Top 15 of Year 15

This is the 15th year of Bond Papers.

This Sunday marks the 16th anniversary and there's a big announcement coming.

Check back.

In the meantime, enjoy the top 15 posts from this past year.

1. The facts of the case
2. Cleaning up the mess of Muskrat Falls
3. Interesting news buried under bullshit
4. Number of active COVID cases in NL drops dramatically
5. Troubling travel ban may be illegal
6. Dr. 'aggies H'answer
7. On the need for politics
8. John Crosbie
9. All the news the mob will let us print
10. Three Covid Pressures GNL will Face
11. Mimicry and Pantomime
12. How much is Churchill Falls worth?
13. The Bow-Wow Parliament Creates a Kangaroo Kourt
14. Bursting bureaucratic bullshit bubbles
15. Policy confusion does no one any good

Bonus:

Two posts this year inadvertently wound up with the same title: 

• "All around in circles"
• "All around in circles 2"

-srbp-

All around in circles 2 #nlpoli

December 17 is an auspicious day in Muskrat Falls history.

That was the date in 2012 when Kathy Dunderdale stood in front of a group of cheering supporters of the ludicrous megaproject and proclaimed that the government had formally approved its construction.

“It all begins here!” she shouted to the overjoyed throng. ““It all begins now!”

It didn’t start there of course.

Kathy had stood with Danny Williams two years earlier - 18 November to be precise - and announced a deal to build Muskrat Falls, the project the media hailed as the fulfillment of a dream to build the Lower Churchill and break the stranglehold Quebec had over our province.

That was a lie, to be sure. 

But still the reporters parroted Williams’ and Dunderdale’s lines just as they had 18 months before that - in April 2009 - when Williams said a deal to sell Churchill Falls electricity to Emera through Quebec had broken the stranglehold.

Arguably, though, Muskrat Falls started in May 2006 when Williams announced the province would go it alone to build the Lower Churchill.

The Clerk of the Executive Council at the time emailed the finance deputy minister and asked if anyone had checked with the deputy to see if the province could afford it.  He got no reply.

In April 2010, when a gaggle of politicians, bureaucrats, and Nalcor thugs decided to go ahead with Muskrat Falls first, they figured the local ratepayers and taxpayers would foot the entire bill out of their electricity rates.

By November 2010, when Williams announced the crowning achievement of his career, the cost of the project had grown to the point that the impact on electricity prices would make people unhappy.  SRBP pointed out at the time the price would double from what it then was. 

And so the Muskrateers started to figure ways to lower the sticker shock – mitigate the initial rates.

Every single Premier since Danny Williams has promised to mitigate the project’s impact on rates.

On December 17, 2020, eight years to the day after Dunderdale whooped it up, Premier Andrew Furey became the latest one to promise rate mitigation.

The Good Old Days #nlpoli

Danny Williams made the news last week.

Williams was locked in a battle with St. John’s city hall over whether or not Williams could put a big Christmas tree in a round-about in his development at Galway.

No one in the local news media noticed, though, that Thursday was the 10^th anniversary of Williams departure from the Premier’s Office.

Back then, they couldn’t say enough good about him. 

The Telegram praised Williams as “The Fighter” – the title of the paper’s editorial the day after he announced he’d be leaving office – “a man of the people” whose popularity rating “hovered around 80%.”

That was true. 

Williams *was* an incredibly popular politician.

No question.

Policy Pixelation #nlpoli

The members of the House of Assembly voted unanimously at the end of October to set up a committee to decide how to give everyone in the province a cheque each month from government.

The motion started out with a few reasons why the members thought it was a good idea:  people across Canada didn’t all have the same income, people were getting such a cheque already from the federal government to cope with COVID, some people – no one indicated who they were – thought this was a good idea, and when people had more money they were generally better off.

When it came time to explain those things in greater detail, Jordan Brown, the New Democrat member who led the debate didn’t give a single bit of extra detail that showed he and his staff had done any research on it at all.

He just made flat, generic statements, including:

“There are a lot of geographical differences in regions throughout this country, too.”

“we do have very unique geographical challenges, we have a unique population. We have a lot of unique needs that make this province what it is.”

“A lot of the research that we've come across was actually Canadian research, Canadian led. As Canadians, we should be proud that we are actually looking at these things within our own country. We have a lot of the research and legwork already done here.”

“Just my observation of this province, we're a very societal province. We're very adapt. We're very caring. We seem to be a province that cares so deeply about everybody in it.

