Counter-spinning negativity – Jerome! version

So there’s Jerome! trying to spin the Ottawa speech to Randy Simms over at Open Line.  Big crowd.  Sceptical at first but then slowly realising the truth until a giant standing ovation at the end.

Uh huh.

Right.

Actually, the audience was small, according to reports from some in the room.  Tables packed but a small number of tables spread out in a relatively small room at a hotel where the Canadian Club of Ottawa has been known to jam the place to the rafters for speeches by other premiers from the Far East.

The audience include a bunch of federal politicians from Newfoundland and Labrador, the majority of whom have a track record of jumping when the Old Man barks. They had to show up.

But no giant groundswells of editorial opinion one way or t’other. The media coverage generally was pretty light:  Reuters Africa. roflmao.

What did get coverage?

A fake lake and some ludicrous claim by a couple of people about a political merger conversation that never was.

Face it:  if four inches of water and David Dingwall’s former political staffer make a bigger news hit than a speech by a provincial Premier claiming all sorts of hideous things about another provincial government, you have the definition of a complete public relations disaster.

That’s why Jerome! was torquing so desperately.

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Jerome! ducks reporters on medevac fuss

Health minister Jerome Kennedy today refused to answer questions from reporters following his claim that incidents in St. Anthony related to his decision to relocate the air ambulance service had reached the pointed where he was speeding up the relocation.

As CBC reported:

"There has been at least one other incident that has caused us some concern," said Kennedy, who added that the situation in St. Anthony has become so volatile that the government moved up its timetable on relocating the air ambulance service.

But Kennedy would not describe other incidents, and was not available to speak with reporters later.

Kennedy is moving the air ambulance without a trained crew to handle medical evacuations.  As a result, the aircraft will have to fly from its new home in Goose Bay to St. John’s to pick up a crew and then return to carry out the med evac.

The relocation came after two incidents in Labrador where aircraft were unavailable for medevac flights.  Neither incident was connected to the aircraft base location.

In the fall of 2009, for example, a child waited for nine hours while the lone air ambulance then flying made a series of runs to and from Labrador with more urgent patients.  The second of the provincial government’s two medevac aircraft was down for repairs at the time and – apparently – no arrangements had been made for a backup.

Other aircraft were potentially available.  For example, Churchill Falls (Labrador) Corporation – owned 65% by the provincial government’s energy corporation  - owns a B-300 King Air that is both available for charter under certain circumstances and which can be configured for medical evacuation.

In late 2006, entrepreneur Bill Barry tried to interest the provincial government in chartering aircraft from a company he owned at the time to provide medevac service from Deer Lake. It appears nothing came of the idea.

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Kremlinology 14: Dead Caterpillars

Brian Tobin did it.

Roger Grimes did it.

Well, yes both served their political party as leader and served the province as Premier.

But before they became premier, they took the rather obvious step of shaving off a moustache they’d sported for years before.

There’s no coincidence.  As the groomers and other hangers-on start to gather around prospective political leaders, one of the first things they suggest is that the ‘stache has to go.

And go it does if the pol has leadership aspirations.  In countries following the British parliamentary tradition, facial hair on politicians generally – but especially on first ministers – has been out of fashion for a century.

After the fashion changed, along came the rationalisation that people don’t trust their first ministers to have beards or moustaches. There’s probably no empirical evidence to support that but it is there all the same.

And you can be guaranteed the advice will come to a politician who wants to lead anywhere:  shave it off.

It doesn’t matter if the thing works aesthetically.  Take a Gander at Jerome!’s official mug shot. The moustache is neat and well trimmed.  It’s also a natural colour, something St. John’s municipal politicians could notice. The ‘stache also gives him the appearance of having a mouth sized in proportion to his face.

He looks pretty good.

So the only reason he would dump the dead caterpillar – short of some sudden, previously undiagnosed skin condition – is political.

Here’s the new Jerome!, incidentally, in a screen cap from a recent CBC television interview.

The difference is quite striking.

Striking yes, but in some respects a difference brought on by the same limited, unimaginative thinking that wanted to take Trevor Taylor and put him through an Eliza Doolittle kind of sanitizer merely to get rid of his accent.

In Trevor’s case, his accent was not impenetrable and his tendency to use colourful language reinforced his core strength:  he spoke sincerely, honestly and straightforwardly.

In Jerome!’s case, the moustache didn’t really serve as a distraction. What had been working against him was his tendency to speak rapidly and  - when he got excited - to have his voice head for a pitch heard only by dogs. 

Jerome! has evidently been working on speaking more calmly and speaking in the lower part of his range.  All that has helped him immensely and his recent performance in the new portfolio has been extremely good.

But getting rid of the moustache?  That’s probably the least of his worries.

