The ins and outs of Equalization #nlpoli #cdnpoli

Each year,  Canadian media conduct year-end interviews with politicians and every year the interviews are nothing but space fillers.

This year's version with Premier Dwight Ball  - for NTV (broadcast but not posted yet)  and the Telegram, thus far - are no exception. They asked the same questions,  got the same replies, and anyone that actually watched or read them got the political-turkey sleepies.

The only spark of life came on NTV when Lynn Burry uncharacteristically lost her composure over Equalization and the amount of money Quebec gets.  Burry got so riled up that she actually interrupted Ball just as he started to wander through an answer.

Burry is like a lot of people, especially in the provincial petro-states across Canada,  who decided to get angry at "Quebec" for something that happens every year:  the Quebec provincial government collects the lion's share of federal Equalization transfers.  Provincial governments in Alberta,  Saskatchewan , and Newfoundland and Labrador are all in financial trouble and some of the locals, especially politicians in power, complain about what is happening in another province.

The problem with Burry's question - as with the entire Equalization outrage is that it just nonsense.  So let's just apply a little insight into the whole business and sort things out.

A spring election now seems more likely #nlpoli

Here's the local poll tracker, now that the final party choice poll of the year is in.  (CRA Q4 Omnibus)

It's every party choice poll by any firm (less a couple of outliers)  all converted, where necessary, to show the results as a share of all choice.

Undecideds are a valid option in the SRBP world.

You can see that the Liberals are still roughly where they were in the middle of the year:  hovering just under 30%.  In this latest poll they are about seven points ahead of the Progressive Conservatives, which is to say they are really not in a very comfortable spot.   They are a minor swing away from being in a bad spot.

The PCs, meanwhile, have been on a slide since the first of the year and they just rebounded slightly.  But given that the rebound is less than the margin of error for all these polls,  they really haven't to any amount worth speaking of.
The NDP are a dismal, distant, and decidedly irrelevant third.

The MQO poll and Party Choice #nlpoli

MQO's quarterly omnibus poll shows some curious changes in public opinion about provincial political parties.  The province-wide numbers are not curious:  the changes in a couple of the regions are.

Let's take a look first at the provincial numbers.  As usual, SRBP presents the results as a share of all responses, including the refused/undecided/no answer folks.  That's why the numbers here are different from the ones used by MQO in its own release and reported by local news media.  Go to the end of the post for a brief discussion about the way the data is presented.

MQO kindly provided the data tables for this analysis free of charge.  The data collection methodology is theirs.  Interpretation of the data here is solely SRBP.  There is no business or other relationship between SRBP  and MQO to create a conflict of interest.

Contrary to media reports, support overall in the province for the governing Liberals didn't change in the last two quarters of 2018.  The Liberals had the support of 29 percent of respondents in Q3 and 28 percent in Q4.  Support for the Progressive Conservatives declined by four points - 25 to 21 - while support for the NDP went from 11 percent to nine percent.  The number of respondent who refused to answer,  were undecided, or planned not to vote grew by five points (from 36 to 41 percent of responses).

The Windsor Lake By-Election and polling #nlpoli

Market research firm MQO released a poll on September 10 about the Windsor Lake by-election.

They'd surveyed 300 people about how they would likely vote and about who they thought would make the best Premier from among the provincial party leaders.

On their choice among the candidates, MQO reported that 41% of decided and leaning voters favoured Paul Antle,  37% favoured Ches Crosbie, and 22% favoured Kerri Claire Neil.

The result on September 20 saw Crosbie win with 43% of votes cast.  Antle got 38% and Neil garnered 19% of votes.

Pretty much the opposite of what MQO said.

So MQO got it wrong,  some will say.

Others will think that Antle's campaign collapsed and Crosbie surged ahead based on whatever factors they might like to pick.

Well, there are a few problems with either of those scenarios.

The PUB, Exemptions, and Muskrat Falls #nlpoli #cdnpoli

Here’s some background on the issue of Muskrat Falls and Public Utilities Board exemptions. 

