Undisclosed Risk: the cost of freedom is loss

You won’t hear the provincial Conservatives talking too much about an April 2009 deal to sell surplus power from Churchill falls to Emera in New York.

They talked about it a lot when they cut the deal. 

Back then, Danny Williams said the five year contract proved that Labrador hydro power wasn’t isolated any more.  Nalcor wheels Churchill falls power through Quebec to markets in the Untied States.  Nalcor pays Hydro-Quebec a fee for wheeling the power.

And Danny Williams was absolutely right.  Labrador hydro power isn’t isolated.  if Nalcor had customers for Labrador hydro, they could send the power through Quebec tomorrow.

The reason Nalcor isn’t developing the Lower Churchill and shipping the power through Quebec is because there is no market for the power.  Everything else you’ve may have heard from provincial Conservatives in Newfoundland and Labrador and from the local media about a big Quebec conspiracy to block Nalcor is – in a word – crap.

You can see that the Conservatives wouldn’t want to talk about the Wheeling Deal.  it proves that their more recent line, the one that supposedly justifies the Muskrat falls project is – in a word – crap.

Turns out there may be another reason why they aren’t talking about it.

Danny Dumaresque, a former director of Newfoundland and Labrador Hydro, issued a news release on Wednesday claiming that Nalcor is losing money on the Wheeler Deal. The story got decent media coverage across Newfoundland and Labrador and even made it onto the Radio Canada website. There’s also a short story about 20 minutes into the CBC’s Here and Now broadcast on January 5, 2010 and on NTV News from the same date.

Dumaresque looked at the Nalcor annual report and calculated that the company lost money on the deal compared to the previous deal to sell the power to Hydro-Quebec:

Over the past 18 months I have been told various figures of costs and revenue but because these figures were much different than the previous contract with Hydro Quebec, I was reluctant to cite them. However, today I can confirm that this province has lost $15 million in the last 9 months of 2009 under this ‘historic arrangement’ than we would have received from the contract with Hydro Quebec, a reduction of 40 percent.

My information is that results have not been any better in 2010 and up to $20 million will be lost. Therefore, in less than two short years we have lost $35 million of precious taxpayer’s money and the potential to lose up to $100 million over the life of a 5 year agreement which we had with Hydro Quebec!

In addition to this loss of revenue to the province I am also able to confirm that NALCOR has paid nearly $34 million to the Government of Quebec since this deal was done and $7 million to Emera Energy of Nova Scotia. [bold in original]

In the media interviews, natural resources minister Shawn Skinner doesn’t dispute the losses.  In fact he admits that under the deal, Nalcor would lose money when electricity prices are low but it could make them back if prices are high.  Even he uses the line with CBC to the effect that losing money is the price of freedom.  When a politician has to use complete bullshit like that you know he’s been caught out.

There are three things to note from this.

First of all, this is pretty much what you might expect from the deal.  It was clear at the time Nalcor inked the deal that – based on the numbers they released – the deal would only deliver about the same price per kilowatt hour to Nalcor that they were getting under the old fixed-price deal with Hydro-Quebec.  Sure electricity retails for 20-odd cents per kilowatt hour in New York city.  But by the time you take off the wheeling charges to Hydro-Quebec and all the other middlemen, and allow for Emera’s cut, the net for Nalcor was 3.5 to 4.0 cents per kilowatt hour.

As it turned out, electricity prices dropped in the United States what with the 2008 recession and all. They are so low that American producers can sell electricity produced by natural gas from the United States across the border into New Brunswick.  And as it stands right now, prices are going to stay down for the duration of this first contract. 

Newfoundland and Labrador Hydro considered wheeling the power in 1998 but figured out exactly what has happened.  They opted for selling power for the best return as opposed to going the Danny Williams route and losing money.  Pure business genius at work there signing a deal that only works if prices stay high or keep going up.

Second of all, you have to appreciate that this is exactly the same sort of financial wizardry that underpins the Muskrat Falls deal. 

In order for Danny’s retirement plan to work and for the taxpayers of Newfoundland and Labrador not to take it in the derriere, oil prices have to double from their current level within the next decade and keep going from there.

