The old cabinet documents ploy #nlpoli #cdnpoli

Premier Kathy Dunderdale and her ministers refuse to hand over documents on more than $5.0 billion in public works spending by the Conservatives since 2004.

The documents are cabinet secrets, as their argument goes, and under the access to information law cabinet cannot release that information to him.

like her predecessor, Premier Dunderdale was unavailable to talk to reporters earlier on Thursday but she did have time to call an open line radio show to talk about the Auditor General and other things.  Dunderdale eventually turned up at a 2:00 PM scrum to take reporters questions.  Predictably she rejected any claims that she is withholding information improperly.

Here’s one bit, as relayed by CBC:

Every piece of information that comes in to government is available to the auditor general. It's just the preparation of material used specifically for the preparation of cabinet documents is not available.

Elsewhere in the scrum Dunderdale explained that the Auditor General had others ways to get the information he needed.  When asked to explain that by reporters, she couldn’t.  Dunderdale also admitted that there was actually no infrastructure strategy.  Instead there were documents prepared for cabinet that gave a complete overview of the government’s capital works spending.

But anyway,  by her own account, therefore, that’s the sort of thing that the Auditor General wouldn’t be allowed to see. The AG wanted to look at a strategy and assess the performance.  By Dunderdale’s account there’d be no way he could see what was included in the non-existent strategy and what wasn’t.

Sounds foolish.

And it is foolish.

It’s also familiar.

In 2006, Danny Williams and his cabinet (including Kathy Dunderdale) took exactly the same position when another Auditor General asked for documents on the fibre optic project. 

No way, they said:  cabinet documents. 

Secret, don’t you know, old chap. 

Access to information law and all that, what what.

Now in that instance the government  - through a resolution in the House of Assembly – asked the AG to “investigate all the details and circumstances” of the controversial deal.  That’s really no different than the AG doing the job he got from a law passed by the House of Assembly (the Auditor General Act).

Same situation.

Same effort to hide information.

And ultimately, cabinet’s excuses are still just as flimsy.

Your humble e-scribbler pointed out in 2006 that cabinet can use its own discretion and release any documents it likes. They did it in 2004 and, eventually, Williams and cabinet relented with the fibre optic review and gave the AG what he needed. 

Now it took four months, mind you, for them to do the right thing.  But after lots of public pressure, Williams and his cabinet reversed their stand.  In effect, Williams and his cabinet (including Kathy Dunderdale) admitted the argument they’d used the year before was utter bullshit.

Just to be sure, folks, what we are talking about here is just provincial capital works spending dolled up as something much grander than it ever was. They called it “infrastructure” but essentially it was – and is – the sort of road building, road paving, schools building and all the other capital works that government shave done for decades.

And Auditors General before the current one have had no problem looking at the documents, totalling up the amounts, checking the way things were done and then reporting what they’ve found.

Until now.

For some reason Kathy Dunderdale and her cabinet want to keep a giant chunk of  public works spending over the past eight years away from the Auditor General and his Excel spreadsheet.

The question is why.

Maybe it has something to do with what the AG did get to look at. The Labrador Highway and public publics repairs chapters don’t make for pretty reading. 

Maybe it has something to do with just how much political consideration goes into public works decisions like road paving.

Maybe it has something to do with what SRBP already noted about capital works under the Tories.  So much of the “stimulus” and the infrastructure program was nothing more than regular public works spending announced and re-announced and announced over again.  Through it all, though, it appears that massive cost over-runs and inexplicable delays measured in years are routine for government public works projects. 

Some of the most embarrassing of the administrative messes cost the provincial government a cabinet minister in 2009. Remember the Lewisporte and Fleur de Lys health care centres and Paul Oram? That was about capital works decision-making within one of the departments that refused to turn over documents to the Auditor General.

Whatever the reason, one thing is clear:  early on in his tenure, while Danny Williams could keep up the old cabinet documents ploy for six months, six years later, the public won’t put up with that sort of political tomfoolery any more from any one.

- srbp -

Our plastic history revisited

One of the earliest posts among these e-scribbles dealt with a proposal – in 2005 – to rework the Colonial Building. 

