12 October 2007

The constitutional fish, redux

or, the most expensive 15 codfish in the history of Newfoundland and Labrador.

Just how much did Rick Bouzan and George Nichol pee down the drain in fighting their conviction for violating fisheries regulations? Only their lawyer and their bankers know for sure but appeals all the way to the Court of Appeal don't come cheaply. The cost is even more burdensome when one considers that the constitutional basis for their original defence and the subsequent appeals could have been demolished by a second year undergraduate political science student equipped with a decent library and the stuff picked up in Poli Sci 2700 or whatever it is called these days.

For your weekend amusement and edification, following is the text of the decision in Bouzan and Nicols v. The Queen, delivered today by Mr. Justice Mercer of the appeals court on behalf of a three member panel that included Mercer, Mr. Justice Barry and Madame Justice Welsh.

For all you law students or aspiring lawyers out there, here is a sentence you never want to see in a judgment dismissing your appeal: "This argument is fallacious."

Ouch.

--text begins--

IN THE SUPREME COURT OF NEWFOUNDLAND AND LABRADOR COURT OF APPEAL

BETWEEN:

RICHARD BOUZAN AND

GEORGE NICHOL APPELLANTS

AND

HER MAJESTY THE QUEEN RESPONDENT

Coram: Welsh, Mercer and Barry, JJ.A.

Court Appealed From: Supreme Court of Newfoundland & Labrador, Trial Division, 200506T0157

Appeal Heard: June 22, 2007

Judgment Rendered: October 12, 2007

Reasons for Judgment by Mercer, J.A.

Concurred in by Welsh and Barry, JJ.A.

Counsel for the Appellants: T. James Bennett

Counsel for the Respondent: Paul B. Adams

Mercer, J.A.:

[1] The appellants were convicted of an offence under the Fisheries Act, R.S.C. 1985, c. F-14 arising from their participation in the groundfish food fishery. On appeal, as in the courts below, they challenge the constitutional authority of the Government of Canada to regulate the catching of fish for personal consumption within three miles of the coast of Newfoundland and Labrador going from headland to headland. The appellants assert that the constitutional authority in respect of such fishing is vested in the Province of Newfoundland and Labrador (Province).

Facts

[2] On September 20, 2004 the appellants were charged:

THAT they did on or about the 12th day of September, 2004, at or near Little Bay East, Fortune Bay, Newfoundland and Labrador, in NAFO Sub-Division 3Ps, being Canadian Fishery Waters, while engaged in the groundfish food fishery and fishing under the authority of an Atlantic Recreational Fishing License, failed to comply with a condition of that license to wit: did not tag codfish immediately after harvesting codfish, contrary to Section 22(7) of the Fishery General Regulations, thereby committing an offence punishable under section 78(a) of the Fisheries Act, R.S., c. F-14, as amended.

[3] Prior to trial the appellants gave notice they intended to raise a constitutional challenge. The constitutional questions, as amended, were as follows:

1. Does the Government of Canada have the jurisdiction to regulate the catching of groundfish, including cod, within three miles of the coast of Newfoundland and Labrador going from headland to headland?

2. If the Government of Canada has the jurisdiction to regulate the catching of groundfish, including cod, within three miles of the coast of Newfoundland and Labrador going from headland to headland, does that jurisdiction include the right to regulate the catching of groundfish, including cod, for personal consumption?

[4] Notice of the constitutional questions was given to the Attorney General of the Province. The Attorney General declined to intervene in the case.

[5] At trial the parties submitted an Agreed Statement of Facts which included the following:

- On September 12, 2004 the appellants held Atlantic Recreational Fishing licenses which had been issued by the Department of Fisheries and Oceans (Canada) for the recreational cod fishery (also referred to as the groundfish food fishery). The license conditions required that any cod caught was to “be tagged immediately after it is caught in the following manner: A non-used tag, issued with this license and valid for the NAFO Division being fished, must be affixed through the gill and mouth of each Atlantic cod. The tag must be properly sealed such that the tag cannot be re-opened or removed”. Fifteen such tags were issued with each license.

- On September 12, 2004 a fishing boat occupied by the appellants was inspected by fishery officers. That boat was then within 500 feet approximately of the shoreline of Fortune Bay near the community of Little Bay East which is in the Province. The appellants were found in possession of 29 codfish. Twelve of the codfish were affixed with tags issued to Mr. Nichol. The remaining codfish were not tagged. Fifteen of the codfish had been gutted and appeared to have been caught for some time.

- The fisheries officers told the appellants they were initiating an investigation, read them the standard police caution and advised them of their right to retain and instruct counsel. Both appellants stated they understood and did not wish to contact counsel at that time. Following that, and after being informed that all cod had to be tagged immediately after catch, Mr. Bouzan said “I didn’t read my license. It’s my own fault. I should have read the fine print”.

[6] No evidence other than the Agreement Statement of Facts was adduced at trial. The trial focused on the constitutional issues. The trial judge dismissed the constitutional challenge mounted by the appellants. He found that the Government of Canada has jurisdiction to regulate fishing within three miles of the coast of Newfoundland and Labrador and that jurisdiction extended to the regulation of the catching of cod for personal consumption. Given the clear admissions in the Agreed Statement of Facts the trial judge convicted the appellants. R. v. Nichol, [2005] N.J. No. 315.

[7] The appellants then appealed to the Supreme Court of Newfoundland and Labrador, Trial Division (Summary Conviction Appeal Court). The only issues argued by the appellants concerned the constitutional questions. The appeal was dismissed, the Summary Conviction Appeal judge stating:

[29] The trial judge concluded his judgment with this synopsis:

On entry into Confederation, Newfoundland assumed the same position as if Confederation had been achieved in 1867. As earlier discussed, this included recognition of exclusive jurisdiction over the fishery in the Federal Crown. There is no reason to distinguish between fishing for trade, barter or personal consumption.

[30] I am satisfied on the standard of correctness that applies to my review of the trial judge’s decision that his decision is right. He was alive to the arguments raised by the appellants and dealt with each in its turn. He concluded, and I agree with him, that the Government of Canada has exclusive jurisdiction in managing and controlling the Fisheries in all sea coast and inland waters of this province. I will explain further.

…..

[54] Richard Bouzan and George Nichol appealed their convictions in the Provincial Court for failing to comply with conditions in a recreational cod fishing licence requiring them to tag all cod fish immediately as they caught it. The appellants did not dispute the facts but challenged the validity of the legislation under which they were charged. In essence, the appellants claim that the Government of Canada has no jurisdiction to regulate catching fish for personal consumption within three miles of the coastline of Newfoundland and Labrador. The trial judge dismissed the appellants’ attack on the legislation.

[55] The trial judge did not err in his decision. There is no merit to the appellants’ claim, whether based on statute, the Terms of Union between Newfoundland and Canada, the case law, or the doctrine of Crown honour. The appeal is dismissed and the trial judge’s decision is affirmed in all aspects.

R. v. Nichol, [2006] N.J. No. 257, 25 C.E.L.R. (3d) 1 (NLTD)

Issues

[8] In this Court the appellants again raised the constitutional arguments which were analysed and rejected in the courts below. Leave was granted for the appeal pursuant to the provisions of s. 839(1) of the Criminal Code.

[9] The issues stated by the appellants in their factum were:

i. Do the Terms of Union create special status for the Province of Newfoundland and Labrador within Confederation?

ii. If so, does that special status derogate from Section 91 of the Constitution [Act], 1867, and in particular Sub-section 12, which deals with sea coast and inland fisheries?

iii. Do Statements on Questions Raised by the Newfoundland Delegation constitute a bilateral agreement between Newfoundland and the Government of Canada in addition to the Terms of Union?

iv. If so, does this agreement have any force and effect? If so, what is the effect of this agreement? Is it a warranty by the Government of Canada that survives signing of the Terms of Union?

v. If so, does this agreement provide a defence to the Appellants who have acknowledged that they were fishing for cod within three (3) miles of the coast of Newfoundland and Labrador?

[10] The respondent submitted that the appellants’ list of issues could be reduced to essentially one, namely:

“whether the Appeal Court erred in upholding the Trial Judge’s decision that the Government of Canada has the constitutional authority to regulate the recreational cod fishery in the territorial waters of Newfoundland and Labrador.”

[11] At the hearing before this Court counsel for the appellants agreed with that submission of the respondent. I will accordingly address the issue as so defined and then comment on the grounds of appeal.

Law and Analysis

[12] The appellants contend that under the constitutional arrangements whereby Newfoundland joined Canada in 1949 the Province’s legislative jurisdiction extends to control of the fisheries within three miles of its coast going from headland to headland. I am in substantial agreement with the thorough decisions of the courts below regarding that proposition and would therefore dismiss the appeal. The following summary of the constitutional position will explain the flaws in the appellants’ submissions.

