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.

Premier Confusing #nlpoli

Premier Tom Marshall has been in cabinet since 2003.  He’s held pretty well all the big portfolios connected to Muskrat Falls, including natural resources and finance.

He should know details about Muskrat Falls backwards.

That’s why his comments in the House of Assembly on Monday caused such a stir:

The Whizzo Quality Assortment #nlpoli

On the outside, the spring budget for 2014 looks like a delicious assortment of goodies for everyone.  You can tell it is delectable because everyone is shouting for joy and drooling over their good fortune.

There is not a single group who have had their hands out for government money that did not get something. And they are telling anyone who will listen just how happy they are. 

Once you bite into one of sweetmeats in the Conservative Quality Assortment budget,  though, the result might be a wee bit less tasteful.

How do they run things? Budget Lead-Up #nlpoli

Finance minister Charlene Johnson will read the new provincial budget speech on Thursday.

In keeping with the provincial Conservative tradition, though, they’ve been announcing bits and pieces of the budget already.  On Monday, for example, justice minister Darin King announced that the new budget would contain money for 20 new sheriff’s officer to provide court security and new lawyers and staff for the legal aid division. 

Both news releases specifically indicated that the money was from Budget 2014, that is, money that isn’t supposed to be announced until Thursday.  Reporters asked King if the finance minister would have money for these announcements.

The Insiders #nlpoli

The story of the 2014 provincial Conservative Party leadership contest is a study in politics on its most basic level.

It is a story of those with influence and of those who have less of it or none at all.

It is a story of how politics actually works inside the Conservative Party, instead of how we imagine it.

It is a fascinating story.

Nalcor Oversight #nlpoli

The provincial government will be establishing a committee of senior public servants to co-ordinate information on Muskrat Falls for cabinet.

VOCM faithfully reported Premier Tom Marshall’s comments to reporters outside the House of Assembly.  The people want more, says Tom, so the Conservatives are going to give the public more oversight.  The new committee will receive monthly project updates and quarterly financial updates from Nalcor, according to the VOCM story. The committee will issue an annual report.

All new stuff supposedly.

Except it isn’t.

All hail the Glorious Leader Trope #nlpoli

“Province to deliver on promise of whistleblower law”  read the headline for the CBC’s online story about the provincial government throne speech read Wednesday in the House of Assembly.

About half way down the story,  it says that “Premier Tom Marshall is fighting back  against the perception” that the government he’s been a part of since 2003 is secretive. 

You’ll see the same idea in the Telegram’s story:

In today’s throne speech, Premier Tom Marshall made his most significant signal so far that the government is doing everything possible to be more open and transparent.

Last week, everyone told us that public satisfaction with the Conservative administration went up because of Tom Marshall. Corporate Research Associates certainly credited Marshall with the boost in the news release that covered the release of their poll data. The panel on CBC’s On Point with David Cochrane [March 8]all agreed that Marshall might play a significant role because, after all, he was the guy who boosted that satisfaction number.

What’s interesting about this idea, that Tom Marshall alone did all this, is simply not true.

Budget consultations and other political insanity #nlpoli

This year it is Charlene Johnson’s turn to host a series of meetings across the province that the provincial Conservatives cynically tout as a way for people to have some input into the provincial budget.

It’s cynical because – as the Conservatives know – the major budget decisions are already made before the finance minister heads to the first of these meetings. They are a waste of time.

The people who show up at these sessions have no idea what the actual state of the province’s finances are. The provincial government hides the real numbers until budget day.   Therefore the people who show up can’t offer any sensible suggestions, anyway.  Instead, they wind up begging like a bunch of serfs for more cash for this and more cash for that, even though the cash isn’t really available.

Competition #nlpoli

When they got up on Wednesday morning, everyone in the province who was paying attention knew that Bill Barry was going to launch his bid for the provincial Conservative Party leadership later that afternoon in Corner Brook.

