Epic Fail of The Week: prov gov loses to Abitibi… again

First, the provincial government’s Legal Genius(es) drafted the expropriation bill which seized - all, as it turned out -  AbitibiBowater assets in Newfoundland and Labrador.

They told the good burghers of Danny-ville that this meant only that the power plants and everything else belong to the people of Newfoundland and Labrador.

Everything, except that is for the mill itself, they said which would be used as leverage in negotiations over any compensation for the expropriation.

It would all be a wash, in the end.

Or so people were told publicly and in briefings before the expropriation bill turned up in public.

Then, people discovered that the same Legal Genius(es) didn’t actually exclude the mill as they’d originally claimed.

Nope.

They seized it all.

Big screw up.

Now, the people of Newfoundland and Labrador discover that trying to get some sort of court action forcing the former mill owners to foot the bill for environmental clean-up – as the legal genius(es) assured everyone – won’t work either.

Hands up anyone who is surprised at the latest failure by the provincial government?

Okay, well just stop and think for a minute: 

The Legal Genius(es) behind this latest string of expropriation epic fails would be exactly the same Legal Genius(es) who brought you the Ruelokke legal mess.

And they’d be the same Legal Genius(es) who are now betting massive chunks of the public purse on a law suit against Hydro-Quebec to try and settle a dispute over the 1969 contract.

Any bets on how good that one will turn out for taxpayers in the end?

-srbp-

Medvale School for the Gifted Update:  Seems the Legal Genius(es) indeed have caught themselves in another bit of jurisprudential bother.  As Russell Wangersky astutely points out, the lovely Abitibi expropriation bill clearly gives no value to water rights and timber rights.  Yet, the scheme to funnel money to Corner Brook Pulp and Paper is based on timber rights having value.

The two things cannot live in the same space.

So either no cash will go to CBPP or, as your humble e-scribbler expects, the real legal geniuses who work for AbitibiBowater (they are 2-0 so far) will use the CBPP cash hand-over to put a much higher price on the expropriation now that they can legitimately claim cash for timber and water rights.

Not only that but AbitibiBowater can also claim – quite rightly – that the expropriation was unusual and punitive aimed specifically at one company and remains without any merit. Coupled with all the nasty words flicked by ministers toward Abitibi, they can likely show that the whole thing was prejudiced and that will only add to the poor beleaguered Newfoundland and Labrador Taxpayer’s legal misery in other places (NAFTA challenge anyone?)

Momentous Update:

Hypothetical Answer by Hard-done-by Citizen:  “Golly Gee Mr. Finance Minister, what will happen if they get more money?”

Not-so-hypothetical Answer by Finance Minister:  “The debt will go up.  We cannot stop the momentum.”

The Dunderdale Referendum Election #elxn41

Premier Kathy Dunderdale and her team of provincial Conservatives decided to throw their weight behind the federal Conservatives in this election.

Talk about your epic fail.

Kathy made this a referendum on her Muskrat Falls policy, her leadership and her political potency.

Only one of her candidates took a first place finish.  Peter Penashue beat Todd Russell in a squeaker.

In Humber-St. Barbe-Baie Verte, a last minute announcement in Corner Brook gave a flimsy cover for four cabinet ministers to get to the west coast to help Trevor Taylor against Liberal Gerry Byrne.  Waste of time and taxpayer-funded travel.

And in Avalon, where former incumbent Fabian Manning came frustratingly close, he can take the credit for most of that vote.  He worked hard after losing the seat in a close run in 2008 and Manning would have waged a tough campaign without provincial help.  Of course, he did get help, some if quite strong from people like Jerome Kennedy. It just wasn’t enough.

Then consider that the federal Conservatives – most of them former provincial cabinet ministers – all campaigned on the argument that you needed someone on the government side or else you’d starve.  It’s an argument the provincial Conservatives have used relentlessly since 2003.  They’ve waged a relentless and very old fashioned campaign of favouring districts they held and punishing opposition districts for things like road paving.

Voters across Newfoundland and Labrador  - including a raft of provincial Conservative voters - rejected that flatly.

The two changes in the province, one in St. John’s South -  Mount Pearl and the other in Labrador, have other implications that are worth their own posts.

But for now, the first-blush reaction to the federal result in Newfoundland and Labrador is that it doesn’t bode well for the province’s Conservatives.