If anything else happens, then the taxpayers get jammed up badly.  The reason is simple:  Nalcor is building the whole project based on the only guaranteed sale being for power inside Newfoundland.  They can sell power to other provinces or to the United States and if the prices fall far short of the cost of production, then the taxpayers of this province will cover the loss through their electricity rates.  That’s exactly what provincial laws – amended since 2006 – require.

Notice that none of the other players involved lose anything.  Emera gets cash no matter what.  For $1.2 billion they get 35 years of essentially free power to sell to Nova Scotia.  They can sell other power for less than the cost of production and even at the end of the 35 years they will pay less for the power than it cost to produce it in 2017 when the first power is supposed to flow.

It’s the same as the Wheeler Deal.  Hydro-Quebec gets its fees for carrying the juice to the border.  Emera gets its fees and commissions.  The only people who come up short on the deal are the taxpayers of this province who – one way or another – have to cover Nalcor’s losses.

Not bad, eh?

Now the thing is that nobody mentioned this at the time Danny Williams announced the deal in April 2009. Danny never said taxpayers could lose money at all. He never even vaguely hinted at it.  In fact, while he acknowledged prices at the time were low, Nalcor boss Ed Martin said that

[b]ased on current electricity prices, Newfoundland and Labrador could earn about $40 million to $80 million in profits annually….

That’s the third thing and it is the biggest thing of all:  it’s called undisclosed risk. And in business circles, failure to disclose significant risk to investors -  or the de facto owners in this case - is a pretty big deal.  It goes straight to the trust that the ordinary people of Newfoundland and Labrador have placed in these politicians who are now acknowledging, in effect, that there are very important things about these deals that they haven’t bothered to tell people about.

It makes you wonder what other little secrets, what other little time bombs there are ticking away.

What other undisclosed risks are the people of the province facing that they didn’t face before 2003?

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High oil prices threaten economic recovery

Via the Globe and Mail:

"Oil prices are entering a dangerous zone for the global economy," the IEA's chief economist, Faith Birol, told The Financial Times. "The oil import bills are becoming a threat to the economic recovery. This is a wake-up call to the oil consuming countries and to the oil producers.

This warning, the newspaper said, will ramp up pressure on OPEC countries to boost their production.

The strength in oil, chief economist David Rosenberg of Gluskin Sheff + Associates said today, does not reflect stronger consumer demand in the United States, but rather external forces and heightened investor demand.

Wow.

Who knew?

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Connie Leadership 2011: editorial kick-back

From the Thursday Telegram, comes a rather nasty editorial comment on the charade that is the Conservative caucus plan to replace Danny Williams:

By comparison, Danny Williams announced his candidacy for the Tory leadership on Dec. 6, 2000, but nominations didn’t close until Jan. 31.

Some will point out that anyone interested in the leadership has known it was coming since Williams resigned at the end of November. Then again, Ed Byrne announced his resignation in June, giving possible candidates seven months to make up their minds about running.

In the coded language dominating political life in Newfoundland and Labrador these days, this editorial is a pretty sharply worded rebuke.

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Connie Leadership 2011: Persistent Rumour Department

All Christmas.

Jerome! will announce he won’t be running for re-election.

Sometime before the end of January, he’ll make a statement. 

Yes, yes, everyone knows that Jerome!’s already said publicly he’ll be running again but this rumour has survived that pretty clear statement.  After all, Danny insisted he was running again but that turned out to be not quite what happened.

And it only took the Old Man a week or so to go from telling Debbie Cooper that he was constantly re-evaluating his future to flinging his gear into the truck and heading for the hills.

If Jerome doesn’t run again, he doesn’t qualify for a politician’s pension. That could be a powerful incentive to stay on for another term.  

There’s pretty much no hope of a seat on a federally-appointed court.  His buddies could appoint him to the Provincial Court but they’d have to give him a pretty senior and largely made-up appointment.  No one expects that Jerome! is going to be sitting in Goose Bay or anything like that. That would also lead to lots of guffawing in the legal community as the guy who slagged political patronage appointments to the bench became one.

If Jerome doesn’t run again, then he’d have to go back to the old law practice or find some other business to pay the bills.

And then people could wonder who might run for the Conservatives in his place. 

For now, though, it is still just a rumour.

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Just imagine…

For some reason, the Conservative government of Danny Williams wanted to smash Fishery Products International and sell off the bits and pieces.