The plan was to fix the place up, set up some displays to “interpret” some parts of the province’s political history for visitors and turn the rest of the building into offices.

The plan is striking for its ability to reduce the significance of our historic seat of government to yet another mouldering artifact of the past. The language of this discussion paper is sterile: "The Colonial Building is one of the most significant heritage properties in Newfoundland and Labrador." It is said to have heritage character-defining elements.

The plan is also striking since a committee of government-appointed experts from government and the local arts, cultural and heritage associations has determined the fate of the building, now vacant with the absorption of the Provincial Archives of Newfoundland and Labrador into the bland collective known simply as The Rooms.

The Colonial Building is to be restored in some fashion and turned into offices for arts, cultural and heritage organizations in the province. There will be the obligatory charade of "stakeholder consultations", but the Colonial Building will continue to be what it has been since 1959 - home to yet another group of technocrats.

In 2005, the whole thing was supposed to cost a little over $3.0 million, with the bulk of that going to restoring the building.

The original post raised a few hackles on someone involved in the whole plan.  He fired off some odd e-mails.

And then the whole plan vanished off the face of the Earth.

Like so many plans, strategies and other Great Initiatives of the current crowd what is running this place, people just stopped talking about it.

Stopped talking about it, that is, until the last day of announcements in the Summer of Love 2011 Great Orgy of Spending Announcements by the provincial Conservatives. These announcements have absolutely nothing to do with the pending election or the fact that the provincial government’s pollster is in the field this month.

Premier Kathy Dunderdale and federal intergovernmental affairs minister Peter Penashue pulled off a mega-announcement in St. John’s of federal and provincial cash totalling more than $60 million for three projects. 

The two governments will get together with the City of St. John’s to drop $45 million into expanding the St. John’s Convention centre.

Another chunk of cash will go to turning an old industrial site in Paradise into a municipal park paradise sort of thing.

And the balance will go to the Colonial Building project.

There’s no dollar value on the Colonial Building project in the official news release, but odds are it is considerably more than the $3.0 million the whole thing was supposed to cost six years ago.*

Our plastic history, inordinate delays and massive cost overruns.

Plus ca change.

- srbp -

Holy Frack Update:  According to the Telegram:

Premier Kathy Dunderdale also announced $8.6 million from the province (to be matched by the federal government) to complete the restoration and modernization of the historic Colonial Building, which used to house the provincial legislature and archives. That funding will be added to $4.4 million previously committed by the province and $625,000 from the federal government.

Clicking and clacking the old calculator gives us $22.225 million.

That would be seven and a half times the projected cost for the whole she-bang in 2005.

Aquaculture centre opened three years behind schedule, more than 100% over budget

Premier Kathy Dunderdale opened an aquaculture centre in the south coast community of St. Alban’s on Thursday three years after it was supposed to be finished and at more than twice the original forecast price.

Former fisheries minister Tom Rideout announced the offices and laboratories in 2007.  He estimated the cost at $4.2 million.  It was supposed to be opened in 2008.

In a news release marking the opening, the provincial government reported the facility cost $8.8 million.

Danny Williams included the project as part of the provincial government’s “stimulus” package in 2009.  That was just one of the delayed and over budget Williams included as if they were brand new projects in response to the recession.

- srbp -

A tisket, a tasket

You gotta love subtle minds, especially subtle political ones able to see nuances of meaning or the possibility you could rub your tummy and pat your head simultaneously.

That would be most definitely not like the political geniuses of the last decade -  Danny Williams and Kathy Dunderdale  - who always saw the world as consisting of two polar opposites:  what they wanted to do, and the pathway to complete destruction.  With Danny, his tendency to gainsay got to be especially funny since he was known to wind up arguing with himself on some major issues like Equalization.

The latest example is Kathy Dunderdale’s comments to the Telegram editorial board.  In the latest offering from that rich gold mine, Steve Bartlett tells us that Kathy Dunderdale has no time for any talk of a sovereign wealth fund.

For those who don’t know what that is, a sovereign wealth fund* would be what they do in smart countries, like Norway, to make sure their oil money continues to benefit the country long after the last drop of oil is gone. 

