The Good Old Days #nlpoli

Danny Williams made the news last week.

Williams was locked in a battle with St. John’s city hall over whether or not Williams could put a big Christmas tree in a round-about in his development at Galway.

No one in the local news media noticed, though, that Thursday was the 10^th anniversary of Williams departure from the Premier’s Office.

Back then, they couldn’t say enough good about him. 

The Telegram praised Williams as “The Fighter” – the title of the paper’s editorial the day after he announced he’d be leaving office – “a man of the people” whose popularity rating “hovered around 80%.”

That was true. 

Williams *was* an incredibly popular politician.

No question.

Mitigating Muskrat Falls: Ron, Harry, and Hermione are still baffled #nlpoli

Mitigating the impacts Muskrat Falls will have on taxpayers of Newfoundland and Labrador remains the single biggest unanswered question in the province nine years after the project started and the politicians first started talking about how they might do it.

To mark the 14th anniversary of The Sir Robert Bond Papers,  here's the tale from 2010 to now.

Most people in Newfoundland and Labrador finally noticed the impact Muskrat Falls would have on electricity prices when Nalcor chief executive Stan Marshall confirmed that Muskrat Falls would double electricity prices in the province once it was finished in 2021. 

That was the middle of 2017.

The word “mitigates” - to make less severe or painful - became popular overnight.  Since Marshall’s comments, just about all that anyone in Newfoundland and Labrador has fretted about is how the government will make electricity prices not double because of Muskrat Falls.

But here’s the thing:  Muskrat Falls was always supposed to double your electricity prices. Right from the start – November 2010 – the provincial government talked about electricity prices of between 14 and 16 cents wholesale, which would have made the retail cost in this province about double what it was at the time.  No worries, people like Kathy Dunderdale said.  Oil prices will be so high and electricity prices will be so high by 2017, anyway, that you will never notice Muskrat Falls except that it will stop prices from climbing higher.

Ratings trump truth #nlpoli

Sometimes the universe delivers you the magical set of circumstances you just can't ignore.

Danny Williams turned up at the St. John's Board of Trade luncheon on Thursday to deliver a speech the day before Donald Trump's inauguration as president.  As much as people might like to forget,  this was a great reminder of just how much Williams and Trump are the same kind of politician.

The board of trade booked Williams because he will sell tickets.  And in the same way, the local media turned out in droves for Williams.  They treated him just as they have always treated him and that's our story for today.

Williams delivers to electronic news media what Trump does: ratings. Fox and CNN adore Trump just like VOCM and CBC television followed every one of Williams' gaseous emissions.  He drew the audience.

The difference is that while CNN news anchors are routinely critical of Trump and even Fox might take the odd poke at the president-elect, the local media have typically  handled Williams and his most ludicrous claims as if they were holy writ.  Folks who think the Canadian media would fact-check a Trumpish politician out of office can look no further than the way the locals recited Danny's lines almost verbatim.

Spending the future (2005) #nlpoli

" [The change in the province's financial outlook] That's very dramatic...Some people are going to stand back and say 'Oh yeah, that's just because your very lucky. That's because the oil prices have gone up.' Well, no. That's part of it. But we had a tough budget, a prudent budget. We've managed the province, fiscally, very tightly."

Premier Danny Williams

Quoted in "Cash boon may fund province's infrastructure"

by Rob Antle, The Telegram, 22 October 2005, p. A3

Premier Danny Williams is absolutely correct.

The provincial government's financial state is a direct result of oil and gas revenues. High oil prices have produced a boost beyond what the Real Atlantic Accord, the offshore royalty regimes and development at Voisey's Bay would have produced anyway.

Unfortunately, the premier's positive comments may have two unwelcome results. First it may make it seem as though the province can afford to increase spending in a number of ways. Second, his comments divert attention away from the fundamental failure of the Williams administration, two years into its mandate, to produce integrated plans to address the province's financial windfalls in a way that will yield the greatest long term benefit.

The Reverse Midas Touch Rides Again #nlpoli

The crowd running this place these days has an unrivalled ability to look at a problem and find the worst possible response imaginable.

