Public cash not enough

Teletech, a controversial American call centre operator, is pulling up stakes and leaving the province after only four years of its five year agreement.

Back when she was innovation minister, Kathy Dunderdale offered the company $1.1 million annually in wage subsidies for five years in order set up shop in Mount Pearl.  Controversy erupted when it turned out that the company had a string of labour relations lawsuits but Dunderdale’s department hadn’t noticed even though the suits are well documented on line.

Due diligence for dummies, Jack Harris called it at the time.  He meant “google”.  Harris was playing on Dunderdale’s love of meaningless phrases which came out in force as the minister faced pointed questions about her departments fairly obvious incompetence:

In another interview, the minister said that the outside companies hired to carry out the "due diligence piece" would not necessarily pick up these sorts of issues. So what were they looking for? Lint?

She also said this information turned up by reporters wouldn't have "negatively impacted" on government's decision, had it been known.

Observers will note that Dunderdale loves those meaningless phrases when she’s under pressure – as in this and countless other cases – and when she isn’t.  It seems, as we suspected back then, that Dunderdale thinks this blather makes it sound like she knows what she is talking about when she likely doesn’t.

Interesting that the company never had to operate a single day in the province without a cash infusion from government. 

Wonder where they are going next?

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Trade deals and petards

The premier’s excuses for not participating in talks on a European trade deal just get more bizarre as time goes by.

First there was the whole idea that Stephen Harper can’t be trusted to look after Newfoundland and Labrador’s interests so the best solution – according to Danny Williams’ logic – is to let Stephen Harper look after Newfoundland and Labrador’s interests.

Then there was the whole idea of a side deal which, of course is impossible constitutionally, not to mention practically.  As a European Union spokesperson put it:

"The Government of Canada is the only government with the authority to conclude international treaties under the Canadian constitution, so our interlocutor and negotiating partner will be the government of Canada,"…

The spokesperson indicated she’d apparently met with Our man in a Blue Line Cab to talk about seals.

But apparently, nothing else.

Then there was the whole go-it-alone thing, which consisted of nothing more grand than sending Tom Hedderson off to talk to a few ambassadors in a hastily arranged series of meetings on seals.

Now there’s this little gem, from Question period in the House of Assembly on Monday:

So there are other bigger issues. There is also the whole issue of the Atlantic Accord and what is going to happen when European countries do business in Newfoundland and Labrador.

What issue is he talking about? 

Or more accurately, which Atlantic Accord?

The 2005 one – the only one he usually talks about – doesn’t have anything to do with Europeans or trade.

The 1985 one – the real one – establishes a local preference policy for Newfoundland and Labrador companies doing business offshore.  The only way to get rid of that would be for the federal and provincial governments to agree to eliminate it.  That’s because the deal can’t be amended unilaterally.

Well, it isn’t supposed to be amended unilaterally.

Under section 60 of the 1985 Accord, neither party could amend the enabling legislation unilaterally. Until 2007, no one thought they might.  Then Stephen Harper amended the offset provisions in a rather sneaky way.

But the really odd thing is that the provincial government did not raise a single objection  - beyond some generalised gum-flapping about Equalization - to the amendment of the 1985 deal. 

Not a one.

No letters of protest.

Nada.

To the contrary, when they opted for O’Brien 50 this past winter – and pocketed  Equalization cash in the process – they accepted the federal Conservative’s 2007 amendment as part of the deal.  In fact, as the premier has indicated recently, the provincial government decided at least as long ago as early 2008 to flip to O’Brien/50 in early 2009 in hopes of pocketing Equalization cash. Heck, they might have even signalled that privately at the time to the federal government.

So maybe the real reason the Premier is in a snit is because he’s worried that through all of this he’ll just be hoist by his own clever Equalization petard.  Rather than see the local preference rules of the 1985 deal preserved to the benefit of local companies, we’ll see them disappear.

That would go a long way to explaining the sudden about face the provincial government did on this deal back in February.  Maybe the feds made it clear that the local preference provisions of the 1985 deal were up for consideration and one of the things the feds could throw back in the Premier’s face was his own acceptance of the unilateral changes to the 1985 Atlantic Accord.  You can almost imagine the conversation:  “Danny, it doesn’t matter if you show up or not.  We can change the thing by ourselves if we have to – you just told us we could when you accepted the changes from 2007.”

Still, though, it doesn’t explain why he would sit on the sidelines rather than become personally involved.  After all, as he told the legislature: :[w]e are going to do what we have to do here to protect the interests of Newfoundlanders and Labradorians, and I could not care less what the rest of them do, I have to be quite honest with you.”

Well, to be quite honest with you, if the provincial government was really hell-bent on protecting Newfoundland and Labrador interests, the place to do that is at the table, inside the Canadian negotiating team.

Seal-bashing just doesn’t seem like a reason enough to turn down the invitation to sit on the team.  And like we’ve said before, if custodial management and shrimp tariffs are so important – and they are – the place to deal with those is at the negotiating table.

And look, if you really want to get a sense of how much is at stake for the province just look at what the Premier said himself in the legislature:

There are also a lot of very big, multinational, European companies that want to do business in Newfoundland and Labrador, because of our minerals, because of our oil and gas, because of our fishery, and we have to take the abuse from these hypocrites basically saying that we act in an inhumane and a barbarian manner, when they chase bulls through the streets in Spain, and matadors pierce bulls in a Roman type atmosphere, and we are out trying to earn a living.

So  - if we try and follow the Premier’s own logic – a vote by the European parliament that affects maybe a few million dollars that comes to the province from seal-bashing is way more important than billions in new economic development throughout Newfoundland and Labrador that would come from participating in the trade deal negotiations.

Okay.

That makes sense.

Not.

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Inconvenient truths: voting math

From the House of Assembly and a discussion of the recent vote taken among the province’s nurses on a contract offer from the provincial government:

PREMIER WILLIAMS: Mr. Speaker, quite simply, a strike can be avoided if the nurses decide not to go on strike. It is my understanding that 80 per cent voted and that 63 per cent of those who voted, voted to have a strike. The math on that is 50.4 per cent, so one out of two nurses wants a strike and one out of two nurses do not want a strike.

He’s right.

That’s the way the numbers break out if you look at the total number of eligible voters.

Of course, that isn’t the way, the Premier and his supporters like to look at the results of the last provincial election. They’ll talk about things like the nearly 70% of the popular vote for the Provincial Conservatives.

Of course, as some people conveniently forget, only 60% of the electorate turned out to vote.

The math on that is 41.76%.

So…

you can fill in the rest.

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No deal. No cash.

The lack of a deal with the federal government is holding up approval of projects eligible for the federal government’s economic stimulus spending.

The provinces of Alberta, Saskatchewan, Newfoundland and Labrador, Prince Edward Island, New Brunswick and Manitoba, as well as the three territories, have yet to reach agreements with Ottawa on the program, although some contacted last week said agreements were imminent.

However, one official told The Globe and Mail that the deal with Alberta was delayed because the government in that province wants some of the previous money it allocated to infrastructure spending to count toward its one-third share of the program. Alberta feels it has spent substantially more on infrastructure than any other province and that their actions should be recognized. A federal official said Friday that the two governments have since reached an agreement in principle.

Maybe the provincial government has sorted that out in the meantime.  There’s not much else that could prompt a joint federal-provincial newser.

Lots o’ cash and cuddles update:  Turns out that there was a deal and that the federal government was quite happy to hold a giant news conference with both federal and provincial Conservatives attending.

But the cuddles didn’t stop with the newser.  Provincial Conservative public works minister Trevor Taylor even issued a ministerial statement on the cash, this being polling season and all.

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Airborne misadventures, Part Deux

For those who enjoyed the video of paratroops exiting an aircraft in a less than proficient manner, here is another one to lighten up your day.

This one is “Airdrop mishaps” which – as the title suggests – is a string of things that went wrong in dropping equipment and supplies to soldiers.

There are flipped-over trucks, a LAPESed pallet that breaks open, spilling  its load all over hells half acre, a parachute deployment problem (it didn’t deploy until it was way too late) and  - a personal favourite – the vehicle that broke free of its restraining straps and started off down range on its own.