[13] Under s. 91(12) of the Constitution Act, 1867 legislative jurisdiction over “Sea-coast and Inland Fisheries” was assigned to the Parliament of Canada. Prior to 1949 when Newfoundland joined Canada the extent of that jurisdiction had been considered by the Supreme Court of Canada and the Judicial Committee of the Privy Council.

[14] In Canada (Attorney General) v. Ontario (Attorney General) (sub nom. Reference re Provincial Fisheries), [1898] A.C. 700, the Privy Council considered the effect of s. 91(12) upon the allocation of Crown property between the provinces and the Dominion of Canada. It emphasized the distinction between proprietary rights and legislative jurisdiction and confirmed that the legislative jurisdiction conferred upon the Parliament of Canada would enable that legislature to seriously restrict the exercise of fishing rights. It stated:

22 Their Lordships are of opinion that the 91st section of the British North America Act did not convey to the Dominion of Canada any proprietary rights in relation to fisheries. Their Lordships have already noticed the distinction which must be borne in mind between rights of property and legislative jurisdiction. It was the latter only which was conferred under the heading, “Sea-Coast and Inland Fisheries” in s. 91. Whatever proprietary rights in relation to fisheries were previously vested in private individuals or in the provinces respectively remained untouched by that enactment. Whatever grants might previously have been lawfully made by the provinces in virtue of their proprietary rights could lawfully be made after that enactment came into force. At the same time, it must be remembered that the power to legislate in relation to fisheries does necessarily to a certain extent enable the Legislature so empowered to affect proprietary rights. An enactment, for example, prescribing the times of the year during which fishing is to be allowed, or the instruments which may be employed for the purpose (which it was admitted the Dominion Legislature was empowered to pass) might very seriously touch the exercise of proprietary rights, and the extent, character, and scope of such legislation is left entirely to the Dominion Legislature. The suggestion that the power might be abused so as to amount to a practical confiscation of property does not warrant the imposition by the Courts of any limit upon the absolute power of legislation conferred. The supreme legislative power in relation to any subject-matter is always capable of abuse, but it is not to be assumed that it will be improperly used; if it is, the only remedy is an appeal to those by whom the Legislature is elected. …

(pp. 712-713)

[15] That unequivocal position was affirmed by the Supreme Court of Canada in North v. Canada (1906), 37 S.C.R. 385 as follows:

Some questions were raised on this appeal by Mr. Wilson as to the legality of the condemnation on the ground that the fisheries along the coast belonged to the province and not to the Dominion and that the legislation for their protection should have been provincial and not Dominion. The simple answer to such objections is that the British North America Act, 1867, conferred upon the Dominion the exclusive power of legislation with respect to seacoast and inland fisheries and that the judgment of the Judicial Committee in the case of Attorney General of Canada v. Attorney-General of Ontario, determines affirmatively the exclusive right of the Dominion Parliament to make or authorize the making of regulations and restrictions respecting the fisheries of Canada.

(pp. 392-393)

[16] Several years later the Privy Council reiterated the Parliament of Canada’s jurisdiction in British Columbia (A.G.) v. Canada (A.G.) (sub nom. B.C. Fisheries Reference) (1913), 15 D.L.R. 308 in which it stated:

… By sec. 91 of the British North America Act, 1867, the exclusive legislative authority of the Parliament of Canada extends to all matters coming within (amongst other things) “Sea Coast and Inland Fisheries.” The meaning of this provision was considered by this Board in the case of Attorney-General for the Dominion v. Attorney-General for the Provinces, [1898] A.C. 700, and it was held that it does not confer on the Dominion any rights of property, but that it does confer an exclusive right on the Dominion to make restrictions or limitations by which public rights of fishing are controlled, and on this exclusive right provincial legislation cannot trench. It recognized that the province retains a right to dispose of any fisheries to the property in which the province has a legal title, so far as the mode of such disposal is consistent with the Dominion right to regulation, but it held that, even in the case where proprietary rights remain with the province, the subject-matter may be of such a character that the exclusive power of the Dominion to legislate in regard to fisheries may restrict the free exercise of provincial rights. Accordingly, it sustained the right of the Dominion to control the methods and season of fishing and to impose a tax in the nature of license duty as a condition of the right to fish, even in cases in which the property in the fishery originally was or still is in the provincial Government.

… when, by sec. 91, sea coast and inland fisheries were placed under the exclusive legislative authority of the Dominion Parliament, there was in the case of the fishing in tidal waters nothing left within the domain of the provincial legislature. The right being a public one, all that could be done was to regulate its exercise, and the exclusive power of regulation was placed in the Dominion Parliament. …

Their Lordships have already expressed their opinion that the right of fishing in the sea is a right of the public in general which does not depend on any proprietary title, and that the Dominion has the exclusive right of legislating with regard to it. …

(pp. 317-318)

[17] It is clear therefore that exclusive federal legislative jurisdiction over fisheries regulation was well established prior to 1949. It has continually been affirmed in recent years. For example, in Ward v. Canada (A.G.), [2002] 1 S.C.R. 569, a case arising in this Province, the Supreme Court of Canada considered the validity of federal regulations prohibiting the sale or trade of the pelts of young seals. In upholding the regulations McLachlin C.J. stated:

34 First, the preponderance of authority suggests that the fisheries power is not confined to conservation, nor to pre-sale activities, but extends more broadly to maintenance and preservation of the fishery as a whole, including its economic value. In The Queen v. Robertson (1882), 6 S.C.R. 52, Ritchie C.J. described the fisheries power as extending “to subjects affecting the fisheries generally, tending to their regulation, protection and preservation”. Accordingly, Parliament’s power extended to “all such general laws as enure as well to the benefit of the owners of the fisheries as to the public at large, who are interested in the fisheries as a source of national or provincial wealth” (pp. 120-21).

…..

36 The theme that the fisheries power refers to the resource was affirmed by this Court, per Laskin C.J. (dissenting, but not on this point) in Interprovincial Co-Operatives Ltd. v. The Queen, [1976] 1 S.C.R. 477, who wrote, at p. 495, that the federal fisheries power “is concerned with the protection and preservation of fisheries as a public resource”, extending even to the “suppression of an owner’s right of utilization”.

…..

41 These cases put beyond doubt that the fisheries power includes not only conservation and protection, but also the general “regulation” of the fisheries, including their management and control. They recognize that “fisheries” under s. 91(12) of the Constitution Act, 1867 refers to the fisheries as a resource; “a source of national or provincial wealth” (Robertson, supra, at p. 121); a “common property resource” to be managed for the good of all Canadians (Comeau’s Sea Foods, supra, at para. 37). The fisheries resource includes the animals that inhabit the seas. But it also embraces commercial and economic interests, aboriginal rights and interests, and the public interest in sport and recreation.

[18] The appellants agreed that as a general proposition the Parliament of Canada has exclusive legislative jurisdiction over the fisheries. They argued that the arrangements governing Newfoundland’s entry into Canada created an exception to the general proposition with respect to the fishery within three miles of the coast of the Province.

[19] Newfoundland joined Canada in 1949 pursuant to negotiated Terms of Union which were then enacted by the Parliament of the United Kingdom – U.K. 12 & 13 Geo. VI., c. 22 and by the Parliament of Canada “An Act to approve the Terms of Union of Newfoundland with Canada”, 1949 (Can.) 1st Sess., c. 1. The provisions of the Terms of Union relevant to this matter include Terms 3, 18(1) and (2), 22 and 31(g).

[20] Term 3 states that the statutes comprising the Canadian Constitution apply to Newfoundland as if it had been one of the original provinces, except insofar as the same are varied by the Terms of Union:

3. The British North America Acts, 1867 to 1946, shall apply to the Province of Newfoundland in the same way, and to the like extent as they apply to the provinces heretofore comprised in Canada, as if the Province of Newfoundland had been one of the provinces originally united, except in so far as varied by these Terms and except such provisions as are in terms made or by reasonable intendment may be held to be specially applicable to or only to affect one or more and not all of the provinces originally united.

[21] Term 18 addresses the continuation of laws. Those which were in force in Newfoundland immediately prior to its union with Canada continued in force subject to repeal or alteration either by the Parliament of Canada or the legislature of the Province according to their respective authority under the Canadian Constitution:

18. (1) Subject to these Terms, all laws in force in Newfoundland at or immediately prior to the date of Union shall continue therein as if the Union had not been made, subject nevertheless to be repealed, abolished, or altered by the Parliament of Canada or by the Legislature of the Province of Newfoundland according to the authority of the Parliament or of the Legislature under the British North America Acts, 1867 to 1946, and all orders, rules, and regulations made under any such laws shall likewise continue, subject to be revoked or amended by the body or person that made such orders, rules, or regulations or the body or person that has power to make such orders, rules, or regulations after the date of Union, according to their respective authority under the British North America Acts, 1867 to 1946.

