Source: National Post

Canada's three opposition parties said foreign-ownership laws in the country's telecommunications industry are unclear and will seek to debate the issue when Parliament returns next week.

Lawmakers for the Liberal Party, the New Democratic Party and the Bloc Quebecois said the government's decision to let Globalive Wireless Corp. operate in Canada effectively changes rules in the industry and gives some companies an advantage over others.

"This is a process that was done without consultation, without discussion in Parliament -- it was very worrisome to us," said Marc Garneau, the Liberals' industry critic. "It should be done in bi-partisan way, involving all the parties."

The issue flared up in December, when Industry Minister Tony Clement decided to let Globalive operate in Canada, even after the telecommunications regulator had ruled it didn't meet the country's domestic-ownership rules. Public Mobile, another entrant in the market, is challenging Mr. Clement's decision in court, saying it's being penalized because it won't have the same access to foreign capital.

"Reconciling the Globalive position with existing Canadian law in the long term is a difficult thing to do," Michael Geist, a law professor at the University of Ottawa, said in an interview. " There is a clear sense that change is coming."

Globalive is a "Canadian company" and its entry into the market will give consumers more choice and lower prices, Mr. Clement said in December. A majority of the company's non-voting shares are held by Orascom Telecom Holding SAE, a Cairo-based carrier owned by Egyptian billionaire Naguib Sawiris.

"The government is not removing, reducing, bending or creating an exception" to foreign-ownership rules, Mr. Clement said at the time.

"We would much prefer to see accountability through the Parliamentary process," Brian Masse, the New Democratic Party's industry critic, said in an interview. "The problem with Globalive is that they've gotten a different set of treatment and rules than other people. You have some operating under the old rules and some under the new rules and that's unfortunate."

Mr. Masse said he doesn't want the restrictions to be eased, because it would lead to job losses.

"We can't let a minister decide behind closed doors," said Carole Lavallee, a Bloc Quebecois lawmaker. "The Conservative government has to explain in the speech from the throne next week how the market is now ready, if it wants to open foreign ownership."

Ms. Lavallee said her party would oppose loosening restrictions and wants responsibility for the issue transferred to Quebec.

Bloomberg.com

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