At the end you should know what an exemption is all about, how the exemptions – there are more than one – came about – and what that means for now and in the future as far as electricity rates go.  We’ll deal with mitigation in another brief post next week.

The information here is based on material in the public record plus additional research and information accumulated over 30 years working on public policy issues in the province. That includes the 15 years of SRBP, much of which wound up being about the Lower Churchill project.

Let’s start with what an exemption is.

Bay du Nord and Equity #nlpoli

In a staged political event Thursday that was woefully short of basic details,  the provincial government and Equinor announced they will proceed with development of the Bay du Nord field in the Orphan Basin.  The news release for the event referred to a framework agreement only.

Bay du Nord is located approximately 500 kilometres east of St. John's,  in between 1.0 and 1.2 kilometres of water.  Equinor and its partner Husky Canada believe the field contains at least 300 million barrels of light crude.

The project will cost $6.8 billion to bring into production using a floating production storage and offloading vessel similar in concept to the FPSOs used for Terra Nova (1996)  and White Rose (2002).  The provincial government acquired 10% equity in the project in addition to royalties under the Offshore Oil  Royalty Regulations (2017).  The provincial government will therefore pay $90 million initially as well as $680 million during the construction phase.

Project sanction is expected in 2020 with first oil in 2025.

The following table shows a comparison of Terra Nova,  White Rose, and Bay du Nord, with all dollar amounts in 2018 dollars.

Electricity prices, risk, and what the editors didn't say #nlpoli

Okay.

What Muskrat Falls will do to electricity prices is not funny.

Never was.

But what *is* extremely funny are columns like Russell Wangersky's latest hand-wringer about the most recent round of electricity rates hikes.

Remember when we were told that Muskrat Falls was needed to stabilise electricity rates? 

Now, it’s pretty clear that it is destabilising them —- in a frightening fashion.

Let's review some information that has been in the public domain since the beginning of the project.  Russell has clearly either forgotten or chosen not to remember details because none of this stuff is new.

SRBP. "Fear and loathing on the energy campaign trail" from November 2010.

Note the date.

Rumpole and the Bleak House #nlpoli #cdnpoli

A scan of the docket for the Supreme Court of Newfoundland and Labrador, General Division reveals that the Provincial Court Judges are having another whack at the Government of Newfoundland and Labrador over their ongoing and unresolved pay dispute.

Those who suffered through the tale of tardy judges will note that this is a new application.  The judge who heard the other application in the same dispute has yet to deliver a decision some 18 months later.

The Provincial Court Judges are serious about this.  They have retained an army of lawyers all named Susan Dawes.

Most likely to appear for the Crown will be Rolf "Change the regs" Pritchard.  He's the ace Crown attorney who first came to public attention during the Cameron Inquiry and who was most recently seen arguing with Bern Coffey  - who appeared behalf of a Corner Brook ophthalmologist - about whether people should get cataract surgery in a private clinic and have the taxpayers cover the bill through MCP.

The government's solution to the cataract dispute was to change the hospital insurance regulations.  Undoubtedly,  officials in the health department cracked open the spare bottle of sodastream water in the health department last Friday to celebrate the loophole they'd closed that allowed a doctor to think they could do that one procedure in their office while everything had to be done in a hospital.

They celebrated too soon.  The wording of the new regulations allows doctors to do everything MCP covers outside a hospital, paid for by the Crown,  *except* for cataracts.

D'oh.

Don't be surprised if ophthalmologists do everything but cataracts in their clinics and bill MCP for it.

And stand by for the cardiologists and all the other cutters to see what they can do in their private clinics as John Haggie foots the bill for the whole lot.

Meanwhile,  the judges in Provincial Court will just have to wait for yet another decision on yet another application in their ongoing dispute.  Perhaps they'd have a faster result by praying that someone from Health gets a job as assistant deputy minister in Justice. That might be the only way they will get their problems resolved quickly.  The wheels of justice grind exceedingly slowly in Newfoundland and Labrador.

-srbp-

Rumpole and the Ticking Clock #nlpoli #cdnpoli

There are rules about how long a judge may take to issue a decision.

Now, now.

The lawyers among you are already spitting their morning coffee across the breakfast table at their long-suffering spouses but it is true.