(2) Statutes of the Parliament of Canada in force at the date of Union, or any part thereof, shall come into force in the Province of Newfoundland on a day or days to be fixed by Act of the Parliament of Canada or by proclamation of the Governor General in Council issued from time to time, and any such proclamation may provide for the repeal of any of the laws of Newfoundland that

(a) are of general application;

(b) relate to the same subject-matter as the statute or part thereof so proclaimed; and

(c) could be repealed by the Parliament of Canada under paragraph one of this Term.

…..

[22] Term 22 was the only Term under the heading “Fisheries”. It covered a discrete group of Newfoundland statutes which concerned the export marketing of salted fish. It provided for the continuation of those statutes for at least five years, unless the provincial cabinet requested an earlier repeal or alteration:

22. (1) In this Term, the expression “Fisheries Laws” means the Act No. 11 of 1936, entitled “An Act for the creation of the Newfoundland Fisheries Board”, the Act No. 14 of 1936, entitled “An Act to Prevent the Export of Fish Without Licence”, the Act No. 32 of 1936, entitled “An Act to Amend the Newfoundland Fisheries Board Act (No. 11 of 1936)”, the Act No. 37 of 1938, entitled “An Act Further to Amend the Newfoundland Fisheries Board Act, 1936”, the Act No. 10 of 1942, entitled “An Act Respecting Permits for the Exportation of Salt Fish”, the Act No. 39 of 1943, entitled “An Act Further to Amend the Newfoundland Fisheries Board Act, 1936”, the Act No. 16 of 1944, entitled “An Act Further to Amend the Newfoundland Fisheries Board Acts, 1936-38”, and the Act No. 42 of 1944, entitled “An Act Further to Amend the Newfoundland Fisheries Board Act, 1936”, in so far as they relate to the export marketing of salted fish from Newfoundland to other countries or to any provinces of Canada.

(2) Subject to this Term, all Fisheries Laws and all orders, rules, and regulations made thereunder shall continue in force in the Province of Newfoundland as if the Union had not been made, for a period of five years from the date of Union and thereafter until the Parliament of Canada otherwise provides, and shall continue to be administered by the Newfoundland Fisheries Board; and the costs involved in the maintenance of the Board and the administration of the Fisheries Laws shall be borne by the Government of Canada.

(3) The powers, authorities, and functions vested in or imposed on the Governor in Commission or the Commissioner for Natural Resources under any of the Fisheries Laws shall after the date of Union respectively be vested in or imposed on the Governor General in Council and the Minister of Fisheries of Canada or such other Minister as the Governor General in Council may designate.

(4) Any of the Fisheries Laws may be repealed or altered at any time within the period of five years from the date of Union by the Parliament of Canada with the consent of the Lieutenant-Governor in Council of the Province of Newfoundland and all orders, rules, and regulations made under the authority of any Fisheries Laws may be revoked or altered by the body or person that made them or, in relation to matters to which paragraph three of this Term applies, by the body or person that under the said paragraph three has power to make such orders, rules, or regulations under the Fisheries Laws after the date of Union.

…..

(6) Terms eleven, twelve, thirteen and eighteen are subject to this Term.

…..

[23] Term 31, which provided for the assumption by the Government of Canada of certain public services, works and property, expressly referred to the fisheries:

31. At the date of Union, or as soon thereafter as practicable, Canada will take over the following services and will as from the date of Union relieve the Province of Newfoundland of the public costs incurred in respect of each service taken over, namely,

…..

(g) protection and encouragement of fisheries and operation of bait services; …

[24] The effect of the Terms of Union upon legislative jurisdiction over the fisheries was addressed by this Court in Johnson v. Seabright et al. (1979), 107 D.L.R. (3d) 749 (affirmed in Moore v. Johnson, [1982] 1 S.C.R. 115). That case considered whether a Newfoundland statutory provision prohibiting the killing of seals on Sunday had been repealed or abolished by the passage of a regulation pursuant to federal fisheries legislation. The Newfoundland statute was one in force in Newfoundland prior to its union with Canada. In declaring that statute to have been repealed the Court unanimously held that fisheries is within the sole legislative jurisdiction of the Parliament of Canada. Gushue J.A. noted the effect of Term 18 of the Terms of Union and squarely addressed the legislative jurisdiction over fisheries as follows:

… the Seal Fishery Act encompasses various fields, both federal and provincial, but there can be no doubt that the purpose of the Act generally was to regulate the prosecution of the seal fishery. … It was therefore a fisheries regulation, and the regulation of fisheries, both sea coast and inland, came and comes under the aegis of the federal Government. …

(p. 754)

…..

To quote Rand, J., in the Bowater case, supra, at p. 98 D.L.R., p. 639 S.C.R.:

The legislative result of the Union has been to transfer to the field of the Dominion those provisions of law which relate to matters attributed in the constitutional structure to the Dominion;… .

Thus, because fisheries was a field solely and exclusively within the jurisdiction of the federal Parliament, that body – and that body only – had the authority to repeal, abolish or alter s. 15 of the Seal Fishery Act. …

(p. 755)

…..

I agree that by the proclaiming into law of the Fisheries Act in May, 1958, and the subsequent making of the Seal Protection Regulations by the Governor-General in Council pursuant to that Act, the Parliament of Canada exercised its exclusive jurisdiction in the field of fisheries and, by doing so, occupied the field of fisheries regulation and management in Newfoundland, thereby necessarily “repealing, abolishing or altering” all Newfoundland laws hitherto in existence for that purpose. …

… It is clear from Term 18 of the “Terms of Union” that the only body competent to enact legislation in respect of matters involving the regulation of fisheries is the Parliament of Canada. …

(p. 757)

[25] In seeking to distinguish Johnson v. Seabright the appellants do not confine their analysis to the Terms of Union and the Constitution Act. They also refer to a document which preceded the enactment of the Terms of Union. On December 11, 1948 the Prime Minister of Canada wrote the Chairman of the Newfoundland delegation involved in the negotiation of the Terms of Union. That letter, to which was attached a lengthier memorandum, stated:

During the course of our negotiations covering the final terms and arrangements for the union of Newfoundland with Canada a number of questions concerning Government policy were raised by your delegation and answered by the Canadian Government. In addition a number of temporary administrative arrangements were settled in order to facilitate the union.

It would not seem fitting to include in formal terms of union matters of this kind, since they are scarcely of a constitutional nature. I am therefore sending you the enclosed memorandum covering these various items. While these will not form part of the Terms of Union, they contain statements of the policy and intentions of this Government if union is made effective by the approval of the Parliament of Canada and the Government of Newfoundland and confirmed by the Parliament of the United Kingdom.

[26] I observe that this letter noted that the memorandum attached addressed matters of (Canadian) government policy and temporary administrative arrangements. The Prime Minister expressly disclaimed that the matters covered in the memorandum were of a constitutional nature. The memorandum covered a wide range of items such as imports of essential goods, passports, hospitalization of veterans and enrichment of flour. It included the following:

(iv) CONTINUATION OF LAWS

The Canadian Government will consult with the appropriate Newfoundland authorities with regard to the timing of the application of federal statutes or the timing of the repeal of Newfoundland statutes, where the provincial authorities feel that serious problems are involved requiring consultation with the federal authorities.

This will be a matter for specific discussion between the appropriate representatives of the two governments from time to time.

…..

(xii) FISHERIES

1. Trawling

Newfoundland trawlers will be permitted to fish (as they have been doing) to the three-mile limit off the coasts of Newfoundland, and an amendment to the Fisheries Act, 1932, will be introduced for this purpose.

It is understood that the policy as to trawler licensing in Newfoundland will be based on securing the maximum efficiency for the province’s fishing industry and welfare for its shore communities.

With respect to the establishment of territorial waters it is our understanding that the “headland to headland” rule, as it now applies to Newfoundland, will continue to apply.

2. Prohibition of Export of Bait Fishes

.....

3. Licensing of Premises to Pack Fish

(including Filleting and Freezing Plants)

…..

4. Power of Newfoundland Fisheries Board to Set

Quotas for Fish for Export

…..

5. Market Representatives

…..

6. Newfoundland Fish Export Tax

…..

7. Power of Newfoundland Fisheries Board to Negotiate Contracts

…..

8. Fish Wrappers and Packages

…..

9. Inspection Fees on Export

…..

10. Tariff Agreements

…..

11. Bait Service

…..

“Statements on Questions Raised by the Newfoundland Delegation during the Negotiations for the Union of Newfoundland with Canada”

[27] The appellants, referring specifically to para. (xii) thereof, contend that this 1948 memorandum constituted a bilateral agreement between Newfoundland and the Government of Canada pursuant to which the Province has the sole legislative jurisdiction over fisheries within the three mile territorial sea (as it was in 1949). They further refer to the 1948 memorandum in support of their contention that under the Terms of Union the Province “retained” jurisdiction over such fisheries except that pertaining to the export of salted fish.

