best price should win from commonsenseville, pe writes: Cost of letting companies compete for government business? nothing
Cost of the right government officials getting wined and dined to hand out a sweetheart deal through the back door? priceless
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Polly from pei writes: Aliant is also too expensive,that is why they want the monopoly on this .With no competition they will charge to much,for the average person to afford high speed.
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Waiting for High Speed from SlowCity, PEI writes: I emailed Aliant regarding when they expected to have High Speed in our area. They sent back a form letter Identical to one they sent me 2 years ago, in essence, what they said is that they that they would have it here sometime in the future, at this time they were looking at many different areas. That didn't sound like 2009 to me. Maybe Eastlink should've gotten that contract. Oh by the way they suggested we get and optimizer for now, yeah right.
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J.L. from Up East, PEI writes: Eastlink can't even provide cable and phone service to all areas of the island right now, Aliant can at least provide phones. Eastlink's cell service with Rogers doesn't exist in some rural places, while Aliant's seems to work almost anywhere. And, as joe from pei said, we should be focussing on Maritime Electric and the rate hike planned for the near future. People in rural PEI won't have to worry about their high speed when it is eventually too expensive to turn on your computer.
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bob bunner from pei writes: 8.2 million is small potatoes compared to the annual fees Aliant will collect forever from rural islanders because of the monopoly Ghiz and gain gave them. Just who's money did they save?
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Honest the best policy?? from PE writes: It would appear that the Liberals will miss Wellington Gay. He is a very honest person and a hard working, good organizer. Don't think they can afford to lose too many like him.
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red from PEI writes: Is Wellington really pouting because of the RFP issue, which may or may not be a valid concern depending on how the original contract was laid out, or is it becasue he is a Liberal riding President he was not rewarded with a contract sent to a company he may have connections with? Maybe his own personal sour grapes is muddying the waters here folks. I don't think the Liberals lost a whole lot here people.
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Bee White from miscouche, pei writes: Eastlink's technical support is located in Charlottetown, so more eastlink service here would have increased jobs here.
Aliant brings jobs to Nova Scotia, Newfoundland and Ontario.
I had Aliant here to my home and was advised that they aren't even ordering equipment for another year.
So while I wait I'm ordering satelite service through xplornet, as I'm being charged 70$ a month for my aliant dial up connection that connects at a whopping 36 kb.
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Tessa from PEI writes: Aliant is not a PEI company.
It is Bell Canada.
That is a major corporation based out of Toronto.
I live in the country and Aliant can't currently now provide me with cable television, high-speed internet, or anything but basic phone service.
Nor have they ever shown any interest in doing so. Yet they are willing to charge me more than $50 a month for dial-up internet, which won't even let me watch you-tube.
And when I say I live in the country, I mean, I live 10 minutes outside of Charlottetown.
So if Aliant really gave a darn about providing these services, they would have done it, years ago.
But they waited for government money. Which they got.
Without an open bidding process.
Eastlink, I hear, gives good service.
So why wasn't anyone else allowed to bid?
Because I would have liked to have had the choice.
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John from PEI writes: I live in the city and Aliant won't provide me cable television either, whats the deal here Aliant?
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blair from pei writes: aliant high speed has been going by my front door for the last few years.i live in west prince.on the main highway.i inquired about high speed.and was told maybe in a few years.nothing quite like a few cool million dollars to get things jump started.if i had to choose between east link and aliant..(bell).i would take eastlink.presently i use route 2.whixh is about 54 a month, and most times works good
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Don't believe the Hype from PE writes: Lori Trainor says this Gov't and Aliant are thick as theives. Well, they allowed an RFP on Cell Phone Service and Rogers won the contract. I know of at least one department who are required to carry emergency phone who had to switch back to Aliant to get reception. They are not that think, and RFP is not always the answer.
Aliant seen an oportunity and went for it. By taking the same deal that they previously had for phones, the government might have lost out on $2-3 million dollars in savings over an RFP. However, Aliant made it an offer they couldn't refuse by offering to fullfill one of the election promises of Ghiz's government at no cost to the tax payer. When all is said and done, the savings far outweight the cost.
