The Doldrums #nlpoli

MQO conducted a little poll in late January and found the party standings among voters remains where it was in November.

No surprise.

Nothing has happened in the past few months to move support for either of the three parties in the province up or down.  We are in the lull before the provincial budget coming in March or April. That lull isn't happening by accident.  The Liberals retreated last summer in the face of massive public rejection of their spring budget.  Since then the ruling Liberals have been virtually silent, cancelling planned budget cuts and other measures to cope with the government's financial crisis.

That silence resulted in a very slow climb in Liberal support from a low of 17% in May 2016 to about 27% of all respondents by the fall.  But look at the Conservative number.  It's basically the same as the Liberal one, given that the margin of error for the poll is plus or minus four percentage points.

The Bigger Picture #nlpoli

Whatever the provincial government is doing about its own spending or the provincial economy generally or whatever it is up to starts at 9:00 AM.

They announced an invitation-only event by Twitter a week or so ago that made it sound like the Premier would be the key player all day.  On Friday, the official announcement made it plain Ball is showing up for the kick-off and wrap-up. Another announcement had him with another minister doing a funding announcement at 10:00 AM.

Oh yeah, and that invite-only thing had transmogrified into a case where "the general public" can participate by live video using social media.

There you have it:  can't tell you what they are doing because they do not know what they are doing, otherwise known as "making-it-up-as-they-go."

No encouraging at all, but let's skip over that sort of eye-roll inducing stuff and think about some of the bigger issues.  We can then keep an eye open to see how they turn up - *if* they turn up - in this stunt at The Rooms.

Brain Farts #nlpoli

Some people have a hard time with the idea that a great many political decisions are not the product of deep thinking, extensive research, and agonizing debate.

They come from brain farts.

You can hear that pretty clearly in the most recent episode of On Point. The political panel talked about a couple of cock-ups by the Conservatives last week.

 In among the few nose-pullers the panel tossed out, the basic elements of the story were there.

Government Spending and GDP #nlpoli

A couple of weeks ago, finance minister Ross Wiseman said that he can’t cut government spending because it is such an important part of the economy.

Wiseman said government spending amounted to about 30%  of the province’s gross domestic product.  He was absolutely right, if you measure the gross domestic product based on expenditures within the province. 

As regular readers of this corner know, provincial government spending has become an increasingly important part of the provincial economy under the Conservatives. This reverses a very clear trend that has been underway for some time.   When you look at the numbers, it’s pretty clear.

Gone, baby, gone #nlpoli

In September 2008,  four cabinet ministers went to Harbour Grace to announce that the provincial government was giving the company $8.0 million in public money,  interest free.

The provincial government communications people circulated a picture of the four at the time - from left, Jerome Kennedy,  Danny Williams, Paul Oram, and Trevor Taylor – as they tried on some of the boots made at the plant.  Every one is smiling.  The $8.0  million in taxpayers’ cash was supposed to help the company add another 50 full-time jobs on top of the 170 at the plant.

It’s an interesting picture because within 12 months of the announcement,  the two on the right – Taylor and Oram – would be gone from politics.  Williams left in 2010,  the year the provincial government started a “review” of the loan after the company cut the work force to 100.  They never did add any jobs. Kennedy hung on the longest of the lot,  but five years after his trip to the boot factory, Jerome was gone from politics as well.

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.”

The Decline of the Forest Empire #nlpoli

While an official with Corner Brook’s municipal government  understandably has to say wonderful things about the economy in the west coast city, a look at some numbers shows the city is feeling the effects of a larger problem in the province.

SRBP took a look at newsprint production levels and the value of newsprint exports from 2003 to 2012.  The numbers are all from the annual editions of the budget document called The Economy.

The picture is not pretty.

Political Will and Public Policy #nlpoli

The SIDI simulation of government spending that we’ve run this past week might not be everyone’s cup of tea, but these sort of thought exercises are always useful.

The most striking thing is the amount of money from oil and mining that the provincial government has spent in the past seven years:  $15.6 billion.  That’s enough to wipe out the entire public debt plus the unfunded pension liability and have a couple of billion left over for an unprecedented capital works program. 