[28] The appellants stated their position in para. 38 of their factum as follows:

The Appellants maintain that the Prime Minister of Canada made a promise in a memorandum titled Statements on Questions Raised by the Newfoundland Delegation. That promise conceded that Newfoundland would continue to exercise jurisdiction over a three (3) mile territorial sea as it had done prior to entering Confederation. The Fisheries Act, 1932 was amended in 1952 regarding trawlers, thereby providing proof positive of the promise made by Prime Minister St. Laurent as well as partial performance of that promise. The Federal Fisheries Act was again amended in 1969 and by that amendment jurisdiction to the three (3) mile limit was removed and breaking that promise.

[29] In my view the actual wording of paragraph (xii) of the 1948 memorandum cannot on any reasonable interpretation support the appellants’ position. The express language does not mention that Newfoundland is to have jurisdiction over the fisheries within the three mile territorial sea. Considering the significance of the fishery and that the paragraph provides clear guidance on other aspects of the fishery it seems implausible that Newfoundland’s jurisdiction, as claimed by the appellants, would not be more clearly acknowledged. I observe that paragraph xii(i) is headed “Trawling” and its text discusses only that aspect of the fishery and the continued application of the “headland to headland” rule respecting territorial waters. The most reasonable interpretation of that paragraph, read in context, is that it stated the intention of the Government of Canada on how federal jurisdiction would be exercised if Newfoundland were to join Canada. It specifically noted that federal legislation would be required to effect the stated policy that Newfoundland trawlers would be permitted to fish to the three mile limit. The 1948 memorandum does not support any suggestion that Newfoundland, as a province, was to have legislative jurisdiction over fisheries in the territorial sea.

[30] I further note that the appellants’ submissions fail to consider the effect of the Prime Minister’s covering letter – see para. 25 above – upon interpretation of the 1948 memorandum.

[31] I conclude that the 1948 memorandum does not have the constitutional effect claimed by the appellants. It did not alter the distribution of legislative jurisdiction and affords no principled basis for overturning Johnson v. Seabright.

[32] I will now comment briefly in order on the nine grounds of appeal stated in the appellants’ factum.

Ground 1 - That the Learned Appeal Court Judge erred in the proper interpretation of the Terms of Union of the Dominion of Newfoundland with the Dominion of Canada in that he placed undue emphasis on Term 18 and insufficient emphasis on Term 22. Term 22 deals with the fishery and serves to cut down the provisions of Term 18 as it applies to the fishery.

Ground 2 - That the Learned Appeal Court Judge erred in ruling that the Dominion of Newfoundland transferred jurisdiction of the entire fishery to the Dominion of Canada, when in fact, Term 22 clearly defines Fisheries Laws as pertaining to the salt fishery only.

[33] The appellants argue that Term 22 serves to restrict the application of Term 18 with respect to the fisheries. They state:

… If Term 18 mandates that all laws in force in Newfoundland continue in force, why is it then necessary for Term 22(2) to mandate that all fisheries laws continue in force for 5 years and thereafter until the Parliament of Canada provides otherwise. The only way that Term 18 and Term 22 can logically coexist is if Newfoundland retained jurisdiction over its fisheries but for the export market of salted fish from Newfoundland to other countries and to any provinces of Canada.

[34] This argument is fallacious. Term 18 and Term 22 are entirely consistent with exclusive federal legislative jurisdiction over the fisheries. Term 18 addressed the continuation of all laws in force in Newfoundland at the date of Union and their repeal or amendment by either the federal parliament or provincial legislature in accordance with the established distribution of powers under the Canadian Constitution. There was no assurance in Term 18 that such laws would not be repealed or amended immediately following union with Canada. Term 22 provided that assurance with respect to a defined group of statutes concerning the export marketing of salted fish. These statutes were to continue in force for a minimum of five years unless the Newfoundland cabinet sought their earlier alteration or repeal. Term 22 therefore provided a limited exception to Term 18.

Ground 3 - That the Learned Appeal Court Judge erred in ruling that the Doctrine of Crown Honour did not apply to the Appellants because they are not indigenous people. In fact the Doctrine of Crown Honour is a common law Doctrine, which predates the Dominion of Canada even coming into existence by hundreds of years.

[35] Under this ground the appellants emphasized the 1948 memorandum discussed above. Federal fisheries legislation was amended in 1952 to permit Newfoundland trawlers to fish within three miles of the coast. The appellants contended that a statutory amendment in 1969 undid this preferential treatment accorded to Newfoundland trawlers thereby breaking the promise made in 1948. It is in that context that the doctrine of Crown honour was asserted.

[36] There cannot be resort to the doctrine of Crown honour in these circumstances. The 1948 memorandum was clearly a statement of the intended policy of the Government of Canada on various matters within federal jurisdiction including certain fisheries matters. There was no assurance that such policy would continue in perpetuity. It is of the very nature of government policy in such matters that it may change over time. As explained above the 1948 memorandum did not alter the allocation of legislative power over fisheries under the Constitution.

[37] Under this ground it was further stated that Newfoundland, prior to union with Canada, had exercised jurisdiction over a three mile territorial sea. The appellants then maintained “that any territory or jurisdiction not ceded to the Federal Government logically remains with the province”. I offer two comments on this proposition. Firstly, whether territory belongs to the province does not assist the appellants. It is well established that there is a distinction between property rights and legislative jurisdiction and that legislative jurisdiction over fisheries conferred on the Parliament of Canada may be exercised in respect of property vested in the Province – see B.C. Fisheries Reference. Secondly, the statement that jurisdiction not ceded to the Federal Government remains with the Province is inaccurate. It ignores the plain language of Term 3 of the Terms of Union which provided that the Canadian Constitution applies to Newfoundland in the same manner as all other provinces, except as varied by the Terms of Union. Under the Constitution Act, 1867 the legislative jurisdiction over fisheries was assigned to the Parliament of Canada. There is nothing in the Terms of Union at variance with that assignment of exclusive legislative jurisdiction except for the transitional provisions in Term 22.

Ground 4 - That the Learned Appeal Court Judge erred in relying upon the conclusion of the Trial Court judge that Newfoundland assumed the same position on entry into Canada as if Confederation had been achieved in 1867. Term 3 of the Terms of Union clearly establishes a special status for the Dominion of Newfoundland, that being equal to the nine provinces of Canada except as modified by the Terms of Union.

[38] The appellants’ challenge in this regard does not advance their position. The Appeal Court judge at paras 29-30 – see para. 7 above – accepted that upon entry into Canada Newfoundland was subject to the Canadian Constitution in the same manner as all other provinces. He did not add the qualification stated in Term 3 that the foregoing was subject to such variance as was contained in the Terms of Union. That qualification is only important in the context of this case if the appellants could have established that the Terms of Union varied legislative jurisdiction over the fisheries and conferred legislative jurisdiction upon the Province within the three mile territorial sea. The appellants’ arguments have not persuaded me that the Terms of Union have varied the legislative jurisdiction over fisheries in that manner. The only variance of note was that in Term 22, providing for the short-term continuance of statutes relating to the export marketing of salted fish. The Terms of Union do not by their express terms or necessary inference confer upon Newfoundland legislative jurisdiction over fisheries regulation.

[39] Under this ground of appeal the appellants also observed that certain statutory restrictions on salmon fishing which applied to other eastern provinces were not amended to extend to this Province. This was suggested to be an acknowledgement by the Government of Canada that it had no jurisdiction to legislate in respect of fisheries within the three mile territorial sea off the Province. There is no merit to that position. No authority was cited, nor am I aware of any, in support of the proposition that the Parliament of Canada must legislate in like manner for each province in respect of fisheries regulations. There may obviously be differing historical, social or economic reasons why fisheries regulations may vary from one region or province to another. The absence of particular legislation in respect of this Province cannot at law be taken as an acknowledgement of lack of jurisdiction.

Ground 5 – That the Learned Appeal Court Judge erred in relying upon cases decided by Canadian Courts prior to the entry of Newfoundland into Confederation. Specifically, the other nine provinces joined the Dominion of Canada as either colonies or as territories and enjoyed no international personality at the time that they joined Confederation. Newfoundland, on the other hand, joined Canada as a Dominion. It had already achieved Dominion status and authority. Therefore, its international boundaries including its boundary with the Dominion of Canada in Labrador and its three (3) mile territorial sea had already been established in accordance with international law in the same manner as all other Dominions of the Commonwealth, including Canada.

[40] The appellants’ contentions under this ground cannot be accepted. That Newfoundland, immediately prior to joining Canada, had Dominion status, certain international boundaries and a territorial sea, is, in the context of this appeal, a “red herring”. This appeal is about the distribution of legislative jurisdiction under the Canadian Constitution. When Newfoundland joined Canada it accepted in Term 3 of the Terms of Union that the existing Canadian Constitution, including the key provisions pertaining to legislative jurisdiction, applied to it as to all other provinces, except as varied by the Terms of Union. The only variation in respect of fisheries jurisdiction cited by the appellants was that in Term 22. As discussed above, the variation in Term 22 was both limited in scope and short term in duration. It does not assist the appellants.