FPI used to be a large and successful fish processing company based in Newfoundland and Labrador.
Now it doesn’t exist any more and the most lucrative bits and pieces wound up in the hands of people who don’t do much business in Newfoundland and Labrador.

Just imagine if certain powerful interests in the province hadn’t destroyed the company.  FPI might be doing what one of its former competitors is now doing:  trying to buy into the Iceland fish business.

High Liner announced late Tuesday that it made an unsolicited offer worth ¤340-million ($445.4-million) to acquire Icelandic, one of the three biggest value-added seafood processors to the U.S. food service market. It wants the company simply to bulk up its own business.

That wouldn’t normally be front-page news. But in this case, it was the main story in at least two major media outlets. Why? Because Icelandic is owned by a public pension consortium run by the Framtakssjódur Íslands fund. And the owners have excluded the Canadians so far from the takeover process. High Liner piping up publicly was akin to a foreign company telling Iceland’s politicians to smarten up and open up the sales process to more bidders.

There’s a fascinating story in the Financial Post on the whole thing.

The world is only as small as people imagine themselves to be and, for the past seven years, this province has been dominated by people whose vision is incredibly myopic.

The consequences of such limited thinking are all around us, from the fragile economy that worries the cabinet minister who helped create it to this sort of lost opportunity in the fishery.

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Connie Leadership 2011: democratic deficit

The latest twists in the Conservative leadership story are starting to look a bit more like a soap opera than usual even in a place where the last seven years in politics have centred on how tightly knotted The Leader’s sphincter was at the moment.

With a mere three working days left to go in the very short deadline for nominations, convention co-chair Shawn Skinner wound up encouraging people to file nomination papers.

Now the comment only lasted until about noon on Wednesday and only on VOCM, the voice of the cabinet minister. Here’s what he had to say although the story has since been officially disappeared by VOCM:

Progressive Conservative Convention Chair Shawn Skinner is encouraging people to come forward as the deadline for nominations for the PC Party leadership, this coming Monday, quickly approaches. So far Acting Premier Kathy Dunderdale is the only person who has come forward. Skinner says the PCs are hoping someone else with some interest will enter the race for the party's top spot.

Only a half day hardly makes for a serious effort to scare up nominations and after all, Shawn knows full well the party isn’t really looking for a leadership contest.

If the Tories really wanted a leadership contest then he and his mates wouldn’t have busily done the back-room secret deal to keep Kathy Dunderdale in the job. 

And if Shawn and his pals really wanted an open and fair competition like the kind real political parties have in a democracy, then they wouldn’t be talking about how scared they are of a blood bath.

Shawn’s comments came after someone [Shurely not Tom Rideout] complained about the process to VOCM and the gang at VO reported the tale.

Shawn mumbled something into the microphone about how the party constitution is the reason for the really short nomination process.  As copies of the constitution started turning up on the Internet, though, that lame excuse disappeared faster than a completely spontaneous “Draft Steve Kent” movement started up last month.

What must really be troubling the crowd running the Conservative Party, though, must be a story that ran on NTV.  Political science prof Alex Marland is concerned about the lack of democracy inside the Conservative Party.  Marland makes a number of solid points, not the least of which is the importance of renewing and reinvigorating a political party through a leadership contest. The Conservatives are very consciously avoiding that renewal.  You can add to that the simple point that the Conservatives are also going to head into the next election with a leader everyone knows will not be the leader three years from now.

With the words “democratic deficit” swirling around the Conservative Party already, 2011 is shaping up to be a very interesting year in provincial politics.  There’s little fear of a new personality cult emerging and the fallout from the old one may just be starting to show up in public comments about the ruling Conservatives.  Bill Rowe made a rather telling observation the other day about how quick people are these days to say uncomplimentary things about the Old Man now that he’s out of power. 

Bill must be having a sense of deja vue. The locals are used to dealing with bossism.  They may say one thing when The Boss is in power but once he’s gone their true feelings have a nasty way of turning up.

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The Fragile Economy: finance minister complains about his own policies

Finance minister Tom Marshall thinks its time for the private sector to step in and boost the economy around Corner Brook.

“Other than construction, I would like to see more economic investment; I would like to see more businesses coming in and investing here,” he said. “It is jobs ... What we have seen is government spending, in a massive way, in this area.”