It’s a staggering amount of money and the only thing more amazing than how much money there was is how easy it was to do something far more productive than just spending all the money, as the current provincial government has done.

The SIDI simulation included:

• a steady, sustainable increase in spending each year,
• an unprecedented, sustainable capital works program,
• a $3.675 billion real decrease in public debt,
• the prospect of a complete elimination of public debt within a decade, and,
• an income fund that would continue to grow with further oil money and generate new income for the provincial government for as long as the fund existed.

The only thing needed to make the simulation a reality was a political desire to do it.  Had the provincial government done any one of the elements of the SIDI approach, then the provincial government could have either avoided the current crisis altogether or significantly altered the profile of the crisis and the prospects for coping with it.

Hobson’s Choice #nlpoli

The provincial Conservatives love to spend public money. 

That doesn’t sound very conservative and it isn’t.  Politically, the provincial Conservatives in Newfoundland and Labrador are more like Republicans than the Progressive Conservatives who used to run the province in the 1980s. American Republicans like to cut federal taxes and jack up federal spending and then blame the resulting financial meltdown on the Democrats.

Around these parts, the Reform-based Conservative Party, as the Old Man used to call them, blames everything on the Liberals.  That is the Liberals who, in case you missed it,  haven’t been in power in a decade.

A Crisis. Or Not. #nlpoli

“Muskrat Falls is a project that will not impact net debt by a single dollar,” finance minister Tom Marshall said in a provincial government news release.

Unfortunately for taxpayers, they won’t pay the net debt.  That’s an accountant’s calculation of what the provincial government owes less any assets they could theoretically sell off if they had to clew up business in a hurry. 

What taxpayers will have to contend with is the total liabilities and Tom plans to make those liabilities get a whole lot bigger than they are today.  On the day that Tom Marshall predicted that his current budget will have a deficit three times what he forecast in the spring, Marshall also forecast billions more in borrowing to pay for Muskrat Falls and to pay for the government’s day-to-day expenses.

You’d think that a finance minister would understand that. 

Evidently, Tom Marshall doesn’t.

Either that or he thinks the rest of us are so stupid that they would accept his ridiculous comments as if they were true.

Some help for the St. John’s Board of Trade #nlpoli

…who have suddenly discovered that the provincial economy is in serious need of diversification: a 2010 series called the Fragile Economy.

• Staying the course (March 2010)
• Reductio ad argentum (April 2010)
• …and two steps back (April 2010)
• Now three steps back and loving it (April 2010)

If they really want to get a handle on economic diversification, BOT chair Steve Power and his colleagues could start by reading the 1992 Strategic Economic Plan.  What the Board of Trade has been slavishly been supporting since 2003 is diametrically opposite to the 1992 SEP and its call for diversification based on  – gasp! – entrepreneurship, competitiveness, and innovation.

Frankly, it’s been pretty bizarre since 2003 to have a bunch of business owners who endorsed excessive public sector spending and clammed up about entrepreneurship, competitiveness and other subversive ideas.  In November 2010, here’s what the chair at the time said:

Chairman of the Board of Trade, Derek Sullivan said government contracts give a competitive advantage for local businesses and “can be a very powerful and reliable revenue stream.”

-srbp-

Brand Failure #nlpoli

In another great service to Newfoundland and Labrador, the country’s leading shit-disturber has translated poll results by Abacus Data into a nice table.

It shows the results for each province across a range of topics.

More to it than oil prices #nlpoli

Politicians spent a few hours this week harrumphing about the impact falling oil prices might have on the provincial budget this year.

The problem for the provincial government is not whether they got the price of oil right in their budget.  They’ve been underestimating for years.  This year might be an over-estimate.  In the short-term, they’ve still got lots of budget smoke and mirrors to cover off most of the likely outcomes. There’s no cause for panic, yet.

The problem for the provincial government is bigger than the current price of oil.  Most of this will be familiar to regular readers, but at times like this it is worth pulling it all together in one spot so that people can see the big picture.