On Wednesday,  natural resource minister Siobhan Coady and environment minister Perry Trimper announced that the government would tell Nalcor to keep flooding the Muskrat Falls reservoir but at the same time, they will have to cut down more trees and clear more vegetation from the flooding area.

This solves nothing.

Through others' eyes #nlpoli

For Newfoundland's pseudo-intellectuals,  the Toronto Globe and Mail is a kind of one-handed reading material.  They use one hand to scroll down the Internet site looking at stuff.  They use the other to stroke the keys of their computer until it spurts indignation all over the screen about something someone in the Globe said or didn't say about Newfoundland.

They are an easy bunch to click-bait, as the Globe editors showed this past weekend. The province's gaggle of celebrities took to the Internet to slag columnist Margaret Wente or Confederation.  Hans Rollman exploded in a ball of perpetual, fabricated victimhood. Ed Riche pretended he was above it all and, always one to spot a hot, if insubstantial, trend,  CBC produced an online piece about the negativity.

On Monday, the corp even got Wente to suffer through an interview about her recent trip to Fogo Island. "Do you understand how wrong you were?"  Grand Inquisitor Debbie asked the penitent mainlander. "Do you repent your sins?"

Yes, said Wente looking like she was going to tear-up any second. "I got Newfoundland wrong,"

Never, in the history of journalism, has so much been made by so many about so little.

Policy Stagnation #nlpoli

The provincial government has been on its current course since about 2007.  

There were three elements to the Conservatives agenda under Danny Williams.  They changed somewhat over time but these are the elements that dominated from 2003 to 2015.

Above all else, Williams’ goal was to build the Lower Churchill.  That was to be his one, lasting accomplishment.  Williams would build what no one else had been able to build.  While it was rationalised as a provincial project with lasting significance, the way it finally rolled out confirmed the extent to which the Lower Churchill was intensely personal.

To build the Lower Churchill, Williams would turn Newfoundland and Labrador Hydro into an energy corporation to rival Hydro-Quebec. And to help fund it, Williams would acquire so-called equity stakes in offshore projects.

The Price of Revanchism #nlpoli

Churchill Falls occupies a unique place in Newfoundland and Labrador's political culture.

Most of what people believe about Churchill Falls is just sheer nonsense.  Made up.  Never true. Completely ludicrous.  But accepted as fact and unshakeable truth all the same.  And that's where things get weird. People use all that foolishness nonsense to make decisions in the real world.

One of the enduring legends is that Newfoundland wanted a corridor to wheel electricity through Quebec,  went to the federal government in the 1960s to look for one, couldn't get it, and thus wound up a slave to Hydro-Quebec in 1969.  It's been a popular story since the 1970s,  after the Newfoundland government nationalised BRINCO.

There's never been any evidence that Joe Smallwood ever put the question to Lester Pearson although lots of people will swear to it and swear by the story as evidence of how Newfoundland has been shagged by whatever version of the foreign boogie-man they favour.  

Danny Williams trotted the story out, indirectly, in November 2010 when he announced he had committed the provincial government to build Muskrat Falls.  Our electricity would never be stranded again.  We would never again be held hostage by Quebec.  The new, magnificent power corridor through Nova Scotia was the way that we would break Quebec's stranglehold over our magnificent future.

Yay!  Hooray! people screamed, including more than a few editors and columnists.

The only thing was that what Williams said wasn't true.

And he knew it.

Water Rights, Muskrat Falls, and the Muskrat Falls Disaster #nlpoli

Forget everything else that you know about Muskrat Falls.

The entire project hinged on Nalcor's ability to control water flows on the Churchill River.  Nalcor's internal assessments showed that without the ability to control water flows, Nalcor's Lower Churchill project would reliably produce only about 17% of its nameplate capacity.  That means that Muskrat Falls would have a firm generating capacity of about 140 megawatts,  which is less than the free block of power Nalcor guaranteed Emera and Nova Scotia.

Nalcor gambled on a dubious interpretation of the 1969 power contract and lost.

The impact on Muskrat Falls will be devastating.