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Well positioned, indeed

In the past year, Newfoundland and Labrador has shed 8,800 jobs.

That’s right.

There are almost 9,000 fewer people working this time in 2009 than there were at the same time in 2008.

CBC News is focusing only on the 2,800 dropped in one month – that is last month.

Fair enough, but that other number is staggering what with all the talk from the provincial government the past few months about the province being supposedly well positioned to weather the economic crisis and then emerge unscathed on the other side.

8,800 jobs shed in a year.

If you look at the figures from Statistics Canada you see that the figure is made up of almost equal numbers of full-time and part-time jobs. But, look a little harder and you’ll notice that in the part-time employment segment, the job loss amounts to 12.5% in a single 12 month period. 

Those people didn’t switch to full-time employment status nor did they leave the province, necessarily.

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Sound familiar?

A bunch of politicians accused of living high on the public hog and getting into an argument about what the rules permit.

From Guido Fawkes:

Guido has been shouting about the Green Book Rule changes which came into force on April Fools Day - and politicians really do take us for fools. To stop all the rule breaking by MPs they came up with a clever solution. Scrap the rules!

Meanwhile, there is a hunt on for the person who leaked information on the story to the papers.

The Mother of Parliaments might wind up following the path taken in the Bow-Wow Parliament once the whole thing explodes.

We could loan them a Chief Justice who could sort the mess out quite nicely.

In the meantime, it might be interesting to find out if any of their cash from their spending scandal had been directed to paying party campaign expenses as has been the case here, albeit something the ruling party isn’t at all interested to see investigated with the same judicial vigour.

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First oil and a new discovery

Chevron announced two milestones this week.

On Wednesday, the company achieved first oil on the  Tahiti field in the Gulf Of Mexico. production is expected to 125,000 barrels per day of oil and 70 million cubic feet of natural gas by the end of the year.

The Tahiti production platform, left, is located 305 kilometres south of New Orleans and sits in 1250 metres of water.

On Friday, Chevron announced it had struck oil in a well drilled offshore Congo.

Moho Nord Marine-4 was drilled to a total depth of 13,907 feet (4,239 meters) and proved a 535 foot (163 meter) column of high-quality oil flowing at 8,100 barrels per day.

The discovery follows two previous successful exploration wells, Moho Nord Marine-1 and 2, drilled in the permit area in 2007, and the positive appraisal well Moho Nord Marine-3 in 2008.

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There’s more to this than a few seals

Given the origins of and the scope of the trade talks starting between Canada and the European Union, Danny Williams’ refusal to participate is even more bizarre than it first appeared.

Whatever is going on with the government party and its supporters – including voice of the cabinet minister crowd who seem obsessed with clubbing seals these days - it ain’t really about seals.

The provincial government seems intent on ignoring both the reality of the province’s dependence on trade with the United States and the growing concerns about American trade protectionism. Of the $13-plus billion in exports to the top 10 trading partners for the province, the United States consumed $10 billion or 77%.  The U.S. accounts for 70% of all Newfoundland and Labrador international exports.

This, from the Economist, says much:

You can see why Canada would want to lessen its dependence on America, which bought 75.5% of its exported goods last year and provided 63.4% of its imported ones. Yanked into recession by America, Canada worries that trade will suffer from protectionism (in the form of new Buy American provisions and country-of-origin labelling requirements on farm products) and Washington’s moves to toughen up border security.

The deal could open new markets for Canadian exports of agricultural, fish and forestry products in addition to fish, aerospace, automotive and other exports. 

The Government of Newfoundland and Labrador is refusing to participate in the talks as part of the Canadian delegation.  The Premier claims it is because he doesn’t trust the Prime Minister to look after the province’s concerns about European opposition to the seal hunt, the push for custodial management of fisheries outside the 200 mile Canadian exclusive economic zone and impact of a EU shrimp tariff on Newfoundland and Labrador shrimp exports.

Since all those things are on the table plus a great deal more directly affecting the future of the provincial economy, it’s bizarre that the provincial government would leave all those issues entirely in the hands of someone they supposedly don’t trust.

Bizarre indeed.

 

 

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What makes news? (Small Town News edition)

People wonder what it takes to get a story in the conventional media.

Virtually every public relations practitioner will be asked -  at least one thousand times over the course of a career - “what makes news?”

The conventional answers are sex, drugs, power, conflict/controversy, novelty, celebrity, bad weather and money.  There a bunch more but those will do for what we are talking about.

On top of that you have to add proximity.  Local news outlets usually don’t cover something that happened outside their area.  A car accident might make the news where it happened but it likely won’t be covered in the same state or province, let alone the same country.

All that is what makes it so bizarre to find that voice of the cabinet minister is pushing a story about some online “newspaper” in Thunder Bay, Ontario that carried an editorial/ news story praising Danny Williams.
Actually “online” is less accurate a term than “obscure”, at least for people who don’t live in Thunder Bay.  In fact, for most of us, Thunder Bay conjures up nothing more  edifying than that old joke about the only types of people who ever came out of Thunder Bay, one of which was a hockey player.

So somehow, the powers that be over at the province’s major radio outlet have determined that people across the province should be aware of the fact that one guy in Thunder Bay who runs a website has positive feelings about Danny Williams.

Whoopeee ding.

Now what are the odds, do you think, that the Saskatchewan equivalent of VOCM will run a story:  “PEI blogger lauds Brad Wall”.

Or maybe CHUM will carry word that “Antigonish e-mail whiz loves Dalton!”

And even to put it in a closer context – one assumes – might we expect British Columbia’s radio news giants to be heralding the online musings of NLPress about Gordon Campbell?

Somehow none of that seems even remotely likely.  Then again, it’s highly unusual for a news outlet to so favour the regime du jour in its programming that it can become known as “voice of the cabinet minister” and no one misses the joke. 

After all, are the guys running major news outlets anywhere else in the country so chummy with the local Power that Is that they take up a sea on the government’s oil and gas company board?  Highly unlikely.

But don’t take the word of a mere humble e-scribbler.  Just check the registry of companies and see who is sitting next to John Ottenheimer, Ken Marshall, Ed Martin and Glen Roebothan on the NALCOR Oil and Gas Co. board.

In pondering the curiosity of all this, we should not forget, of course, that the government’s polling firm will be in the field within the next day or so collecting their quarterly results.

Everyone knows this, including the crowd over at the Great Oracle of the Valley. They know full well that starting next week their call-in shows will be festooned with Tory politicians heralding the glories of their administration led by the Absolutely Splendiferous You Know Who. They’ve already started practicing in the House of Assembly, as labradore has noted. 

Even Hisself – who just launched a tirade about Steve Harper – will turn up at least once.  Last time he did one of the on air types asked Hisself about this poll goosing stuff. The Premier noted that the government pollster had started in the field the previous weekend and that, if he wanted to goose a poll, he’d have started the week before the polling started.

Which of course, he had already done last time.

And which of course he is doing yet again. 

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How to tell when your position is wrong

When you are a political leader and your comments show you to be so far out of touch with the best interest of your province such that Stephen Harper looks sensible in comparison, then you know something is wrong.

Seriously wrong.

Like there’s a giant fireball in the sky above the place you’re heading and you can’t understand why all these cars are going the other way wrong.

Like you and a bunch of your drunken teenage friends go camping at Crystal Lake and you start making out with your girlfriend alone in a tent in the middle of the night and wonder where that machete came from sticking through the tent top wrong.

Topic:  the annual seal hunt, also known as March Madness (in this case in May) or as it has become, the platform by which every “C” list celebrity or celebrity wannabe seeks the public spotlight once again.

Issue:  The European Union voted to ban imports of seal products.

The Stephen Harper Comment: "If we were to make our trade relations with the European Union about only the sealing issue, we will never have any trading relations with the European Union because as we know this is a disagreement of long-standing," [Prime Minister Stephen] Harper said at a news conference.