The politics of logic and history #nlpoli

“Government does not work on logic,” a wise man once told your humble e-scribbler.  “It works on the basis of history.”

When faced with a new problem, people tend to do what they did before, not what might make sense in the new circumstances.

You can see that the preference for history over logic in Kathy Dunderdale’s comments on Monday about what she and her colleagues would do for communities where the town fish plant had closed.

Mr. Speaker, we are doing the same thing for these workers, and will do for others the same thing we did in Stephenville, Grand Falls-Windsor, and Harbour Breton.

That would include moving in some provincial government jobs to stuff some cash into the local economy.  So if adding more provincial government employees is an integral part of Kathy Dunderdale’s response to the problems in these six communities, you can be damn sure she won’t be chopping any jobs.

Then again, regular readers of these scribbles already knew that claims to the contrary were bullshit.

The rest of Dunderdale’s comment are just routine political drivel:

We are committed to communities in this Province that find themselves in economic distress. We do not always have the answers at hand. There are not easy answers to be found by anybody, but we walk the walk with communities, Mr. Speaker. We do not just talk the talk.

And when she was done with drivel, she just popped out some truly vacuous bullshit:

Wherever the journey takes these people, their government will be there with them, and we do our best to diversify the economy and meet their needs in the meantime.

Diversify the economy.

Yeah.

Well, the economic development record of the current crowd is exactly zilch.  They spent so much time obsessing over polls and the Lower Churchill after 2003 that they simply didn’t do anything to diversify the economy.  And what they did try – giving away public cash by the bag-full – simply didn’t work. They haven’t been able to pay people to create jobs here.

Here’s how SRBP put it a couple of years ago comparing government spending in the mid-1990s with the current practice:

The province’s business development and economic diversification efforts – ITT then and INTRD and Business today – take less of a share of the budget now.  That’s despite government claims that it has a plan to expand the economy and that the plan is in place.

Mind you, the amounts spent have increased.  For example, the cost of operating the departments has gone from about $50 million for the Industry, Trade and technology department to about $66 million spread over Business and Innovation, Trade and Rural Development today.

The amount available for business investment is also up:  $18 million then compared to $29 million. Even then, though, the province’s business department -  the vehicle through which Danny Williams was once supposed to personally reinvigorate the provincial economy – actually doesn’t do very much with the cash in the budget.  Sure there are plenty of free gifts – like Rolls Royce – or the apparently endless supply of cash for inflatable shelters.

But as the Telegram discovered two years ago, the provincial government spent nothing at all of the $30 million budgeted for business development in 2007. And earlier this year the Telegram confirmed that in the past three years, less than one third of the $90 budgeted for business attraction was ever spent.

The result is that we have a very fragile economy.

Government does not work on the basis of logic.  They go with what they did before.

Like that has worked so well  for them so far.

-srbp-

Government cash give-aways #nlpoli

CBC’s Rob Antle has updated work done over the past couple of years on government give-aways to private sector businesses in the name of economic development:

The Newfoundland and Labrador government has funnelled more than $20 million into grants, loans and the direct costs of business-attraction initiatives that have provided a net benefit of fewer than 100 new jobs — a quarter of them seasonal.

Faithful readers will notice some familiar names in the story and the associated documents posted with the online version of it.

Kodiak got $8 million to expand its operations at Harbour Grace.  They laid off workers instead.That isn’t the only example of that sort of thing happening.

Then, there’s Dynamic Air Shelters,which has more government cash in it than many Crown corporations

None of this is surprising since Newfoundland and Labrador is the only province in Canada where the private sector prefers to be publicly funded.

It’s another way in which the provincial economy has grown increasingly fragile over the past eight years.

- srbp -

The Fragile Economy: addictions management #nlpoli

The provincial government in Newfoundland and Labrador spends more per person on delivering services for most things than does any other provincial government in the country.

Health care is the one the Premier highlighted a couple of weeks ago.  There are others.

