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.

The paper-mill-sized elephant in the room… #nlpoli

From the CBC online story about the meeting between a raft of grim-looking provincial politicians and Joe Kruger:

Dunderdale said she expected there would be a second vote on the pension restructuring plan.
Once those issues are resolved, she said, the government is committed to stepping in to ensure that the mill is sustainable.

So while the pols are laying on the tough talk in a fairly obvious effort to sway the mulligan vote, what the rest of us should wonder is how much public money the politicians plan to pour into the mill to keep it running.

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Province sinks more into inflatable shelter company #nlpoli

The provincial government is giving $50,000 to a company in Grand bank that makes inflatable shelters for industrial and emergency use, according to a news release issued Friday.

Dynamic Air Shelters Ltd. will [use the money to] engage the services of Advanta Industrial Design Group Inc. to conduct staff training and improve the company’s design and production processes. The company will also upgrade its computer systems and drafting software program.

Since 2006, Dynamic Air Shelters has received more than $4.0 million from the provincial and federal government.

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Not keen on government subsidies

While it may have slipped by in the election hoopla on Monday, the people who decided to vote in a CBC online poll made it pretty clear they didn’t like the provincial government’s announcement of millions in subsidies for the remaining newsprint mill in the province.

67% of respondents picked the option “we’re throwing good money in the wrong place.”  The second most popular choice (14%) thought the company should pay the money back to the provincial government when it was able to do so.

Only 12% thought it was a good idea.  6.5% felt that subsidies were a fact of life.

Now this is by now means a scientific survey but it should give pause for thought.

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An admission of abject failure

A quarter of a century ago, Doug House and the Royal Commission on Employment and Unemployment heard time and again of the the need to get rid of make-work programs. 

Qualifying people for federal employment insurance benefits promoted a culture of dependence and destroyed innovation and self-reliance.

Some 17 years ago, the province’s Strategic Economic Plan introduced a bold, new approach in order to bring about fundamental changes within Newfoundland and Labrador.  There’d be no more make work and government free gifts to businesses.  Neither one worked to produce sustainable jobs.

Less than a decade after the Royal Commission – with the change of administration in 1996, in fact -  things were heading back to the old ways of megaprojects and make-work schemes.

In 2003, there was a new crowd, who supposedly had a plan called the New Approach.  Some of it seemed familiar.  Doug House came back and then left again.

Nothing changed.

It’s still megaprojects,  make-work and more make-work and handouts to business, hand-outs to business, hand-outs to business, hand-outs to business and hand-outs to business.

Oh, and let’s not forget hand-outs to business.

And hand-outs to business.

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Having big guns helps

Paper maker Kruger may be getting additional financial help from the provincial government to keep its mill in Corner Brook operational.

There’s nothing new in this.  The provincial government has been subsidizing the forest industry for years.

What makes this a bit different is that the area has such strong representation in government.

No one is explaining to forestry workers why subsidies are bad, as fish minister Tom Hedderson did a few weeks ago when people wanted some cash to help out that troubled industry.

Having big guns helps.

Of course,  having those big guns a wee bit worried doesn’t hurt either.

You can tell they are worried about local public anxiety about the future of the Kruger operation when a news release appears advising that every provincial politician from the Corner Brook area will be traveling in a pack on Wednesday.

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Government follows through on promised AbitibiBowater corporate subsidy

Premier Danny Williams and a gaggle of cabinet ministers took the trip to central Newfoundland on Tuesday to announce that the provincial government will pay former AbitibiBowater workers money owed to them by the company.

That’s pretty much the logical result of government’s announced intention in late April to subsidize AbitibiBowater:

2.  If that’s the case, why doesn’t the government just cough up the cash and then sort it out with AB later on, rather than leave the workers hanging?

The announcement comes as discontent grows in central Newfoundland.

Meanwhile in totally, completely unrelated news, the provincial government’s pollster is currently in the field collecting the quarterly poll goose and the nurses are about to go on strike. 

In other totally, unrelated and completely coincidental events, the provincial government is threatening to legislate the nurses back to work in the event they take strike action.  Government has committed to paying the nurses according to the template agreement which would be considerably less than had been negotiated. Government is also insisting on two clauses which the union has said are deal-breakers.  The nurses have suggested sending the two disputed clauses to binding arbitration.  The provincial government has refused.

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Government considering subsidies to private sector businesses

The provincial government is considering subsidizing air travel for people owning property in western Newfoundland but living outside Canada.

The idea of discount air travel using public money has been around for some time but has picked up momentum as Humber Valley Resort restructures and withdraws from tourism activity.  Currently, the resort offers its property owners a subsidized direct flight between the United Kingdom and Deer Lake. The resort won't be continuing the subsidized air travel for its property owners.

International commercial air travel is currently available to the island's west coast through connections in Toronto, St. John's, Halifax and Montreal.

A summer service by Air Canada between London (Gatwick) and St. John's was canceled after Astraeus Airlines - which then operated the private charter flights to the resort - introduced a stop in St. John's to challenge what was already a weak intercontinental market out of St. John's. Astraeus canceled its St. John's to Gatwick flight as well citing low business volume.

A west coast lobby group - Humber Direct-Air  - is looking at ways of providing the subsidy currently covered by Humber Valley Resort using other funds, apparently including a source that isn't the public till.

The lobby group includes west coast businesses, as well as the Deer lake airport authority head and a representative of Humber Valley Resort.

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