Barry made his plans clear the week before.  He’s the only one definitely in the race so far.  On Tuesday night,  Barry posted an invitation on facebook for people to come out and join him if they were alienated from provincial politics and fed up with the way things were going.

Any news hunter scanning the radio dial on Wednesday heard about the Barry newser, but just before 8:00 AM,  VOCM news director Fred Hutton played the tape of an interviewed he’d bagged the night before with former Liberal leadership contender Cathy Bennett.  No one had heard from her since the Liberals elected Dwight Ball, but there was Bennett telling the audience of the province’s largest privately owned radio network that she was definitely running in Virginia Waters in the next election as a Liberal.

Gone was the Bennett of her campaign, at times brusque and stiff.  In her interview with Hutton, Cathy Bennett displayed displayed all the skills she’d learned from her hard months on the campaign trail.  She was articulate, confident and professional.  Bennett  affirmed her commitment to the Liberal Party and spoke confidently of the change she wanted to bring to the province as part of a future Liberal government. 

The Vibrant Unsustainable Super Energy Debt Warehouse #nlpoli

The Conservatives used to say that Newfoundland and Labrador was eastern North America’s energy warehouse.  Once Danny Williams ran for the hills and left Kathy Dunderdale in charge, she kicked everything up a notch.

Energy warehouse was too plain for Kathy, whose party ran on the slogan “New Energy” in the 2011 general election.

With Kathy running the place, it became a super warehouse.  “We are an energy super warehouse,” said Kathy countless times. 

The New Energy Party even clipped this bit of Kathy from the House of Assembly for its website back in 2011:

Mr. Speaker, this Province is an energy super warehouse. We have what the world wants. We will bring it to market. We will supply our own people, Mr. Speaker, and we will earn from those resources for generations to come.

“We will supply our own people, Mr. Speaker.”

Political Mummers’ Parade on Monday #nlpoli

Finance minister Tom Marshall will present his mid-year financial update on Monday.  It is supposed to be a way of bringing everyone up to date on how the annual budget is going. It’s an accountability thing.

Since the government’s fiscal year starts in April, the middle of the year was September.  So December is well past the mid-year.  As we all know, December is the last month of the calendar year so this mid-year report is a bit late there, too.  The only calendar that puts December in the middle of some year or other seems to be the provincial Conservative one.

The whole idea of a mid-year financial up-date winds up being a bit of a farce, then.  It’s much like having a consultation about what to put in the budget after the cabinet has already decided on the budget in secret beforehand.

Farce is not a word you associate with good government.  It’s more the type of word you’ll find to describe something like the annual  Mummer’s Parade.  For those who don’t know, mummering is a bit of Christmas entertainment when people pretend to be something they are not. Mummering is foolishness in a good sense of the word.  In politics these days, as with the Mummers’ Parade,  it seems that foolish is the new normal.

And that is not good.

O brother… #nlpoli

There are times when the talk in the province sounds a bit like the soundtrack to a movie,  a comedy to be precise.

On Monday, finance minister Tom Marshall sounded a bit familiar:  “This is a golden age, Mr. Speaker,”  Marshall said, “a golden age.”

Recall only a few years ago, Marshall was talking about Muskrat Falls like it was Bay d’Espoir:  build a hydroelectric facility to supply lots of cheap electricity for industry that can create jobs for the people who will pay for it all. Now Bay d’Espoir is another story altogether, but there’s a bit more to the history that makes this click together.

Governing by polls: fracking version #nlpoli

There’s something wonderfully cute about the blind, unquestioning boosterism you get from some of the more aggressive groups of young political party supporters.

All parties have them:  the L’il Liberals, the Dinky Dippers, and the Tiny Tories. 

With the provincial Conservatives so low in the polls, the ones among Kathy’s Kittens that desperately want jobs on the Hill as political staffers have taken to tweeting more aggressively than Paul Lane updating the universe on where he ate his latest free meal.

