NDP raises spectre of Hydro subsidiary privatization

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This article was published 16/09/2020 (1464 days ago), so information in it may no longer be current.

Premier Brian Pallister should be forthcoming about his intentions regarding a subsidiary of Manitoba Hydro whose future has come under a cloud in recent days, Opposition New Democrats say.

According to a leaked internal memo from Manitoba Hydro International, staff were told, for the period from Sept. 2 to Oct. 7, “MHI is not to aggressively pursue new work… actively pursue bids or seek out new customers.”

Workers at the international consulting arm of the province’s largest Crown corporation are on pins and needles about the future of the enterprise. They’re wondering if it will be sold or dissolved.

Manitoba Hydro has only said the profitable subsidiary was included in a recent strategic review of the energy utility’s operations by a third party. MHI’s business areas “were moved into a non-aggressive approach for new business development to allow the review to continue without complication,” a company spokesman said this week.

On Thursday, NDP Leader Wab Kinew said the premier should clear the air about MHI’s future.

“We cannot stand for the privatization of Manitoba Hydro, in whole or in part,” he told reporters.

“As Manitobans, we actually own the technology and the assets necessary to provide vast high-speed internet to everybody in the province,” he said, referring to Hydro’s vast fibre optic cable infrastructure. “Unfortunately, over the past number of weeks, we’ve seen the Pallister government interfering with Manitoba Hydro at the expense of Manitobans who want to be able to access high-speed internet.”

In January, the government told Hydro not to participate in a planned request for proposal for a lucrative government data network contract, currently held by Bell MTS, the Free Press reported this week, citing company emails obtained under freedom of information legislation. Hydro would have done so through Manitoba Hydro Telecom, a subsidiary of MHI.

The NDP said when the legislature resumes sitting Oct. 7, it plans to introduce a private member’s bill that would prevent the sale of a Hydro subsidiary without a referendum of Manitobans. A clause in the Manitoba Hydro Act already specifies the corporation itself cannot be privatized without a plebiscite.

In a statement, Crown Services Minister Jeff Wharton called accusations by the NDP that Manitoba Hydro is for sale “baseless,” although he made no mention of Hydro subsidiaries.

“Our government has been and remains absolutely clear: Manitoba Hydro belongs to Manitobans and will remain public,” Wharton said.

Asked for clarification about the minister’s intentions regarding Hydro subsidiaries, a government spokesman emailed a response: “Manitoba Hydro includes its subsidiaries.”

larry.kusch@freepress.mb.ca