Basically, the Norwegians put a bit of their oil wealth into an investment fund and let it make more money for them.  They do lots of other things with their oil money, like build roads, bridges, tunnels and schools and such.  But they put some of it aside for a rainy day.

Now bear in mind the Norwegians have a shitload of oil and natural gas.  They are not really in danger of running out in the near future and there is always a good chance that all the exploration going on offshore Norway will turn up a few more gushers.

Still, they still thought it might be wise to start a rainy day fund. 

You know. 

Just in case.

And now several billion or trillion dollars later, they are doing just fine.

Some people have suggested the same idea here.  The most recent one is Wade Locke. Kathy thinks it is foolishness:

"People talk about a legacy fund all the time and we respond to that by saying, 'That's our legacy fund, the investment in infrastructure.' Because unless you have roads and wharves and hospitals and schools, your economy can't grow," she says.

There’s that binary thinking again.  No chance of doing more than one thing.  Sovereign wealth fund or infrastructure.  The word “and” is not in Kathy’s vocabulary.

One of the many things Kathy missed is that all those roads and wharves and hospitals and schools don’t really produce any money to pay for their own upkeep.  That’s especially true in a province like this one where the economy has grown increasingly less diverse over the Tory term of office. So it is great to spend a bunch of money on all that lovely infrastructure but if that is all you have done with the cash, you really haven’t done much in the long run.

The sensible answer would be to do several things with the oil money.  Invest some.  Spend some.  Pay down debt with some.  Build some infrastructure with some.

What Kathy and her mates have done is put all the province’s financial eggs into one basket.  It’s basically the same thing the Tories did with their own political leader:  one egg to rule the basket.  Sadly, when the time comes and the egg goes, as it inevitably will, all you wind up with is the sad case of …well…an empty basket.

And who really wants to be left with a basket case?

- srbp -

*  Paragraphing change and rewritten sentence to make it clear that the sentence after this mark wasn’t a comment made or or attributable to  KD.

Lies, damn lies and throne speeches

One of the glorious piles of foolishness you will see again in Monday’s provincial throne speech is the idea that no provincial or federal government before this current provincial one paid any attention to public sector capital spending.

For too many years, for want of proper infrastructure, our province languished while other regions of the country prospered.

It’s foolishness because every government delivered capital spending, even in the leanest of times.

Take a look at this table.  It shows public sector capital spending in the province from 1991 to 2011.  That’s federal and provincial spending combined and it includes construction as well as equipment.  The figures are compiled by the Statistics division of the provincial finance department using Statistics Canada figures.

The section marked Red I basically reflects provincial spending during the early 1990s recession combined with what appears to be any federal money that went into Hibernia.  That would account for the peak in 1995 and the drop off in the last year of the project before the GBS tow-out and first oil in 1997.

Blue II represents the combined federal and provincial Conservatives’ “stimulus” spending.

Red III  is a bit of an anomaly but since it covers both a federal and provincial election period, odds are good that there is a connection.  Anyone who can offer a reasonable explanation is welcome to chime in on that one.

What’s curious is that the first three years of the current provincial Conservative administration is roughly the same as that Red II period in terms of total capital spending.  It’s not because the provincial government was flat broke;  it wasn’t.

To the contrary, the provincial government had cash and announced a fair dollop of spending in the run-up to the 2007 election.  What seems to be reflected in this diagram is that a great deal of the capital works announced by the provincial Tories around the 2007 election just didn’t happen until two to four years later.

It’s one of those curious things but the current crowd what is ruling over us seem to have a chronic problem delivering their capital works projects.  They can announce them alright, but finishing the delivery seems to be a problem.

Oh.

And there is no coincidence that capex is peaking in 2011, a definite provincial and likely federal election year.

- srbp -

Jerome! if you want to

So the Premiers are getting together and one of the Premiers can’t go.  Let’s say he has a bad back.

The meeting is about the economy.  Who does he send to stand in for Hisself in all his premierifficness?

Three guesses.

