Jerome! rides again #nlpoli

Retired justice David Riche is the only independent person who has examined any information about Don Dunphy's death.

Hired by the Royal Canadian Mounted Police as an outside reviewer of its investigation into Dunphy's death,  Riche had an unusual but informed perspective.  Riche's comments to reporters last week about the Dunphy shooting and the police investigation did not fit with the carefully fabricated, self-serving comments made over the past few months by the police officer who shot and killed Dunphy.

That's why former justice minister Jerome! Kennedy smeared Riche this week.  Kennedy wants to damage Riche's credibility.  Kennedy represents the police officer who killed Dunphy and who will be,  not surprisingly, the focus of much of the public inquiry conducted by Justice Leo Barry.

The fact that Kennedy's unprincipled and unwarranted attack is so transparent in its purpose means it will be ineffective, at least as far as Barry's inquiry will go.  But the prospect that Kennedy will try to turn the make the inquiry a circus is cause for public concern and condemnation.

A meritless position #nlpoli

The new provincial Liberal administration has made the creation of a merit-based system of cabinet appointments the centre-piece of its first session of the House of Assembly.

The bill to give effect to their policy is not perfect but by the time it clears the House later this spring,  the province will have a long way from the pernicious practice of the former administration   - from 2003 onwards is one administration - of appointing people chiefly on their ability to follow directions from the Premier's Office.

Merit is the Liberal watchword and we should all be cheering a system that will base choices as they should be, that is on qualification, and dismiss irrelevant considerations.  If the Conservatives or New Democrats can improve the Liberal bill, then the Liberals should accept the amendments and move us all forward.  We would all be better off for it.

How strange it is then, that a senior minister in the administration for merit should push the federal government to make an appointment to the Supreme Court of Canada on the basis of anything but merit.

Enormous dividends #nlpoli

Back when he was in another cabinet job, Premier Tom Marshall made some comments about dividends from Muskrat Falls.

Let’s take a look at them.

The 2013 Harbour Grace Affray #nlpoli

Kathy Dunderdale told reporters on Tuesday, while the polls were still open mind you, that the by-election results would be no big thing.

Life would go on. 

The world would turn.

And the Conservatives had two years left in their mandate.

That’s when everyone in the province understood that the provincial Conservatives had already conceded defeat in the Carbonear-Harbour Grace by-election.

Unfortunately for Dunderdale, though, the election result means something.  Here’s what.

Truth and Fiction #nlpoli

If you take Jerome Kennedy at his word on Wednesday, here’s what is going on.

Since he wasn’t planning to run in 2015, he decided that he would leave politics on Thursday, go back to practicing law in November and then start a master’s degree in law in January.

Nothing going on.  No other story.  Nothing pressing.

Just good bye.

Now watch the video of the scrum.

Look at his body language.

And then realise how utterly preposterous Wednesday’s news conference really was.\

Jerome leaves at last #nlpoli

For anyone even halfway clued in to local politics, the rumours have been thick for months that Jerome Kennedy was about to bail from provincial politics.

Now it seems the time has come.  The latest media reports have him going as early as today (Wednesday) while the versions reported Monday had the departure coming next week.

There are three things about Kennedy’s resignation that stand out.

Jerome Kennedy: ace hole digger #nlpoli

Score another one for the Telegram’s James McLeod.

He interviewed finance minister Jerome Kennedy and wrote a story that centred on Kennedy’s contention that his party’s 2011 election promises weren’t really promises at all but a general blueprint or platform intend to implement depending on the cash available.

The story caused Kennedy such problems that he took to the Thursday morning open line show to claim he was misquoted and that the comments were taken out of context.  Later on he issued a news release that claimed the Conservatives had actually delivered on 43% of their promises.  The short release include a long list that someone apparently cut and pasted from the original list of Conservative not-promises.

Kennedy just made a bad situation worse.

More and Less #nlpoli

Finance minister Jerome Kennedy is supposed to know about the economy and stuff.

During an interview with CBC provincial affairs reporter David Cochrane for On Point, Kennedy said that in the 1990s the government was the main employer in the province.  The implication was that the public sector wasn’t what it used to be.  People laid off from the public service could find work much more easily in the private sector as a result.