[41] I specifically reject the appellants’ contention that case law pre-dating Newfoundland’s entry into Canada ought not to be considered. In 1949 Newfoundland adhered to the existing Canadian Constitution with its developed jurisprudence. That jurisprudence applied to Newfoundland in accordance with Term 3 of the Terms of Union.

[42] The appellants cited the decision of this Court in Reference re: Mineral and Other Natural Resources of the Continental Shelf (1983), 145 D.L.R. (3d) 9 respecting proprietary rights to the bed and subsoil of the 1949 territorial waters of Newfoundland. They argued that ownership of the fishery of the territorial sea therefore belonged to the Province. That argument ignores the clear jurisprudence that federal legislative jurisdiction over the fisheries is not ousted by the existence of provincial proprietary rights – see for example, B.C. Fisheries Reference.

Ground 6 – That the Learned Appeal Court Judge erred in relying upon Johnson v. Seabright and Ward v. Canada as the impugned activity is distinguishable in two respects. First of all, the Courts in Johnson and Ward dealt with activities, which took place outside of the three (3) mile territorial sea surrounding Newfoundland and Labrador. Secondly, they dealt with commercial harvesting of sea mammals whereas the instant case deals with recreational fishing for personal consumption within the three (3) mile territorial sea surrounding Newfoundland and Labrador.

[43] The appellants seek to distinguish Johnson v. Seabright and Ward v. Canada principally on the basis that neither concerned the fishery within the territorial sea. As explained above however there is no basis to conclude that the exclusive federal legislative jurisdiction over fisheries was restricted by the Terms of Union in respect of territorial waters off Newfoundland. The principles enunciated in Johnson v. Seabright and Ward v. Canada apply equally in respect of those territorial waters as they do beyond such waters.

Ground 7 – That the Learned Appeal Court Judge erred in ruling that Newfoundland was not particularly bothered by federal control over a fishery within a three (3) mile territorial sea as the provincial government has not challenged federal legislative authority to do so. The Appellants maintain that acquiescence of their provincial government in protecting their individual rights is not sufficient to cause the loss of those rights. Furthermore, the Province of Newfoundland and Labrador has successfully challenged the jurisdiction of the Government of Canada regarding the ownership for sub sea resources, extending three (3) miles out to sea from the low water mark of the coastline of the province in Reference Re Minerals and Other Naturals Resources of the Continental Shelf.

[44] The statement in question by the Appeal Court judge was not central to his disposition of the case. It was obiter.

[45] Furthermore the statement that Newfoundland was not “particularly bothered” is quoted out of context. It was contained within a review by the Appeal Court Judge of the Terms of Union as follows:

[36] The Terms of Union expressly acknowledge Federal jurisdiction over Fisheries as I have just demonstrated. But there is, aside from express acknowledgement, a tacit recognition which is just as compelling: Newfoundland agreed to the Terms of Union with Canada and Term 22 in particular. Term 22 defers to Federal jurisdiction over Fisheries and it acknowledges that Newfoundland was content with the arrangement agreed upon. Implicit in the Term 22 is a recognition that the Government of Canada held the residual authority over Fisheries and Newfoundland was simply retaining what it could of the sovereign position that it had once held in Fisheries to ease the transition to the new management regime.

[37] Newfoundland was understandably concerned about the immediate impact of Confederation on its most important industry in the present knowledge that the industry would pass to Federal control when the Union was finalized. It sought and received from the residual authority – the Government of Canada – assurances that the industry would be protected until the Federal government developed the infrastructure and legislative base to avoid calamity in the fishery.

[38] This is not the stance of government that believed it was retaining control of the fishery. Rather it is consistent with what it had agreed to when it negotiated Newfoundland’s entry into Confederation: give over control of the fishery (and in many other areas it had formerly controlled) to the Federal government in the bargain to join the Union. It is not as though Newfoundland was particularly bothered by its choice. After all, the cost of managing the fishery was a burden to Newfoundland. The cost of operating the Fisheries Board was the main part of that burden and Newfoundland was happy to pass that cost to the Government of Canada under Term 22(2).

(emphasis added)

[46] I find no error in the foregoing analysis of the Appeal Court Judge.

[47] The reference to provincial acquiescence followed the above quoted paragraphs and noted the absence of provincial legislation asserting control over the fisheries and the stance adopted by the Attorney General of the Province in Johnson v. Seabright and in this case. No error has been shown in the statements of the Appeal Court Judge on those points.

[48] The decision of the Attorney General of the Province not to intervene in this case has not affected my view respecting legislative jurisdiction over the fisheries.

Ground 8 – That the Learned Appeal Court Judge erred in finding no evidence of broken promises when the Government of Canada first amended the Federal Fisheries Act to recognize a three (3) mile limit for Newfoundland trawlers and then, without consent, further amended the Federal Fisheries Act to remove that provision which created special status for Newfoundland trawlers.

[49] This ground is a recasting of the submission arising from the 1948 memorandum. The appellants argue that amendments to federal fisheries legislation should be treated as “either a bilateral agreement between the Dominion of Newfoundland and the Dominion of Canada, as a promise made by the Crown of the Dominion of Canada, which must be honoured, or as part of the Constitution of the Nation as it pertains to the Province of Newfoundland and Labrador”. For the reasons explained in para. 29 above the 1948 memorandum did not alter federal legislative jurisdiction over fisheries. A fortiori legislation which implemented part of that memorandum could not have that effect.

Ground 9 – That the Learned Appeal Court Judge erred in finding that the Appellants have not identified themselves or any other Newfoundland group as groups to whom the Government of Canada owes a fiduciary duty in respect of the fisheries, when in fact they claim that all residents of Newfoundland and Labrador are that group.

[50] In the contested passage the Appeal Court Judge was responding to the appellants’ invocation of the doctrine of Crown honour, and their citation of cases which discussed that doctrine in the context of aboriginal and treaty rights.

[51] In view of my conclusions respecting the distribution of legislative jurisdiction over the fishery it is unnecessary to delve into the doctrine of Crown honour. However, the appellants’ submissions did not establish any basis for the alleged fiduciary duty.

Disposition

[52] For the reasons stated above, I would dismiss the appeal.

_________________________

K.J. Mercer, J.A.

I concur: _______________________
B.G. Welsh, J.A.

I concur: ________________________
L.J. Barry, J.A.

-srbp-

RBC confirms two year flat line for province's economy

RBC Economics is holding to its forecast that Newfoundland and Labrador will go from leading the province in economic growth this year to trailing for at least two years.

RBC predicts resource megaprojects that will start in the next decade will renew optimism after 2010.

-srbp-

11 October 2007

De-Hearn-iated news

Canada's adolescent government (it isn't newborn anymore) is taking action to protect the ocean environment.

Lawrence Cannon said so last Friday.

But the announcement doesn't even include a mention of the adolescent's fish minister, Loyola Hearn.

Very unusual, indeed, given that the money will likely mean a great deal to people in Newfoundland and Labrador.

-srbp-

10 October 2007

The best of both worlds for NS

The Government of Canada and the Government of Nova Scotia today reached a deal to settle a dispute over the 2005 offshore equalization offset payments deal.

Under the deal, Nova Scotia will be able to chose either the O'Brien formula with a cap or the Equalization formula as it existed in 2005, whichever delivers more cash to the provincial government.

The agreement is similar in principle to an arrangement reached by the federal government and the Government of Newfoundland and Labrador in the early 1990s in order to maximize equalization and offsets available to the province.

Danny Williams dismissed the agreement as saying "yes to less."

He's wrong.

The ability to toggle back and forth between the two formulas means the Nova Scotia government can always choose the mechanism that will deliver the most cash. Under the federal 2007 budget, Nova Scotia would have been required to switch from the existing formula to the amended O'Brien arrangement with no ability to change, even if the original agreement proved more lucrative.

The agreement works to Nova Scotia's advantage since the province is not forecast to become a "have" province before the expiration of the deal and therefore qualifies for both equalization and the 2005 bonus payments. By contrast, Newfoundland and Labrador will cease to qualify for equalization - and by definition become a "have" province - within the next two years. That change is due entirely to the performance of the provincial economy, especially oil and gas deals signed long before Williams became premier.

The 2005 agreement delivered a single $2.0 billion advance payment. No additional money has been received since the original cheque, despite false claims by the province's finance minister that the current budget contains money from the 2005 offshore deal. The provincial government merely draws down against the advance each year based on a calculation of what the province is entitled to receive. The figures in the budget represent an accounting practice, not new money.

By contrast, in 2005 Williams did say yes to less than he had earlier requested. Williams' initial demand was for a payment from the federal government equal to all the provincial government's offshore revenues, paid over the life of offshore production. In today's terms and based on the provincial government's own figures, that demand would have been worth in excess of $16 billion for the Hebron project alone.

Williams settled for $2.0 billion in cash.

-srbp-

Coincidence?