This is not something new.  Here’s a snippet from a post in 2009 back when Paul Oram lit the issue up from inside the current administration.  Note, though, that the quote highlights the situation three years earlier:

That level of per capita spending [second only to Alberta] is unsustainable in the long run. As a recent Atlantic Institute for Market Studies assessment concluded:

“If the province fails to reign in its whopping per capita government spending (about $8800/person [in FY 2006]) and super-size me civil service (96 provincial government employees /1000 people) it will quickly erode any gains from increased energy revenues.”

The reason for all this spending and the generally high cost of government in this province is simple:  government spending is all about paternalism, patronage and pork. 

Note that the largest employer in Grand Falls-Windsor these days is the local hospital.  The town is also a centre for government services and, as in Stephenville, the major provincial government response to the mill closure was to push in more public service jobs.

Public spending is all about jobs.

The problem with public spending is that it is easy to get hooked on it.  Not surprisingly, a recent post at the Monkey Cage went with the title “The Narcotic of Government Dependency”.  It’s a pretty concise discussion of the issue from the American perspective with plenty of interesting links.  Follow the links and you’ll find plenty of stimulating stuff. 

Canadians might find it especially interesting to see reference to David Frum’s assessment of the inherent contradiction in conservative arguments.  While they rave and rant against public spending on a ideological basis, on a practical basis, American conservative constituencies are also among the biggest beneficiaries of federal government programs.

Now in this province, the local conservatives don’t really have an ideological basis to argue against public spending. They aren’t really caught in that trap.  But it is interesting to notice the gap between their self-image of being fiscally conservative, debt- fighting wunderkind and the reality of running up the biggest debt load in the province’s history and wanting to jack it higher.  Plus they’ve increased dependence on government spending and increased the public service to an unprecedented size.

looked at from that perspective, Kathy Dunderdale’s recent speech about the need to tighten public spending wasn’t so much about putting the province on some kind of methadone program for patronage junkies so you could get ‘em off the junk.  It seems more likely to have been about another type of addictions management, more like “b’ys we gotta lay off the pipe for a while and just do the oxys and some percs”.

- srbp -

Ridiculous is all the rage #nlpoli #cdnpoli

Fresh from her triumphant speech about co-operation and consultation as the way to develop the north, the potential for developing uranium in Labrador and  - of course – the glories to come from Muskrat Falls, Premier Kathy Dunderdale is off to Atlanta as part of an Atlantic provinces’ trade mission.

Regular readers will recall then-business minister Paul Oram’s insightful interview on Newfoundland and Labrador history during one of his trips to Georgia.

Yes, friends, this is not the first time people from this province have gone off to the southern United States to see if we could increase trade with the Americans.  It has been a popular destination.  Danny Williams took one of his last over-seas trips to Mississippi as part of one of the trade junkets.

As you can see from that post on Williams’ trip, the Americans are looking for people to come to their states, invest money and start creating jobs for their people. There could be no better time to talk to them about investing in our province and creating jobs here.

Obviously.

And if you wanted to find some place to sell stuff we make then surely there can be no better time to do that than when our largest trading partner  - the United States – is struggling to come out of a recession. 

Again, a bit obvious, but apparently not quite so obvious to some people.

In a province where even the finance minister said the economy was fragile,  the provincial government can’t quite seem to get the concept that looking for new markets might be a good idea.

Other people certainly get the point.  Prime Minister Stephen Harper has been talking about expanding trade with Asia and Europe.  In British Columbia, they’ve got a new natural gas strategy  - h/t to David Campbell in New Brunswick – that talks about developing natural gas as an export to places like Asia.

Meanwhile, in Newfoundland and Labrador, there’s no serious interest in finding new markets for stuff. A couple of years ago, the current provincial government refused to take part in trade talks with the Europeans.  The locals were more interested in the seal hunt than in creating jobs. Just last year, one local politician said it would be like doing a “back-room deal with a group of serial rapists”.

You can see the level they are working at.

As for natural gas, developing it for any practical use at all is about as popular an idea in government circles as a one cheek sneak sliding across the pews on Sunday morning.