He mentioned five groups that signed a letter in favour of what they called a “basic income.”  Brown also added that a “Tory senator wrote a book on why we should do this as a country.” 

No details.  No evidence.  No specific information.

And most tellingly of all, not a single description of just what this universal basic income might look like.

Paging Dr. Freud #nlpoli

Moya Greene, head of the Premier’s Economic Recovery Team, told municipal leaders last week that the provincial government spends almost $2.0 billion less on health care than it actually does.

Weird.

She said the government spent 25% of its budget on health care.  VOCM reported it: “Greene says healthcare is about 25 per cent of the province’s total expenditures, and that it is a conversation we have to have.”

The actual share in 2019 was 42% and the forecast share in 2020 in 37%. You can find the figures in the budget tabled in the House of Assembly at the end of September.

This is a really bizarro comment since Greene is already well into her job of sorting out both government overspending and re-organizing the economy.  She should have a handle on all numbers. 

After all, Greene and her provincial recovery team will deliver a preliminary report by the end of February. Sure she’s not due to have the whole thing finished until April, but the first deadline of February is really only about three months away, if you allow an interruption for Christmas.

But that’s not the only weirdness.

Reality Control #nlpoli

The Memory Hole

Nineteen eighty-four is popular these days.

People think that the ideas in the book like the memory hole are modeled on communist or fascist dictatorships from the early part of the last century.

What those people forget is that George Orwell worked at the BBC during the Second World War.  As Dorian Lynskey noted in his recent history of the novel, Orwell thought that “radio, as it existed in the 1940s, [was] ‘inherently totalitarian.’”  

In Spain during the Civil War, he saw his first newspapers that “did not bear any relation to the facts, not even the relationship which is implied by an ordinary lie.” But it was in his exposure to radio during the Second World War that Orwell heard in all the propaganda on all sides very similar distortions of reality.

“This kind of thing is frightening to me," Orwell wrote in his 1943 essay Looking back on the Spanish war, “because it often gives me the feeling that the very concept of objective truth is fading out of the world.”

“After all, the chances are that those lies, or at any rate similar lies, will pass into history… Yet, after all, some kind of history will be written, and after those who actually remember the war are dead, it will be universally accepted. So, for all practical purposes the lie will have become the truth”.

This is only a small step to the slogan of the Party in Nineteen eighty-four: “Who controls the past, controls the future: who controls the present controls the past.”

The importance of what we talk about #nlpoli

Nalcor will have to replace about 350 fibreglass beams used in the Labrador-Island Link because of a fault in their manufacture.

Nalcor discovered the fault during two incidents at Soldier’s Pond in August that caused the link to shut down on both occasions.

The public found out about the two incidents last week in a news report by allNewfoundlandLabrador.com on 21 October 2020.  They discovered the information in a report by Liberty Consulting to the Public Utilities Board filed 28 September 2020.

Nalcor chief Executive Stan Marshall - knowing about Liberty’s disclosure – held a news conference the same day to announce that the company had successfully generated power from the first turbine at Muskrat Falls. The news release, that is the thing most reporters relied on for their subsequent stories, Nalcor talked up the achievement of first power.

In his slide presentation, Marshall told reporters that there was no capital cost allowance for “replacement of fiberglass beams at SOP/MF (GE Grid’s responsibility)” along with three other items. 

But there was no context.

And so conventional media – like NTV – never mentioned the spectacular story.

So, you’d expect that a story about another management problem at Muskrat Falls combined with the failure of Nalcor to disclose it would give politicians something to talk about.

Opposition leader Ches Crosbie’s first question in the House of Assembly that day was about a young man who had gone missing in Vancouver.  His father is Crosbie’s constituent.

“Concerns have been raised, Crosbie began with the wonderful passive sentence that says nothing about who is raising concerns, “that the search was called off too soon and that clues have surfaced” about the young man’s disappearance.

 “I’d ask the minister if he’s spoken to his colleague in British Columbia to make the case for resumption of the search?”

 His second question was about pushing the government to bail out the West White Rose project.

Come by Chance and the Politics of Inertia #nlpoli

Is *this* the real El Dorado?

More than six months after they shut it down, the company that owns the Come by Chance oil refinery wants to sell it.

 And they want provincial taxpayers to pay.

According to Saltwire, “Glen Nolan, president of the United Steel Workers Local 9316 union, said that in recent conference calls officials of the province’s energy department indicated Silverpeak had floated” the idea that the provincial government would pay to keep the plant in hot idle mode.  

Between 150 and 175 workers have been laid off from the facility since February.  Another 60 or so are working to keep the plant ready to run.   