On CBC radio this afternoon, provincial affairs reporter David Cochrane mentioned a possible increase in the size of the provincial cabinet and mentioned splitting the agriculture and forestry bits off the natural resources ministry. The reason given was that agriculture hasn't been getting the attention that it deserves.

Hmmm.

That wasn't in Charlene Johnson's briefing notes for her participation in a forum sponsored by the agriculture federation last Friday. Johnson, incidentally, is parliamentary secretary to the natural resources minister.

In fact, when asked about departmental configurations in a future cabinet, Johnson begged off the questions saying it was The Leader's prerogative.

The idea was introduced into the discussion by Simon Lono based on the observation that since minerals and oil had such attention in the administration, the other bits - like the trees, vegetables and cows - were being left behind. Lono made a straightforward and practical observation based on his own experience in government and the the idea met with some positive reaction among the handful of people attending the session. Sadly, no media were there to record it for posterity.

Now if David heard this idea long before last Friday, there's no doubt he'll flip an e-mail pretty quickly to sort it out. But, something says the idea wasn't in the idea pile at the Tory campaign bunker until after that Friday. Smart politician that she is, Johnson should have noticed the practical suggestion, the positive reaction and brought it back to the The Leader.

Poof, the day after the election, Cochrane is mentioning it as something he picked up.

Now, if David heard this idea after Friday - or if he got it from Charlene - maybe he should do some more asking.

Update: [12 Oct 07] Two e-mails, one from david Cochrane, shed some light on the original of creating - once again - a department of agriculture, likely coupled with forestry. Cochrane's comments were based on discussions going back well before the election. Another e-mail pointed out that the idea was floated at least as far back as January within the agriculture federation.

Interesting then, that the idea never turned up during the campaign, endorsed or even mentioned by Charlene Johnson, apparently, and not mentioned within the Progressive Conservative platform. Agriculture contributes significantly to the provincial economy and having it buried away inside natural resources hasn't given it the attention the sector deserves.

Let's see if the new cabinet structure includes a separate agriculture department and/or whether other departments mgiht be re-arranged to deal with other possible policy initiatives. in his comments on CBC radio, Cochrane suggested an increase in cabinet by one seat which would bring the total up to around 17 or 18. It will be interesting to see if that view holds or if - as Shawn Skinner suggested the same day - the new circumstances in the province warrant a change that might be wider in scope. There will be change; it's just a matter of how much.

A new department of Labrador development and aboriginal affairs? A new department of community development and culture?

-srbp-

Finish the drive in '65

But will we all be living in heaven by 2011?

The tale of the pollster tape

Res ipso loquitur.


CRA
(Aug 07)

Telelink
(Sept 07)

Actual
(Oct 07)

P.C. share of eligible vote


62%


42%


42%


Update: 10 Oct 07. Interestingly enough, the PC Party captured 58.55% of the votes cast in the last election with a 72.52% turnout of eligible voters. Do the math. It works out to 42% of eligible voters.
-srbp-

Election results: the past in the present

Surprise?

in some respects, yes.

The projections of 43 progressive Conservative seats seemed extraordinarily high, as did the popular vote projections.

Year

1966

1956

2007

1962

Percent

62.8

61.6

60.9

58.9

 

At the outset, though, everyone must start with the understanding that while the Tories hold nearly a record share of the popular vote, it came in an election with a near record low turnout of eligible voters. This point cannot be ignored. While our system allows such a result, we should be collectively concerned about why so many of our fellow citizens did not exercise their right to vote. Apathy and complacency have been tossed out as possible reasons, almost exclusively by the Progressive Conservatives and repeated by commentators who spent a lot of time traveling with the campaign. 

Outside of that tiny bubble of opinion, though, there is absolutely no insight into the views of nearly half the population. Some will casually dismiss those who did not vote this time. Others will talk for a while about changing the electoral system to something other than the winner-take-all system currently in place in each district.  Any words spent on reform are basically so much hot air, as will become plain below. Incumbents have no interest in electoral reform that might threaten their pre-eminence.

The Blue

For the Progressive Conservatives, the election reaps the rewards of a classic approach to politics:  with full coffers, spend it while you got it. That approach invariably works and it worked in spades in 2007. 

At least one commentator this evening referred to Danny Williams as an atypical politician.  He is not.  In fact, Danny Williams is a shrewd, capable and extremely aggressive leader in the tradition of Newfoundland politicians.

Williams has been compared to Smallwood and rightly so. Some may take that as a disparaging remark. Some old Tories likely wince at the comparison, but the hallmarks of Smallwoodism  - the cult of personality, the ruthless attack on any dissent, starving of opposition districts and overwhelming domination of cabinet and caucus by a single, single-minded personality - are hallmarks of the Williams approach. One can only stand in awe a politician who understands that and can capitalize on it so effectively.

The Red

For the Liberals, four years of indifference have reaped their own reward. The party is a ruin, with no district organizations in most places and a crushing debt. Whoever steps forward to lead the party will have a daunting task in front of him or her.

The Liberals elected in 2003 never got over the shock of being out of comfortable government jobs. They failed to make the mental adjustment to opposition;  they had not gotten past the simple understanding that their job as the Opposition was to develop a coherent set of alternative policies.

This should be no surprise of course, since the 2003 Liberals had campaigned on policy platforms essentially identical to those introduced by the Progressive Conservatives. Given the choice in 2003 between real Tories - nationalist to the core - and fake Tories, the people opted for the brand-name over the generic.

Try and slip a sheet of paper between the Liberal, New Democrat and Conservative parties on major issues such as the energy corporation, FPI or the province's financial position. Science cannot conceive of something so infinitesimally thin. Liberal Party policies, from the administration of the House of Assembly to the waste management plan to the poverty reduction strategy continued after 2003 or were introduced by the Williams based on the work already done.

One can hardly expect that the three Liberals and the one New Democrat in the legislature after this election will be any different tomorrow than they have been. If there are to be any new ideas on the province's political scene, it will surely have to come from somewhere other than the legislature. The ideas will have to come, as well, from someone other than the ones  - like John Efford or Danny Dumaresque or Walter Noel - suspected by some of eyeing the Liberal leader's job.

With the departure of Roger Grimes, the opposition Liberal caucus never took seriously to the business of organizing themselves as anything beyond a loose association of people scared of the government party, overawed by polls, and desperately afraid of the result which they inevitably received. In his concession speech, Gerry Reid seemed genuinely relieved of the burden he bravely shouldered, and shoulder it he did despite the onslaught of personal attacks waged on him from the Tories from time to time.  But listen to his words and one can see that he - and likely most of his caucus - had been psychologically defeated long before the writ dropped. They were simply going through the motions.

That said, there were a number of Liberal candidates who stood out for their abilities and for their promise. In any other situation, some might have succeeded.  At any time in our province's history, the next crop of politicians for any political party come out of defeated opposition candidates, Liberal or Conservative or New Democrat.  if that is indeed the case this time, we may see some bright spots in the future.

The Orange

The New Democrats attracted some talented people as well, but the party remains localized in St. John's.  The party remains incapable of developing a strategy for growth. Once again, the people of the province have seen its usual pattern of running names on ballots rather than focusing on seats where it might stand a chance of winning. As such the party will be doomed to be a marginal political force at best, no matter what patronizing praise its leader receives from the Premier.

The Future House and the future province

If the recent past is any indication, the legislature will slip increasingly into irrelevance.  The House will sit fewer days.  Bills will be passed with less and less debate. Three of the four opposition members are the same people who allowed the House to run as it has over the past four years, including agreeing in secret to the speedy passage of the Green bill in a manner that made the bill itself a mockery of its author's intentions. The public will know less and will have a weaker ability to discover anything.

With such a large caucus, Danny Williams may well be faced with a dilemma of political management unseen since the 1980s.  Brian Peckford's solution was to buy the co-operation of his caucus by giving them all extra stipends and positions as parliamentary secretaries. With a speaker, deputy speaker, chair of committees and government whip, there are only 39 left to accommodate.  A cabinet of 20 with a matching number of parliamentary secretaries will ensure that all stay nicely in line.  let's see if that is the solution which comes, if not this year, then in a few more.

In the estates, don't worry about the news media becoming the opposition.  Corporate concentration in some cases and political inclination in others will ensure that self-censorship will kill or weaken anything that appears critical long before it hits the page or the airwaves.  As anyone paying attention would have already seen since 2003, anything that does not conform to the official line is , by definition, critical and, therefore, bad.

And in cyberspace, things will likely carry on as usual. Some will view Bond Papers as partisan or personal.  If they do, they merely miss the point. It has always been about policy choices and alternative information.  And whether that goal has been met or not on occasion, that will remain the focus, for as long as it can be sustained.

Our descendents 40 years hence should not be able to look back on this time as we do to a time 40 years ago and wonder why no one pointed out the obvious alternatives to decisions taken in near unanimity.

The past is too much in our present to give anyone any comfort.