Hand-picked usual stand in, d.b.a. deputy premier Calamity Kathy Dunderdale.

Nope.

Intergovernmental affairs minister Dave Denine.  Seems logical.  It’s a meeting among governments and that’s pretty much the definition of what an intergovernmental affairs minister should be doing.

Nope again. Dave Denine may have the title but he is really just building up pensionable time.

Hmmm.

Economy, right?

Finance minister Tom Marshall.

Nope for a third time. The Old Man sent the province’s health minister to an economic meeting.

Sure the guy was finance minister for a few months, but there are other people with nominal responsibilities that cover the meeting agenda topics long before you get to Jerome! Kennedy.

Curious.

Among other things, what you have here is a clear sign that Jerome! is one of the trusted handful who actually run the province.  Despite his griping, Danny does run the place just like he used to run the private businesses.  He handles things with a few trusted chums and that’s it.  Jerome!, Tom and Kathy are the latter day version of Steve, Ken and Dean. If something needs doing, Danny will turn to one of those three to get it done.

And let’s face it when the Old Man bitches about pesky things like internal party politics – let alone politics generally – what he is really saying is that he wished the world would frig off and let him rule his fiefdom as if it were a law firm or cable television company. 

The only thing he has ever asked is that people regard his voice as if it were the voice of God Himself. The only reason the Old Man has a caucus, a cabinet of more than three in the first place and a legislature of 48 is that he can’t easily get rid of the constitution.

Understand that and you understand everything.

Understand as well, that when the Old Man finally does pack it in, Jerome! is likely the guy to replace him.  Kathy and Tom are heading for the door likely before the next election.  Joan Burke may have a war chest but odds are that we’ll be talking about Premier Kennedy once Danny flips to Florida permanently.

Some of you may be wondering about the talk at the meeting about the economy and what role the federal government should play in continued stimulus spending.  You may be pondering what impact any of this will have on Newfoundland and Labrador. Premiers are agreed that the federal government should continue to spend.  They are only divided on the question of how much. Quel surprise.

Newfoundland and Labrador would be in an embarrassing spot on this issue and it will be interesting to see what, if anything, Jerome! has to say. 

He could not easily side with the other “have” provinces who now want the private sector to drive the recovery.  After all, Jerome! and his friends have presided over an unmistakeable – and presumably deliberate -  weakening of the private sector in the province.  Never mind Danny Williams’ claims about leading a Reform-based Conservative Party; his actions don’t match his words. 

Rather, the “have” province of Newfoundland and Labrador would have to side with the “have not” provinces like Ontario that want the federal government to keep pouring cash from its bank account to keep the place going. Williams, Kennedy are forecasting yet another record cash deficit for 2010. More are on the way in a province where public spending is the only thing keeping some parts going at all. Danny Williams, the leader of a Reform-based Conservative Party would have to wind up in the same position as Jack Layton, begging for Stephen Harper’s help.

It’s a good thing Danny’s back went out.  Jerome! can sneak in and sneak out without anybody really expecting him to say much.  If Williams had shown up then all his contradictory positions would be laid bare. His piss poor relationship with his fellows would be on display for all the world to see. He’d have a pain, alright, but a bit lower than his back.

- srbp -

Burdening our children with increased debt: fish centre costs escalate wildly

An aquaculture centre that was supposed to have opened in 2009 for a cost of $4.2 million will now cost $8.8 million and construction isn’t set to start until later this spring.

Cost of the project shot up 22% in 2009 alone on a project that even then was already 71% over budget. Former fisheries minister Tom Rideout announced the project in 2007 as part of government’s pre-election vote buying orgy of public spending.

The provincial economy shrank by 26% in 2009.

-srbp-

Blooms and roses

News reports about a climb in the number of jobs across the country buried a key aspect of the story, as in this example from the Globe.

But there was a catch. Much of the private sector has yet to start hiring again. The job growth was due to 36,000 positions added in the public sector, while the private sector shed 17,100 jobs, in sectors such as transportation, professional services and accommodation. Private sector employment has dropped 3.9 per cent over the past year.

That was paragraph four, long after the stuff about huge gains and ones bigger than expected.

