At a public meeting on March 6, 2007, Diane Ablonczy was asked about the possibility of Telus being acquired by way of a leveraged buyout. The question could just as easily have been about BCE.
At the time of this question Diane Ablonczy was Parliamentary Secretary to Finance Minister Jim Flaherty. Based on her skills of denial and subterfuge, she was later promoted by Stephen Harper to his cabinet, where such skills are obviously highly valued. Here was the question and Diane’s response:
“What is the Canadian Government's stance on the scenario of US private money crossing the boarder and purchasing undervalued assets such as Telus.?" "How will you approach the scenario of US ownership, profit moving south and debt left in Canada?"
Ablonczy told the the questioner that he was "fear mongering". "Nobody buys into that argument" she clearly stated. “I think it’s an alarmist’s view of what will happen” she concluded
Well, I have a new question for Diane Ablonczy. Now that it has happened, what are you going to do about it? What are you going to do about the 2,500 lost jobs. These aren’t temporary layoffs. These are permanent job losses. What about this $34 billion of new debt, that on top of the existing debt means that BCE will pay zero taxes as a corporation, since these massive interest payments are tax deductible? That means that BCE will pay $800 million less in taxes every year for a company that was acquired for a mere $8 billion in equity. That means that Canadian taxpayers are funding 10% of the purchasers purchase price each and every year. In ten years, the whole thing will have been paid for by Canadian tax payers. I hope that Ontario Teachers’ and its three US partners are happy
Rather than helping to fund 10% of Teachers’ purchase price every year, these taxes would be sufficient to fully fund the cost of the Registered Educational Savings Plan, as the Green Party wisely called for, and that would allow parents to fund their children’s post secondary educations.
So the question remains, now that the very event that was predicted by one of your constituents back in March 2007 has come true, Diane Ablonczy, what are you going to do about it, since your “alarmist” comment, left nothing open for interpretation. You too, insinuated that you found the prospect of BCE taken over by private equity to be an unwelcome outcome.
So why did Industry Minister Prentice approve it?
Thursday, August 7, 2008
Posted by Fillibluster at 3:13 PM