And why would Aliant/Bell do this. Market Share. There service is sub par compared to Eastlink. I have had both and I will take Eastlink anyday. However, by offering such a sweetheart deal to the Gov't and by extention the taxpayer, Aliant stands to capture a huge market share that they have sole access to. And simple market research shows that even once Eastlink are establish out in those areas, there are always some who never take the initiative to switch, regardless of how unhappy they may be. Notice the Aliant layoffs did not affect PEI.
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More rot on 5th floor from anywhere, pei writes: This government just goes from one Public Relations disaster to another. They cannot even bring the high speed internet to the countryside without getting it all wrong. It would have helped a whole lot if it was tendered. It would have helped a whole lot if we didn't just hand over ten's of millions to Aliant for an inflated government service contract. There has never been a more incapable/corrupt government in the history of this Island. I keep hearing the One Term idea being tossed around. The saying is They're looking like a One Term Government. And that's the size of it.
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Wired From_PEI from Rural_Areas, PEI writes: Lots of interesting comments on this one! It would appear from many of these comments that the average citizen is not being represented by the governing group. Maybe it is time to listen and take direction from the voters, then apply the decision / solution to the issue in an organic way so as to create sustainability from the local economy, ie support local business. Point being, there have been several private groups investing in rural high speed over the last several years. The governing group has not only, not publicly acknowledged this, but have supported their competition without full public disclosure.....is this the penalty for making a profit and paying taxes? Well done Wellington!
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David from PE writes: Finally a Liberal with some backbone.
What a novel thing we are seeing someone who actually stands up for what they believe in and is willing to put their moeny where their mouth is.
To bad we never see that from any of the lected MLA's.
Mr. Gay without a doubt is credit to himself and his family and company.
Now here is man who should bee seeking the nomination in the next election. Here is an indidvidual who could really do some good for his party and his community and province.
I wonder where the MLA for the riding stands on this topic?
Mr. Gay I applaud you and to bad there isn't more like you elected.
No one can say YOU are nothing more than $5,000 clapper like the rest of the elected Liberal MLA's.
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future considerations? from 5th Floor, PEI writes: Some government fat cats trying to get an inside track for a position with Aliant three years from now? It worked for Alan Buchanan at the end of the Callbeck era.
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PEIdevil from Chtown, PE writes: A good many of you just don't get it. There have been countless proposals announced on the subject of rural high speed internet access over most of the last decade, some with hefty government funding...all have fallen short of expectations.
The fact is quite simple when answering why these projects have failed:
Until there is sufficient demand per kilometre for highspeed service, NO company including Aliant, will install the necessary infrastructure to provide the service.
I think this deal with Aliant is Ghiz's attempt to appease the Alan Buchanan camp within the Liberal party that is anxious to oust this most inept of leaders.
The only difference between the disaster that is Robert Ghiz and the disaster that could have been Wayne Carew, was that Islanders did not fall for Carew's spin.
They did however suck up Ghiz's lies hook, line, sinker, wrist, elbow...
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sandy mackay from Hope River, PEI writes: Well as someone who fought the issue - I am just glad to see that all Islanders will get high speed. I agree that an RFP should have been called but then how would we ensure the out come. I would think that Aliants contract with Government must include a clause that would give the Government an out if they fail to supply internet. The proof will come before an election where all Islanders will be the judge. Internet is now as important as a phone. With it you can communicate for free to everyone in the world that has access and you will have access to unlimited information.
If Government is smart, they would ensure all Islanders had a computer and internet and then millions of dollars could be saved and paper eliminated. Could be done similar to Waste Watch where you pay for your garbage and containors on your tax bill.
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bella donna from pei writes: Um, Bell Canada is indeed a cable company. . .
Ever heard of Bell Expressvu? It has loads of cable channels. . .
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Wired Rural Areas from Rural, PEI writes: It is true there was / is a rural wireless play with significent Federal funding/support which from some accounts may not be meeting expectations.
There are also presently wireless high speed internet providers delivering to rural areas without public funding which has and continues meeting customer expectations.