Now this is a rather interesting revelation in light of economic developments in Newfoundland and Labrador.

You see the boom on the northeast Avalon isn’t being fuelled by the offshore.  It’s coming entirely from massive increases in public sector hiring, public sector wage increases and a huge jump in public sector spending.

The most recent round of ‘stimulus’ spending for capital works is just more cash in on top of the gigantic increases in public spending over the past four years. That would be the “unsustainable” ones for those who missed the drama of the past few weeks.

Incidentally, the guy who revelled in boosting spending beyond the levels that the economy could support is back in charge of the cash box.  He proudly noted for listeners of one local call-in show that the province currently outspends Alberta on a per person basis just as it has done for most of the past decade and a half.

Yet for all that, the province just shed 4200 full-time jobs between August and September 2009 and there are 3100 fewer full-times jobs this September compared to last.

All this should lead people to be a bit cautious about predicting the end of the recession and the quick return to happier times. 

Here in this province, the current provincial economy is sustained by huge levels of public sector spending.  But that just isn’t going to work given the anticipated drop in oil production over the next four years.  Even if the global economy rebounds, crude oil prices aren’t likely to hit levels double and triple what they are today:  that’s the sort of prices the provincial government would need to keep up its current spending.

No one should be surprised, therefore, that the premier and his new health minister – the guy who used to be finance minister – just headed out to a by-election and pulled a fast one on the locals.

Come help us figure out cuts to the building cost, they said, so you can keep lab and x-ray services.  What they didn’t point out is that the savings needed are not the $200,000 in annual operating costs but the millions in construction costs.

In Lewisporte, for example, estimated costs for the new combination seniors home and acute care clinic skyrocketed from $22 million to $42 million before they even got to thinking about putting the first shovel in the ground.  In order to contain costs, government scrapped the acute care bit for a saving of $10 million.

But do the math. 

In order to restore the acute care centre and its anticipated cost of $10 million, the locals in Lewisporte will have to cut out one third of the beds – at least – in the new chronic care centre in order to get laboratory and x-ray service back.

So where are those old people supposed to go?

That’s a very good question.

Too bad the current administration doesn’t have an answer even though the problem and a viable solution have been available  - but ignored - for over a decade.

-srbp-

Much less for way more in St. Anthony

Costs for a new sports and conference centre for St. Anthony have already jumped 70% over the original budget and no one has even broken ground on the new Polar Centre yet.

In January  2007, the new centre was estimated to cost $5.676 million. By May, 2009, the project was estimated to cost $9.557 million.

But here’s the thing:  the higher cost facility will actually be a fraction of the original project.

In 2007, the new facility was supposed to include an arena seating “1,295 people, a conference centre, an indoor walking track, and will provide the necessary amenities to enable the town to host significant conferences, trade shows and other events.”

The centre announced on Monday by no less a personage than the Premier himself will house only 540 spectators and won’t have any of the conference and trade show facilities.

The Premier was in St. Anthony to announce that tenders would be called shortly for site preparation on the new arena which will be tacked onto a brand new multi-million school housing students from kindergarten to Grade 12.  Total estimated cost for the combined project is $28 million.

For those who might think the Polar Centre is still alive, guess again.  The town council still has a news release trumpeting the 1295 seat arena, but a news story in the latest Northern Pen puts it all in order:

To avoid excess engineering work the province plans to select an existing plan for one of the many K-12's built around the province in recent years. That plan would be modified to allow the school to connect to the proposed Polar Centre and to fit other local concerns.

But even the new construction project doesn’t mean the arena will have all the amenities announced on Monday:

Mayor [Boyd] Noel warned that the facility council wanted to build would have cost $15-16 million and because it's only been approved for $10-million by the province there will be significant cutbacks. One of those cutbacks is the possible loss of a planned walking track around the arena.

-srbp-

Carry over

One of the great budgetary practices of the current administration is something called carry over.

Projects are budgeted and announced in one year and then they don’t get started, let alone finished.

Government gets multiple good news hits out the practice. 