Any talk of it as a means of generating electricity gets them raising the completely absurd idea of buying liquefied gas from somewhere else and importing. 

Too expensive, the government’s favourite economist clucked, to be a viable alternative to the favourite economist’s preferred project. He didn’t really even need to hold a match to his straw-man to watch it burst into flames.

And the local natural gas? 

Well, it’s just not possible.

Because, well, it just isn’t.

Never mind that you wouldn’t have to liquefy the stuff to bring it ashore.

Never mind that there is enough of it out there to power a 500 megawatt plant all day long, every day, all year long for a century.

Never mind that they could get it from one field today where it is getting costly to re-inject the gas they get during oil production. 

Never mind that the provincial government need take only as much gas as they needed to run a gas-to-electricity plant. 

Never mind they could put a price on it and take the gas as a partial credit for offshore royalties.

Never mind there’s likely tons of it onshore Newfoundland.  The same people pushing the very expensive electricity scheme actually found gas in 2011 in not one but two wells drilled at Parsons Pond. Nalcor shut down drilling on a proposed third well because they found gas, not the oil the company hoped for.  And, as CBC reported:

Vice-president Jim Keating said there is no need for a third well as it would likely produce the same result.

Same result being gas.

Gas?

What could they possibly do with gas?

Sheesh!  <insert eye rolling>

The government crowd want to go with their Labrador project and that is really the end of it as far as they are concern.

It is a green project, you see.

Just don’t bother to notice that their “green” scheme includes building – wait for it – more oil-fired generation than the current plant they want to replace with the hydro one.

Not gas.

Oil.

Yes, their argument is ridiculous, but then again, it’s no more ridiculous than giving up a market worth billions for new products in order to posture about a product almost no one wants any more.

Or heading off to the sort-of recessionary United States for the umpteenth year in a row to talk trade with people we already trade enough with.

Ridiculous, you see, is all the rage.

- srbp -

Unsound financial management – the Dunderdale acknowledgement #nlpoli

It’s not hard to find the toad of truth in the swamp otherwise known as the ruling Conservatives’ record on public spending since they took office in 2003.

You can find it because since 2009 they like to admit every now and then that their spending habits are “unsustainable."

As nottawa reminds everyone, Premier Kathy Dunderdale has now acknowledged that:

“[o]ur spending at the rate that we've been doing over the last eight years — and it has been very necessary for a number of very good reasons to do that — is not sustainable in the long run.” [CBC online story]

But when Mark claims that “[u]p to now, Tories (and others) have disagreed with that assessment” he is not exactly right.

In 2009, Paul Oram was the first Tory cabinet minister to acknowledge publicly that “unsustainable” thing.

As your humble e-scribbler noted at the time, those words must have received the blessing of the Premier’s Office since cabinet ministers under Danny Williams couldn’t break wind without permission from Hisself’s posse.

Fnance minister Tom Marshall.chimed in with an unsustainability admission.*

And then they just kept up the same old habits.

It’s not surprising therefore that the public sector unions just won’t react to Kathy Dunderdale’s comments that the unions must not expect big wage increases in the upcoming round of negotiations.  Local CBC has been pounding away for a couple of days trying to make a story out of this but so far they’ve come up with zip.

The unions know the sad Tory record of saying one thing and doing another.  They also know that the Tories are still in a pre-leadership phase.  Danny’s gone.  Kathy’s a fill-in. 

If they thought about it for a moment, they’d also know that the local economic boom the Tories like to praise themselves for is actually a function of public sector spending.

That’s right.

It isn’t oil.

It’s a massive increase in the number of public servants since 2003,  fantastic wage increases, and unprecedented increases in  public spending. Roads and buildings are just part of it.

That unsustainable public spending is what has been sustaining the provincial economy. Under the Tories, the provincial economy is considerably more fragile than it’s ever been before. 

Any effort by the Tories to get their spending under control – to get it to sustainable levels - will put a chill through the place.  That will inevitably lead to a chill in the local economy.  The chill won’t just hit St. John’s where most of the public servants and the construction industry lives.  The chill will be felt everywhere and that will put a chill on the Tories’ political standing.