Well…

Err…..

No.

Time to Break the Cycle #nlpoli

Jerome Kennedy told reporters on Wednesday that  he and his officials are forecasting that the provincial government will rack up almost $4.0 billion in deficits over the next three years.

That consists of about $725 million this year, followed by two years in which the government will spend $1.6 billion each year than it will take in.

None of that should come as a surprise to any regular SRBP readers.  This corner has been warning about the current administration’s spending practices since 2006. 

So now what?

The Annual Mixed-Message Season #nlpoli

Right after Ross Reid’s new job, Jerome Kennedy’s trip back to the finance ministry was the second most overblown story of the past week or so.

Most seem to think Kennedy is headed back to finance in order to tackle the public sector unions as part of the upcoming budget. That gives a bit too much credit to the individual in all this.  The budget isn’t handled by one person: it is the productive of collective action by a committee of ministers called the treasury board and ultimately by cabinet.

As the recent Telegram editorial on Kennedy’s appointment noted, the budget is all but finished at this point.  They are absolutely right.  What has normally happened in January since 2003 is essentially about the government delivering some kind of message or other.  In January 2008, part of the message was about a pile of new spending right after the 2007 election. And then right on the heels of that  - in the same year - was finance minister Tom Marshall and his debt clock warning about impending financial doom.

Sound familiar?

$#*! Jerome says, in living colour version #nlpoli

With a hat tip to IP Freely.

-srbp-

Revenue Streams and Not-so-Captive Markets #nlpoli

Natural resources minister Jerome Kennedy was in an exceptionally candid mood in the House of Assembly on Tuesday.

He explained that under legislation that will pass before Christmas,  Nalcor would be setting electricity rates for industrial users in Labrador.

Mr. Speaker, we need a guaranteed revenue stream in order to assure the bond rating agencies and the federal government that there is going to be monies to satisfy the requirements of paying the project. It is as simple as that. So, therefore, there has to be a restricted role of the PUB.

The interesting thing, though, is that Jerome couldn’t explain later on during debate in the House how the policy for Labrador would guarantee a revenue stream when the whole idea was to compete to Quebec so they couldn’t undercut Nalcor on price.

Combine the two of them, [generation, set by Nalcor,  and transmission, set by the PUB] …, and that is where we will come up then with the approximately $56 or $57 [per megawatt hour]  rate that will be charged. Again, it is very competitive and comparative to Quebec. However, if there is a process where Quebec either drops their rate to try to get business or increases their rate, Mr. Speaker, there will be a review mechanism in place whereby that can also be done by the minister.

The guaranteed revenue stream is actually somewhere other than in the industrial rates.  The guaranteed revenue stream is coming from the consumers on the island. 

Some people might be getting confused on how all the prices compare, what with the talk of megawatt hours and kilowatt hours.  Well,  industrial users in Labrador will be paying 5.6 or 5.7 cents per kilowatt hour for electricity that will come from Churchill Falls and from Muskrat Falls.  Consumers on the island will pay a blended price for electricity that includes Muskrat Falls electricity at 20 cents per kilowatt hour according to the most recent estimate Kennedy gave the House.

To switch to megawatt hours, for a second, that would be $56 per megawatt hour for industrial consumers.  Muskrat Falls delivered at Soldier’s Pond would be $200 per megawatt hour.

 

-srbp-

$#*! Jerome Says: federal loan guarantee not firmly in place yet #nlpoli

In the House of Assembly on Tuesday, natural resources minister Jerome Kennedy was pretty clear about the sanction process:

“What we have done … [is ] we have slowed down the process in terms of the sanction.”

Asked about slowing down the sanction process on Wednesday, natural resources minister Jerome Kennedy told the House of Assembly:

“I could be wrong; I do not remember saying anything about slowing down the process.”

Interesting.  And an Interesting choice of words.

Still Ready for a Better Tomorrow #nlpoli

Natural resources minister Jerome Kennedy on the financial typhoon of glorious benefits he and his colleagues are about to unleash via called Muskrat Falls:

The Province will make a lot of money off this project at some future point in order to not only to pay for the project but to pay for social programs and to allow us to transition from a non-renewable resource economy to a renewable resource economy. [Emphasis added]

We are always ready for a better tomorrow, Jerome.  Too bad no one can tell us when that day will come.