Here's why.

Trump and Proto-Trump and babies #nlpoli

Speaking about his popularity and the loyalty of his supporters:

"They say that I could stand in the middle of 5th Avenue and shoot somebody and I wouldn't lose voters." 

Donald Trump.  Sioux Center, Iowa, January 2016 

And on babies...

Speaking about the popularity of a guy who was once the opening act on a triple bill with Donald Trump and Rudy Gulliani,  Craig Welsh once said this of Danny Williams:

And what I mean by "he can get away with doing it" is that the premier's popularity is such that he could strangle a baby in the middle of the Avalon Mall parking lot with the assembled provincial media in attendance and there would be people that would say the baby had it coming.

-srbp-

The little savory details #nlpoli

Nalcor chief executive Stan Marshall said so much last Friday about Muskrat Falls, it's probably true that most people couldn't possibly take it all in.

One of the folks having a hard time understanding all this is Tom Johnson.  He's the guy the Conservatives appointed to serve as consumer advocate at public utilities board hearings.  In practice he has sided with Nalcor and the Conservatives on everything, including their plan to force consumers to bear the full cost of Muskrat Falls, no matter how much it cost in the end.

The past few days he's been turning up in the media saying that the government will keep the cost of electricity down so consumers don't see much of an increase.  Not much like supposedly what the Conservatives promised.  Even Nalcor hasn't been pushing that nonsense for a year or more so it's astonishing that Johnson sounds like he is still taking orders from Danny Williams' missus.

Friends and enemies #nlpoli

Craig Westcott tells a story from his short stint as communications director for the Liberals in opposition in the last days of Danny Williams and the early days of his handpicked successor, Kathy Dunderdale.

"I kept after the very small caucus we had to keep asking questions,"  Westcott said in an email to SRBP, "hoping that even if the media ignored us, some of the folks watching at home would cotton on to how bad the deal was.  That might generate some heat. It kept the flame of criticism and skepticism alive."

"We looked at everything from the lack of documentation to support Nalcor's demand projections, to the big question of water rights, the actual usage of Holyrood as part of the island's power supply for the previous 20 or so years, the free power to Nova Scotia, the privatization of the Labrador to Island transmission line to give [Emera] a cut,  the free block of power to Nova Scotia, the likely cost of Muskrat Falls-generated power, which early on we pegged at over 20 cents per kWh, and on and on. The deal was so flawed it was difficult to find anything positive in it."

One major problem Westcott ran into was that the local media weren't interested. "[CBC's David] Cochrane tired pretty quickly of the Opposition asking questions on Muskrat," Westcott said.  "He complained several times that we weren't asking anything new. Some days he walked out of the legislature after Question Period and made a point [of saying] that he wasn't going to scrum our guys because we were still on Muskrat. The other legislative reporters would follow him out."

The Fan Klub, Churchill, and taxes - update

As the provincial Conservatives and New Democrats filibuster the levy bill in the House of Assembly that Winston Churchill quote about taxes popped up again.

The ones pushing the quote hard on Twitter seem to be mostly charter members of the Danny Williams Fan Klub. That's not surprising given that responsibility for the financial mess,  the chronic, deliberate overspending and the morass at Muskrat rest solely on his shoulders.

The New Approach #nlpoli

In 2003, Paul Davis' predecessor as leader of the provincial Conservative party went to Ottawa to beg for a hand-out.

Called it The New Approach

 He got one.

Then he begged for more through Equalization.

Got what he asked for.

Pretended he didn't, backed by some economist from the university named Locke.

Threw a childish tantrum and kept at it for years.

 Drove the province up on the rocks through unsound financial management that carried on through all his successors.

And now Danny Williams' successor is carrying on the fine tradition. The first Conservative private members' resolution in their new role as Official Opposition begs Ottawa to send money to fix the mess he and his pals created.