All that is the answer to Doug Letto’s questions in his essay on the “massive obstacles” Kathy Dunderdale is facing:

Can she and the government say no? Consistently?

No.

And no.

And everyone knows it, including Kathy.

Muskrat Falls, incidentally, is nothing more than the best example of a party addicted to unsustainable public spending.  The project will increase the public debt to new record levels but that is irrelevant to the province’s Tories.  They want all those jobs to keep the economy humming.

You can easily find the toad of fiscal truth in the swamp of Tory financial mismanagement since 2003. The truth is – as Kathy admitted herself – their spending is unsustainable.

The part Kathy didn’t say is that she won’t be able to do anything but keep it up.

- srbp -

* Changed wording to clear up sentence meaning in the context of the post.  Original post had wording left over from earlier draft.

Truth in small things #nlpoli

If the truth may be found in the smallest of things, then the shifts and changes in Kathy Dunderdale’s second cabinet reveal a great deal.

“It is very important to me that our government operates as efficiently as possible, while providing quality programs and services that meet the needs of the people of our province,” said Premier Dunderdale. “Re-aligning departments and adjusting ministries to ensure they are best positioned to take on the challenges and opportunities before us is very important.”

Here’s how the official news release laid out the re-aligning and adjusting:

• Combine the old Human Resources, Labour and Employment department with the post-secondary education section of the Education department to create the  Department of Advanced Education and Skills.  The new department will “focus on supplying highly educated graduates and skilled workers for a fast-growing economy.”
• Merge the aboriginal affairs department with the Intergovernmental Affairs department to create the Department of Intergovernmental and Aboriginal Affairs.
• Put the Business department with Innovation, Trade and Rural Development to create Innovation, Business and Rural Development.

This release puts the big information at the back end.  Eliminating the business department ends an eight year fiasco. In effect, the Conservatives created the “business” department in 2003 by breaking off some sections of the industry, trade and rural development department.  Now they’ve just put it all back the way it was, complete with the Beaton Tulk-era Rural Secretariat

After eight years of accomplishing nothing, the Conservatives have just put the economic development resources of government back to where they were in 2003. Danny Williams created the department to give a vehicle for his personal business acumen to create thousands of jobs and single-handedly produce a economic miracle in the province.  Williams did nothing while he was minister of his own department, often going weeks without meeting his deputy minister. He handed it off to a succession of second and third tier ministers like Fairity O’Brien or Paul Oram.  Even someone like Ross Wiseman couldn’t do anything except make speeches and hand out gobs of free cash to private companies.

The result of those eight years is a very fragile economy is is more heavily dependent than ever on government spending. The new minister – Keith Hutchings – has exactly zilch in the experience department when it comes to economic development:

Mr. Hutchings graduated from Memorial University with a Bachelor of Arts, Majoring in Political Science and obtained a Certificate in Public Administration from Memorial, as well as an Occupational Health and Safety Program from Ryerson University in Toronto.

Mr. Hutchings’ professional career has included 11 years with the Workplace Health, Safety and Compensation Commission. He also served as Chief of Staff and Executive Assistant to then Leader of the Official Opposition in the Provincial House of Assembly (1996 -1998) and successfully ran his own consulting business.

The Intergovernmental and Aboriginal Affairs department basically recreates what used to exist 20 years and more ago as the Intergovernmental Affairs secretariat, and adds Labrador Affairs and the non-profit and voluntary secretariat for good measure. The first two are relatively small, functionally oriented sections that could easily be rolled inside the Executive Council where they once lived.  The latter two sections are meaningless political sops that serve only to increase bureaucracy without enhancing service delivery. Dunderdale could have eliminated them entirely while likely improving the overall efficiency of government.

The ministry went to newbie Keith McGrath in order to make sure there was a cabinet minister from Labrador. This reorganization is a minor administrative change.

The new Advanced Education department actually combines the pre-2003 post-secondary education ministry with the department that handled job training programs.  That’s it. 

