Citywest

Would you support releasing the original five year plan now that it is a historical document so the citizens of PR could assess how successful this decision to become a regional telecom was?In a word, yes.  I am not sure of the legal issues surrounding its release and how this could happen, however I think I have made it clear in my time on council that I support more sharing of information with the people of Prince Rupert.   I believe that an informed citizenry has a better level of dialogue and discussion on issues, which is true of all issues facing Prince Rupert, the question of CityWest notwithstanding.  In fact, increased communication and sharing of information is one of the cornerstones of platform. 

I don’t believe government can be truly effective without keeping people informed and staying in touch with how they feel about the issues.  Facts are facts, and I see no reason why people should not be able to view the plan and make their own conclusions.   I am not privy to any legal or legitimate reason for withholding this document, however there may be reasons, I am not aware of.  If those reasons are legal, then I would expect they be made clear and explained to the people at large.  If the reasons are not legal, then I would think that some sort of compromise would need to be made because people deserve to know how their company is being run.

Are you satisfied with how CityWest performed against its original business plan?

This is an interesting question.  To be perfectly honest, I have never been shown the original business plan.  I have been given updates and feedback on how the company is doing as well as their plans for the future, at presentations to council, however I have never seen the original business plan document.  I do, however, know the key piece of that document for the city, in that the end result was supposed to be a dividend of $2 million per year to the city, and in my time on council this has never occurred.  In fact, I don’t believe council has ever received a $2 million dollar dividend, but not having been on council when this happened I do not know for sure.  Therefore I can only comment on my own time on council.  

Considering that an extra $1 million dollars per year would certainly help our city’s bottom line, and would have mitigated the need for tax increases and service cuts,no, I am not satisfied with how CityWest has performed against the original business plan in that regard.   In fact, we did not even get the million dollar dividend for last year, which was made known to us, and then to you, earlier this year.  While I can understand the circumstances that have caused the city to be receiving less of a dividend than was originally intended, I am certainly not satisfied to be receiving less than what was originally proposed.  I am even less impressed at what happened last year, even though I am aware of the circumstances that caused this to happen, which everyone was made privy to earlier this year.  I also know, however, that despite my dissatisfaction, that not having that $1 million dollars would hurt the city’s bottom line even more, causing further cuts and possible tax increases, which I am sure you would agree is not something anyone wants.

Do you think that the city should sell Citywest and use the proceeds to replace old infrastructure, improve or maintain other services, and keep tax rates down to encourage home ownership and attract new business?What is your stance on CityWest now that it appears unable to compete effectively with the major Telco’s and is rapidly becoming a major liability to the taxpayers of PR?

Thank you for asking the questions.  It has forced me to think long and hard about what my position is on this issue.  In the end, there is no easy answer to the question- What should we do with Citywest?  Our town is very split on the issue, and this is because it is not a simple question.  There are many pros and cons that need to be weighed and evaluated when deciding upon the fate of our company.  The only certainty in my mind is that, faced with our current financial difficulties, and an ever increasing infrastructure deficit that must be addressed, as well as the fact that tax increases are not sustainable, we cannot afford not to look at everything with a fine tooth comb, and that includes CityWest.  A serious cost benefit analysis needs to be done with all of our city assets, to determine what is the best course of action for the future of our city. 

Even in the most basic analysis weighing the pros and cons is not easy. On the one hand, one needs to consider the revenue generated for the city by Citywest per year($1 million dollar dividend= 10% tax increase if it went away) and the many good jobs it provides, when jobs are in short supply. On the other hand, one must consider the huge amount of capital investment it would take to even catch up with the technology being used by other telecom companies, let alone staying ahead of the curve, and the need, as we move forward, to ensure that we have a solid technological infrastructure for business and industry investment that want to locate in Prince Rupert.  We also have to consider that even though divesting ourselves of CityWest would give us money to spend on much needed city infrastructure, that might reduce our need to use debt financing, we would then have to increase taxes to cover the dividend we currently receive, which the city counts on to provide services and keep tax increases to a minimum.  As well, no matter how well intentioned  one might be in trying to protect jobs for people in the event of another company buying CityWest, we all know that any purchaser would be looking at their own bottom line, and that job losses would be inevitable, as well as service cuts.  In addition, the economic spin off of these job losses on our already hurting local economy, and whether or not those families that lost their job would then remain in the community also needs to be taken into account.  All of these considerations only touch the surface of all the things that must be weighed and evaluated.

Yet another possibility to consider is are there any other options to consider when looking at the future of CityWest? Are there only two choices?  Perhaps not.  One potential option might be to look at the possibility of creating our own municipal or perhaps even regional electrical utility, and using CityWest as the billing agent, as the infrastructure would already be in place.  Such projects have been successful in other areas of the province, especially in the Kootenays.  Various independent power projects have come to council over the last few years because they know the potential we have for wind and tidal power.  Why not be the master of our own destiny for a change, and create an economic opportunity for ourselves, that has the potential to both save the city money and create a new source of revenue?  In my mind that is the type of thinking we need to start embracing.

Is the answer to Citywest in diversification?  Maybe. Maybe not.  Again,it is premature to answer that question with any certainty.  But I do believe it is a question that needs and deserves an answer, one that I am committed to working with the people of Prince Rupert to determine.  It deserves a thorough investigation and discussion so we can make an informed decision for the future of our community.  It may not be the answer you were looking for, but it is the best answer I have.

Do you think the City should buy and operate a chain of KFC restaurants across Northwest BC?  Isn’t that exactly what they’re doing with Citywest?  

Make any argument you want justifying the City’s competing in a risky marketplace with Citywest, that’s fine.  But instead of using “Citywest” just substitute “KFC” in there and see if it makes sense to you.

I’m willing to bet it doesn’t.  

If the taxpayers of Prince Rupert don’t believe the city should be in the business of running a Northwest BC fast-food chain, then why do you think it would be ok to run a Northwest BC telco?  

Selling Citywest isn’t a bad idea.  It can thrive as a locally-owned and operated business.  Many other businesses do just fine without being owned by a City.  I know I’m a Citywest customer by choice, not because it’s owned by the City.

Whatever you decide, please don’t come asking taxpayers for another record tax hike while the City has so much money tied up in a risky private enterprise.

Thanks.