A deal with Irving – reported by Canadian Press and others as a done deal in late May – came apart for reasons that aren’t clear.

So while they are trying to sell the refinery Silverpeak wants the provincial government to pay to keep the refinery idled in a state where it could get back into production very quickly.  The alternative will be to mothball the refinery and lay off the remaining workers at the refinery.

The only company interested in buying the refinery – Origin International – doesn’t want to run it as a refinery.  But that hasn’t stopped the provincial government from talking it up and for representatives of the union at Come by Chance from being excited at the prospect.

It’s hard to imagine the provincial government won’t put up the cash.

How much is Churchill Falls worth? #nlpoli

 The public policy advantage of quantifying or estimating what the Government of Newfoundland and Labrador might get in revenue from Churchill Falls 21 years from now is that it takes discussions today from the world of fantasy and make-believe to something closer to reality.

Churchill Falls Generating Station

People talk about Churchill Falls as if it had magical powers.

It doesn’t.

But what’s it worth?

Well, since the subject relates to the recent Innu Nation lawsuit, Muskrat Falls mitigation, and what could be bone-idle curiosity for some people, here’s an answer.

This won’t tell you precisely what Churchill Falls electricity will be worth in 2041 but it will give an idea of what sort of revenue you could get.  If you aren’t comfortable imagining this is 21 years in the future, then imagine it is the numbers today – because that’s what they are – and the 1969 contract did not get renewed automatically in 2016.

All the information used here comes from sources that are publicly available in Canada and the United States.

Here goes.

Innu Nation suing provincial government not HQ over Churchill Falls #nlpoli

 

Laws suits get filed in court.

Political claims for cash launch with a news conference, a website, and a deceptive news release that misidentifies the target of the action.

The Innu Nation statement of claim  filed in Newfoundland and Labrador  Tuesday is against the Churchill Falls (Labrador) Corporation as the first defendant in its claim for $4 billion in damages.  The provincial government owns 65% of CF(L)Co and Hydro-Quebec owns a minority interest (35%).

There’s no reason to sue HQ since it is a minor partner in the company that runs Churchill Falls and manages the reservoir built in the 1960s on land claim by Innu in Quebec and Labrador.  Whatever liability HQ might have would be through CF(L)Co.

Otherwise, Hydro-Quebec is just a customer for the power.  And if Innu Nation wanted to include the customers of the power, then it would have sued every single customer of CF(L)Co since 1971, which would include companies and towns in Labrador, Ontario, and the United States. 

There are lots of little clues in the claim that this is a political move, not a legal one.

Policy confusion does no one any good #nlpoli

Last week, the Liberal governments in Ottawa and St. John’s unleashed a bold new innovation in political announcements.

Fridays used to be the day when governments buried announcements, they didn’t want anyone to notice.  They’d take out the trash, as the day came to be known, by slipping out a news release without any fanfare.

Not anymore.

A gigantic news conference featuring both the Premier and the provincial representative in the federal cabinet unleashed a pair of significant announcements.

Problem was there wasn’t enough detail for many people to make sense of it all.

Hence, the new concept:

For-Fuck-Sake Friday.

Because it left observers shouting, “For Fuck Sake!” in either bewilderment or exasperation as they tried to figure out what was going on.

Well, fear not, faithful readers.

As we have done for the past decade and a half, SRBP will blow away all the clouds of confusion furrowing brows across Newfoundland and Labrador and tell you what it all means.

No duff.

No guff.

The Husky Boys' Challenge #nlpoli

The Husky gambit last week presents the province’s leaders with a fundamental challenge.  Do we continue on the current path or do we change?  This is not just a question of oil development versus some nebulous, pseudo-intellectual gibberish called “decarbonization”.

It is the question from 1984:  who will control the Newfoundland and Labrador offshore and with it the future of the province itself? 

______________________________________

Husky is in such serious financial trouble that the company is thinking about walking away from established, profitable fields offshore Newfoundland and a project to expand one of them that is already more than halfway to first oil.

That is precisely what the company announced last week.

In a statement, the company said that delays in the West White Rose project caused by COVID-19 and what the company described as “market uncertainty” left it “no choice but to undertake a full review of the project and, by extension, our future operations in Atlantic Canada.”

What is most striking about the statement is that Husky acknowledges all the reasons why White Rose and the extension project are attractive financially now and in the future:  the field produces “light crude oil at low incremental cost and with lower greenhouse gas emissions intensity than other North American crude oil projects.”