The organization makes sense if it was aimed solely at ensuring that the provincial job-training resources lined up to meet – belatedly – the labour crunch in the province. 

Adding Memorial University to the mix could severely hinder the university’s development by burying it inside a department aimed at something other than what it does.  Memorial doesn’t exist in order to be a glorified trade school.

This is Joan Burke’s big reward for backing Dunderdale, nothing more, nothing less.

What’s more interesting about the labour market focus of the department is that it won’t include any of the labour relations elements.  They are all part of the provincial government’s traditional function of regulating industry and ensuring a healthy and productive labour relations climate.

But under the most recent re-organization, the Workplace Health, Safety and Compensation Commission reports to the government services department and the labour relations agency reports to the environment department. Such a re-alignment ensures that the “silos” the new minister claims the re-organization would cure remain in place.

In  every other respect and distinct from these three adjustments, the departmental organization stays the same. 

When it comes to who got a new job and who didn’t, those seemingly small points also tell a larger story.

Besides Joan Burke, Susan Sullivan got a big reward for her political loyalty to the Premier. She takes over the health portfolio.  Sullivan may not feel quite so lucky in a few weeks or months – health is a difficult portfolio – but it is the largest department and the one that typically goes to those the Premier holds in high regard. If she does well, Sullivan could become a contender to replace Dunderdale when the Premier leaves before 2015.

Jerome Kennedy’s new gig at natural resources gives him a well-deserved respite from the health minister’s job. Kennedy took over that job at a hard time and navigated the department though some tough times.  he got out of it with both his health and his reputation intact.  That’s a rare achievement.

At natural resources, Kennedy faces the challenge of mounting problems with the Muskrat Falls project.  Kennedy can be a forceful proponent for an argument like Muskrat Falls.  He can also be a diligent house-cleaner when problems occur. if Dunderdale had to kill off Muskrat, Kennedy could handle that effectively too.

In the next four years, Kennedy will also have to deal with the border issue in the Gulf of St. Lawrence and the future of a string of law suits related to the Lower Churchill. 

Danny Williams appointed Kathy Dunderdale to natural resources safe in the knowledge that he was really looking after things.  He didn’t need a minister who understood much and Dunderdale fit the bill.  With Kennedy, Dunderdale has a minister who will – in all likelihood – lead this crucial department in more than name only and take the heightened public profile along with it.  Kennedy could be well set when Dunderdale leaves.

Kennedy’s appointment as Government House Leader is a clear sign the Conservatives are going to approach the legislature with a strong arm and an iron fist.

Darin King took the poisoned chalice of fisheries in the recent cabinet shuffle.  The provincial Conservatives haven’t been able to find a policy they can all agree on.  As a result, the fishery remains a festering political pustule that breaks from time to time, splattering the minister of the moment. King can kiss his leadership aspirations good-bye.

Derrick Dalley got the Conservatives’ community pork portfolio as minister of  tourism, culture and recreation.  He succeeds Terry French who got a quiet and relatively easy portfolio in what is usually the home of ministers on the way into cabinet or those on the way out.

- srbp -

Public sector job growth outpaces private in NL

From labradore:

In the five years since the recent-historic low, in early 2006, of about 55,600 public-sector employees, the public-sector labour force has increased by about 11,500 or over 20%. As a share of total employment, the public sector has grown from 26% to 30%.

The twelve-month average ending in June 2011 was 67,100 — an increase of 4100, or 6.5%, from the same period twelve months earlier. This represented an increase of over half a percentage point in the public sector's overall share of the employed labour force.

Then there are the pretty charts showing the public sector employment, federal, provincial and municipal, in thousands of people:

and the private sector:

 

So when you have digested the full impact of that little bit of information, consider what the Muskrat Falls project is really all about: the megadebt will be worth it because it will “bring significant employment and income to the residents and businesses of Newfoundland and Labrador.”

 

- srbp -

Related:

• The Fragile Economy;  … and two steps back
• The Fragile Economy:  hard numbers