That’s from a story in last Friday’s Western Star.

Two observations come readily to mind.

First of all, that’s a great big “D’uh” there, Tom.  Your humble e-scribbler has been banging out post after post after post over the past six years on this very subject.  The number of posts on it has gone up in the past two years because the fundamental situation is getting fundamentally worse. 

It is getting fundamentally worse – to hit the second point – as a direct result of government policy.  In everything from its energy policy to its disastrous seizure of private sector assets in 2008, the current administration has shown itself to be relentlessly opposed to creating an economic climate that attracts investment, promotes innovation and rewards entrepreneurship. 

The current fragile state of the provincial economy  - “fragile” is a word Tom Marshall used not so long ago, by the way - is a direct consequence of government policies.  Only a fundamental shift in those policies can move the province off the course it is currently on.

As it stands in early 2011, the current administration is firmly committed to continuing the policies that have contributed to putting the economy in its current parlous state.

We have seen the enemy, says finance minister Tom Marshall, and he is us.

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Connie leadership rigged?

The fix is in and it must be getting really smelly and obvious if VOCM – aka voice of the cabinet minister  - is reporting it:

A man claiming to be contemplating a run at the Tory leadership doesn't like the process. The potential candidate, who prefers to be unnamed for the time being, says he has as much or more experience than Kathy Dunderdale. The man cites a lack of public notice and public disclosure as reasons for his displeasure, and goes so far as to call the process "rigged" and "perverted."
Nominations opened December 30 and will close on January 10. The potential candidates point out the Progressive Conservative office was closed for several of those days because of the holiday schedule. He also says there is a $5,000 fee and a requirement of fifty party signatures to seek the party's top spot. All this, he suggests, makes it virtually impossible to apply for the PC leadership, unless they are already in.

VOCM got a comment from convention co-chair Shawn Skinner to the effect that “he arbitrary timeframe for party nominations had to be set based on the party's constitution, and that everyone should have known from the time Williams announced his resignation on November 25 that the party would be seeking another leader.”

Some observations:

1.  Where is the party constitution?  If, as Shawn Skinner claims, the whole process is dictated by the party’s constitution surely he and his mates could have posted the constitution for all to see.  It’s called being transparent and open.

As it stands, the Conservative Party website doesn’t give any information on the constitution at all.  Anyone checking the website wouldn’t even know that there was a constitution.

2.  The news release announcing the nomination process gives absolutely no details on the requirements.  It doesn’t give any links to go to find information.  This 5K and 50 signatures would come as a complete surprise to anyone who had a week or so to scrape everything together.

In fact, here’s the complete news release, as issued December 30:

Progressive Conservative Party President John Babb and Convention Co-chairs Minister Shawn Skinner and Minister Joan Burke announced that nominations for the leadership will open at 12:00 noon, today, Thursday, December 30, 2010, and will close at 12:00 noon on Monday, January 10, 2011.

Delegate selection meetings to commence after the close of nominations. Details related to the date and location of the leadership convention will be announced at a later date.

There’s a contact name and number on there as well but other than that information – nominations are open and that they close with more information to follow there is exactly zilch in the way of meaningful information.

Well whaddyaknow Update: Turns out there is a link in the upper right hand corner that gives a bunch of forms.  Essentially, the information there is the same as the stuff in the VO stuff:  a 5k deposit and 50 party members in good standing.

If you want the constitution you have to contact the office.


3. “fifty party signatures”  WTF?  This is a party that has open nomination meetings:  anyone can go and vote.  So how exactly does one find out who are “party” people to contact so that one could collect signatures?

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Leadership by fiat

The Telegram editorial last Friday took issue with the upcoming coronation of Kathy Dunderdale as leader of the provincial Conservatives and, by default, the Premier of Newfoundland and Labrador.

Check it out. 

You won’t be disappointed, right down to what appears to be the date code buried the editorial’s URL – 1969-12-31.

December 31, 1969.

There is, however, one small issue that deserves some comment:

There is an unwritten code of leadership campaigns in governing parties: a departing premier will seek a capable senior caretaker who is not interested in the leadership, so that no advantage will be conferred on the person holding the office in the upcoming leadership race.

Since 1949, there’s only been one case in which an incumbent Premier resigned and left behind a caretaker leader in his place.