- srbp -

Stat Porn: April’s Hits

The top 10 Bond posts for April [with links fixed]  as determined by the statporn machines at  feedburner.com:

1. Colbert doesn’t RATE (Municipal politics)
2. Rosy with a chance of goofballs (Economic forecasting)
3. Epic Fail of the Week:  prov gov loses to Abitibi…again (The Fubar File)
4. Crisis at Tammany (Municipal Politics)
5. Western Star raises issue of Danny Williams resignation (Provincial Politics)
6. The Abitibi Expropriation:  TARFU (The Fubar File)
7. Dunderdale on Abitibi/Fortis/ENEL Expropriation:  Oops! (The Fubar File) 
8. The Fragile Economy…two steps back (Economic policy)
9. Just shoot me (humour)
10. Labour Force and Employment, March 2007-March 2010  (Economic analysis)

-srbp-

Rumpole and the Big Smoke #nlpoli

Here’s the official summary of a judge’s decision in a recent arson case:

Accused was charged with arson. The Crown failed to prove beyond a  reasonable doubt that the fire was deliberately set and, if it was, that it was the accused who did it. The accused was acquitted.

Failed to prove anyone deliberately set the fire in the first place, let alone that the accused did it.

That’s pretty much the definition of epic fail.

-srbp-

Epic Fail on seizure looms

Back when the provincial government managed to ram an unprecedented bill through the legislature seizing private assets and crushing active legislation without compensation, one argument used to justify the seizure was novel.

Apparently the environmental clean-up costs and the potential penalty under the free trade deal for the seizure would be so close that the whole thing would wind up being a wash after a negotiated settlement.  No money would wind up changing hands but ultimately the mill – carefully excluded from the initial seizure – would come to the provincial government and Abitibi would just walk away.

Officially, the Premier described the idea this way:

So, if, in fact, there is contamination which is located with operations in Botwood or around the mill in Grand Falls or the logging operations or any other rivers or whatever happens to be where they have constructed bridges or have had a presence in Newfoundland and Labrador, then there may be environmental fallout from that and that has to be quantified. If that is quantified, then that would be offset against any responsibility for compensation. If there is an excess of value over liability, then that would be the amount that would be paid.

And if there was any discrepancy, then they’d add in the amount the provincial government paid out voluntarily to settle issues with some of Abitibi’s former employees.

Nice, tidy and wonderfully convenient.

Things haven’t quite worked out that way.

First the provincial government wound up getting the mill unceremoniously dumped in their laps.

Then Ernst and Young valued the environmental remediation at around $50 million and maybe as much as $100 million.

Now Abitibi has filed its NAFTA claim seeking damages of at least $500 million, reputedly a record amount if it is awarded.

It’s also not far off another old record, the cost of the Come by Chance bankruptcy back in the 1970s which was up to that time the largest bankruptcy in Canadian history.

So now having paid out the workers cash and assumed full liability for the environmental clean-up, the provincial government is now facing a history-making lawsuit for damages.

-srbp-

Dunderdate;  Some choice words from natural resources minister Kathy Dunderdale that reinforce the notion of the whole thing being a wash, at the end of the day on a go forward basis.  From the Telly, 25 Mar 09:

The company has publicly put the price tag for those assets at $300

million.

 

Dunderdale says the government's figure is lower than that, but would

not say just how far apart the two sides are.

 

She said the province has a clear idea of how much it thinks the

assets are worth and has determined a range of value it would be

willing to pay Abitibi.

But Dunderdale said the province wouldn't go beyond that range just to settle up with the company.

Epic Fail Snail Mail

If you wanted to promote something that was better than ever, especially high definition television, you certainly wouldn’t like to use a piece of snail mail that wound up in your humble e-scribbler’s snail mailbox looking like this:

The ultimate HD experience does not mean heavy water damage and tattered edges all the way around.

Amazing.

- srbp -

Anatomy 101 #fail

Sometimes people can get a bit buggered up in their discussion of technical issues.
Like for instance, the hot subject of "liberation therapy" as a treatment some people are proposing for multiple sclerosis.  This involves inserting a small balloon into veins at the back of the neck in order to open up the blood vessels and allow greater blood flow.
Here's how one blogger described it recently:

Unlike angioplasty liberation treatment goes deeper into the veins in patients heads than typical angioplasty

The procedure involves a small incision in the groin to insert a catheter into the blocked vein that is opened with a small balloon.

That is exactly how it appeared, dropped punctuation and all. Deeper in the patient's head apparently involved going "in the groin". Let's leave aside entirely the definition of what angioplasty is and hence what "typical angioplasty" might be.

Let's just look at the description of heads and groins.

Now your humble e-scribbler is not a doctor, nor does he even play one on television.  Yet at the same time, this connection of the head, neck and groin by the unnamed blogger appears to be something of  an epic failure of basic human anatomy.

Well, that is unless he thinks peoples' heads are supposed to be up their asses.

- srbp -