There are rules.

Nalcor contractor secrets still safe under revised law #nlpoli

Anyone who cracked out the champagne over the bill that would purportedly shed light on Nalcor's embedded contractors might want to spit some back in the bottle for another day.

Bill 19 went through second reading on Thursday,  putting it one step closer to becoming law by the end of next week.  It makes changes to the definitions in the Energy Corporation Act that would,  if you listen to the official explanation, prevent Nalcor from holding back the information on embedded contractors that caused such a fuss last year.  That's the only legislation changed by Bill 19.

The problem is that the Energy Corporation Act was only part of the legal argument Nalcor made in its decision to withhold financial details. Nalcor withheld the financial information for individual contractors on the basis it was "commercially sensitive information" under the ECA. You can see the whole thing neatly summarised in access and privacy commissioner Donovan Molloy's decision last year on an appeal about the Nalcor decision to withhold chunks of information.

Bill 19 deals with the ECA changes.

But Nalcor withheld other information - related to folks who were working through an intermediary company  -  using section 40 of the Access to Information and Protection of Personal Privacy Act.  Bill 19 doesn't do anything with that so the odds are good Nalcor could still hold back information people wanted.

But it gets worse.

Whoever drafted this bill might think the changes to the EPA were enough to cover the individual contractors.

Guess again.

The words in the ATIPPA might look like they say it is okay to release names, remuneration and other information for public employees but Justice Gillian Butler had other ideas.  In her outstandingly twisted and entirely ludicrous judgement in the Sunshine List case,  Butler turned out the lights on disclosure of precisely the sort of information contained in the original embedded contractor information requests.

If the law was never an ass before,  Gillian Butler gave it two sculpted cheeks and a well defined crack. Even though the words of the law say it is *not* an unreasonable invasion of privacy to disclose names and salaries,  Butler concluded that the legislature actually said that information should be be kept secret.  The sunshine list law that some people might think nullified Butler's decision only covered disclosure by the provincial government of some information for employees making more than a specific amount.  All the requests for information under ATIPPA are still covered by the Butler decision, no matter how much money the employee makes.

And Butler's judicial brain fart remains the law until a higher court overturns it or the legislature passes a law that says "Gillian Butler's nuttiness notwithstanding" this information will be made public.

All the information that folks wanted from Nalcor can stay secret.  Nalcor can justify it based on Butler's decision and the ATIPPA, 2015.

The funny thing about this sad tale is that the Premier and any minister of the Crown could have released all the information folks wanted back when the fuss was raging either at Nalcor or over the Sunshine List.  They could release the information based not on a request through ATIPPA but based on their own exercise of the Crown Prerogative. That's the basis on which Danny Williams gave the Auditor General access to documents in the fibre optic cable scandal, for example, even though Williams originally claimed he couldn't do it. 

Fuss as some of them might have,  there's nothing any of the contractors could have done about it since the Prerogative is not subject to judicial review.

-srbp-

A cabinet, a caucus, and a legislature walk into a bar... #nlpoli

Don't feel bad.

Most people in Newfoundland and Labrador have no idea how our political system works.

Self-described experts.

Reporters.

Pundits.

Very often hopelessly lost when discussing even the most basic points about our political system.

The real problems start when the politicians and, as it turns out,  the public servants supporting the House, have no idea what they are talking about.

Like, say, the briefing note handed to the House of Assembly management committee last week that included these statements:

First Wells ministry, 05 May 1989 #nlpoli

May 5, 1989 was a Friday. 

It only took the couple of weeks between the election on April 20 that year and May 5 for the government to change hands between political parties for only the second time since Confederation.  The House met before the end of the month was out and before that first session ended,  the province had a new budget.

Clyde Wells was the fifth Premier after Confederation.  He was preceded by Joe Smallwood,  Frank Moores, Brian Peckford, and Tom Rideout.  

In the first 40 years after confederation,  we had five Premiers.  Since 1999 - that is, in less than 20 years - we have had eight Premiers.  Dwight Ball is number 13 in the line, the majority of whom since 1999 have served for four years or less.  We might have a fourteenth, depending on how events turn out.