Brian Tobin high-tailed it back to federal politics in October 2000.  he left with such speed that the Liberals had no choice but get someone in the job while they organized a party leadership fight.

In 1978-79, Frank Moores stayed in the job until his party found a successor.  As it turned out, that was Brian Peckford.  In 1988-89, Peckford did the same thing.  The Conservatives turned up Tom Rideout.

On December 28, 1995 – 15 years ago last month – Clyde Wells announced he’d be leaving politics.  He’d stay on only as long as it took the party to sort out the leadership.  By the end of January, Wells handed over the reins to Brian Tobin.

And that’s it.

Look across the country and you’ll see the same pattern.  Go back into the pre-Confederation history of this place and you’ll find Premier handing off to replacement, not to some sort of stand-in.

There’s another part to this, as well.  The outgoing leader left it to his or her party to figure out who would replace him. And in each instance, the party leadership did their job.  

In some respects it shouldn’t surprise anyone that a guy who wanted to abolish free speech in the province’s legislature took it upon himself to anoint his replacement. 

Through all of this, there is a thread that runs very deep.  It is the thread the Telegram’s editors found:  it’s the thread of democracy, of the fundamental belief that ordinary people pick who gets to lead. Ordinary members of political parties should get to pick the leader from choices at a contest.

And then later on, in a general election, ordinary voters who may not belong to that political party get to make a choice about who runs the whole place.

There’s more to this than just a nod to some mouldering and out-dated idea:  a party leadership contest helps to sort out the poseurs from the people with the gravitas to do the job of representing the entire province and all its people as the head of government.

Kathy Dunderdale’s coronation continues a tradition alright, the sad tradition begun in 2003 that undermines the province’s democratic institutions.

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Undisclosed risk: financing the Lower Churchill

“We had discussions about loan guarantee, and if they’ll do that, we think we could drive hydro rates down even lower and save millions.”

Finance minister Tom Marshall, December 2010

Ah yes, it is all so simple.

One little loan guarantee and everything is solved. 

Borrow billions and save millions.

The provincial government could issue bonds to cover the billions it will take to build Muskrat Falls.  No sweat.  Apparently, someone told Marshall the bonds would sell out in 15 minutes.  Well, at least that’s what Tom said in December.

Of course government-backed bonds would sell out in 15 minutes. Investors can’t lose.  Governments don’t evaporate in a cloud of financial pixie dust like companies do. Governments  - especially provincial governments inside big G-8 countries - always pay off. 

And that’s where Tom’s assessment starts to go off the rails:  disclosure.

Fin min admits power rates are sensitive issue

Finance minister Tom Marshall admitted last week that electricity rates resulting from the Danny Williams Legacy project are a very sensitive political issue.

In a year-end interview with the Western Star, Marshall said that he’d recently spoken with the federal finance minister about a federal loan guarantee for the project:

“We had discussions about loan guarantee, and if they’ll do that, we think we could drive hydro rates down even lower and save millions.”

Until now, the Marshall and his colleagues insisted that the project would be great from rate payers even without a loan guarantee.

Marshall’s comments mirror those of Premier Kathy Dunderdale in what is fairly obviously a concerted effort to allay concerns about massive increases in electricity rates resulting from the Williams’ legacy project.

.

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Dunderdale admits financials are problem for Muskrat project

In an interview with NTV news, Premier Kathy Dunderdale admitted last week that costs for consumers are a sensitive political issue with the proposed Muskrat Falls memorial project to Danny Williams.

Dunderdale said that the provincial government is interested in a federal loan guarantee for the project because it would lower the interest rate Nalcor – the provincial government’s energy company - would have to pay to develop the project. She said that the provincial government would pass on any savings resulting from the loan guarantee to consumers.

Until now, Dunderdale has insisted that the project would be a financial boon to ratepayers in the province by keeping  electricity rates down from what they might be without the project.

 

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Pater knows best

Telegram editor Russell Wangersky has some suggestions for the provincial Conservatives now that Danny is gone:

• “Reform the province’s access to information legislation so that citizens of the province actually have a right to information, rather than depending on the divine right of cabinet ministers to release what they deign fit. …”
• “Whistleblower legislation….”
• House of Assembly sittings….”  More of ‘em, says Russell.
• “Provide more information on just what is happening with Muskrat Falls, the single largest project on this province’s horizon and one that could topple us into Irish-style superdebt.”