The Danny Williams Comment:   "You know he's prepared to sacrifice Newfoundland and Labrador's interest in the interests of other issues for Canadians. And I think that's just dead wrong and it shows what this guy is all about," [Newfoundland and Labrador Premier Danny Williams said].

Okay.

According to the provincial government’s own fact sheet,  “the sealing industry is worth $55 million” to the provincial economy. That was a figure for 2006.

In that same year, Newfoundland and Labrador did more than 10 times as much business with Germany and the United Kingdom combined as the total value of the seal fishery.

In 2006, exporters from Newfoundland and Labrador sold a heckuva lot more than seal pelts to European Union countries.  At that value, they shipped a heckuva lot more to European countries than the seal products they may have shipped through them.

In 2008, Germany alone accounted for $1.02 billion of Newfoundland and Labrador’s exports. According to CBC, total Canadian seal exports to the EU last year amounted to a measly $5.5 million.  That’s all Canada, not just Newfoundland and Labrador.

Get the idea?

Now just think – for one teensy second – about the implication of Danny Williams’ comment.  Apparently, the only issue of any consequence here for Danny Williams is the seal hunt and 10 times as much trade between our province and Europe and the chance to sort out some of the grievances doesn’t matter one jot or tittle.

Lest you think this remark is out of context consider that the provincial government earlier this year turned down the chance to work with an international trade mission aimed at increasing trade with European countries.

Why?

Because of the seal hunt, among a couple of other issues which would have been better addressed at the table rather than far away from it .Actually, if you follow the links you’ll see another classic Williams administration constantly-shifting-position, but let’s just go with the “No seal hunt, no play” position.

If there’s logic in the provincial government’s argument – as enunciated by Danny Williams  - it sure isn’t obvious. Apparently, the economic benefit to the provincial economy of increased trade with the Europeans isn’t something the provincial ministry could be bothered with. 

At this point, it’s hard to see how the provincial government is protecting provincial interests by launching into another tirade with anyone over seals when seals are only a tiny fraction of the overall provincial economic picture involved.

But seriously:

How can you tell your political position is crap?

When Stephen Harper sounds reasonable in comparison.

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Updated – added sentences giving value  of seal exports to EU last year, according to CBC story.

Indy going under

Apparently, it has nothing to do with anything other than the trends in the market.

People don’t read newspapers evidently, especially ones that are following a fairly conventional advertising revenue approach.  As we know from the local experience even getting a massive weekly infusion of government cash doesn’t help.

Before the newspaper types get all incensed, your humble e-scribbler doesn’t think that newspapers are really going to die.  There’s a place for them in the news world of the future.

What needs to change is the information delivery model and the revenue model.

People just aren’t reading the conventional papers like they used to do, and as a consequence, the revenue is drying up from advertisers. 

Take a look across the United States and you will see bastions of the newspaper world  from Boston to San Francisco struggling to keep alive.

That’s a clue.

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The Value of an Oxford education

"You see what's happening in countries like Denmark with the whale slaughters. We see other parts of the world where kangaroos are being culled by the hundreds of thousands, and yet they're after the seal harvest here in Newfoundland and Labrador," [Premier Danny Williams] said.

"So Europeans should have a good, hard look at themselves."

Europe = Denmark.

Okay.

Europe = Kangaroos.

Huh?

Evidently Williams didn’t read geography at  Oxford.

For the record, here’s Europe (the bit in yellow) and the place where kangaroos come from (Australia, shown in red). 

Not the same thing.

Kangaroos are found only in Australia.  There are no kangaroos in Europe, except in zoos but people aren’t allowed to bash them.

Your humble e-scribbler did not attend Oxford.

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Hebron deal: fixed research and development, backed by Province

What natural resources minister Kathy Dunderdale said in March 2007 about the offshore regulatory board’s regulations for research and development spending:

“The board is only requiring these operators to spend in this province in accordance with what has been the average and accepted norms in the industry elsewhere.”

What she signed in August 2008:

5.9 (D)

The Proponents shall seek Board approval of its plan to invest a fixed amount of one hundred twenty million dollars ($120,000,000) in Research and Development during the life of the Hebron Project, and the Province shall advise the Board of its full support for such Research and Development plan as described in (A), (B) and (C) above as the entire amount of the Proponents’ Research and Development obligations in respect of the Hebron Project.

What she said in February 2009, when the oil companies lost their last bid to appeal the offshore board’s research and development rules:

“The Provincial Government has taken major steps to strengthen R&D planning and capacity in the province through initiatives outlined in our Energy Plan as well as through the creation of the Newfoundland and Labrador Research and Development Council,” said the Honourable Kathy Dunderdale, Minister of Natural Resources. “The R&D guidelines complement these major initiatives.”

Maybe Kathy hadn’t read that thing she signed in 2008 since the fixed amount she agreed to back, is less than the offshore board’s r&d regulations would require.

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Kick-back? Did he really say kick-back?

From an international news story on the European Union seal ban, comes this curious phrase from provincial fish minister Tom Hedderson:

“This certainly is a serious kick-back,…”.

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And they’re off…

to a bad start in Nova Scotia.

Well, bad start if you are Premier Rodney MacDonald trying to explain that a budget which is in the red is supposedly in the black but only if a piece of legislation was changed to allow the government to divert cash from debt reduction to program spending.

How much the budget is out of whack depends on who is doing the math, apparently, but there’s no doubt the government budget bill  brought in spending higher than revenues.

That alls sounds rather odd in a province where the government has flatly rejected any balanced budget commitments, let alone mandating it in law.  They’ve even rejected investing massive gobs of cash flowing from offshore oil prices, preferring instead to save them up – temporarily – to cover deficits in at least the next two fiscal years.

How much cash?

$1.8 billion, apparently, of which $1.3 billion will cover the overspending in the current fiscal year.

Nova Scotians, meanwhile, will head to the polls June 9 to elect a new government.  The opposition teamed up to defeat MacDonald’s minority Tory government on a confidence vote on the budget measures.

The opposition parties can’t promise they wouldn’t also bring in a deficit budget if they win the election.

The stakes are high, though with all three parties apparently polling around the same numbers.  As some astute Nova Scotian observers have pointed out in the past, the New Democrats may have a tougher time of things than it appears since their votes appear clustered in several areas and are therefore considered “less efficient” when it comes to winning seats across the province.

Sign of the high stakes came early with the release in early April by an unnamed Liberal campaign worker of a photograph of New Democrat candidate, actress Lenore Zann. The photo shows Zann topless and comes from her appearance on the cable show The L Word.

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Related:  Issues, via Canadian Press

Live-blogging a trial

Anyone interested in the trial of Ottawa mayor Larry O’Brien on charges he conspired to keep an opponent out of the last mayoral race can follow the thing via twitter, e-mail, text message or someone’s live-blogging, thanks to a court ruling.

Judge J. Douglas Cunningham accepted an application by the Ottawa Citizen,  but  -oddly enough - rejected an application by CBC that would have allowed streaming of live audio and video.

The broadcaster offered no explanation of why it waited until the last moment to bring a motion in a trial it has known about for 14 months and did not even meet the minimum of 15 days notice for such motions.

The ruling is the first in the country, apparently. Cunningham also warned that his ruling applied only to this trial.  He said other concerns might be raised in a jury trial about such open communication.

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Hebron deal: Big Oil’s new L’il Buddy

A curious extract from the financial agreement that was part of the Hebron development deal:

5.1 Support of Province.

The Province shall, on the request of the Proponents:

(A) assist and support each of the Proponents in seeking modifications for federal fiscal enhancements to the extent that such enhancements do not, in the opinion of the Province, have a negative financial impact on the Province, or where such enhancements do have a negative financial impact, they have been offset to the satisfaction of the Province by the Proponents;

(B) use all reasonable efforts to assist the Proponents in securing commitments from Canada and municipal governments in the Province regarding the legal and regulatory framework applicable to a Development Project; and

(C) support the efforts of the Proponents in responding to any future legislative and regulatory changes that may be proposed by Canada or a municipal government in the Province that might adversely affect any Development Project, provided such action does not negatively impact the Province or require the Province to take any legislative or regulatory action respecting municipalities.