The habit after 2003 has been for a majority party elected in the fall to wait upwards of six months before opening the legislature.  The initial excuse was that there was a work to do in getting ready for the House.  In 2007 and 2011,  the government was re-elected and did the same thing.  

This is the official portrait of the cabinet sworn in May 1989 by Lieutenant Governor Jim McGrath.  The photo is courtesy of Rex Gibbons, who you can see standing on the extreme left. The photographer was Don Lane.

It was a relatively small cabinet at 15. The cabinets immediately before it had had upwards of 23 members. It was also a fairly well-educated cabinet: three of the people around the table had doctoral degrees (two in education and one in geology). There were a couple of lawyers, some teachers, business owners, and folks like Walter Carter who had spent all of his working life in elected public service.

Most of them carried on in cabinet for a while after or in the House and later still went back to their old careers or took on new adventures. Five of the members of that cabinet have passed away since.

The ministry consisted of:

Standing (left to right)

• Rex Gibbons, Mines and Energy
• Eric Gullage,  Municipal and Provincial Affairs
• Walter Carter, Fisheries 
• Chuck Furey, Development  (after 1992 - Industry, Trade, and Technology)
• Dave Gilbert,  Works, Services, and Transportation
• Jim Kelland,  Environment 
• Paul Dicks,  Justice,  Attorney General
• Chris Decker,  Health
• Herb Kitchen,  Finance

Seated (left to right)

• Graham Flight,  Forestry and Agriculture
• Patt Cowan,  Employment and Labour Relations
• Clyde Wells,  Premier,  Intergovernmental Affairs
• His Honour, James McGrath,  Lieutenant Governor
• Winston Baker,  President of the Executive Council,  President of Treasury Board
• John Efford,  Social Services
• Phil Warren,  Education

-srbp-

Corrected name of Furey's portfolio, 09 May 2018)

Two solitudes - the pdf version #nlpoli

This is an article I wrote a couple of years ago for The Dorchester Review. (Volume 6, Number 1,  Spring/Summer 2016.  I posted about the piece when it came out but now you can buy buy the whole issue online,  subscribe, or download the pdf of "Two solitudes" at academia.edu)

"Newfoundland and Canada, separate countries for so long, exist as two solitudes within the bosom of a single country more than 65 years after Confederation. They do not understand each other very well. Canadians can be forgiven if they do not know much about Newfoundlanders beyond caricatures in popular media, let alone understand them. But Newfoundlanders do not know themselves. They must grapple daily with the gap between their own history as it was and the history as other Newfoundlanders tell it to them, wrongly, repeatedly."

For those who are interested,  I've got an article in the latest edition of The Dorchester Review on Newfoundland nationalism in an era of transformation. 

-srbp-

The Stunnel report and public policy in Newfoundland and Labrador politics #nlpoli

The "pre-feasibility study update" released on Wednesday into a fixed link across the Straits to Labrador (a.k.a The Stunnel) is a really good example of how the provincial government in Newfoundland and Labrador tackles policy problems and why it keeps making bad decisions.

One way to think about "policy" is problem-solving. We have a problem and the policy is how we are going to solve it. We can look at it as the way of changing a situation that is causing an issue or may cause an issue.

There are some sensible steps to figuring out the right "policy" and they all start with figuring out what the problem is. Once you know what the problem is, you can figure out what your goal is. Now that you have a start point and an end point, you can figure out the policy, which is the way you get from where you are to where you want to be.

Spin, bias, or just wrong? #nlpoli

If four media outlets all reported a story in precisely the same way despite some fairly obvious factual problems with their interpretation,  is it spin, bias, or just a mistake?

That's the logical question out of last week's post on the way local newsrooms had reported a recent political poll about premiers and popularity.

The answer is that it is more than a mistake.  It is less than spin.  There doesn't appear to be a deliberate misinterpretation.

Yet what happened is a form of bias, in the same sense that a research firm would look at bias as a source of error. 

The causes are not partisan.

They are systemic,  identifiable, and correctable.