No comment is too Tony-Ducey inane for them to make or – as it turns out – more honest than the Big Connies would like.

Like water for muskrats #nlpoli

Wednesday it was Kathy Dunderdale.

Thursday, they sent Tom Marshall to chat with Bill Rowe on Open Line to do damage control in the wake of two huge setbacks for the Muskrat Falls project.

Some people think Tom is a good spokesperson because he talks in soft tones.  But truth be told, Tom’s really a bit of a train wreck.

Not exactly, there, Tom, b’y #nlpoli

As part of the orchestrated campaign to attack the people making the comments instead of the comments themselves , finance minister Tom Marshall trotted out in front of the news media on Friday to lace into a group of five lawyers.

Marshall said comments by five lawyers opposed to Muskrat Falls were “nothing new” and had been addressed before. All true.

At the same time, though, Marshall quickly read through an obviously prepared diatribe in which he said that the “use of such inflammatory language in my view is irresponsible and borders on fear mongering.”

People should pay attention to Marshall’s comments, but not because of Tom’s laughable hypocrisy.

Marshall’s release doesn’t match DBRS public statements #nlpoli

Simply put, Tom Marshall’s most recent news release about the report by Dominion Bond Rating Service doesn’t match what the bond rating agency said in a news release about the provincial government’s finances.

You can see that pretty clearly if you read the whole release from DBRS.

The Art of Budget Forecasting #nlpoli

The provincial government set its budget this year based on an oil price forecast of US$124 a barrel in 2012.

As we move up on the midway point in the fiscal year (it starts on April 1), oil is well below that.  The result is that the provincial government could wind up with a deficit of nearly three quarters of a billion dollars, according to the Premier.

Some people are amazed by this.

They shouldn’t be.

This fits a pattern.

Garnishee Tom’s pension first #nlpoli

Spendthrift finance minister Tom Marshall is willing to spend your money and mine to keep the Corner Brook paper mill afloat. As CBC tells us, Tom is keeping the options open:

"It can be a loan, it could be cash, it could guarantees but you know that we've made it clear we are not going to fund operational losses."

Well, you’ve got to admire a guy who is willing to spend public money to help out a bunch of people going through a hard time.

Diversifying the economy and slowing things down #nlpoli

Paul Oram was a colourful politician.

Well, colourful in the sense that he flamed out very quickly.  Regular readers of these scribbles will remember him as the guy who had no idea what had happened in the province during his lifetime.  Not long after taking over the health department, Oram precipitated a huge political crisis.  Then he high-tailed it from politics altogether with some pretty damning comments about how his colleagues were spending public money. 

These days Paul turns up as the token Tory on CBC Radio’s West Coast Morning Show political panel. he is still colourful.

On Monday’s show, Oram said that Muskrat Falls was a wonderful thing because it diversifies the provincial economy.  He did not say how.  Oram just said that it would.  No one asked him to explain what he meant.

That’s a lucky break for Paul.  You see, Muskrat Falls will not diversify the provincial economy. It is a public utility project.  What’s more, it does not produce any revenue other than what the people of this province will be forced to pay.  In that respect it is less of a way to diversify the economy as it is a new kind of government tax on the local economy.

But that’s okay: Paul has usually had trouble understanding this whole economic development thing.  That’s probably why Danny put him in charge of economic development at one point.

After bashing that around, the panel switched to talking about the provincial budget and health care.  Bernice Hillier – the host – asked Paul about the money in the budget for planning the new Corner brook hospital. 

Not a problem, said Paul.  The hospital is important.  The government will build it.

It’s just that times are tough, according to Paul.  The government is just slowing things down a bit until they have the money to build the hospital.

Interesting idea Paul had there.

Interesting because it is something that Oram’s old colleagues have categorically denied. 

Don’t have the money to build it now?