In comments to media,  Husky CEO Rob Peabody said that the project’s fundamentals remained attractive.“

The common local reaction to this news was, in every respect, predictable.  The local oil industry association, headed these days by former finance minister Charlene Johnson, wants the federal and provincial governments to spend unlimited billions in tax incentives and bailouts to prop up the industry at the levels before the market down-turn that started before COVID hit. 

The Walking Dead Duck

This evening Liberals will elect a new leader.

And about two weeks from now – likely Friday, August 14 – the new leader will take the oath of office and become the 38^th first minister of Newfoundland and Labrador since it became self-governing (May 5, 1855) and the 14^th Premier since Confederation in 1949.

Dwight Ball survived 1704 days.

That’s four years, seven months and 30 days.

55 months, 30 days.

Or barely more than a single term.

It is hard to remember a day of that very short tenure that Dwight Ball was not embroiled in a controversy.  The ones he did not make, he bungled, which made them far worse than they were.  The provincial government’s financial state is no better now that Ball is leaving than when he took office.  Arguably, it is worse.  

The House of Assembly is diminished in every respect compared to even the low point it was at when he took office and Ball leaves the Office of Premier itself diminished.  His was a spectacularly dysfunctional office from the start and it never got better.  Even single-celled organisms can learn but the relentless repetition of the same blunders in everything from staffing to how Ball and his office responded to events are the hallmark of Dwight Ball’s political career. Ball has been a zombie Premier, of sorts, one of the political walking dead.

Dwight and Tom's legacy: more of the same #nlpoli

Herb Kitchen died last week.

He was the minister of finance in the early 1990s who brought down the difficult budgets, starting in 1991 that were part of a plan that turned the provincial government around.

The deficit at the time was about $300 million and the total budget called for spending of around $3.2 billion. 

Finance minister Tom Osborne announced on Friday that he will need to borrow $3.2 billion to close the gap between what the government will spend (about $8.9 billion, plus more money for Muskrat Falls) and its income.

Officially, Tom Osborne’s deficit of $2.1 billion for 2020 will be 25% of spending compared to less than 10 percent back in Herb’s day.  But if you wanted to compare apples to apples, then we should use that $3.2 billion cash figure, which works out to a deficit three and a half times the size of the one Herb Kitchen brought to the House of Assembly 29 years ago.

Thank God Herb didn't live to see what a mess the provincial deficit will actually be.

Change versus more of the same: Summer 2020 edition #nlpoli

Link to video

Spring 1994.

At the point Clyde Wells spoke to the graduating class of Memorial University’s business school that year, the administration he led had already started getting government spending under control and transforming the economy.  Wells goes through all of that with the class, why government was undertaking the changes, and what he hoped would be the outcome. 

Give the speech a listen.  It’s only 38 minutes and it is striking on a few levels.  First of all, think of the last time you heard a Premier speak to an audience in Newfoundland and Labrador this calmly, rationally, and with as much detail.  This is not a speech of clever quips or turns of phrase.  This is basic information.

The challenge of change #nlpoli

Change is hard.

 It's even harder when no one wants to change.

Our Former
Dear Premier

Some people outside the Liberal Party have been obsessed lately with the leadership contest currently going on.  They seem to think that one person can make all the difference in how the provincial government will tackle its considerable financial problems.

Well, the belief that the Premier is the strong man or woman responsible for everything is part of our post-Confederation political culture. The strongman myth – a local version of the Latin American caudillo or the Soviet/Russian personality cults - has only grown in strength since 2003 despite the ample evidence it simply isn’t true.  There are many factors that determine what the government does and those will affect the choices the next premier and the administration he leads will make.

Rather than look at the individuals who might wind up as Premier next month, let’s take a look at those other factors.

Muskrat committee flags cost risk for potential alternate transmission software #nlpoli

At the end of December 2019,  the Muskrat Falls Oversight Committee added development of alternate protection and control software for the high voltage direct current transmission system – that is, the Labrador-Island Link  - to its list of risks the committee is monitoring for potential added project costs.

Alternate software and syncronous condensers
are major project cost risks.

The reasons for the concern are contained in the section of the report on a visit by the Independent Engineer to the software development team:

“While the plan still shows expected completion of the factory acceptance tests (FAT) by June 9th, 2020, there is little confidence that the target will be met. Progress velocity remains in risk category ‘red’.”

The report received by the oversight committee in late February 2020 also noted that the number of “outstanding bugs that will be identified/ remedied at later stages presents an unknown risk to Project schedule and S/W [software?] performance.”