Talk about your little gem of a concession to the oil companies.

This section commits the provincial to support any or all of the proponents on any action taken by the Government of Canada that “might adversely affect any” development project on any of the lands covered by the agreement.

What might we be talking about here?

Well, it’s pretty wide open. If you look up the definition of “Development Project” in the agreement you’ll see it’s broad enough to cover every aspect of the project from start to finish, including environmental considerations. If the proponents think the idea is bad, then the province is obliged to help out. It doesn’t have an option; if the proponents ask, the “Province shall.”

And before you note the little provisos there about the Province and the conditions under which it doesn’t have to lend support, bear in mind that the definition of the Province in the agreement is also pretty tight and tidy:

“Province" means the Province of Newfoundland and Labrador, Her Majesty the Queen in Right of the Province of Newfoundland and Labrador, or the geographical territory of the Province of Newfoundland and Labrador, as the context may require.

Now this gets even more squirrely when you consider that the provincial government co-manages the offshore with the federal government through the Canada-Newfoundland and Labrador Offshore Petroleum Board. The sort of regulatory changes we are talking here are ones that are most likely to come through the offshore board.

Environmental regulations, shipping regulations, changes to safety requirements, that sort of thing: all covered through federal legislation since the offshore is legally in federal jurisdiction.

Even fallow field is covered by this provision. If a future federal government wanted to change land tenure in such a way that it would affect lands covered by Hebron, the provincial government would likely be obliged to toe Big Oil’s line. If the proposed federal regulatory “enhancements” actually worked out well for the provincial government, the Proponents can cut a side deal under this clause to secure their support to fight the “enhancements”.

Not a bad little clause.

Well, not bad for the oil companies, anyway.

This provision is even more squirrely because the provincial government – through the minister of natural resources (Kathy Dunderdale) and the provincial representatives on the offshore regulatory board – will not only carry on all this lobbying at the behest of and on behalf of Big Oil in the first place, they can do it from behind closed doors.

There isn’t a single clause there that would oblige the provincial government to disclose its lobbying on behalf of the oil companies; no disclosure to the public and indeed no disclosure to anyone.

Seems like a pretty big conflict of interest, but not one that should come as any surprise given that government’s policy is to be both a regulator and an operator simultaneously.

That’s pretty much the definition of conflict of interest as we’ve discussed here before, particularly when the talks broke off in 2006. We also raised the issue given the Premier’s curious claim after the recent helicopter crash that – despite the fairly obvious – the provincial government didn’t have a regulatory role in the offshore.

It also shouldn’t come as a surprise given that the Hebron deal sets the local research and development below the levels set by the offshore regulator. Government accepted that low amount - and the pledge to back Big Oil - after the offshore board won a court case against Big Oil over just those sorts of levies set retroactively by the offshore board. Next time out, Kathy Dunderdale or her successor will be working to make sure the regulatory changes don’t get out of the board in the first place.

All of that pales in comparison to the clause in a fiscal deal that obliges the provincial government to back the oil companies whenever the companies ask.

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Best kept secret: musician/composer edition

Keith Power.

Originally from da Goulds, now making a living in California writing music for movies, video games and television.

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CAE buys xwave defence unit

News release issued Friday, May 1, 2009:

CAE and Bell Aliant Regional Communications Income Fund ("Bell Aliant") today announced that CAE’s acquisition of Bell Aliant’s Defence, Security and Aerospace (DSA) business unit, operated by the xwave division of Bell Aliant Regional Communications, Limited Partnership, has been completed.

xwave’s DSA division supplies real-time software and systems for simulation, training, defence, and integrated lifecycle information management for the aerospace and defence industries. The division employs approximately 200 people in Ottawa, Ontario; Halifax, Nova Scotia; and Esquimalt, British Columbia.

Background:  August 2008

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Cuts not growth on air force agenda

Via David Pugliese, the air force is considering options to cut upwards of $123 million from next year’s budget.
Expanding search and rescue helicopter services isn’t an option.

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Smelter talk more like smegma talk

Last October a federal briefing note prepared for incoming natural resources minister Lisa Raitt listed an aluminum smelter in Labrador as one of 14 projects expected to be announced within six months.

Unfortunately for the people writing the briefing notes, the proponents – Rio Tinto Alcan – were busily chopping production globally in response to the economic meltdown.

The briefing note story is in the Saturday Telegram along with some choice recent history of the smelter story.  It isn’t on line.

As the Telly notes, the Premier traveled to Brazil in late 2007 to pitch the smelter idea to vale Inco. 

A year later the government’s favourite economist was touting the idea of an imminent announcement of what – as we told you at the time – was supposed to be an aluminum smelter. 

The project would, as the Telly quotes Wade Locke, “make the earlier start of the project [Lower Churchill] more viable and …act more like a loan guarantee for the Lower Churchill that will allow them easier access to capital.”

Nice thought, that, except that reality was intruding on the fantasy even as the words were being uttered or the briefing notes being drafted. Major aluminum producers were busily shedding capacity through the fall of 2008 and early winter of 2009 as demand plummeted.

The problem for Australian-based Rio Tinto was a bit larger.  The miner completed its purchase of Alcan in late 2008 and took on responsibility for the company’s $40 billion net debt problem, as a result.

Plans to shed some assets melted in mid October. Since then the company has announced plans to chop 14,000 jobs globally – 12.5% of its workforce – and has slowed production by as much as 22% in some aspects of aluminum production. In February, Rio Tinto announced a deal with Chi Nalco, a state-owned enterprise, to allow the Chinese to farm into several existing Rio ventures, including bauxite and aluminum projects in the Pacific.

The company’s capex plan for 2009-2010 reduces expenditures in 2009 by 50% and sets the level for 2010 at sustainment.  in other words, for the next two years the company is not anticipating any significant capital expenditure.  On top of that, the company has already reduced production  especially in some its high-cost operations.

The Chinese deal suggests not only that the company is welcoming some fresh cash into the system but also is gearing to take advantage of growth in the Chinese market using facilities that are closer to the market than Labrador. 

For those who don’t know, Labrador is pretty much as far from China as one can get.  All the raw materials for a smelter would have to be imported and the power would have to be sold at incredibly low prices – well below current market rates in Labrador – in order to offset the production and shipping costs. That’s almost identical in concept to the Smallwood-era phosphorous plant at Long Harbour.  The project was only viable because of its low energy costs (initially the same rate as sales to Hydro Quebec from Churchill Falls) and its proximity to its major market in the United Kingdom.

Similar aluminum projects in Iceland involved selling power at half the rate for other commercial users.

The Quebec government provides massive subsidies to its aluminum industry but that hasn’t stopped recent shutdowns and layoffs.

The idea of establishing an aluminum smelter in Labrador dates back to the 1950s.

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There’s a reason…

people call her Blunderdale.

Deputy premier Kathy Dunderdale has taken to answering opposition questions with an odd air of arrogance about her.  She tries to taunt and put down the questioner in a way that…well.. doesn’t work.

Some people can carry on arrogantly and get away with it  - sort of - because their abilities are far above that of others. Maybe their response is so witty that you just don’t see the arrogant jab.

Dunderdale ain’t one of those people by a long stretch.

MS DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, I am going to divulge the name of his source. It is the Leader of the Opposition, and I gave her that information in Estimates, earlier this week, that these actions had been taken. We told her that the report had been received, although I had not been briefed at this point in time.

She was responding to a question by the opposition house leader about an audit into the local chicken marketing board.

Problem for Dunderdale was Kelvin Parsons could simply rebut her asinine comment:

MR. KELVIN PARSONS: Thank you, Mr. Speaker.

The minister must surely have a problem with timelines because she did her Estimates on Monday night of this week with the Leader of the Opposition. My questions were asked in this House of the minister last December. That is the source to which I refer, that told us there was indeed a forensic audit being done, which you denied at the time and you said you would check it out and get back, which the minister failed to do, and has not done now until it was taken out of her and pried out of her in the Estimates Committees again.

Mr. Speaker, the people who contacted our office certainly believe - and this was back in December - the people who contacted our office and provided the information back in December had very good information that there were financial irregularities. These people made significant allegations.