But the story presented is incomplete and  therefore inaccurately describes what the poll results show.

Conventional media bias #nlpoli

You know what "spin" is, right?

Spin is a biased interpretation of something to favour one side or the other.

You get spin when someone uses an interpretation of an event or information in order to modify the perception of an issue or event, particularly to either increase or decrease any negative impact on opinion.

Some people think it is only comes from public relations people.

Or maybe politicians.

But never the news media.

Spin happens in many places since you can find all sorts of people interpreting things in a way that favours their pet position or that harms an opponent.

Tek, for example the number of people - especially in politics - who have been running around the past few weeks saying that Dwight Ball is the third most popular premier in Canada. They are mostly Liberals and they have been furiously retweeting that idea.

But that's spin.  Pure and simple.

Except it didn't come from the Liberal Party.

Well, where did it come from then?

Well, there's a tale.

The information the idea is based on came from an Angus Reid poll.  The opinion research company asked a sample of Canadians in every province except Prince Edward Island what they thought about the local Premier.

In Newfoundland and Labrador,  42% gave Dwight Ball a favourable rating.  In a chart Angus Reid used to illustrate the story,  they showed the approval ratings from highest to lowest,  left to right.  

There's Dwight Ball,  third from the left, which is third from the top.

Third most popular.

Well,  no.

Angus Reid was careful to describe their results fairly and accurately.  After noting that only two Premiers actually had the support of a majority of those polled in their province,  Angus Reid said this about Dwight Ball and the rest of the Premiers who - take note - had a majority who *dis*-approved of their performance.

In a pack where the premiers with the best approval ratings aren’t exactly overwhelmingly endorsed by people in their respective provinces, the story for the rest of Canada’s premiers, even those with positive momentum, is hardly jubilant.

Just over two-in-five (42%) are pleased with the job Newfoundland and Labrador Premier Dwight Ball is doing. This represents a seven point increase for Ball, as his government announces plans for a new public health act in the forthcoming budget and implements a new policy to take on workplace harassment. This, in addition to the government’s inquiry into Nalcor Energy’s unpopular Muskrat Falls project, may be playing in Ball’s favour, as he rises for the second consecutive quarter.

Out of every five people surveyed by Angus Reid,  two approved of Dwight Ball's performance as Premier.

Only two.

Three did not. 

In fact, if you click on the link to get the full results from Angus Reid,  you find that 49% of respondents disapproved of Ball's performance and only 10% had no answer.

So where did this "third most popular" idea come from?

Conventional news media.

CBC ran a story that had as its headline "Dwight Ball 3rd most popular premier in Angus Reid poll."  The front end of the story focused on the change in Ball's approval over the past year, which is accurate,  but ended up with the "third-most-popular" claim. 

At the end of the story,  CBC tossed in a completely unrelated fact that in a Corporate Research Poll 41% of respondents said they would vote Liberal, as if the similarity of the two numbers was enough to connect two different questions (job approval versus party support).

In Newfoundland and Labrador, they are two very different questions, as CRA's polling has shown.  Support for Ball and the Liberals has not been tracking the same over time.  Ball's actually been behind his party in popular support for a chunk of the past year.  Didn't like the leader.  Would vote for the party.  Not an unusual response at all,  but the two things are not synchronised.  The leader and party questions are separate.  That's why it was a problem for CBC to muddle the two together.

Saltwire - that is, the Telegram and its family of papers - ran a headline that Ball had seen a jump in his approval, which is true,  and used the "third-most popular premier" as it's sub-head. The story quoted Angus Reid word-for-word on the bit about two-in-five respondents but you had to read down a way to get to that.  

NTV's story referred to Ball as the premier with the third-best rating.  Their report on the previous Angus Reid poll, in which Ball's position relative to other Premiers was identical,  notes merely that his position improved over time.  That poll-over-poll improvement is noted in all the stories and it is probably the most accurate way to describe the results.

VOCM also reported Ball was the "third most popular" Premier in the country. 

No one in either of the four newsrooms checked the full poll result. None of them even did the simple logical inference that if 42% approved of Ball,  then the rest didn't.  They certainly didn't notice that 42% was less than half.  