-srbp-

Jerome’s Grim Fairy Tale #nlpoli

Last week, some people wondered if Premier Kathy Dunderdale was out of the loop on negotiations over a federal loan guarantee when she seemed to say she did not know anything about an announcement in Labrador.

Some other people wondered if perhaps she knew about the talks but for some reason opted to claim she didn’t know what the Prime Minister would be announcing. If you want an example of the media reaction, take a look at the first story on the Here and Now broadcast on Thursday.

Reporters found her comments on Thursday afternoon so odd that one of them raised the issue with Prime Minister Stephen Harper during his news conference after the announcement.  Harper replied that he did not believe the Premier was unaware of the talks and the announcement but that she was being a wily politician.

That was just part of the confusion.  Later on Thursday, the announcement seemed to be off.  But almost as quickly, things were back on.  A story in the Chronicle Herald on Friday credited Nalcor boss Ed Martin with salvaging the deal.

How interesting, then, on Monday morning that a an entirely different story appeared, apparently from the Premier’s Office.

Jerome’s Jawbone of an Ass #nlpoli

Last week Premier Kathy Dunderdale told the House of Assembly something that was patently not true.

She said that the public utilities board had endorsed the Muskrat Falls project.

She did not mislead the House, as some suggested.  To do that, Kathy would have had to know something the rest of the members didn’t.

In this case, they all knew the rights of it.  Kathy just frigged up.

Badly.

Kennedy’s Krazy Kost Kalculations #nlpoli

One of the hardest things to do is keep track of the numbers the provincial government uses to justify their plan to double the province’s debt and force taxpayers to pay it down through their electricity rates.

Muskrat Math is unlike any other type of math because the numbers the government uses never add up.

Take events in the House of Assembly on Monday as a good example.

Self-massaging the message #nlpoli

The Telegram’s Pam Frampton has a neat column this weekend on Jerome Kennedy, Muskrat Falls, and the provincial government’s problems with explaining to people in simple terms why Muskrat falls is a good idea.

Frampton nails the biggest problem simply enough: 

The problem with the government’s Muskrat Falls message till now is that it has been a moving target. One week the project was all about clean energy, the next it was job creation, then it was all about being an affordable energy source, then it was a means of foiling Quebec, then it was a lure for mining companies.

Then she notes the critic’s arguments and the fact they they were,as Frampton, puts it often “shrilly spun” by government officials and others.

Kennedy tried to put a new face on government’s messaging during his appearance at the Telegram’s editorial board. as much as Kennedy seemed to change both his tone and his content, none of that stopped Kennedy from spinning  - to use Frampton’s word - either his own position or that of the critics. 

How surprising.

Some words for Lorraine, via Peter Cashin #nlpoli

Lorraine Michael should bear in mind that some very famous Newfoundland and Labrador politicians found themselves accused of defaming someone.

That’s really the essence of the current question of privilege Government House Leader Jerome Kennedy levelled against her last week.  Kennedy knows the law well enough to know that what she did is a matter that he or Felix Collins ought to have taken to a courtroom on Duckworth Street.  Kennedy likely also knows the law well enough to realise he stands virtually no hope of getting anything from a Supreme Court justice except the back of his or her hand.  That’s why he is trying to win in the kangaroo court where he controls a majority of the votes.

The Incendiary End Game in Corner Brook #nlpoli

As a rule, when a cabinet minister speaks publicly about a private sector company’s significant financial problems, things are not good.

Natural resources minister Jerome Kennedy told the world on Friday and Saturday that Corner Brook Pulp and Paper Limited had a heavy bank debt and an unfunded pension liability of about $80 million.  Kennedy said the mill that hasn’t made money since at least 2006.

Things are so bad that Kennedy  that he expected Joe Kruger was coming for a meeting to tell the provincial government he was closing the west coast paper mill.

So why was Kennedy gabbing about stuff he’d known about for some time but kept to himself?