“That is one of the stupidest things I’ve heard in a long time,” said finance minister Tom Marshall last week.   Here’s what health minister Susan Sullivan said in the House of Assembly on Monday:

What we had in the past was a replacement design. Mr. Speaker, we are much more progressive than that. We do not want a replacement of the Corner Brook hospital; we want a hospital that is going to see us into the future. Therefore, we have asked them to go back, and with this $1 million we will look at a hospital that will meet the needs of the future in terms of essential services that are going to be in that hospital, Mr. Speaker. When that is done, then we will move forward with a design concept for the facility itself.

Paul Oram was a colourful politician.

He still says some curious things. Makes you wonder what he is going to say next.

- srbp -

A fresh smear of lipstick #nlpoli

CBC’s online version got the story right from the most recent episode of On Point with David Cochrane:

Natural Resources Minister Jerome Kennedy says the Newfoundland and Labrador government is not back-pedaling in how it is handling the Muskrat Falls hydroelectric project, even though the governing Tories are already planning measures they had ruled out.

And Kennedy is being absolutely straight with people:  the provincial government is not changing its direction.

Most emphatically and absolutely no change.  It’s Muskrat Falls or bust.

The ruling Conservatives are just changing the tone.

They are changing the appearance of things as they try and recover from the very serious blow delivered recently by the public utilities board

Look at what Jerome told David Cochrane.  two phrases in particular leap out:

“You have to show as a politician that you are flexible and open to listening to what the people are saying … what we are trying to do is assure the people of the province that everything is being considered…”

Show.

Not be.  Not do.

Show.

Open to listening.

Not actually listening. Or listening and then changing.

Just listening.

And that’s what this latest development is really all about: the appearance of change without actually changing.

Odds are very good that the government’s polling – done by Nalcor’s advertising agency – is showing that the government’s intransigence is undermining their credibility even further. Their strategy isn’t working.  People aren’t willing to just put blind faith in Jerome and Kathy and Fairity O’Brien.

That polling would very likely lead to advice for Nalcor and the government to change how things look.  Image, after all,  is everything for some people.

You wouldn’t need to poll, though, to hear people wonder aloud why the government is proceeding with this project at break-neck speed and despite the thoughtful criticism from a bunch of very smart people with tons of credibility.

You could also tell earlier on that the critics’ comments about Muskrat Falls did serious damage to the government case for Muskrat Falls.  Jerome Kennedy attacking them personally.

So now there will be a debate in the legislature.  As Jerome noted for On Point, the government has to introduce a piece of Muskrat Falls legislation this session anyway so they will now just have a bigger form of that debate.

Hang on a second.

What piece of Muskrat Falls legislation?  They’ve never mentioned that before.  Maybe we’ll find out what the legislation is about but notice that for all the promises Jerome made about assuring everyone that the government will put information in front of people, he hadn’t mentioned that important piece of information before.

The problem is not image.  It’s credibility.  They say one thing and do something else.

This new piece of legislation for Muskrat Falls will come before project sanction.  Logically, friends, that pretty much wipes away any suggestion in Kennedy’s comments later on with David Cochrane that Muskrat Falls might not happen.

Not surprising that Jerome didn’t mention it before now. Makes it kinda hard to assure people you could walk away from Muskrat Falls without batting an eyelid if you are planning to change the laws to pave the way for it before you’ve supposedly decided to get on with it.

So anyway, once again Jerome Kennedy wants to reassure people in the province that they will have all the information the public utilities board couldn’t get plus reports on wind and natural gas in order to assure the people of the province that Nalcor has considered all options before picking Muskrat Falls.

He mentions reports on wind and natural gas that some companies will complete for Nalcor. 

Just remember what Nalcor and the provincial government have always said.  You can find it in a blog post by Nalcor boss Ed Martin over at Nalcor’s “leadership” blog, posted April 5:

Nalcor examined a broad selection of generation supply options to meet the island’s growing and long-term electricity needs including: nuclear, natural gas, liquefied natural gas, coal, continued oil-fired generation at Holyrood, simple and combined cycle combustion turbines, wind, biomass, solar, wave and tidal, hydroelectric developments on the island and Labrador and electricity imports.

