Come by Chance and the Politics of Inertia #nlpoli

Is *this* the real El Dorado?

More than six months after they shut it down, the company that owns the Come by Chance oil refinery wants to sell it.

 And they want provincial taxpayers to pay.

According to Saltwire, “Glen Nolan, president of the United Steel Workers Local 9316 union, said that in recent conference calls officials of the province’s energy department indicated Silverpeak had floated” the idea that the provincial government would pay to keep the plant in hot idle mode.  

Between 150 and 175 workers have been laid off from the facility since February.  Another 60 or so are working to keep the plant ready to run.   

A deal with Irving – reported by Canadian Press and others as a done deal in late May – came apart for reasons that aren’t clear.

So while they are trying to sell the refinery Silverpeak wants the provincial government to pay to keep the refinery idled in a state where it could get back into production very quickly.  The alternative will be to mothball the refinery and lay off the remaining workers at the refinery.

The only company interested in buying the refinery – Origin International – doesn’t want to run it as a refinery.  But that hasn’t stopped the provincial government from talking it up and for representatives of the union at Come by Chance from being excited at the prospect.

It’s hard to imagine the provincial government won’t put up the cash.

Great Gambols with Public Money: Sprung Cukes 2

Another view of the Peckford Pickle Palace, this time with some questions which proved to be prophetic.

Don't forget that at the time, supporters of the regime du jour accused journalists and other who questioned the wisdom of such schemes as being pessimistic and too negative to be worthy of any consideration.

It seems everything is being recycled these days including the Fanboy arguments.

 

“Peckford pummelled over greenhouse funding plan”

The Financial Post,  November 2, 1987

by Philip Mathias

 

Newfoundlanders are puzzled by Premier Brian Peckford's decision to commit $11.4 million in government funds to a huge experimental greenhouse.

Greenhouse experts are equally mystified by Peckford's loyalty to what many feel is a far-fetched and overpriced scheme. Even in Newfoundland, one government specialist advised against the scheme.

The province's media and opposition parties are pounding Peckford, and cucumber jokes have multiplied. The $18.4-million Newfoundland Environponics Ltd. project is a 6.4-acre greenhouse being built outside St. John's. Plants will be grown hydroponically on racks - in other words, without soil, in a slow-moving nutrient solution.

The greenhouse, due to start up this month, is meant to make Newfoundland self-sufficient in cucumbers and tomatoes, which are now mostly imported.

The joint owners are the province and Philip Sprung, who also owns a Calgary company that manufactures marquees. Sprung is said to be putting $4 million of cash and loan guarantees into the St. John's project.

Sprung is a self-educated horticulturalist who says he has the key to revolutionary greenhouse technology. The big question is whether he is far ahead of conventional horticulture, or badly out of step with it.

Among Sprung's early ventures was a greenhouse in Calgary. It suffered, he says, from hydrocarbon vapours rising out of the soil, which had been underneath an old oil refinery.

Sprung offered to relocate the greenhouse in Quebec and then on Prince Edward Island. Both provinces declined his request for funds. The project was also given the thumbs down by the National Research Council and the Department of Regional Industrial Expansion. '

Sprung's next stop was Newfoundland. The province's agriculture branch wrote a critical report on the project.  Nonetheless, Sprung was welcomed by Peckford and his cabinet.

The provincial government has agreed to provide $3.5 million in equity (land and cash); a $7-million loan guarantee; and a $900,000 provincial sales tax rebate. The unit now being built in St. John's is Sprung's Calgary greenhouse transported holus-bolus to Newfoundland.

Peckford may soon face some tough questions:

• How does the premier justify the $18.4-million cost of the greenhouse? 

The most advanced greenhouses being built elsewhere, experts say, cost half what's being paid by Newfoundland.  The province could probably buy two proven, conventional greenhouses for the price of Sprung's one.

• Can the greenhouse achieve the phenomenal yields projected by Philip Sprung?

He has told the government it will produce seven million pounds of vegetables on 6.4 acres. This yield is 2 1/2 times the best commercial yields in Canada.

Sprung's secret is to pack his greenhouse with three times as many plants as a regular hydroponic model. A hot, humid, jungle-like environment is maintained constantly. Simple arithmetic says three times the plants equals three times the yield.

Horticultural experts say it's not that simple: Yields fall off sharply at high plant densities. Professor Andre Gosselin of Laval University says, ''Sprung's yields are biologically possible, but I doubt if he can get them.''

Professor Herman Tiessen of the University of Guelph adds that Sprung's projected yields are ''unrealistic.''  Sprung recently severed connections with a British ex-partner Soil-Less Cultivation Systems Ltd., which claims to be the technical and managerial brains behind the system.

Sprung is reported to be looking for a new manager. If one cannot be found who is versed in his unusual technique, yields may be lower than promised.

• -Can the greenhouse be economic at lower yields?

The cost of growing tomatoes at the highest yields obtained at research stations would be about $1.75 per lb., using Sprung's capital and labour inputs. The price of tomatoes in Newfoundland (less retail and wholesale markups) is $1.05-$1.45 per lb. In other words, the cost of Sprung's process seems to be far above probable selling prices.

Sprung claims his yields will be much higher than those achieved at research stations.

• Can Sprung maintain projected levels of employment?

The province has been promised the greenhouse will provide jobs for 150 people - more than three times the industry average for hydroponic greenhouses.  If yields turn out to be anything other than phenomenal, the economics would be improved by reducing employment levels to the industry norm (about 40 people for 6.4 acres).

That might raise questions about the wisdom of the Peckford government advancing $11.4 million for the project. Unemployment in Newfoundland is officially 18%, unofficially about 28%.

• If the greenhouse proves uneconomic, will the province pour even more cash into the project?