I ask the minister: Can you confirm that anyone in your office was, in fact, dismissed as a result of what happened involving this matter?

Now this is not the first time Dunderdale has had a problem disclosing things factually in the House of Assembly.  She got into serious trouble in late December 2006 when she wound up misleading the House – and by extension everyone else in the province – about details surrounding a public tendering controversy that had led ultimately to cabinet firing one of their political appointees:  Joan Cleary.

So serious did Dunderdale Blunder that her boss had to slam the House closed noticeably early to avoid everyone realising what had happened and calling for the head of one his most faithful lapdogs.

Then there’s the time last December when she couldn’t accurately recall what she’d said the week before.

First Danny Williams appointed Tom Rideout to run the place on all those occasions when DW is not around.

Tom left.

Then he picked Kathy Dunderdale to be his Number Two.

Does anyone else see a pattern here?

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What got up Tom’s nose?

From the Thursday session of the provincial legislature, this odd response by fish minister Tom Hedderson to a question by opposition house leader Kelvin Parsons.

Simply put, the comment that he wasn’t in the House at 5:00 Pm was a useless taunt best ignored.  By answering as he did, Hedderson only raised more questions about what the personal business was;  that’s not a prurient interest.  It’s a natural reaction when someone gets upset to wonder why.  When he refers to "”a personal thing” there’s logically going to be more curiosity.

MR. KELVIN PARSONS: Thank you, Mr. Speaker.

My next question is for the Minister of Fisheries and Aquaculture.

Mr. Speaker, there is a growing concern in the fishing industry that a dispute regarding prices for lobsters and crab could threaten both industries this coming season. The minister, in fact, was supposed to speak on The Fisheries Broadcast yesterday to address this issue, but apparently he says he was in the House until 5:00 p.m.  [Italics added:  here’s where the little jab occurred]

I ask the minister: Is the crab and lobster fishing industry in jeopardy, and what is government, particularly your department, doing to assist in finding some solutions?

AN HON. MEMBER: (Inaudible).

MR. KELVIN PARSONS: He was not here at 5:00 p.m.

MR. SPEAKER: Order, please!

The hon. the Minister of Fisheries and Aquaculture.

SOME HON. MEMBERS: Hear, hear!

MR. HEDDERSON: Mr. Speaker, again, I take a little bit exception. I was here until 4:45 p.m., by the time I got back to my office it was well past 5:00 p.m., plus I had a personal thing that I had to address after the House yesterday, which is of no business to him. So I will bring it up. Like I said, if you are going to go there, I will go there as well. My business is my business and when I can share it I will, but I am telling you right now is that you have gone over the line on that one. Absolutely! I say too, not the first time, and I am getting kind of tired of it. I am getting a little bit tired of it.

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Expropriation has financial impacts on NL-based Fortis

From Fortis Inc’s first quarter financial statements, issued Thursday comes an indication of the wider impact Bill 75 has had.

Bear in mind the bill expropriated the assets of several companies besides Abitibi, including the Exploits Partnership which was owned 51% by Fortis Properties.

From the Critical Accounting Estimates section:

Exploits Partnership

Following the announcement by Abitibi of its intention to close its Grand Falls-Windsor newsprint mill on March 31, 2009, the Government of Newfoundland and Labrador expropriated most of the Newfoundland-based assets of Abitibi. The expropriated assets included the hydroelectric generating facility assets of the Exploits Partnership. The Exploits Partnership is owned 51 per cent by Fortis Properties and 49 per cent by Abitibi.

The Exploits Partnership had previously incurred a term loan from several lenders to finance its assets. As at December 31, 2008, approximately $61 million remained outstanding under this term loan. The term loan is withoutrecourse to Fortis or Abitibi, as partners of the Exploits Partnership, and is secured by both the hydroelectric generating assets and related agreements regarding rights to operate and sell power to Newfoundland Hydro during the term of the loan. Although the expropriation has caused the Exploits Partnership to default on the term loan, to date the lenders have not demanded accelerated repayment of the term loan. The Exploits Partnership made the scheduled term loan payment for the quarter ended March 31, 2009. As at March 31, 2009, the balance outstanding under the term loan was approximately $60 million. [bold added]

The generation and sale of electricity by the Exploits Partnership continued in the normal course until the newsprint mill closed on February 12, 2009, up to which point Newfoundland Hydro paid the Exploits Partnership for the energy produced on the same basis as the pre-expropriation power purchase agreement. Payment for all energy delivered since February 13, 2009 is currently outstanding from the Government of Newfoundland and Labrador pending resolution of expropriation matters. The day-to-day operations of the hydroelectric generating facilities have been assumed by Nalcor Energy, a crown corporation, as the agent for the Government of Newfoundland and Labrador with respect to this matter.

On March 24, 2009, the Government of Newfoundland and Labrador announced that Abitibi had discontinued discussions with Nalcor Energy regarding compensation for the expropriated assets. Abitibi, which was incorporated in the US, has also indicated that it intends to challenge the expropriation of its assets and seek compensation through the North American Free Trade Agreement.

Historically, the financial statements of the Exploits Partnership were consolidated in the financial statements of Fortis. Pending resolution of the above matters, deferred financing costs of $2 million and utility capital assets of $61 million related to the Exploits Partnership were reclassified to other assets and the $61 million term loan was reclassified as current on the consolidated balance sheet of Fortis as at December 31, 2008.

During the quarter, the combination of uncertainty created by the expropriation and the loss of control over cash flows of the Exploits Partnership has required Fortis to commence reporting its investment in theExploits Partnership using the equity method of accounting, effective February 13, 2009. Consequently, the assets and liabilities of the Exploits Partnership are no longer consolidated in the accounts of Fortis. Equity earnings recognized during the first quarter of 2009 were equivalent to the amount that would have been recognized in the absence of the expropriation. This approach is consistent with the public statement of the Government of Newfoundland and Labrador that it is not its intention to adversely affect the business interests of lenders or independent partners of Abitibi.

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Williams offers to subsidize AbitibiBowater

No matter how you slice this, any severance pay going to former AbitibiBowater employees in Newfoundland and Labrador will come out of taxpayers’ pockets.

"Any cheque that is going to be passed over to Abitibi in compensation for the assets that basically have been expropriated through legislation will have to take into consideration severance…”

Williams said it could mean the government cutting a big cheque to AbitibiBowater, and the company uses that money to pay the severance, or the government could deduct the value of the severance payments from the compensation and then send that money directly to the employees.

Two questions:

1.  Why are taxpayers going to be on the hook for something the company would or should have been paying anyway?

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

BTW, the CBC story that extract comes from got its headline all wrong.  There’s no ultimatum involved at all. 

AbitibiBowater chief executive David Paterson is likely rubbing his hands together in glee since now he won’t have to worry about paying out severance to the local workers.  Danny’s gonna pick up the tab for him.

At the same time, the government’s energy monopoly gets the assets at a cut rate with none of the power being earmarked for industry in central Newfoundland.

AB wins.

Nalco wins.

Who loses?

Just think about it for a second.

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Tory-gate hits 30K mark

There’s at least $30,000 of public money for Tory party work in the Ed Byrne statement of facts, according to the official opposition. 

They popped out a news release yesterday that included a table of other PC party spending in the Byrne fraud and bribery conviction case.  The local media haven’t touched this angle of the story at all, oddly enough.

This money isn’t covered by the restitution order, contrary to the claim of former PC Party president – and current deputy Premier – Kathy Dunderdale.  She told the legislature her party was prepared to pay the money back (she meant the 3K from St. Barbe) but decided against it because Byrne had been ordered to pay it back.

Makes you wonder who gave Dunderdale and her colleagues the really bad advice.  Anyone who read the decision by Judge Mark Pike would have known the difference. It’s pretty obvious.

Of course, the Byrne agreed statement only covers a portion of the total.  According to the agreed statement, Byrne received a total of $501,507 in constituency allowance payments with the bulk of it coming in FY 2001, 2002 and 2003.