However it might appear our governing group may not recognized the hard work and investments of native Islanders....possibly they are to busy harvesting money in the PRC.......Peoples Republic of China.....hope some people had a nice trip on this one......maybe they should stay on the Island and support Islanders and their efforts with real money and support....just a thought
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Blaine from pei writes: Wired rural areas from pei,,,,,if you you are refering to Explornet or Route 2 when you say there is allready wireless high speed providers meeting expectacions on PEI. YOU ARE WRONG. $49 A MONTH FOR SOMETHING THATS BARELY FASTER THAN DIAL UP,and not everyone can recieve the signal.It is garbage.sometimes its not to bad but most times Dial up with an accelerator is just as fast.
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chester field from pei writes: Oh...Boo Hoo, poor Wellington, Hmmmmm, I wonder , what if this had of been given to East Link...I think, not a word from Sir Wellington,...Please, give me a break....just tooooo funny......
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Joshua from ON writes: I'm a share holder of BA.UN, while I can try to take my head out of my own finances. Competition is good and the RFP should have been given due diligence.
Bell Aliant though should not be completely lumped together with Bell even though they share the name. They operate separately and have little influence over each other. The 1.2 billion in fines and the failed Teacher's Pension deal were for Bell and in no way affect Bell Aliant. Otherwise, with the failing of the deal Bell Aliant would also have been affected, though were not.
Economic times are tough, though I guess this means that we need to be tougher on our government to ensure they are going about things with Canada's best interests in mind and not just throwing our money around.
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Wellington Gay at it again! from Stratford, PEI writes: Wellington Gay has always been complaining. He was mad at David McKenna and the past Tory Government for not giving them a contract (Eastlink didn't meet the RFP-but he was still very mad), now the Ghiz Government. Give it up. You have a satelite office in Stratford with your headquarters in Halifax. Aliant has a bigger office with more staff than Eastlink will ever have in Charlottetown.
Aliant brings more money into the economy than Eastlink ever will.
Time to stop whinning Mr. Gay. Who will you fight for now? Larry McGuire?
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Michelle from PEI writes: A sincere tip of my hat to You, Mr, Gay.
All You - We, Islanders need to do is look at Nova Scotia's government association to Aliant - the fmr. Owner who is the brother-in-law to Clearwater's Risley.
YOU, my dear Mr. Gay and the entire rest ofPEI HAVE been allowed to be taken over Investors associated to NS government.
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Wired Rural Areas from Rural, PEI writes: Blaine
fyi.....I believe there are yet additional WISPs beyond the two that you have identified...along with their QOS (Quality of Service) or lack there of...that are alive and well in the rural areas.
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Observer from pei writes: Way to go Wellington Gay! Some people on here are just too ignorant to understand what it means to take a stand and sign your name to it. I applaud you and wish more Islanders would stop being cowardly party pushers who spew the same old party line without any thought at all. See many examples above.
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mooseman from PE writes: way to go Wellington you are doing what other Island should be doing letting Goverment no that something is wrong here . Maybe we should think about this was this deal realy don by Ghiz , or was it done by Goverment worker's who were there with the last goverment I see the same old faces ,so how can thing's change .I must say here is what I think that the Goverment Union Worker's are running the Goverment of the day ,an are using Ghiz ,and his Minister an MLA for fall GUY s , GHIZ it's time to show who the real Boss is like Danny W , be strong my man..........
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mooseman from PE writes: What has Alan Buchaman camp got to do with this , it's time to stop this crying behind door's Alan lost and if he was any good he would have won ,there is no pill to help you it's time to move on
in fighting is not going help this Island
that's why I say it's not Ghiz ,Goverment worker's and unions are not helping this Goverment any so let's get with it Islander ,and hi paid Goverment worker's don't have to worry about their JOBBBBBBBB ,but the ones who are payng them have to worry about their Thank You
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fairplay from ontario writes: Well done Wellington. Another Liberal mismanagement. Who got paid off for this one. Solution for next election. Boot out the liberals. Conservatives get rid of the local people who have been running your show for years and have accomplished nothing except put the party deeper and treat the hard young workers like dirt. . Use the young people you have and get them elected so they can show how the government should be run.
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