Showing posts with label Industry Canada. Show all posts
Showing posts with label Industry Canada. Show all posts

Thursday, July 22, 2010

Munir Sheikh, Tony Clement and the war with Eastasia

The two figures at the heart of the census brouhaha – Industry Minister Tony Clement and now former Statistics Canada boss Munir Sheikh – actually have a lot in common. But it’s the one major difference that really sets them apart.

Sheikh resigned yesterday on a point of principle, his position having been made largely untenable by the government and the minister his department falls under, Tony Clement. It was about more, I believe, than just the wrong-headed Conservative decision to end the mandatory long-form census and replace it with a voluntary one that will produce useless data for more money. If a senior civil servant resigned every time their political masters told them to do something stupid, there’d be no one left.

As important was Clement deliberately misrepresenting the advice he had received from and the position of Statistics Canada on the census changes. Clement tried to throw Sheikh’s department under the bus to deflect some of the blowback he was taking, knowing full well the civil servants weren’t in a position to publicly respond and correct the record; they'd essentially be calling BS on the government. Sheikh’s choice was either let Clement destroy the department’s hard-earned reputation for excellence and competence by letting the Clement-created contention they'd failed Grade 11 math stand, or resign on principle. He choose the honourable path, and also set a standard for the public service.

Which brings us back to Clement. What do he and Sheikh have in common? Well, it would seem they both agree going to a voluntary long-form is stupid, and bad policy.

Another source said that Clement had, in fact, advised against the decision, as had Finance Minister Jim Flaherty. Both were overruled. “It was a one-man decision,” Harper’s.

“The PMO thought nobody would care,” added the source. But now, it’s said to be stunned by the range and depth of the backlash, from right across the political spectrum.

But while Sheikh was willing to fall on his sword over principle, and to protect his integrity and that of his department at the cost of his job, Clement was not. His ministerial salary, car and driver, Challenger Jet access, and ability to sprinkle taxpayer dollars across his riding like Santa Claus was more important to him. Asked by the Prime Minister to implement policy he knew was badly flawed, he could have said no. He could have followed in Sheikh's path, in the path of Michael Chong, and stood on principle. But that's not easy.

Instead, Steamboat Tony is out in public and on Twitter making a fool of himself, resorting to nonsensical arguments and mythical Twitter supporters as he tries to lamely defend policy he himself knows to be wrong, all to keep his cushy job and please his political master. It would be funny if it wasn’t so sad, but that’s too much the norm in modern politics.

Meanwhile, the Harper government has had Sheikh’s resignation letter disappeared from the Statistics Canada web site (you can still read it here).

And Oceania has always been at war with Eastasia.

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Friday, December 11, 2009

Clement made right call, but it's time to revisit foreign ownership restrictions

Governments around the world have a habit of dropping significant news on Fridays, and this Friday is no exception with word that Industry Minister Tony Clement and the federal cabinet have over-ruled the CRTC and will allow Egyptian-connected Globalive to offer mobility and cellular service to Canadian consumers.

"We have concluded through normal review that Globalive meets the Canadian ownership and control requirements," Mr. Clement said in a press conference Friday morning.

The much-anticipated announcement comes six weeks after the Canadian Radio-television and Telecommunications Commission denied Globalive's bid to be the country's fourth-biggest wireless operator. The CRTC initially said Globalive's corporate structure violated foreign-ownership rules, as Egypt's Orascom Telecom Holding SAE held too much control through debt financing.

The decision is expected to be a blow to the big three wireless providers -- Rogers Communications Inc., BCE Inc., and Telus Corp. -- as they fought to keep Globalive out of the Canadian market.

Clement made the right call in isolation here in over-turning the CRTC and giving Globalive the go-ahead. While overturning the regulatory authority is a major step, it had to be done.

Clement’s decision was necessary to untangle the mess created when Globalive was deemed Canadian-enough by Industry Canada to bid on spectrum and invest hundreds of millions of dollars to build a service in Canada, but not Canadian-enough by the CRTC to comply with foreign ownership restrictions.

Allowing the CRTC’s ruling to stand would have opened the government up to huge legal liabilities, as Globalive would probably sue their asses off, and rightly so.

Still, this seems to be a problem of Industry Canada’s making, and not the CRTC’s. The CRTC is empowered to interpret and apply the laws and regulations as they’re on the books, and I believe that’s just what the CRTC did in this case. Clement’s department created this mess when they allowed Globalive to bid on the spectrum; that’s why he had to over-rule the CRTC.

I support Clement’s decision, and I do think we need increased competition. But I’m disappointed Clement is not seizing this opportunity to launch a review of our foreign ownership rules for telcos, with an eye to allowing more foreign ownership and increased competition.

Instead, he appears to be spinning it not as him bailing-out the department, but as correcting a CRTC mistake, which just isn’t true.

Canadians pay insanely-high rates for mobility and cellular service. The way to change this is opening-up the market to more competition, and that means allowing more foreign players. In an interconnected, 21st century world, our regulations in this area are outdated.

Rather than blaming the CRTC, Clement should use his Globalive decision as a springboard to re-examining our foreign ownership rules to provide a legal framework for increased competition, not to mention head-off legal challenges from the incumbent carriers for a decision unsupported by the current laws.

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