Byrne only copped to paying back $117,300 which, according to the statement, seems to be what he took for himself. The rest is pretty much a black hole.  The public has no idea where their money went. 

All the Tory party spending  detailed below  isn’t in the restitution order.  No one knows how much more there is since the government and the chief electoral officer  - himself a former president of the Tory Party - are refusing to investigate.

Tory Trevor Taylor, elected in the other by-election in January 2001, called the whole sordid mess in the House dating back to 2000 “dirt and filth”,  a“serious stain on the political face of Newfoundland and Labrador.”

He’s absolutely right, of course.

But then Taylor voted against an investigation into the large chunks of the mess that haven’t been looked at by the police and that will likely keep going unexplored as long as Taylor and his colleagues have their way.

And it’s not like Taylor is unaware of the legal niceties of all this.  Get a load of his comments about the $30K:

The only piece that is within the purview of the Chief Electoral Officer, as far as I know, is the $3,000 that was spent on the St. Barbe campaign in the by-election of 2001. That is the only thing that he has authority to look at. He has no authority to go and look at how some funds may or may not have been sourced from constituency allowance and then utilized to conduct research for the PC Party of Newfoundland and Labrador. That is where the RNC came in. That is where the courts came in. That is where the Auditor General came in. That is who has responsibility for that. [Emphasis added]

Somebody has been doing their research into reasons why not to go looking, evidently.

At the end of it all, the most apt description of what’s been happening with Tory-gate came, ironically enough from Ross Wiseman.  The guy who got elected as a Liberal and then crossed the floor said this:

I am not supporting this motion because it reeks of cheap politics. It is partisan politics of its worst.

He’s right but not in the way he seems to have intended.  The sordid mess began as partisan politics at its worst, continued as partisan politics at its worst – as the Byrne case now makes plain, stayed the course of cheap partisan politics in June 2006 and now remains exactly where it has been:  in the political gutter.

Wiseman, Taylor and their 34 colleagues ensured that by continuing to oppose an investigation that would root out all the rot, no matter what party it was in.

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-  Gus Coombs received a payment of approximately $2,000 from Edward Byrne for an expense he incurred while running as a candidate in the 1999 Provincial Election

$2000

Page 10, paragraph 31

-  A cheque was located showing that Gus Coombs receive a cheque for $3,600.

$3600

Page 10, paragraph 32

-  Wayne Clark stated that around that time in 2001, he was assisting in running a byelection campaign for Wally Young in the district of St. Barbe. Wayne Clark stated that, at that time, he did receive a payment for his services and expenses and it would have been for approximately $3,000.

$3000

Page 11, paragraph 35

-  Charles White stated that they billed the PC Party $10,000 and they received two payments in the form of personal cheques from Edward Byrne. One payment was for $4,000 and one payment of $5,000 and they wrote off the remaining $1,000.

$9000

Page 11, paragraph 42

-  Gina Steele had worked as a receptionist in the PC Party Office.

She stated that she had received a personal cheque of $1500 from Edward Byrne around the fall of 2000. She stated that Edward Byrne had given her the cheque because he felt bad about her being let go from her job around September 2000.

$1500

Page 12-13, paragraph 46

-  Vernon Smith stated he did some work for Edward Byrne and the PC Party around December of 1999. Vernon Smith stated he believed he was paid about $4,000 for this work. Vernon Smith was shown a copy of a personal cheque of Edward Byrne dated December 22, 1999, in the amount of $4,025 which was made payable to him. Vernon Smith acknowledged that

He received this cheque and that it was his signature on the back of the cheque.

$4,025

Page 13-14, paragraph 51

-  Noella Hynes acknowledged being given $1,500 by Edward Byrne. Noella Hynes stated that she had been promised a job by Edward Byrne so she quit the job that she had been working at, only to find out that there was no job with the PC Party. She said that Edward Byrne gave her $1,500 to help her out until she got another job.

$1500

Page 14, paragraph 14

-  Derek Connolly stated he did work for Edward Byrne and the PC Party, but he had been paid by Government issued cheques. Derek

Connolly acknowledged he did receive a personal cheque from Edward Byrne for $1,200, but could not remember for what purpose.

$1200

Page 14, paragraph 61

-  Supporting documents attached to a claim was an invoice in the amount of $3,944.21 from Canadian Helicopters. The invoice was dated January 10, 2001, and the flight date was January 3, 2001.

(this trip would have been for organizing by-elections on the Northern Peninsula)

$3,944.21

Page  17, paragraph 73

Total: $29,769.21

Disquieting similarities

Via labradore, a disquieting trend among certain people leaving comments on various websites over time.

1.  During the Cameron Inquiry when the Premier raised a stink about the way Madam Justice Margaret Cameron was conducting the inquiry:

“another waste of our tax money.”

2.  From 2007, when a question was raised about giving extra cash to the New Democrats even though they’d lost one of their two seats in the legislature:

“Waste of tax dollars.”

3.  On Tory-gate:

“… an investigation will be a complete waste of money!”

The same refrain has been used constantly, like from April 22 and the longer string of comments from the question of the day over at voice of the cabinet minister.

labradore didn’t get ‘em all yet, though.

4.  How about a federal Tory talking point about the Mulroney-Schreiber affair?  Across the country, the faithful deployed their talking points to newspaper letters pages and online comments in droves all with the same refrain:

“waste of money”

5.  Does anyone remember the Tory Talking Point when the whole House of Assembly scandal first broke open and some of us called for a public inquiry into the whole mess?

Well, there was a line that started right at the beginning, namely that Danny Williams was responsible for rooting out the bad stuff.

It was there on Day Two.  That was the day the rest of us found out about it.  Day One was actually the date on which Ed Byrne told the Premier the Auditor General was poking into Byrne’s allowances.

That same theme was also there when they announced the appointment of what became the Green Commission:

In light of recent findings of the Auditor General into the finances of the House of Assembly, Premier Danny Williams today announced that his government will build upon the successful reforms already implemented since forming government.

And that theme continues right down to the latest revelations about public money funnelled illegally and improperly to pay for Tory party operations between 2000 and 2003. Try Trevor Taylor from the debate on a motion to appoint an investigation into the sordid mess. 

Taylor voted against looking into what he described as “filth” but not before he went back to the Tory Talking Point Number One:

none of this would have uncovered and laid bare before the people of Newfoundland and Labrador, had it not been for the election of 2003 when Premier Williams and this government were installed in this place as the government.

But what was Talking Point Number Two, the one used to deal with calls for a public inquiry?

Take a guess.

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In which Pooh worries about H1N1 Influenza A

Warren the K: anti-tobacco lobbyist

Effective March 1, 2009, Warren Kinsella is a registered lobbyist with the Government of Newfoundland and Labrador as part of a nation-wide effect to spark up some kind of law suit against Big Tobacco.

Here’s an extract from file number CL-272-216:

Particulars:
Launch legal proceedings to recover financial damages to the Ministry of  Health caused by the harmful effects of tobacco products. Assist the Government of Newfoundland and Labrador as part of a national coalition pursuing co-ordinate civil legal actions to recover financial damages to respective health-care systems caused by the harmful effects of tobacco products.

Registration Number:
CL-272-216

Lobby Activity Date:
2009-03-02

Status:
Approved

Effective Date:
2009-03-01

Amended Date:
2009-03-02

Approval Date:
2009-03-03

Kinsella’s registered in other province’s effective the same day on what appears to be the same project.

Two observations:

1.  The provincial government launched a tobacco lawsuit almost a decade ago. The thing has lived in some sort of limbo for legal briefs ever since. Odds are against it suddenly restarting now matter how passionate everyone is about the project.

2.  Good idea as this might be, you can tell who has real political juice and who doesn’t in this province by looking at the registry.  Friends of the party in power – for example,  the people with the ability to pull tens of millions out of the public coffers – never have to register as lobbyists. 

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Total shocker: Abitibi pensioners version

AbitibiBowater is in bankruptcy protection.

The company has stopped topping up unfunded employee pensions on the good-faith basis they’ve been operating on when they had money. As a result some people are getting less money and some are getting none at all.

And you know it is not like someone did not see this coming.