Wonderful ideas.

Great ones, in fact.

There’s only one teensy problem.

The Conservatives didn’t get to their awesome standing in the province by letting these sorts of pesky things like transparency and accountability get in their way.

And what’s more, Russell said that was cool:

“I voted for him, and, truth be told, I would have voted for him again. Premier Danny Williams, that is.”

…

“That being said, for the last seven years, Danny Williams has been the right choice to run this province, and, regardless of any number of complaints, he’s done it well.”

You see, the same guy who Russell thinks was just neat-o had no time for all those things Russell writes about.

He didn’t.

He said he was all about accountability and transparency. 

But as we all know,  his actions spoke volumes louder than any words he ever uttered.

You just can’t endorse political strong-men on the one hand and then wonder where the democracy went on the other.

And as for the gang who held Danny aloft and who now run the place in his stead?  Well, just expect more of the same.  Politicians go with what works and, as Russell so ably demonstrated, nothing succeeds around these parts like old-fashioned paternalism.

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Month-end Traffic Report for December 2010

1. Is Gerry Byrne completely nuts or what?
2. Williams to head Rogers sports empire?
3. Connie Leadership 2011
4. Williams’ abrupt departure “shocking”:  Dunderdale
5. Conservatives to give back seized hydro assets
6. Williams’ disgraceful Christmas cards
7. Who isn’t running in 2011
8. All your incoherence are belong to us
9. Connie Leadership 2011 – Mid-December night’s ruminations
10. The return to “normal”

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The Traffic Week-ender for December 27-31, 2010

1. Is Gerry Byrne completely nuts or what?
2. Kathy Dunderdale:  the New Paternalism
3. Pop Drop 2010 continues
4. Williams to head Rogers sports empire?
5. Media trends:  the technical term is “suckass”
6. For the love of three oranges
7. Counting your chickens
8. The politics of history  - editorial version
9. The World the Old Man lives in
10. Court docket now online – Lawyers:  update your bookmarks:
    Provincial Court  and Supreme Court (Trial Division)

 

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Connie Leadership 2011: Fear and Loathing in the Caucus Room

Most people now realise that Kathy Dunderdale is staying on as leader and Premier a result of some secret backroom deal within the Conservative Party.

As nottawa notes, the Connies are giving potential rivals a mere 11 days to come forward.  That compares to the couple of months Yvonne Jones’ potential rivals had.  In other words, the Conservatives will go through a complete charade including what they are calling a leadership convention.

Despite this rather obvious political fraud, the people of the province know that they have a new premier thanks to a secret deal – not even a vote – cut by unnamed people in dark rooms.  It is like the good old 1920s all over again when administrations came and went over-night based on shifting alliances and unspoken promises.

And the people of the province can sleep soundly knowing their fate and that fate of the public treasury is determined by shadowy figures and endorsed by the Connie caucus.

Well, virtually all, according to the semi-official news agency VOCM – voice of the cabinet minister.

That word “virtually” suggests that some members objected or at the very least didn’t display the requisite enthusiasm.

Now there may well be nothing to that beyond an inexperienced reporter’s careless use of words.  But then again, there might be a bit more to it.  Politicians are, by nature, an ambitious lot.  Some of them have been forced to curb their tongues for upwards of seven years.  Their personal ambitions took a back seat to the Old Man’s interests and his iron grip on the caucus and the Confederation Building. Now they are told to sit on their ambitions yet again for another period of time.

Some other members of the Conservative caucus may well be uncomfortable with the decidedly anti-democratic way that Kathy Dunderdale is getting the job.  Some may recall the anointed Connie kingpin Danny Williams’ attacks on Roger Grimes over a far more democratic selection in the Liberal Party in 2001.  Hypocrisy never bothered Williams like it does others, but that is another story.

That lack of unanimity may well explain why Dunderdale held such a low-key announcement of her candidacy:  a scrum, attended by none save a single aide and the local media. it had the air of being a lash-up job.

That lack of unanimity, of course, is what this backroom deal is really all about.  Conservatives in St. John’s are clearly afraid that a leadership fight over the next two or three months will make for a Conservative of repeat of what they characterise as the divisive 2001 Liberal contest.