Instead, they just looked at the same chart they saw the last time from Angus Reid (below) and picked the "third-most popular" as their headline.

They also didn't notice the size of Dwight Ball's change is quite large and that it was large for the second time in a row.  look at Nova Scotia and New Brunswick and you will see similar big jumps in a relatively short span.  A 15 point jump in six months is pretty steep in a province where there's been no similar major shift in public opinion detected by any other polling firm.

Might be a problem with the poll.

Nope.

Ball is third most popular.

Except Ball isn't popular.

Only two Premiers had a majority support and could be reasonably considered popular.

Seven Premiers all had more residents who didn't approve of their performance, which seems to be a bigger part of the overall story.  Angus Reid presented its information that way.

You could have reasonably focused on the fact Ball's rating had jumped again by a fairly hefty amount even if the back to back big jumps look dodgy.

But to say he is the third most popular is... well... wrong.

If you want to know how people are misinformed, there's a really fine case study.  No conspiracy.  No collusion.  Apparently, not even an organised effort by the government officials of the type we used to see in this province between 2003 and 2010 to control the flow of information, to influence media stories, and manipulate public opinion. 

Nope.

Just a bunch of people who all got the story wrong in exactly the same way.

Some might would argue that spin has to be a deliberate choice but frankly, that's just spin. Truth is that spin is a form of bias.  There are all sorts of biases.  Something like a shared perspective among people doing the same sort of work in a small place can cause a wrong interpretation of events to reinforce itself.  After all, the folks in the local newsrooms all keep an eye on each other during the day. They talk among themselves.  Once the first story hit the air and the others heard the same general line, they would inevitably confirm their interpretation and get on to the next task.

Except, they all got it wrong.

-srbp-

*Revised 11:00 AM 02 Apr 18 to clarify sentences in the introduction

No room for dissent? No time for silence. #nlpoli

The controversy about The Rooms' recent request for proposals is not about Muskrat Falls.

Maybe someone at The Rooms or within the provincial government thought that was the problem when Des Sullivan raised concerns about it.  After all, Des is well known as a critic of Muskrat Falls.  That might explain why Dean Brinton, The Rooms' chief executive,  issued a very short statement that apologized for using Muskrat Falls as an example when explaining the Crown corporation's policy about conflict of interest for advertising agencies responding to the proposal request.

Let us assume that Brinton made a really superficial mistake because otherwise  his response is insulting and condescending.  Any reasonable personal understood our ought to have understood that Sullivan was concerned about the implication that critics of the provincial government could not bid on government work.

Brinton didn't deal with that at all.

TDIH: "Quebec paper reports Lower Churchill agreement" #nlpoli #cdnpoli

Two decades ago, there was talk of a deal to develop not one, not two, but three dams in Labrador.

The story broke in a Quebec newspaper,  Le soleil,  on February 19 and the next day the Telegram did a front pager written by business editor Chris Flanagan.

"The big bonus for Newfoundland from a deal to develop the Lower Churchill is not simply cheaper electricity and a transmission line from Quebec,"  Flanagan wrote, "but an opportunity to send natural gas-generated power the other way, says a Quebec journalist with high level sources in both provinces."

"The Newfoundland government has done studies examining the potential of bringing ashore natural gas from Hibernia and other sites on the Grand Banks, using it to produce electricity and selling it on the North American grid, said Michel Vastel, a veteran political correspondent and business writer with the Quebec newspaper, Le Soleil."

Vastel told The Telegram his sources were in both provinces and that the provincial government in Newfoundland and Labrador had studies supporting development of offshore natural gas. 

"In his 'briefings,' from high-level sources, Vastel said reports have estimated Newfoundland's average rate will increase 30 per cent over the next 20 years -- an increase that won't happen if the Lower Churchill goes ahead."

The idea had its critics.  "Stan Marshall, the president and CEO of Fortis Inc., which owns Newfoundland Power, has said a transmission line to St. John's makes no economic sense.

