Showing posts with label Fubar File. Show all posts
Showing posts with label Fubar File. Show all posts

20 May 2010

The Protocols of the Elders of Laurentia

In Hisself’s own words, in the House of Assembly, dutifully and accurately recorded by Hansard, the Old Man describes the nefarious forces that circle around him.

In response to this question about the Abitibi expropriation  - “Are you planning to seek leave to appeal this court loss to the Supreme Court of Canada at this time?” – he begins:

Mr. Speaker, let’s do a little history lesson first of all, and what this is all about. This goes back to the late 1960s when we had the best project in the world that we wanted to develop but we could not do it on our own because we were a poor Province - because of what happened as a result of Confederation and everything else. We were the poor and the weak sisters of Canada. So, we basically entered into a partnership with Quebec in order to develop that particular project. For that, they acquired at least one-third of the company which developed that particular project.

Then, when it got down to the short strokes and we were months away from concluding it and we were out of money, the company was basically out of money, they squeezed us. That is when they squeezed us for another twenty-five years on a contract that already was a complete giveaway of a very valuable hydro resource. They squeezed us for another twenty-five years at a lower price -

So based on that history, Newfoundlanders and Labradorians, particularly this Newfoundlander and Labradorian, and all these Newfoundlanders and Labradorians here and all the people in this Province, feel very, very strongly about the way Quebec has treated us. So if we have to fight them in the courts or fight them at the Régie, or if I personally got to get down and go toe to toe or roll around on the ground with them to fight them, we will do it.

And then after discussing Churchill Falls for all that time he answered the Abitibi question:

…we are now reviewing it.

But he couldn’t just state that simple answer to a simple question without further embellishment:

We are looking at asking for leave to appeal to the Supreme Court of Canada. I think that, as a Province, we have to keep fighting Quebec because if we don’t they will take away everything we have.

In response to the second, simple question - What is the recourse for the Province to now be added to the list of unsecured creditors? – came a further rant:

Of course, what we are dealing with is obviously a very biased court.

When you look at the Quebec courts, you look at the decision that was given here. The opinion, of course, that we have from our solicitors on this is that the court dodged a central legal and policy issue. So we had constitutional and factual arguments and the Court of Appeal completely and totally avoided that. In addition, they completely ignored the same rationale which has been used by the Ontario Court of Appeal, B.C. Court of Appeal, the Alberta Court of Appeal, and the Supreme Court of Canada. So, basically, these courts are doing whatever they can to try and stop us.

The same thing with Judge Gascon, we just saw the Régie ruling which came out of Quebec, which is one of the most horrendous, absurd rulings that I have ever seen. They ignored facts. They said that what Hydro-Quebec was doing was discretionary. They ignored the evidence - a complete abuse of process. So, throughout this process we will just keep hammering away.

Yes, folks, there was a duplicate key to the wardroom icebox where they kept the  strawberry ice cream.  The only thing missing was the ball bearings in his hand.

At that point, opposition leader Yvonne Jones asked exactly the same question over again (The Old Man didn’t come close to answering it the first time, after all).  There followed another diatribe in which the Premier noted the holding company set up to deal with the two properties the provincial government didn’t expropriate:

Instead, Mr. Speaker - if I may have a moment -of what they have done in Botwood and Stephenville, put those assets in a shell company so that they could go bankrupt so that we get nothing.

Not exactly what happened, nor does the Premier explain why his lawyers consented to the arrangement, but that’s another issue.

At that point, the question of costs deflected off to justice minister Felix Collins.

A question about an English translation of the decision by the Quebec energy regulator brought Hisself to his feet once more to fulminate about Quebec:

Mr. Speaker, I said it last week, and I can say it again in all honesty today, I have not seen an English copy of the Régie decision. We are waiting on the Régie to provide us with an English copy.

It is really interesting, too, when you go on their Web site, pretty well everything that they have is always in English and French, but on this particular one we have not been provided an English copy. That tells me a lot about the Régie, the attitude of Quebec against Newfoundland and Labrador.

Basically, while the Premier’s parliamentary assistant is on a hunt for Commies, the Premier himself is fighting against the evil machinations of the seething nest of anti-Newfoundland conspiracy that is Quebec.

To conclude, some simple observations:

  • The chart was not an exaggeration, as anyone can plainly see. The World the Old Man Lives In is populated by enemies everywhere, linked together by secret ties.
  • This is not the way Danny Williams felt for the five years he tried  - entirely out of the public eye, one might add - to interest Hydro Quebec in taking an ownership stake in the Lower Churchill, without any redress for the 1969 contract.

You could not make this stuff up if you tried.

-srbp-

19 May 2010

Williams admits taxpayers stuck with bill for his expropriation mess

While his embattled environment minister blustered and stuck to the old line during Question Period, outside the legislature Premier Danny Williams admitted to reporters today that the taxpayers of the province will be stuck paying for the environmental cleanup from his expropriation mess.

CBC.ca/nl has a version of the story that’s worth checking out.

The cost of the clean-up, legal fees, any NAFTA penalties for the expropriation and the cost of compensation for seized assets belonging to three companies could reach $500 million or more based on the provincial government’s own estimates.