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Fitz can give him some pointers

Former Connie/Tory member of parliament Bill Casey is Nova Scotia’s new ambassador to Hy’s.

Maybe our own Man in a Blue Line Cab can give him some pointers what with that whole embassy thing having proven to be so monumentally effective for Newfoundland and Labrador.

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The House of Assembly, condensed

1.  bit courtesy of Courtesy of nottawa.

For the record, the grandstanding was not supplied by the Premier.

He is apparently still on some sort of vacation – yet again – and couldn’t be in the legislature.

2.  Meanwhile, people in the province yesterday learned that – contrary to comments by his supporters – the Premier does collect his salary in full. 

The admission came from finance minister Jerome Kennedy during questioning on the budget estimates:

Mr. Chairman, first, again, I think the Leader of the Opposition knows better in terms of the Premier’s salary. It is my understanding that Finance told him he had to take the salary in order to donate it to charity, which is essentially what he does. To leave any other impression, I would suggest, Mr. Chairman, is not fair. The Premier’s salary is provided to, I think it is the Williams Family Foundation, which then distributes it to charity. The Premier of this Province does not receive one cent to himself for the benefit of what he does. Unlike the rest of us, or at least unlike me, I use my salary to live.

And by “not one cent of benefit”, presumably the finance minister does not include in that estimate accumulating pension entitlements and taking the tax breaks on the donations which go – it must be pointed out – to the family charity run by his wife, daughter and family friend.

Notice, as well, the construction of Kennedy’s sentence which clearly leaves the impression the goal of the exercise was to make the donation, not avoid taking a salary.

He apparently never heard of a “dollar-a-year” man.

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Speed kills

…a political career.

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Phake photos add up to more tourism travails

As you can see at Geoff Meeker’s blog and at labradore, the provincial tourism departments advertising campaigns are marred by what amounts to fake photography.

That is, the company behind the campaign has taken a couple of shots and then through a series of deletions and additions created something that actually doesn’t exist all in aid of getting people to come here to experience something which is, according to one advert, as far from Disneyland as you can get.

Uh huh.

Now that might actually be true since the evidently invented, fanciful and ultimately fake stuff you experience at Disneyland or Disney World actually exists at the theme park.

The stuff in the pictures does not.

So at least in that bit they told the truth, just not in the way most people would take the meaning if they didn’t know the little photoshop of horrors involved.

To give you some sense of the manipulation involved both blog posts include both unedited shots and the doctored outcomes. 

It’s worth taking the time to look at both just to see not only how much doctoring has been done but how much the sights didn’t need the creativity of the Picassos of pixilation.

This is just the latest in a string of problems in the tourism ministry over the past few years.  The province’s energy corporation plans to drive a string of gawdawful high voltage electricity towers right through a UNESCO World heritage site.  Never mind that one of the tourism television ads this year highlights Gros Morne as a destination known for its unspoiled natural beauty, as you’ll see in Meeker’s post.

Nope, seems the geniuses at NALCO think the rest of us just need to be “educated” on why their solution  - 43 metre high towers right along key sight lines - is the only one that’s right. 

Then there was last summer’s little round of bullshit  - as we noted not once, not twice but thrice - with the billboard along the Gardiner Expressway in Toronto.

And all of that comes against the backdrop of an advertising campaign that is costing about double what it did four years ago but which isn’t seeing comparable growth in the actual numbers of  real tourists. 

In fact, the only real growth to speak of has been in locals who stay home in the summer.  They are doing that not because of watching tourism spots on CTV Newsnet every 15 bloody minutes but because it’s cheaper to stay home than travel what with the dollar at less than par.

Now that lack of results is not so much an issue with the advertiser as it is with the department headed up by a minister who is, for the most part, one of those resident visitors to the capital city region his department likes to talk about.

You see, the minister hits the taxpayers with the bills for his visits to the office in St. John’s rather than buy or rent a home here out of his own expenses like the rest of us would have to do.  He’s not alone either; almost half the cabinet nails the taxpayers for the cost of travel back and forth between their offices in St. John’s and their homes in various parts of the province.

To get back to the point:  the problem is that the current administration’s whole master plan for tourism has been to simply throw money into advertising.  That’s their phantasmagorical never-seen-before-in-the-history-of-human-civilization strategy, and despite the evidence that sheer volumes of dollars don’t work, they are determined to carry on with all the ingenuity of Douglas Haig.

When it comes to authentic tourism events, the minister – like his entire cabinet seatmates – don’t seem to know anything beyond trying to get the feds to pony up.  The sorts of people who come to Newfoundland and Labrador  go to places to see something different and real, something that actually is as far from Disneyland as you can imagine.

Too bad our whole tourism promotion is built around fakery.

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Tory-gate: the opinion columns version

From the Saturday Telegram, Russell Wangersky’s column:

In fact,  [chief electoral officer Paul] Reynolds defends the spending by saying that even if the under-the-table cash were added to the declared funding, "neither the PC candidate nor the party would have exceeded the legislated expenditure limits for the electoral district in that byelection."

That's not the point.

The point is how did $3,000 in spending end up off the books, and could there be other off-book spending in the province's elections?

Could there be?  A look at the information already in the public domain suggests  there was.

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Two charged with 73 election finance violations

Hang on, there.

Don’t get excited.

It isn’t Tory-gate. 

The mayor of Vaughan, Ontario and her husband have been charged with election expense violations following an investigation:

Vaughan Mayor Linda Jackson and her husband, Mario Campese, have been formally charged with violations of election finance rules in the run-up to her narrow 2006 victory against former mayor Michael Di Biase.

Jackson was served with 68 charges at her home yesterday afternoon by a representative of independent prosecutor Timothy Wilkin, who was hired by Vaughan City Council to determine whether such charges should be laid under the Municipal Elections Act.

Her husband, who served as her campaign manager, also faces five charges, including accepting illegal cash contributions.

How sad could it be when a small city in Ontario has higher election finance ethics standards than the entire province of Newfoundland and Labrador.

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Freedom from Information: another missing report by Bill Marshall

Coincidence of coincidences.

Your humble e-scribbler mentions Bill Marshall in jest in a post that connects back to the whole Ed Byrne Tory-gate spending scandal.

As it turns out, on the very same day that Danny Williams decided to tell the world about the auditor general’s investigation of Ed Byrne back in June 2006  justice minister Tom Marshall released government’s response to the Lamer commission report into wrongful convictions.  Williams had known of the AG investigation since the middle of the day before he made it public, apparently, but that’s another story.

Anyway…

June 21, 2006.

Gee.

And right there in the middle of the release is an announcement that former cabinet minister and retired supreme court judge Bill Marshall would be running a review of the Crown prosecutor’s office, as Antonio Lamer recommended:

Establishing an independent review of the Office of the Director of Public Prosecutions is one of the recommendations Minister [Tom] Marshall [no relation to Bill] said government will implement immediately.  Commissioner Lamer recommends that an independent review be called to ensure that steps have been taken or will be taken to eliminate the "Crown culture" that contributed to the wrongful conviction of Gregory Parsons, and was also evident in the prosecution of Randy Druken. 

"This is an important recommendation on which government must act immediately and we are pleased that retired Court of Appeal Justice, William Marshall, will immediately head up the review," said Minister Marshall. "The review will be very thorough, independent and at arms length; it will examine resources, training, morale and the systemic issues identified in the report." [bold and italics added]

Immediately head up the review but not immediately finish the thing, as it turns out.

Just  a few weeks shy of three years after Bill Marshall immediately headed up the review into Lamer’s recommendation 18, there’s no apparent sign the work of the government’s favourite Grand Inquisitor is anywhere near done. [the link in the picture is dead]
 
Perhaps the former Supreme Court Justice and Tory cabinet minister has been too busy with another review, this one of inland fisheries. 

The second one was a sort of star chamber, since the whole thing was never announced. 
Indeed, government has never revealed either the scope of inland fisheries probe or when Marshall started work on it.  Opposition House leader Kelvin Parsons asked a question in the House about an access to information request that wanted to find out some basic stuff about the judge’s inquest – like how much it had cost so far – but the minister answered with a mere two sentences:

Mr. Speaker, with respect to the review being undertaken by retired Judge William Marshall, I believe the review is not completed to this point. Obviously, the information could not be disclosed until we have the results of the review.