They looked at it all before picking MF.  You name it: they studied it.

Supposedly.

So what’s with the new studies?

Good question. 

If the MFers had really had looked in detail at everything before picking Muskrat Falls, then they would  - Number One – already have those studies and would not need to produce “reports”, and  - Number Two – they’d have already released them to show that the alternatives just don’t work.

Yes friends, you are already getting the distinct aroma in your nostrils of the spore from rattus politicus pinocchiosa.  That is one honking big rat turd you smell, too.

You see, we know what these reports will say.  We know because Jerome told us.

March 6 in the House of Assembly:

MR. KENNEDY: … We have looked at natural gas, Mr. Speaker, extensively. In fact, I can say to the Leader of the Opposition, I met with Ziff Energy out of Calgary on the weekend while in Toronto on another matter. They concluded, clearly, that the importation of gas from the United States is not economically feasible. Mr. Speaker, we know, clearly, that the building of a pipeline from the Grand Banks is not feasible. If the Leader of the Opposition has other options, I would like to know what they are.

March 7:

MR. KENNEDY: … I have met with different consultants in this area, most notably Wood MacKenzie out of New York and PIRA out of New York. We have discussed the issue of the pricing of natural gas and the effect of shale gas on markets and electricity markets.

This past weekend, Mr. Speaker, I met with a company called Ziff Energy out of Calgary. I met with them in Toronto. We outlined to them the proposals that had been put forward by various critics of the project and the conclusion reached, Mr. Speaker, by all of these consultants, experts, not self-professed experts, Mr. Speaker, the conclusion reached is the importation of natural gas is not economically feasible, nor is the building of a pipeline from the Grand Banks.

Remember Jerome’s penchant for slagging the critics”  “Not self-professed experts”.  You can tell that all those critics, none of whom are self-professed anything, are causing Jerome and his mates lots of trouble.

And if that doesn’t jog your memory, here’s Jerome from March 13:

MR. KENNEDY: Thank you, Mr. Speaker.

Mr. Speaker, Mr. Ed Martin, the President of Nalcor, outlined in great detail the steps that they had taken in terms of looking at the options for Muskrat Falls, Holyrood refurbished. They indicated that at the Decision Gate 2 process, liquefied natural gas was screened out. Mr. Speaker, as Mr. Martin indicated, it was a fairly easy decision at that point because the viability of building a 350 to 650 kilometre pipeline from the Grand Banks just did not work. I am not aware of any LNG study.

Mr. Speaker, I have indicated on several occasions, I have met with experts, notably Wood MacKenzie in New York, PIRA in New York, and Ziff Energy of Calgary and discussed natural gas. I have indicated that the opinions given to us unanimously are that natural gas is not going to work. There are no studies or reports that I am aware of. If there are, they are in the eight boxes and I suggest that the Opposition go through them.

To paraphrase Jerome’s line until now:  We looked at it all.  We’ve talked to the experts.  They tell us we were right the first time.

Nothing changed at all in his discussion with David Cochrane over the weekend, except the cosmetic shift in tone we’ve already noted.  Any claims or suggestions to the contrary are simply unfounded.  you won’t need an expert study to see why.  To borrow a phrase the lawyers like:  the thing speaks for themselves.  Res ipso loquitur.

And even with a make-over, Muskrat Falls is still in trouble and the strategy the government is following is still Arnold Ziffel with a new smear of lipstick.  They are ploughing ahead with Muskrat Falls and all the sound advice in the world won’t persuade them to change their course.

We know that because finance minister Tom Marshall said it on province-wide radio this week, before Jerome tried to change the tone of government’s MF message track:

The opposition will get its say, then the government will get its way.  That’s how democracy works.

That isn’t how democracy ought to work. It is, however, how Jerome and his friends know it does work around these parts.  They just get shy when people realise it.

- srbp -