BE IT RESOLVED that this hon. House urges the Government of Canada to recognize the impact of the steep fall in oil revenues on our province and that it consider financial support to our province in order to prevent deep cuts in services to the people of Newfoundland and Labrador; 

and BE IT FURTHER RESOLVED that this hon. House urges the Government of Canada to modernize the federal-provincial arrangements, including the Equalization Program and the Fiscal Stabilization Program to more fairly and promptly reflect our province's needs, and to more fairly account for natural resource revenue.

-srbp- 

Thank you, Danny Williams #nlpoli

Rob Strong has been a key player in the local oil and gas industry pretty much since the earliest days.  He knows what he is talking about.

Strong pointed out to VOCM on Wednesday that the Hebron field won’t be the cash cow for the provincial government some people hoped/pretended it would be.

Analyst Rob Strong says he fears that on the front end of a project, that will have a 25 year life, this province won't reap any benefit for being a partner in the development.
Strong says when oil was at $100, Hebron type crude was being discounted by $35. He says that means in the short term, the picture does not look as bright for Hebron owners. This province has a has a 4.9 per cent share in the development.

What Strong is pointing to is a deliberate cut in the provincial royalty offered as a gift to the oil companies by Danny Williams and Kathy Dunderdale in 2007.  Dunderdale, the natural resources minister at the time, said that she and Williams wanted to give the multi-national oil companies “some downside protection if the price of oil went very, very low.”

Selling energy assets a good thing: Danny Williams #nlpoli

 

“It was a previous Liberal government that wanted to actually privatize Hydro. This particular government wants to strengthen Hydro, wants to make it a very valuable corporation: a corporation that will ultimately pay significant dividends back to the people of this Province; a corporation that perhaps some day may have enough value in its assets overall as a result of the Hebron deal and the White Rose deal, possible Hibernia deal, possible deals on gas, possible deals on oil refineries and other exploration projects, where hopefully we might be able to sell it some day and pay off all the debt of this Province, and that would be a good thing.”

Premier Danny Williams, House of Assembly, 30 April 2008

-srbp-

Admission of failure: Conservative offshore negotiations #nlpoli

The news release on the government’s generic offshore royalty  wasn’t exactly a model of clarity and accuracy.

The headline and first sentence referred to the announcement of a “framework.”

The first quote claimed that “establishing the enhanced generic offshore oil royalty regime” was an achievement for the current administration. 

The problem is that none of it is true.

Real change #nlpoli

“A positive, optimistic, hopeful vision of public life isn’t a naive dream,”  Justin Trudeau told Canadians after he won a truly historic victory in the October 19th federal general election.  That victory, said Trudeau,  “is what positive politic can do.”

“We beat fear with hope, we beat cynicism with hard work. We beat negative, divisive politics with a positive vision that brings Canadians together.”

Premier Paul Davis spoke to the St. John’s Board of Trade on Tuesday.  Earlier in the day he released another letter he’d written to Trudeau listing off Davis’ demands,  things he wanted Trudeau to give the province as soon as possible.

The provincial government had problems dealing with the federal government, wrote Davis, as if he and his colleagues had absolutely nothing to do with creating those problems.

Davis complained about not having a federal cabinet minister from the province, as if Davis and his colleagues had absolutely nothing to do with creating that situation either.

“But with your election,  we now have change,”  wrote Davis.

And just to prove how Davis himself had nothing to do with change, he then proceeded to rattle off a list of demands.

The ABCs of ABC #nlpoli

 

In 2004, Danny Williams fought for three months against a federal government decision that had been settled – at least for the federal government – earlier in the year as part of the usual budget cycle.

Williams got the money the federal government had allocated but won the domestic war for public opinion.

In 2007,  Williams and his provincial Conservatives launched a second political holy war against the federal government’s budget decisions.  Williams waged a much longer war,  lost it, but was widely credited at home with a victory.

There were other similarities

Hyping the stock, yet again #nlpoli

Any oil company seriously interested in bidding on an exploration license offshore Newfoundland and Labrador isn’t likely to need the hyped presentation by the provincial government Thursday.

Exploring offshore is expensive.

Always has been.

Always will be.

Exploring beyond the 200 mile exclusive economic zone, in upwards of two kilometres of water, just makes the oil and gas all that much more costly. to find and more costly to produce.