Here are some key details of the deal that never was:

• "...Newfoundland will receive approximately 800 megawatts, Labrador 200 and Quebec 2,100 from the Lower Churchill. Construction of the project will create 12,000 person-years of employment and power is expected to be on the grid by 2007."
• "The Lower Churchill hydroelectric project consists of Gull Island, with a generating capacity of 2,264 megawatts, Muskrat Falls, at 824 megawatts and Upper Lobstick, at 160 megawatts for a total of 3,238 megawatts. The cost of the project, including transmission lines, is estimated at $12 billion."

In the talks actually announced in early March 1998,  the two provinces set aside $20 million to study Muskrat Falls and focused instead on expanding Churchill Falls and building Gull Island.

20 years later we got one tiny dam and big transmission line for that.

The Telegram included a cost of the transmission line from Labrador:  "According to several news reports, the Churchill-to-St. John's transmission line -- including an underwater component across the Straits -- would cost about $2 billion, and is to be financed by Ottawa."

"The federal government's major benefit would come from reduction in greenhouse gas emissions that will go a long way to helping Canada reach emission targets established at the 1997 Convention on Climate Change in Kyoto, Japan."

-srbp-

Muskrat Falls Inquiry Terms of Reference - Comments #nlpoli #cdnpoli

MF Inquiry TOR Commentary EGHollett by Edward Hollett on Scribd

Politics and History: SRBP at 13. #nlpoli

The week before Christmas, I dropped by The Rooms for a quick check of some government documents in the provincial archive.

The last time I'd been there, a major public display covered the Newfoundland experience in the  First World War.  The provincial government is, at least on paper, still in the midst of its official celebration and commemoration of events a century ago. In practice though, the official celebration ended in the middle of 2016 and the Centennial of Beaumont Hamel. With the exception of a small, sparsely attended symposium at Memorial University, events to mark one of the most significant periods in Newfoundland and Labrador history are now over. What was so striking about The Rooms is the complete absence of any Great War commemorations beyond the travelling exhibit from the mainland about Vimy Ridge.

This fits with an emphasis on celebrating the slaughter in 1916 and that is all most people know of the Great War and Newfoundland.  It drives home the more troubling aspect of this historical blindness since the war had a far greater impact on Newfoundland in 1917 and 1918 than it had had in a single day on the Somme.  The story is far more relevent today than Beaumont Hamel ever could be.

In April, 1917 the Newfoundland Regiment fought at Monchy-le-Preux with as dramatic a result as the one of Beaumont Hamel the year before.  This battle as well as others through the spring and summer put a further strain on manpower, already severely tested in 1916. The result would be a conscription crisis that lasted almost a year and that was marked by both rural/urban and Protestant versus Roman Catholic divisions. Recruiting had been consistently most successful in St. John's, while in rural areas proportionately fewer men volunteered.

One popular view  held that the burden of the war had been born predominantly by Protestants from St. John's while those from the bays, particularly Roman Catholics, had shirked their national responsibility. Regardless of whether such views were right or wrong, they revealed the deep divisions within the country and a lack of understanding of one part for another that has echoes in the current day's debate about resettlement.

The recruiting problems mixed together with allegations of profiteering by Water Street merchants and an increasingly boisterous opposition to greet Prime Minister Edward Morris on his return from Imperial War Cabinet meeting in the spring of 1917. There should have been an election that fall but Morris had already  decided to introduce legislation in the House to postpone the election for a year due to the wartime contingency. He tried and eventually succeeded in forming a coalition government with the opposition Liberal and Unionist parties.

With Morris nominally serving as Prime Minister, opposition Leader W.F. Lloyd took on the role of deputy prime minister. In a secret agreement with Lloyd and union leader William Coaker, Morris agreed to resign by the end of the year with Lloyd as his replacement. In addition, the new administration created a Department of Militia to take over the administration of the war effort from the volunteer National Patriotic Association. In the event, the new department was no more successful than the NPA had been recruiting but at least some of the stink of corruption that attach to the NPA with allegations of wartime profiteering had gone.

On the Sunday nearest July 1, the country marked the first anniversary of the tragic day in 1916. This was one of the first four commemorations established throughout the Empire. As such, the event was worthy of commemoration in its own right and yet the day passed in 2017 without any mention in the official Centennial commemorations.

