Internet Access Investment Outcomes - Late Debate
MS. CLAUDIA CHENDER « » : Mr. Speaker, thank you to my colleague, the member for Cape Breton-Richmond, as well as the member for Clare-Digby for bringing this issue to the floor of the House.
We all know, at this moment in time, that it's crucial that Nova Scotians have access to reliable, high-speed Internet. With respect, I would agree with my colleague from Cape Breton-Richmond and say that, it's a bit false to call this a luxury. I think we all know that this is in fact, a need. So, while somewhat overdue, we will not take any issue with the fact that we are slowly addressing this need. Ideally, as was pointed out yesterday, this is a decision, the details of which would be, ideally, subject to the scrutiny of the duly elected members of this Assembly. Sadly, that is not to be. It was a one-time spend that we have no notice of, and no details about. Now, Mr. Speaker, we're getting used to that, but it doesn't make us any happier about it.
I won't take any time to criticize the substance of this investment, although I know that this comes after multiple online engagements in recent months that have purported to canvass, and take the views of all Nova Scotians on very key issues that we debate, issues like cannabis, issues like education policy. So, with respect, Mr. Speaker, I would say, which is it? Is this a luxury that the government has found in their budget to slowly address, or is it a need and a right that Nova Scotians have, in order to have their say with government? I think it has to be one or the other.
What I want to talk about today is the form of this Internet connectivity. The way that this has come out, and with the information that we currently have, it looks like this will in some way, take the form of a subsidy to a large telecom company. So, the Brightstar Report, which has guided this work, has essentially suggested that for it to be profitable to run the rural Internet infrastructure, a company would need a monopoly. So, the only way that a company could make a financially reasonable decision would be if it's a single company that provides all that middle-mile infrastructure. I will note that this report assumes a private provider solution. It focuses on the middle-mile of Internet, which is this backbone of Internet infrastructure that gets us out into the rural communities. You know, it's like the highway - the local roads that get you from the highway to your house are the last mile. So, this is focusing on the middle mile, and the argument of the Brightstar Report is that the capital investment and maintenance costs are just too expensive for private companies to bring high-speed Internet to rural communities, there's a market failure.
This is where it get's interesting. So, there's a market failure, it's too expensive, therefore we should give a private company a boatload of money and a monopoly in order to do this. With respect, Mr. Speaker, it's my opinion that where there's a market failure, or a natural monopoly, we shouldn't give a boatload of money to a for-profit company and hope that they do the right thing. We have a lot of examples of where this has gone wrong. I would suggest that the current situation with Nova Scotia Power, its poor service, exorbitant profits, and high rates, are one example of this. We're looking at a P3 model, and as all the members of this Assembly have heard us say before, we think that a P3 model is bad. We think it's bad because we think it's inefficient, and we think it's a bad deal for Nova Scotia taxpayers.
We know from P3 schools, and we know from the Cobequid Pass that P3s end up costing the public more. A 2015 briefing note by the Deputy Minister of Health and Wellness on P3s said an estimated more than $300 million in tolls were produced in the Cobequid Pass for a deal in which private financers put up $66 million. The government is paying an effective interest rate of 10 per cent for 30 years, twice its rate of borrowing.
Mr. Speaker, if we want to look at economics, they don't seem very sound here. Obviously, this is why it has taken this long to find a solution. It's a complex issue, and it's one where it's going to cost money. There's no question.
The best part of this particular opportunity is that we don't need to hire some expensive Ontario consultant to show us how we can do this in a way where the community actually benefits. Communities in Nova Scotia are giving us examples and blueprints of how we can do this in a very different way by having community-owned Internet provision.
Our argument is that a publicly owned middle mile will provide rural communities with more affordable rates, more community skills and control, job creation, and community ownership of and pride over a true community asset. In case this seems like more pie in the sky from the NDP, I would like to share an example of where this is happening in the Premier's own riding.
In the village of Lawrencetown, there is a high-speed Internet co-op. The co-op is the Lawrencetown Community Economic Development Co-op. They launched in April 2017 with immediately high participation rates from the community. They wanted to improve the computing environment to drive economic development, including the ability to attract businesses, maintain village infrastructure via the Internet, improve tourism opportunities, and improve residential and student access. They were tired of waiting for government to act, so they took it into their own hand.
Do you know what, Mr. Speaker? There is no planned subsidization of this service once the service is set up because subscriber fees will pay for the maintenance. In addition to that, they will have the existing community infrastructure of a co-op which will offer Internet service free to organizations that promote the community like the youth arena, the Annapolis Valley Ex, the recreation commission, the pool society, the library, and the fire department. They will also make free Wi-Fi available at select events such as, the exhibition and upcoming 4-H pro-show. This is what I mean about community ownership. Some of the funding will come from village utilities that will use the service for security and infrastructure management.
How revolutionary is that? Instead of paying a large telecom provider and taking the profits out of Nova Scotia, not only will they keep the profits in the province, they'll keep them in their very own community. The speed of this Internet is 20 megabits which is above the wireless service target from the Brightstar Report but below the target of 50 megabytes. The cost is $60 or $100 per month, which I assume is similar to what the rest of us pay, but the best part, for those of us not familiar with the co-op model, is that subscribers become owners of the co-op. They also host workshops on a variety of related topics including setting up your business on the Internet, community co-operative start-up guides, and Internet security.
This isn't the only example. Pictou County is doing something similar with a non-profit called i-Valley. There are many examples of community-owned Internet networks throughout the U.S. and Europe.
Mr. Speaker, what I want to draw people's attention to is that we begin this conversation with this huge investment that comes with no notice, that comes with no debate, and that comes with no prioritization from the members of this House, with the assumption that the solution lies in private business with profits that will flow out of the province. We welcome the long-awaited investment in rural Internet infrastructure. We know how important it is. We hear from people across the province every day, as I'm sure, do many of you. It's important, and it's overdue.
But this is the important point: with this March madness splurge comes a great opportunity to extend the value of the investment, the opportunity to give rural communities more than just a service but active participation in the future of their communities and the services in it through community ownership of the resource.
In closing, I would ask the Minister of Business and the members of the government to consider this alternate route to community Internet infrastructure.
Published by Order of the Legislature by Hansard Reporting Services and printed by the Queen's Printer.
Available on INTERNET at http://nslegislature.ca/legislative-business/hansard-debates/