That, dear friends, is all we know of that one.

So now we have it:

Two investigations.

Same guy, running both.

Zero results.

Unknown costs.

And it’s not like Bill Marshall isn’t popular when it comes to the current administration. 

Way back in October 2003, the guy who started campaigning for the premier’s job in the now infamous St. Barbe by-election appointed Bill Marshall as sort of a watchdog:

Bill Marshall, a recently retired Appeal Court judge and former PC cabinet minister, will act as the liaison between Williams and departing premier Roger Grimes. 

Liberals warned against new contracts 

Williams says the outgoing Liberal government should not make any plans for spending announcements. 

"I don't expect them to do that, "he says. "That would be irresponsible for an outgoing government that, no longer has a mandate to take those kind of actions. So, I'm trusting that Mr. Grimes and his government will do the honourable thing, and I expect them to do that."

The whole thing was just another of the nasty, mean-spirited, petty, small-minded, miserable  little insinuations about others that Danny Williams likes to make, as we have come to learn.

As it also turns out, the guy who started his latest political life as the Premier’s watchdog has, in his retirement, become a sort of Tory Torquemada – if you will plant your tongue firmly in cheek – ready, nay eager, to take on any investigation, inquiry or inquisition that needs to be done.

Too bad he apparently can’t finish them.

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Tory-gate: former electoral officer supports spending probe

Paul Reynolds’ predecessor knows that to do.

Former chief electoral officer Chuck Furey says that he’d have appointed a retired judge to investigate the St. Barbe by-election.

Furey, a former Liberal cabinet minister, now lives in Dominica.  Furey was Danny Williams’ pick for the chief electoral officer three years ago.  At the time of Furey’s appointment, Williams’ new release described the OCEO job like this:

The Chief Electoral Officer operates under the Elections Act 1991 and is responsible for exercising general direction and supervision over the administrative conduct of elections and enforcing fairness, impartiality and compliance with the act.

Williams handed the job to former Tory party president Paul Reynolds when Furey resigned. The news release at the time Williams announced Reynolds as his choice  described the office’s responsibilities with exactly the same words.

The release didn’t include Reynolds’ extensive pedigree with the province’s Tory party in the release.

For reasons that should be obvious, Furey’s comments virtually guarantee there won’t be an investigation into campaign finance irregularities in at least one by-election held since 2000.

For reasons that should be even more obvious, Furey’s advice is sound.  In a situation where there is a question of irregularities – especially a question of irregularities involving the party the chief electoral officer is tied to – the most sensible thing to do is call in an independent person and have them sort through the mess.

Anything else – anything else  - gives the controversy legs.

Refusing to investigate, especially using a preposterous series of excuses, just looks suspicious.

After all,  if things really were as innocuous, limited and uneventful as Reynolds claims, then why not have some impartial investigator have a look?

Just don’t look to get Witch-hunt Willie Marshall on the case.  He’s already busy with a sooper- sekrit investigation that he apparently hasn’t finished yet and the government refuses to talk about.

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AbitibiBowater launches NAFTA challenge

The following was released today by AbitibiBowater (paragraphing changed for legibility):

US$
ABWTQ (OTC)
ABH (TSX)

MONTREAL, April 23 /CNW Telbec/ - AbitibiBowater today filed a Notice of Intent to Submit a Claim to Arbitration under the North American Free Trade Agreement ("NAFTA") with regards to the expropriation of its assets and rights in Newfoundland and Labrador, Canada. It is the Company's position that the passing of Bill 75, which expropriates the Company's provincial assets and contractual rights to natural resources, by the provincial government was arbitrary, discriminatory and illegal. AbitibiBowater is seeking in excess of CDN$300 million in direct compensation for the fair market value of the expropriated rights and assets, plus additional costs and further relief as the Arbitral Tribunal may deem just and appropriate.

In early December 2008, AbitibiBowater announced various capacity-reduction measures, including the permanent closure of its Grand Falls mill, as a result of the economic downturn and decline in product demand. In retaliation, the province hastily passed Bill 75, without any attempt to consult with the Company and without holding any public hearings.

The Company has asserted in the Notice of Intent that Bill 75 unquestionably breaches Canada's NAFTA obligations on a number of grounds, including among others:

- Basis of Expropriation: NAFTA explicitly details the grounds under which government expropriation can occur. The criteria for expropriation are not met in Bill 75.

- Fair Compensation: AbitibiBowater is entitled to immediate, full and fair compensation. Bill 75 does not ensure payment for the fair market value of the expropriated rights and assets.

- Denial of Justice: Bill 75 purports to strip AbitibiBowater of any rights to access the courts, which is independently a violation of NAFTA.

- Discrimination: AbitibiBowater should be afforded the same rights and privileges as all other domestic and foreign investors. Bill 75 is retaliatory in nature and discriminates against the Company.

"AbitibiBowater has been operating in Newfoundland and Labrador for more than a century, contributing significantly to the region's economic, social and sustainable development," stated David J. Paterson, President and Chief Executive Officer.

"The nationalization of our assets was unexpected and an unnecessary course of action. It came despite our proactive outreach to form a joint working group to address and resolve all issues related to our rights and assets in the province. The Company remains open to seeking a collaborative resolution with the federal and provincial governments."

The expropriation relates to a broad range of AbitibiBowater's rights in Newfoundland and Labrador, including land rights, timber rights, water use rights and various other related rights and business partnerships, and these rights can be traced back in part to grants by the provincial government and its predecessors, as well as to other third-party transactions. In addition to the substantial sums it expended to acquire these rights, the Company has invested hundreds of millions of dollars in the province over the last century, ranging from capital investments in mill operations to road projects that have helped build rural Newfoundland.

Since the Company is incorporated in the state of Delaware and carries out business activities in the United States, the expropriation of rights and assets represents a breach of Canada's obligations to a U.S. investor under Chapter Eleven of NAFTA.

The Company has filed this notice as part of the dispute resolution mechanism available under NAFTA and will submit the claim to arbitration in three months, pursuant to the relevant NAFTA provisions, should this matter not be resolved by that date.

"It is our obligation to defend the interests of our shareholders and ensure we receive compensation for the fair market value of the expropriated assets, plus additional damages. With this notice, we have taken the first step in pursuing legal actions," added David Paterson.

Media should take note that copies of the Notice of Intent under Chapter Eleven of NAFTA are available upon request. The following paragraphs may be of interest:

NAFTA Provisions Breached: Paragraphs 6-7
Underlying Facts: Paragraphs 8-11
About AbitibiBowater: Paragraphs 12-17
AbitibiBowater's History and Rights in the Province: Paragraphs 18-29
Additional Investments: Paragraphs 30-33
The Hydro Assets: Paragraphs 34-41
The Grand Falls Mill Closure Plan: Paragraphs 42-51
The Province's Ultimatum: Paragraphs 52-54
The Province's "Justifications": Paragraphs 55-58
Expropriation: Paragraphs 59-67
Denial of Justice: Paragraphs 68-69
Lack of Compensation: Paragraphs 70-71
NAFTA Violations: Paragraphs 72-86
Relief Sought: Paragraph 87

AbitibiBowater produces a wide range of newsprint, commercial printing papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world.

AbitibiBowater owns or operates 23 pulp and paper facilities and 30 wood products facilities located in the United States, Canada, the United Kingdom and South Korea.

Marketing its products in more than 90 countries, the Company is also among the world's largest recyclers of old newspapers and magazines, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade over-the-counter on the Pink Sheets under the stock symbol ABWTQ.

For further information: Investors: Duane Owens, Vice President, Finance, (864) 282-9488; Media and Others: Seth Kursman, Vice President, Communications and Government Affairs, (514) 394-2398, seth.kursman@abitibibowater.com

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Tory-gate shocker: Williams backs hand-picked chief electoral officer

What else would we expect the Premier to do but back the guy he picked for the job?

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