First, they get the warm fuzzy media coverage from announcing the spending in the first place.  Sometimes they keep announcing the spending even though it hasn’t happened.  Second, if by some chance work does start, they can announce that and keep it up until the thing is finished.  it’s not unusual to see things started four years continue to appear  in releases as if it was part of current spending.

Like say a hospital in Corner Brook that was tossed into the “stimulus” counter-measure even though it was begun and should have been finished long before anyone even thought of a recession.

Now when the project doesn’t happen, there is never an announcement of the bad news.  Not likely.  The money budgeted but not spent becomes “surplus” and is part of the announcement of the record “surplus” in the spring.

Then the project is carried over into the new budget and re-announced.

If the delay has caused increased costs, this is not something to be chagrined about.  Not on your life.  Any politician worth his or her salt will trumpet the fact the same project will now cost even more because of the delay.  If any one of us mere mortals missed the chance for a good deal and had to pay 30% more for the same thing, we’d be kicking ourselves for being so stunned.  When politicians drop the ball; and it costs you 30% more for the same thing, that is a great investment in the local community.

And if it jumps 71%, as in the St. Alban’s aquaculture centre?  Well, that is just “stimulus”.

Carry over is very big in the current provincial government administration.  They carry over lots of things. 

Like in Labrador West, where a new hospital was promised just in time for a by-election in late 2006/early 2007 and the thing is still in the planning stages the better part of three years later.

Or a new campus for the College of the North Atlantic.  Tender went out on May 4 with a closing date of June 17.  (Well, the initial news release in early May said the thing was going to tender.  A “stimulus” announcement in June said the thing would be tendered in June.)

The tender was awarded three weeks ago – i.e. about a month or more after the tender closed – and as we slide easily into Labour Day, Jim Baker, the local MHA has no idea when the thing will get started. But Baker can assure residents of the area that the project costs have climbed from $18 million to $22 million and that no steel framework will be done this year.

None.

But they might get the site prepared and concrete poured.

Maybe.

So the campus project will be carried over until next year.

Just like the hospital.

or the aquaculture centre.

When was they supposed to be finished again?

-srbp-

No fed funding approved for roadwork, despite 2007 announcement

Avalon member of parliament Scott Andrews said today that a federal contribution for roadwork in Conception Bay South has not been approved despite an announcement of the funding in 2007 by then Conservative member of parliament Fabian Manning.

Andrews posed a series of questions to federal officials in April:

With regard to funding from the government, through the Department of Transport, Infrastructure and Communities, for an extension of Conception Bay South By-Pass Road, from Legion Road to Seal Cove, in Newfoundland and Labrador:

(a) was there an official approval of this project by the government on or before December 17, 2007 and, if so, (i) what amount of funding was approved, (ii) what date was it approved, (iii) why was it not included in a news release issued by the Minister of Transport, Infrastructure and Communities on December 17, 2007;

(b) if no formal approval was given for this project by the government prior to December 17, 2007, has there been any formal project approval given for an extension to the Conception Bay South By-Pass Road since December 17, 2007 and, if so, on what date; and

(c) is the project to extend the Conception Bay South By-Pass Road, from Legion to Seal Cove, currently being reviewed or recommended for approval within the Department of Transport, Infrastructure and Communities?

There’s a short news story and a video clip at vocm.com.

The provincial government included the CBS by-pass road work in a list of stimulus projects released earlier in June. The project is indicated as scheduled to go to tender this fall.

The same project was also listed in a 10 January 2008 news release from the provincial public works department. Terry French, CBS member of the House of Assembly also mentioned the project in a speech in the legislature on March 13, 2008:

I am delighted actually to say that our Cabinet and our government have decided that the CBS Bypass would be a priority under the roads program and that they would commit the $3.5 million to $4 million. I am delighted with that, Mr. Chair. Actually the provincial share is ready. The Minister, Diane Whalen, was at the announcement and assured the residents that the provincial share of the money is there and we are ready, we would call tenders this spring. Mr. Chair, we are ready to go and I certainly hope that our federal counterparts are as eager and as willing as we are because we have the check [sic] written, if you will, and ready to go with that announcement.

-srbp-