 No sooner had Morris announced a coalition, that he boarded a steamer and returned to England. He resigned in December 1917 and was created Baron Morris of Waterford early in 1918. Lloyd's coalition served through to the end of the war in the Paris peace talks in 1919 before he was replaced by Richard Squires. Morris was last of the long serving prime ministers of Newfoundland. His successors lasted short periods, some only a matter of a few days, in a fluid political climate of shifting coalitions and alliances.

Richard Squires only stands out because of the allegations of corruption in his first administration and because of his return to office in a second administration shortly before the collapse of responsible government. Through the entire period of the 1920s, the government struggled with mounting debt and difficulty in meeting its financial obligations while the politicians fought among themselves.

-srbp-

Bridging to Nowhere... or not #nlpoli

Since December 2015,  Dwight Ball has been talking about the federal government as the source of cash he wants to tap into.

Specifically he has been talking a lot about how Newfoundland and Labrador is being screwed because it cannot collect Equalization.  Ball's whining about Equalization is part of his strategy to avoid making any real changes to the strategic trajectory set by the Conservatives in 2007.  Essentially it is about spending as much as you can for as long as you can. 

With that in mind, here are three choice quotes from Issues and Answers'  year-ender with Premier Dwight Ball. 

After Lynn Burry points out that the provincial government pays 83% of the cost of health care, up from the days when the province and federal government split the cost 50/50 the Premier said:

"I agree the Equalization program does not work for Newfoundland and Labrador."

Three things, mostly for Lynn Burry.

1.  Health care is entirely within provincial jurisdiction under the constitution.  The federal government isn't actually supposed to put *any* money into it.

2.   The federal government covered half the cost of everything in Newfoundland and Labrador at one point because the provincial government was so poor it couldn't pay for provincial services on its own.  That's why every Premier until Danny Williams came along wanted to get Newfoundland and Labrador off the dole. Williams and every Premier since him, including the current one,  has been trying to get back on it.

3.  Federal health care funding never came from Equalization.  It has always come under a separate funding arrangement.  At one point they called it the Canada Health Transfer and it went along with social services funding in the Canada Social Transfer. Now the federal funding is combined under one thing called the Canada Health and Social Transfer.

"What is it about Newfoundland and Labrador that you can define us as a 'have' province?"

The answer is simple and, in some ways it is astonishing that over the past 15 years provincial politicians can get away with talking utter nonsense about a really simple thing like Equalization.  Politicians from all parties trot out this foolishness  and reporters just lap it up or, in Lynn Burry's case,  fuel the idiocy with questions that are just set up with the same stuff.

Equalization takes money from the federal government's general revenue and gives it to provincial governments that don't make enough money on their own to come up to a common, national income standard.   The governments use that money to deliver services that are entirely provincial under the constitution.  That means the provinces are supposed to make enough money on their own to cover those costs. 

The transfer of federal cash is based on the recognition that all provinces are not equal in their ability to raise cash, so the federal government steps in to give some a hand.  That way Canadians are not short-changed if - and here's the kicker - the provincial government spends its money appropriately.

Four provinces make more than the standard income.  They are known colloquially as "have" provinces:  British Columbia,  Saskatchewan,  Alberta, and Newfoundland and Labrador.

"Have not" means you don't bring in enough cash on your own to make ends meet and so you get a hand-out.

If Dwight Ball really speaks to the Premier of Nova Scotia and moans that this province does not get Equalization,  he's lucky Stephen McNeil doesn't punch him in the bake and then kick him in the goolies just for good measure. Like most Premiers, McNeil would give some part of his anatomy to be raking in as much cash as Dwight Ball does every year.

Newfoundland and Labrador *is* a have province by any measure.  It takes in more money per person than any government in the country save Alberta.   The problem is that successive provincial governments have spent even more than that again.  There's no good reason for the overspending.  That's why the government is in the hole all the time.

"...Equalization is not the answer to our revenue or deficit problem."

Huh?

If it is not the answer to our problem, why complain about not getting any of it?

-srbp-