More to follow.

-srbp-

03 May 2010

Abitibi “intended to go bankrupt”': Williams

Newfoundland and Labrador Premier Danny Williams today said that the expropriation of assets belonging to three companies was a “very deliberate move” and that as a result of the expropriation of assets belonging to three separate companies, the provincial government can now “use the value of these assets to deal with the environmental liability which we would have been responsible for because they [AbitibiBowater] intended to go bankrupt in the first place.”

Williams made the comments in Question Period during an afternoon sitting of the House of Assembly.

He said that AbitibiBowater “would have walked away from their responsibilities”.  Williams said the paper company would have gone bankrupt, sought creditor protection or “done what they were in the process of doing and that was trying to sell off those assets to somebody else.”

That’s the first time Williams has linked the expropriation to a failed bid by the provincial government to buy one of those assets, a hydro project at Star Lake which was not supplying power to the mill at Grand Falls.

In another answer to questions from opposition leader Yvonne Jones, Williams described the mill at Grand Falls and the two houses associated with it as “the most valuable piece of real estate in Grand Falls”.  He did not explain why the provincial government intended to expropriate all the other assets and leave  AbitibiBowater with the most valuable piece of real estate in Grand Falls when he had earlier described the expropriation as seizing the valuable assets to forestall their being sold off.

Those assets would have been lost to an irresponsible company that did not give a darn about the people of Newfoundland and Labrador, the people of Central Newfoundland and Labrador. They would not - they would have walked away from their responsibilities. They either would have gone into consumer protection, they would have gone bankrupt or they would have done what they were in the process of doing, and that was trying to sell off those assets to somebody else.

While Williams has been careful in previous statements and made no comments during debate on the expropriation bill, his most recent remarks could weigh heavily against the province’s efforts to fight off a NAFTA challenge and to push the environmental liabilities onto AbitibiBowater.

Williams comments raise the prospect that the expropriation was not done  - as he originally suggested  - because AbitibiBowater breached a 1905 lease.  In a statement to the legislature before his natural resources minister introduced the expropriation bill, Williams said:

Abitibi has reneged on the bargain struck between it and the Province over the industrial development of the Province’s timber and water resources for the benefit of the residents of the Province.

Mr. Speaker, having said that, we cannot as a government allow a company that no longer operates in this Province to maintain ownership of our resources.

-srbp-

02 May 2010

NALCOR takes on Fortis loan payments

NALCOR, the provincial government’s energy corporation, is paying a loan on behalf of the Exploits Partnership, one of the entities affected by the expropriation fiasco in December 2008.

In its 2010 first quarter financial statements (2010 Q1) released on Friday, Fortis, one of the partners in Exploits River Hydro Partnership, said that NALCOR  is making the “scheduled repayments” under the terms of the loan. 

As of March 31, 2010, $59 million remained outstanding on the loan. The statement reads in part:

As the hydroelectric assets and water rights of the Exploits Partnership had been provided as security for the Exploits Partnership term loan, the expropriation of such assets and rights by the Government of
Newfoundland and Labrador constituted an event of default under the loan. The term loan is without recourse to Fortis and was approximately $59 million as at March 31, 2010 (December 31, 2009 - $59 million). The lenders of the term loan have not demanded accelerated repayment. The scheduled repayments
under the term loan are being made by Nalcor, a Crown corporation, acting as agent for the Government of Newfoundland and Labrador with respect to the expropriation matters.
[Emphasis added]

Newfoundland and Labrador-based Fortis noted in 2009 first quarter financial statements that the unidentified lender had not sought “accelerated repayment” following government’s expropriation.  The Exploits Partnership (51% Fortis/49% Abitibi) made the scheduled term loan payment in 2009.

The expropriation bill passed by the House of Assembly in December 2008 seized all the generating assets and transmission assets of the partnership and cancelled all leases and contracts related to it.  The assets were used to secure the loan. 

Under a contract with Newfoundland and Labrador Hydro, the Exploits partnership sold surplus power not needed for the Grand Falls mill to Hydro for sale to its other commercial and residential clients.  The 30 year power purchase agreement would have expired in 2033.

There is no indication in the 2010 Q1 statement that NALCOR and Exploits Partnership reached an agreement on all issues related to the expropriation.

The loss of income from the the Exploits Partnership as well as the expiration of a water rights contract in Ontario on another project combined to reduce gross revenue for Fortis Generation 73% from $19 million in 2008 Q1 to $5.0 million in 2010 Q1.  Fortis Generation is the subsidiary through which Fortis partnered in the Exploits project with Abitibi.

Contacted by Bond Papers in early 2009 to clear up confusion created by comments by the Premier and the text of the expropriation bill on the Fortis aspects of the expropriation, a spokesperson for the province’s natural resources department refused any comment on the process as there was a process in place to discuss the expropriation and any compensation.

In answer to questions in the House of Assembly last month about negotiations with Fortis and ENEL - another company affected by the expropriation - natural resources minister Kathy Dunderdale said only that talks were continuing and that “a number of arrangements had been made” in the meantime.

-srbp-