Peckford's critics and other commercial greenhouse operators in the Atlantic provinces fear it will.  Critics complain that Peckford has veered away in the Sprung case from regional development guidelines laid down by the 1986 Newfoundland Royal Commission on Employment and Unemployment.

-srbp-

Great Gambols with Public Money: Sprung Cukes

Ah, how quickly they forget, these pleasant but heavily indebted, taxpaying people of Newfoundland and the sorry experience of governments that gamble (or is it gambol?) with public money on all manner of ventures.

How quickly they forget just how they got to be the most indebted people in the entire country.

More than anything else, they got into hock up to their eyeballs from cheering government after government as it poured thei tax dollars into this hole and that, each of which was supposed to gush barrels of cash so that God's Other Chosen (But Seemingly Forgotten) People could at last have their Eden here on Earth.

How quickly do they forget?

Apparently 20 years ago is too long for some of the poor darlings.
From the Memory Hole, the first newspaper cutting about that gloriously foolish venture known as the Sprung Greenhouse.

Bear in mind though that at the time there were a great many supporters of the regime du jour who cried that any amount (in this case upwards of $22 million) was fitting.

"Spend a buck to make a buck" they cried. 

"Brian can gamble with my money any day" they shouted. 

"How can anyone be so negative all the time and oppose this idea?"

"Sure they'll create a few jobs and get it all back in taxes."

"We will be the world leader in cucumber production."

At the end, all the pod-houses did was induce an epidemic of insomnia among the good residents of Mount Pearl and add another $22 million to the public debt.

"Skepticism rains over hydroponic greenhouse"
The Toronto Star
Friday, May 22 1987

by Alan Story

ST. JOHN'S, Nfld. - In a province with a mere 380 farms and the poorest soil, a raging agricultural debate has been at the centre of politics - and over-the-back-fence conversations - here for the past two weeks.

The subject: hydroponic cucumbers.

With the active encouragement and financial assistance of the Peckford government, an Alberta firm is dismantling its 3.2-hectare, high-tech greenhouse in Calgary and shipping it east to St. John's to begin growing hydroponically produced cucumbers, tomatoes and other vegetables.

The $18.5 million joint venture between the Sprung Group of Companies and the Newfoundland government is being touted as a solution to several of Newfoundland's problems.

Among them:

• The lack of cheap, high-quality produce available locally. Neither the price nor taste of a tomato or a cantaloupe you buy at a St. John's supermarket matches what you can find at Toronto's Kensington Market.
• The lack of jobs. According to company president Phil Sprung of Calgary and the government, which will put up to $11.5 million into the project, 330 construction jobs and 150 permanent jobs will be created.

Even if all Newfoundlanders became vegetarians, the Sprung greenhouse would produce far more tomatoes and cukes than the local market could ever consume. Sprung's surplus would shipped to the mainland.

"For once, Newfoundland will be first in new technology and not just in unemployment rates," Peckford said on May 8 when he announced the deal. It's not only skeptical mainlanders who are questioning the wisdom of setting up a giant food factory based on technology that failed to perform properly in Calgary and on market studies the premier won't release.

Peckford's mad hunt for employment has brought him "full circle to the insanity that premier (Joey) Smallwood pursed when he tried to set up a chocolate factory, a rubber factory and orange juice factories in the middle '50s," declared Newfoundland New Democratic Party Leader Peter Fenwick.

Worried about the Sprung greenhouse's potential surplus entering markets in the Maritimes and even Ontario, James Keizer, president of the Greenhouse Growers' Association of Nova Scotia told Peckford that "if this greenhouse is built and operated as Sprung claims, it will fail within two years and take some Maritime growers who have built their business - one stick at a time over many years - with them." Letter-to-the-editor writers and editorial cartoonists have had a field day too.

Last week's Sunday Express, a new and brightly written St. John's weekly newspaper, featured a cartoon of a moronic-looking Peckford, clenching a stem of grass between his teeth and overseeing a Rube Goldberg-like operation known as "Peckford's Pickle Farm."

The main serious questions being raised are whether a major hydroponic greenhouse is technically feasible in Newfoundland - hardly Canada's banana belt - and whether it makes economic sense. Hydroponics - growth with water, instead of soil, as a medium - is recognized as a viable method of producing vegetables which is just starting to come into its own across the North America..

Sprung's somewhat secret hydroponic process involves planting seedlings in trays of water containing various nutrients, but no pesticides, and rapidly raising them to maturity under natural or artificial light in greehouses. Sprung makes big claims about the level of productivity. At his former Calgary greenhouses, he says 28,000 tomatoes and 22,000 cucumbers were produced daily. The cukes matured in less than a week.

But can his process work in often foggy and cloudy Newfoundland? Agricultural scientists have pointed that in St. John's, the number of degree days (a measure of natural heat available) is 1,600 while southern Alberta has 3,100 days. The extra heating required and the extensive use of artificial lights proposed for the St. John's greenhouse may significantly boost the costs of production, they warn.

Others following the great greenhouse debate aren't sure what to make of Sprung's claim that gas leaks from the soil at his Calgary site were the only reason why he had a major crop failure last year and why his tomato plants turned grey.

 The economics of the project are also in doubt. Some here are surprised that Peckford, who has tended to avoid getting sucked in by the industrial dream-peddlers who regularily come calling in Atlantic Canada, has become the project's biggest promoter.

Will all of the tomatoes and cucumber grown - more than twice Newfoundland's entire current level of consumption - actually be sold?

Why is the project so large after a recent provincial royal commission specifically warned against the dangers of getting tied into mega-projects?

What will be gained if other Maritime greenhouse producers are put out of business by the government-financed Sprung operation?

Before the Sprung story is over, Peckford may realize that tomatoes can be thrown as well as grown.

-srbp-