The Independent Engineer’s site visit to the GE development team also observed that “GE’s project plan does not include full regression testing of the completed software release or provides time allowance for bug fixes between the project phases. That raises a question if that approach will ensure full functionality of this critical component.”

The Independent Engineer was supposed to do a site visit in the first quarter of 2020, but COVID-19 forced postponement.  In the report on this period received by the oversight committee on 15 June 2020, the committee noted that the software development and schedule remained a “key project risk.”

The Q1 2020 report also noted problems with another, unrelated issue: “Soldiers Pond synchronous condensers vibration and binding issues root cause and remediation remain ongoing. When Unit 3 bearings and housing were removed corrosion and damage was [sic] observed.”

At the recent annual general meeting, Nalcor chief executive Stan Marshall apparently made no mention of the ongoing difficulties with the P and C software and the synchronous condensers.  Media reports just talked about the impact of COVID-19 that forced closure of the work site for a couple of months.

-srbp-

The Bow Wow Parliament creates a Kangaroo Court #nlpoli

The Bow Wow Parliament

The first casualty of the current pandemic in Newfoundland and Labrador was democracy and on Tuesday, the pandemic added to its draconian toll.

A handful of members of the House met with the permission of a government official and passed without much discussion a measure that created a kangaroo court in which the official could apply in secret to two cabinet ministers, obtain a de facto conviction of someone without what lawyers call due process, and then send off the police to scoop up the hapless person who may or may not have violated a health order under the health protection law. 

Health minister John Haggie introduced the amendment. He shed no light on why the government had banned all non-residents from entering the province except people in two special categories.  Haggie did not explain why the restrictions that had been in place were not working. He gave no indication why he and his colleague the justice minister needed the powers of a judge already set out in another section of the health protection law to enforce any orders.

When his turn to speak came, opposition leader Ches Crosbie spoke briefly about what he referred to as new police powers that would be used to enforce all the chief medical officer’s special orders.  He noted the concerned expressed to him by lawyers that the recent travel ban was illegal and/or unconstitutional. 

Then Crosbie said that he and his caucus had decided to vote for amendment in exchange for a promise the government would:   

1. read a submission from the Canadian Bar Association about the travel ban, and 
2. ask the chief medical officer to amend her improper travel ban to allow a few categories of exemptions they wanted.

That is all.

Such are the intellectual, ethical, and legal standards of the Bow Wow Parliament.

Troubling travel ban may be illegal, unconstitutional #nlpoli

Government of Newfoundland and Labrador
 guards at COVID-19 Border Check Point
(not exactly as illustrated)

No other province in Canada has banned travel into the province by non-residents in the way Newfoundland and Labrador has done during the current public health emergency.

Under Special Order No. 11, issued on 29 April 2020, “[a]ll individuals are prohibited from entering Newfoundland and Labrador, except for the following:

a.  residents of Newfoundland and Labrador, 

b.  asymptomatic workers and individuals who are subject to the Updated Exemption Order effective April 22, 2020, and 

c.  individuals who have been permitted entry to the province in extenuating circumstances, as approved in advance by the Chief Medical Officer of Health.”

There is a definition of resident provided in the order.

There is provision for an exemption granted by the Chief Medical Officer but no indication of the reasons why such an exemption might be granted, or the time delays involved.

The power to do this comes from section 28 (1) of the Public Health Promotion and Protection Act.

In making the announcement, the chief medical officer offered no explanation or justification for the except that she felt it necessary to amend the existing restriction on individuals entering the province in order to deal with COVID-19.

There have been no confirmed reports of travelers violating the ban.  Rumours about tourists, covered by news media the day before the new order, lacked any evidence either that tourists had entered the province.  There is no information in public that any travelers had violated restrictions on people entering the province and caused a new outbreak.

To the contrary, the number of active cases in the province continues to decline, with very few new cases having been reported in the past two weeks.

In response to a reporter’s question about the constitutionality of the ban, health minister John Haggie replied on Monday that section 13 of the public health protection law says any measures imposed during an emergency should be limited to what is necessary. 

Financial Fustications #nlpoli

If we had Equalization, we'd have a budget surplus.

On Friday, 20 Mar 20, Premier Dwight Ball wrote to the Prime minister to say that the financial arse was out of Newfoundland and Labrador.

Ball included in the letter not a shred of financial evidence nor did he include any hint as to what exactly he expected the federal government to do to fix this situation.

Last weekend, once the public heard about this alarming letter, the Premier was anywhere and everywhere confirming that the provincial government was mostly, completely destitute.

*This* weekend his finance minister is – not surprisingly – telling a completely different story.