-srbp-

09 October 2007

Danny's "mark your x" cheap shot

Couldn't get the Aliant link from the earlier post?

Well, here's the vid that backs it up.

Tory star chamber task force

Buried in the infamous Blue Book 2007 are a couple of peculiar references that are worthy of further inquiry.

First, in a section dedicated to strengthening the volunteer and not-for-profit sectors in the province, there's a promise to increase funding to the Community Services Council. It isn't clear why one not-for-profit in the province would be so favoured as to be singled out for specific mention in the Tory campaign manual.

Don't bother looking for the CSC annual report on line to see how much cash CSC gets currently. You won't find one there at all; there's just a list.

Second, there's a reference to continuing "to implement the recommendations of the task force on the not-for-profit sector."

What task force on the not-for-profit sector?

Try googling it.

You won't find a thing, except for the links to the PC Party website.

So when was this task force set up?

Who sat on it?

What did the task force report say?

Why has its very existence been kept secret?

-srbp-

A study in contrasts

So how come the Santa Claus crack made it into the Telegram, yet even though the Telly reporter was on the spot, the far more significant "idiot" remark didn't?

-srbp-

Mark your X for "idiot"

High campaigning in Bay of Islands.

Take a gander at this clip from NTV and listen carefully at the end.

Danny Williams encourages one disgruntled man in Bay of Islands to vote for "idiot" or "ed-iot", perhaps a disparaging reference to Liberal incumbent Ed Joyce who has been a thorn in Williams' side ever since he defeated Williams star candidate in 2003. Williams spent the last few hours of the 2007 campaign trying to defeat Joyce.

Maybe this is another one of Williams' weak efforts at humour by combining words like he did with NOIA and "annoying". For a guy who supposedly hates cheap, personal attacks, Williams shows a remarkable penchant for...well... cheap, personal attacks.

Mark your "x" for idiot

If the link on the word "clip" above doesn't work, click on the link above, follow the instructions and there it is.

Note: Some people are having trouble with the links. It opens in a separate browser or a popup. Check your settings. I'll see if I can embed the clip.

-srbp-

08 October 2007

Vote Freely!

One of the more curious contributions to this election campaign has come from some blogging under the name I.P. Freely.

There has been a steady flow of videos, bumper stickers and bingo cards all taking pokes at politicians, but mostly at Danny Williams. Apparently, when you are the most popular guy around, you are also the easiest target.

Some of these have been quite clever and well done. The Hebron secret deal "'Danny and his chamber of secrets" looks like a political television spot, but without the better quality sound and video production qualities. Others, like the one about Danny putting oil in the ground, just head to nowhere funny or pointed.

As we draw down to the last few hours of the campaign, here are Freely's latest work samples.

First, there is the exhortation to vote freely. It's simple, funny and includes an inside reference to another recent video that's worth checking out as well for it's simple, funny message.

Second, there's a video that is equally simple but the impact comes entirely from the audio. While the slides and movie images scroll through a series of Tory promises, the audio is Danny Williams telling people what to do at the ballot with someone who breaks a promise. Some of the stuff produced in Ontario during its election campaign have had better production values, but in terms of bang for the buck, this sort of thing - having a leader speak eloquently against himself - creates a sort of jarring effect that is difficult to achieve. This sort of thing can only happen where the political leader takes positions based on something other than logic and consistency.

Cognitive dissonance.

Surrealism.

Thy name is Danny.

-srbp-

The projections, the polls and the political reporters

The political reporters

A panel of CBC reporters gave some interesting insights on a province-wide Morning Show this morning into the final days of the campaign and what may occur on Tuesday.

In particular, it was interesting to hear provincial affairs reporter David Cochrane's reporting of comments with the Progressive Conservative campaign on possible seat outcomes ranging from 38-39 seats for the ruling party to as many as 44. The Tories have been rightly trying to dampen sweep expectations since they know the whiff of overwhelming success doesn't give their own supporters motivation to turn out at the polls and may increase the motivation of others to vote.

Unfortunately, that also smacks into a problem with the core Danny Williams message for the past year or more, namely that he needs a strong mandate - read as many seats as humanly possible - in order to carry forward. The two things comes together nicely in the major Tory message of the past week and exemplified in the only new Progressive Conservative advertising released during that time. A radio spot, likely airing only in areas where the Tories are concerned to pull out votes, has Danny Williams stating emphatically that "we need a strong mandate."

Tory callers to open line radio shows have echoed Williams' messages of the need for political parties to earn a vote and one caller went so far as to express concern that voters may vote for a strong opposition - as opposed to a strong mandate for her favourite - to the extent that there might be a change in government. The chances of a Bob Rae surprise as in the Ontario 1990 election is remote but it may be revealing to see a staunch Tory supporter expressing that concern.

The projections and the polls

One of the few people talking openly of a potential sweep has been Don Mills of Corporate Research Associates (CRA). Mills' quarterly polling has fueled the opinion that Williams enjoys overwhelming popular support across the province. He's refined his seat projections in recent days, not based on polling research mind you but by gleaning some information from media reports. Mills now projects the Tories will win 43 or 44 seats.

bear in mind that, at best, Mills' numbers are simply a brute estimate of popular vote. They lack the necessary subtly of a properly constructed political poll that would allow someone to draw informed inferences. Indeed given that some of the more useful questions have tended to be the property of specific clients - like the Government of Newfoundland and Labrador - Mills' comments on issues such as voter satisfaction have sometimes proven to be misleading since his own research is inadequate. He can't or won't disclose client data, even though he knows what the results are and even where the results give a deeper and more detailed picture than the one painted by the three simple questions Mills discusses publicly.

Just to illustrate the extent to which Mill's number support a variety of potential outcomes in this election, remember that Mills is predicting a sweep or near sweep. His figure would give 91% of the seats in the legislature.

Let's look at the unadjusted CRA poll results and see what they tell us, potentially. By that, we mean we will look at what appears to be the raw percentages of the survey instead of the percentage of decided voters Mills uses.

Using that approach, what we see over the past year is a range of potential popular support for the Tories ranging from 53.2% in November 2006 to 62% in the most recent poll result.

Put that in perspective by looking at popular vote numbers during elections in Newfoundland and Labrador since Confederation. In the 1996 general election, the Liberals took 71% of the seats with 54.9% of the popular vote. In 1982, Brian Peckford won 85% of the seats in the legislature with 61% of the popular vote. Those are two of the largest majorities since the mid-1970s when the voting system changed away from having several candidates elected in a single district. In 2003, Danny Williams' Progressive Conservatives garnered 58.5% of the popular vote and won 34 seats, 77% of the legislature.

Eighty-five percent of the seats in the current legislature is 37 seats. Seventy-one percent would yield 31 seats. Even allowing for demographic changes within the province, including outmigration and internal migration, it seems highly unlikely that popular vote numbers in the historic ranges for an incumbent party would yield an increase in seats of seven to 30% more than the historic seats numbers from a given share of popular vote.

Winners and losers

Based on the apparent popular vote numbers from CRA and historic data, it would be reasonable to expect the Progressive Conservatives to be elected with a seat total upwards of 40. That's pretty much in the range expected in the so-called realistic projection some Tories mentioned by Cochrane said was their likely outcome.

By the same reckoning, Don Mills' seat count of 43 to 44 seats would be highly unlikely.

There are a number of factors that might influence the final outcome and, as with the publicly available polling, this post is as much an exercise in speculation as anything else. However, some things that can be said or issues to watch:

  1. The Tories will likely win a second majority. An Ontario surprise would take something coming that no one has foreseen. That said, every seat below 40 undermines the "strong mandate" argument.
  2. Labrador appears poised to go entirely for Liberals or New Democrats.
  3. John Hickey's defeat in Labrador would be a major blow. Even if the Tories pick up Torngat Mountains, the loss of a cabinet minister from central Labrador is a significant setback for the incumbent administration's plans for Labrador development.
  4. Potential big loser: CRA. Every seat below 44 for the Tories undermines CRA's rep. Ditto the bigger the gap between the vote results and CRA's last poll.
  5. Will it have loopholes like the lobbyist legislation? Promised whistle-blower protection seems like a last minute effort to counteract a rep even Mark Critch could nail from Halifax. The lobbyist registration act from the first Williams administration has so many holes in it you can drive a fleet of cable truck's through it. Expect whistle-blower legislation that in effect makes to easier to identify and then fire the troublemakers.
  6. Seats to watch:

- St. John's West and Conception Bay South. Strong candidates running against incumbents. Even if there isn't an upset in one of these seats, a strong showing by the Liberals will change the interpretation of St. John's as Tory country.

- Burin-Placentia West. The NDP seem to be running a strong campaign there, dropping the former national party leader in over the weekend.

- Labrador's four: How the four seats go will indicate a major political rift to be managed over the next four years, and possibly beyond.

- Isles of Notre Dame and Signal Hill-Quidi Vidi. The Tories are working to unseat the opposition party leaders. let's see if they can do it.

