
CFIB regards NB Power deal with neutrality
Published Tuesday November 17th, 2009

Communication: But Canadian Federation of Independent Business members express concern, skepticism with sale of utility, executive says
The Canadian Federation of Independent Business has decided it will remain neutral in the debate surrounding the proposed sale of NB Power's assets to Hydro-Québec, at least until it gathers more feedback from its membership.
The CFIB, which represents 4,500 members who operate small- and medium-sized businesses in the province, sent a letter last Friday to Energy Minister Jack Keir, informing the government that it will survey its members over the next two months to gauge their opinion of the deal. In the meantime, the organization is providing members with all the information it has at its disposal.
But the CFIB cautions that "based on the communication with members to date, I can share with you that the majority of members that have contacted our office have expressed concern with the sale and skepticism that it is in the best long-term interest of the province," says the letter, signed by Atlantic vice-president Leanne Hachey.
Judith Andrew, the CFIB's vice-president of legislative affairs, said Monday the group is trying to help members weigh the pros and cons.
"We've tried to communicate the positive elements of the deal as we understand them - we're doing research to find out what we can. There's significant cash consideration being paid by Hydro-Québec that can deal with the debt of NB Power - that was a big issue and concern for the future before we heard about this deal, so dealing with the debt is definitely on the plus side."
She also said it was good to hear that industrial customers would receive a rate reduction that would put them on a par with Quebec.
"The freeze on rates sounds positive, especially if the alternative was higher rates in order to pay off the massive debt.
"However, one of the things we've been working on in the months leading up to this announcement was that there's actually a cost subsidy within the system that has small businesses paying somewhere between 19 and 25 per cent more than the cost of their category. In fact, they're cross-subsidizing and partially paying the bills of others, so we had already been campaigning to deal with that issue. And that isn't addressed in this new arrangement."
Meanwhile, Premier Shawn Graham and key cabinet members continue to criss-cross the province, using town hall-style meetings to try to convince New Brunswickers they should support the deal.
Graham addressed a group of about 70 business leaders and municipal politicians at a Kennebecasis Valley Chamber of Commerce luncheon in Quispamsis.
"Once New Brunswickers take the time to become informed, to learn what the merits of the proposed agreement are, I've seen many change their opinion," the premier told reporters afterward. "We're asking New Brunswickers to ask the pertinent questions, to see how the proposed deal will benefit them over the long term "¦ and I've seen many people that have said 'I've taken the time to look at it and study it and see what it means and it makes more economic sense'."
Finance Minister Greg Byrne was also busy Monday, speaking to a group of about 90 at a breakfast meeting in Fredericton, then attending a luncheon in Grand Falls.
He said he's willing to speak to any group in the province that is interested in learning more about the deal.
"This is a major decision that the government is undertaking and it's important that we get the facts on the table so that we can have an informed debate - that's what this is about," Byrne said.
Byrne said he's finding greater acceptance of the deal after the information sessions.
"There's a lot of interest and a lot of people coming out," he said. "When people have the facts and have a chance to have their questions answered, I'm finding a very positive response. A lot of the anxiety that people may have is based on the fact that they don't have all the information they need in order to make a reasoned decision."


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