The only thing Jerome and his handlers have done is sent an unmistakeable signal that he wants to be Premier.

Oh yes.

Mustn’t forget.

And that he might get a chance at the job sooner than people think.

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Kennedy on Straits by-election: Hail Mary!

Guess what?

Lab and x-ray service is staying in Flower’s Cove.

Former finance minister Jerome Kennedy announced the decision today on voice of the cabinet minister’s morning call-in show.

The Tory candidate must not be doing too well in the by-election.

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Oil and the budget

The provincial government seems to be in one of those strange places it goes every now and then.

It’s a world where the messages are decidedly mixed, if one picks a generous way to describe it.

Totally confused would be another way of saying there are two completely contradictory messages rolling at the same time.

Both of them are coming from the current finance minister who is also a former finance minister and notorious for running an open cheque-book department.

In the latest incarnation, Tom Marshall is seen supporting a CBC news story that rising oil prices are wiping out the projected government deficit.

Just yesterday it was a tale of looming financial woes. Tom Marshall even repeated the message that government spending  - i.e. the spending he oversaw in the job before - is unsustainable. 

In the CBC story, though, Marshall tries desperately to avoid giving any firm indication of the province’s current financial state:

If the price averages $70 a barrel for the entire year, it could wipe out the provincial deficit, but Marshall cautions against such predictions yet.

"It's not just the price," he said. "It's the volume. It's the exchange rate and of course we don't know what's going to happen in the future in terms of production numbers."

There are a couple of things to note here.

First of all, Marshall knows exactly where things are at this, the midpoint in the fiscal year.  he also knows where things are likely to wind up within a relatively narrow range of possibilities.  Marshall just didn’t want to share, even if CBC actually asked, and he likely won’t share until December if recent practice holds firm.

Of course, there’s a reason why the government holds on to information.  They clam up so that people who ought to have accurate information can’t get it, but that’s another issue. 

Second of all, we can fill in some numbers but not others. 

The stuff we are missing includes revenue figures like sales tax, mineral royalties and personal income tax.   If those are lower than expected, then it would take more than high oil prices to deliver a balanced budget. It’s unlikely those figures will turn out lower than estimated since the finance department routinely low-ball revenues these days.  But still, we don’t know because they aren’t saying.

We also don’t know what government spending is actually like. Operational spending may be up or it may be down.  Ditto the capital budget, or the “stimulus” as it is known currently.  If projects are behind schedule or delayed – as many are – then the cash budgeted for those projects will reduce the overall spending part of the budget.  A healthy chunk of the massive surplus in the last couples of years has been coming from forecast spending that just never happened and wound up not happening for two or three budgets.

As for oil, we can get a fairly good idea of what that looks like. 

Price is one element.  The 2009 budget used a figure of US$50 a barrel and an exchange rate that put oil at the equivalent of around Cdn$60.  Oil is currently almost $20 a barrel higher than that, even allowing for the lower exchange rate with the American dollar.

Production is another element.  Last year, oil production exceeded 125 million barrels.  This year, the provincial budget used a figure of  98.5 million barrels or a decline of  21%.  As it stands right now production in the first five months of the fiscal year is down about 27% compared to last year.  A 27% drop in production would mean a total production of about 93.75 million barrels.

But that’s not the whole oil picture.

The other bit is the percentage of each barrel the treasury gets and neither the budget documents last March nor Tom Marshall these days will talk about that publicly either. 

Thanks to the 19 year old Hibernia royalty regime, the provincial government take at Hibernia jumped to between 30% and 42.5% this year when the project hit pay-out.  Terra Nova and White Rose are already in pay-out and are pumping 30% royalty rates based on the original royalty regimes from before 2003.

And that’s where it gets interesting.

The budget figures don’t appear to include the higher royalty rates. factor those in and even the lower production total of 93 million barrels would produce provincial royalties of at least $1.9 billion. When your humble e-scribbler ran the numbers in August - estimating the revenues from each project -  the figure came out about the same as last year’s oil royalty. 

What all this means is that even allowing for some variation in other revenues and in overall spending, the books will likely be balanced this year on an accrual basis even at the low-end estimate.  On a cash basis there would a shortfall;  the budget forecast $1.3 billion. 

On the upper end, the forecast accrual deficit would turn into a surplus of something on the order of $500 million.  On a cash basis, the books would be balanced.

All in all, though, one must wonder why there is some much confusion coming from the current and former finance minister(s).  They could be letting the rest of is on their own projections since, the only negotiations going on right now are with voters.

Voters have a right to know how their own finances are looking, don’t they?

Oh yes.

And let’s not forget in all this that the budget last year included $1.8 billion in temporary investments that no one wanted to draw any attention to.

Makes you wonder why Tom and Jerome and Danny have been putting on the poor mouth again, even if just for a minute now and then.

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