- Straits and White Bay North. Is anything going on with Trevor Taylor or are the hints of some local push-back just unsubstantiated rumour?

- Bay of Islands. Eddie Joyce is to Danny as Lynn Verge was to Clyde. Let's see if Ed can withstand the onslaught of the premier in the district on the last day of the campaign on top of the small-town petty politics that has been worked with the city council and chamber of commerce in Corner Brook.

06 October 2007

Frozen space turds

This segment of a talk by Colonel Chris Hadfield covers the simple issue of how astronauts handle human waste in space.

You'll never look to the heavens again with the same sense of awe.

well, at least not without safety glasses.
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05 October 2007

A Bond Papers freebie

scene-480[3]I knew Gerry and da boys were hard up, Trevor, but it's pretty bad when I gotta do the Liberal advance job just so I can kick the crap out of 'em on Tuesday.

The first 'Fun with Pictures' entry

The idea has been out there for a week.  We've had a hard time picking through the flood of responses but here's one that is surely going to be a top contender for the winning prize.

To avoid any repercussions to contest entrants, we'll be keeping their identities a secret, but to maximize your laughter, we'll be sharing the entrants creativity.entryone

You can almost hear the guy saying telling Lorraine that the tyke's first words were "quite fwankwy".

Apparently he crawls, but only on a go forward basis.

Pretty soon he'll be shedding the pampers and doing his business on a go potty basis.

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The past in our present, once again

Finance minister Tom Marshall today raised the spectre of 1933 and the collapse of Responsible Government in Newfoundland. He did so in the context of launching an attack on Liberal leader Gerry Reid based on Reid's comments in Labrador which Marshall took out of context. Marshall said the context was irrelevant, just saying the word bankruptcy was bad.

Marshall raises an interesting point for anyone looking at this campaign and wondering whether or not to vote, let alone decide which candidate to vote for. If the Telelink/NTV poll is any indication, that could be upwards of half the electorate.

The incumbent Tories make much of the supposedly poor financial state of the province in 2003. it was largely a fiction, as much as Marshall's claim that there was $305 million in the current budget from the 2005 offshore deal. That little myth has already been disposed of. There is no money in the budget from the 2005 deal; there is merely a set of numbers put on the paper to show the draw down on the cash advance. But this money has already been spent. it does not exist as new cash this year.

So what would it take to bankrupt the province? Let's take a look at two examples from the province's history when financial circumstances were indeed tight.

The 1933 Debacle

- $100 million in debt.

- $30 million in government revenue.

- $35 million gross domestic product.

- $3.5 million government budget shortfall.

A decade of political instability characterized as much as anything else by a remarkably familiar style of politics:

"Rival politicians … in the desire to secure election, were accustomed to make the wildest promises involving increased public expenditure in the constituency and the satisfaction of all the cherished desires of the inhabitants. The latter, as was natural, chose the candidate who promised them the most.

“…the electors in many cases preferred to vote for a candidate who was known to possess an aptitude for promoting his own interest at the public expense rather than for a man who disdained to adopt such a course.

“They argued that, if a man had proved himself capable of using his political opportunities to his personal advantage, he would be the better equipped to promote the advantage of his constituents; an honest man would only preach to them.”

Not a single provincial party in the current election is speaking of debt reduction. Rather there is talk of spending increases and, where anyone whispers the word, debt management. That is code for rolling over debt at cheaper interest rates or, as Danny Williams has said, actually borrowing more money on top of the $485 million in additional debt the government has incurred since 2003.

In 1933, the government debt was three times the size of the provincial economic output. The total government budget was slightly less than the economic output and the annual budget was short by $3.5 million or $10 percent of its total.

That was the state of the place when the legislature voted to accept an appoint commission government.

Using figures in Budget 2007, it would be virtually impossible to repeat that scenario in the current context even if every government for the next decade was completely insane. Canadian fiscal transfers would forestall bankruptcy or anything as dramatic as the 1933 situation and most likely action would be taken long before the provincial government put itself into the 1933 state again.

Just to put it in perspective consider that in order to come close to the 1933 mess, the provincial debt, on an accrual basis would have to reach upwards of $70 billion compared to the $11-12 billion currently. The annual provincial budget would have to reach spending of almost $20 billion annually, compared to the $22 billion current gross domestic product (approximate, using current dollars). The annual shortfall would have to be on the order of about $1.5 billion to $2.0 billion.

The early 1990s

- Provincial debt approaching $8.0 billion on an accrual basis, significant amounts held in high-priced foreign currencies.

- Provincial GDP of slightly more than $8.0 billion.

- Low oil prices. (US$8 in 1992 compared with forecasts of a decade earlier that oil would be well over $40 and may reach as high as $100)

- Low mineral prices (mineral prices are cyclical and are currently high)

- Declining fishery (followed by cod moratorium)

- Low Canadian dollar.

- Government spending on current account of $3.5 billion (approx.) with annual declines in revenue due to economic circumstances.

To match that situation, the provincial debt would have to reach the better part of $22 billion compared to the current $11-$12 billion. Government spending would run at about $9.0 to $10 billion, assuming that current account spending was about 43.75% of GDP and the annual deficit would be about $1.0 billion.

That situation is not as extreme as the 1933 scenario by any stretch. Mineral prices are cyclical and will likely drop in the next decade and remain low for a period. Likewise, and based on recent experience, oil prices may not continue at their current high levels. As for the fishery, its future economic performance is not guaranteed either, especially in light of global competition and declining resource in some sectors.

If we allow for energy corporation debt on existing projects of about $500 million (acquisition plus development costs, before revenue flows )and a Lower Churchill project of approximately $5.0 billion, the current provincial debt would reach about $17 billion.

As an aside, the Lower Churchill project website has now been taken over by NL Hydro. As a result background documents on the consultation process have vanished to dead links. Those dead links contained project cost estimates.

Taken altogether, the prospect of imminent bankruptcy for the province is remote. Even allowing for added debt over the next decade coupled with an economic downturn, it would almost impossible to conceive of a realistic scenario in which the 1933 situation recurred.

The situation in the early 1990s is not quite so remote but it would still take a concerted effort to undo the economic progress of the last 15 years.

The cost of developing the Lower Churchill and offshore projects would not decline significantly in the event of an economic downturn, for example, but resulting revenues would. As such it is possible to develop scenarios in which the provincial debt climbed to levels significantly above their current one, while at the same time, the size of the economy and resulting government revenues did not increase as dramatically or even declined.

Consider that Budget 2007 forecasts a decline in the provincial gross domestic product over the next three years while at the same time forecasting increases in government spending on the order of over nine percent in the same time frame.

This is a very rough comparison of two historic incidents with the current situation. No matter how one looks at it, the prospect of the province becoming bankrupt within the next decade is remote.

That's part of what makes Tom Marshall's comments odd. After all, if the provincial economy and government finances are so fragile that a mere $100 million of spending annually over a decade would break the treasury, his comments only raise questions about his own plans to borrow and spend considerably more than that in the same time frame.

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Federal election in early December?

There are signs.

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One to watch

They may have a small budget but the NDP campaign is innovative.

The NDP will be worth watching to see how effective it is.

One thing for sure: they have the best radio spots so far, bar none. Unfortunately, there's no link to the audio at time of writing. As one comes available, we'll supply it.

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Fun with pictures, more fodder

scene-480 From the PC party campaign website. 

Remember, photoshop if ya want, but these seem to be more likely candidates for witty captions.

 

scene-325

scene-201

Fun with pictures, some more

Here's a better Lorraine Michael picture to use. From the NDP campaign website.lj6lowres Keep the entries coming. There's nothing to win but recognition for your bizarre sense of humour.

Remember: Just photoshop if you want to, or preferably just give us a caption. And keep it within the bounds of taste.


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04 October 2007

Dicks apologizes, promises to repay

Paul Dicks, the man whose expenses caught the attention of former Auditor General Beth Marshall seven years ago, today apologized for what he described as lapses in judgment.  Dicks promised to repay the taxpayer for expenses claimed for wine and art purchases.

For her part, Marshall turned a blind eye to hundreds of thousands in inappropriate spending in her pursuit of Dicks.

In a recent interview, Marshall said she found nothing inappropriate in members of the legislature handing out public money as gifts to constituents and donations to groups and individuals who were never publicly identified.

Marshall's successor found that the gifts and donations often duplicated existing government department programs, although the money handed out through the House of Assembly was entirely at the discretion of the politician involved.

Elected in 2003, Marshall handed out 34% of her constituency allowance as gifts and donations.  The allowance was intended to cover other things, instead, although members of the legislature routinely spent the money in a manner Marshall's successor and a public inquiry deemed inappropriate.

This allowance is for the payment of expenditures incurred in the performance of constituency business and may cover such items as office rental, equipment, supplies, secretarial and other support services, information material such as newspapers, advertising, purchase of flags, pins, etc..

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