There are divisions within the Conservative Party.  Those divisions must be deep.  They must be deep enough to put the fear of God into the back-room boys.

Were it otherwise, the Conservatives would have a contest as they did  - successfully - in 1979 and 1989.  Instead they are afraid and loathe to tempt fate.

And for the record, the Liberal campaign in 2001 was divisive.  All leadership fights are.

John Efford and his team built part of Efford’s support on discontent over the way Brian Tobin and his close associates supposedly ran the entire party from St. John’s.  The party rank and file were passed over, according to some, in favour of those chosen by the old leader and his cronies.  Whether it is true or not is another matter, but there certainly were Liberals who felt abused.

And yes while Roger Grimes initially had some strong words about John Efford’s man Danny Dumaresque, wounds healed up before the 2003 campaign.  Grimes made a couple of appointments and everyone got on with business.

That’s what happens in politics. People have different opinions.  Leaders get paid to deal with those differences openly and cleanly, if possible, but certainly in a way that doesn’t let grievances fester.  Successful leaders are the ones who can bring a party together after a fight.  If a leader cannot unite his or her party then he or she is really not up to the job of being premier.

It is a simple and irrefutable train of logic.

By cutting a back-room deal, though, the province’s Conservatives have wound up in a very odd, and very troubling spot. 

Yes they’ve taken an anti-democratic approach. That is obvious. But then again their entire administration since 2003 is built on some of the oldest, most backward, and most pernicious political traditions of the province. It isn’t surprising they’d lurch back to the 1920s for inspiration when times got a bit tough.

More importantly, they sought to avoid what they perceived as a Liberal mistake and in the process have blundered into a much bigger one.  They have a caucus that is not united. That is never good.

To compound that, they now have a leader who is – at the very best – a caretaker until after the next general election.  Dunderdale was due to retire:  they all know that.  She is at the end of her political career. 

After October 2011, Dunderdale is gone.  It is only a question of how long she will hang on and then the Conservatives will be back in the same boat again.

In the meantime, Dunderdale has no plans and no ideas.  She is merely holding things together for an unknown period of time.

Kathy Dunderdale is a leader with no plans and – even worse - with no real political authority.

Kathy Dunderdale has her job because other people agreed to let her have it. It is not as though they were given a chance and decided not to run of their own accord.  They were persuaded not to run and that is a very different thing.

In a tough spot, Kathy Dunderdale cannot pull a Danny and lay down any laws to anyone. She cannot even build a consensus based on her own political constituency of supporters. Nor can she truthfully build a consensus based on her savvy.  She has blundered too badly in public too often for that to have any real effect for her cabinet mates. People who thought Roger grimes came out of his leadership beholden to every one of his caucus can now look on Kathy Dunderdale put in exactly the same spot, or a worse one.

Kathy Dunderdale will also have a tough time disciplining those who step out of line. Since she serves at the pleasure of her caucus she can also be dismissed by them as easily.

How much will it take to crack the veneer covering the Conservative Party?

Time will tell.

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Another fundamental shift

Rob Antle is leaving the Telegram to take up a new job with Atlantic Business Magazine.

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The Year-end Traffic Wrap Up 2010

Here are the top Bond Papers posts for 2010 as determined by readers. 

If you clicked these pages and read them specifically, here’s what you helped push to the top of the pile.

1. Court docket now online! (Do lawyers know how to bookmark stuff?)
2. Five years of secret talks on Lower Churchill:  the Dunderdale audio (The conventional media ignored it, but people found it anyway)
3. General and master corporal face charges over relationship (Betcha forgot this one!)
4. Williams to head Rogers sports empire? (Apparently, he isn’t but lots of people think it’s an interesting idea)
5. Connie Leadership 2011 (this is the first of the series of updates – you can find a bunch more here)
6. Conservatives to give back seized hydro assets  (A short session but another December reminder of just how badly the Conservatives shagged the people of Newfoundland and Labrador with this little fiasco)
7. Williams abrupt departure “shocking”: Dunderdale  (Shocked is one word to describe provincial Conservatives’ reaction.  Sh*t-baked was another)
8. Williams’ disgraceful Christmas cards (The guy writes his own political obit!)
9. Bell 206 Crash:  photo interpretation (There are many sides to srbp readers)
10. The World the Old Man Lives In:  larger picture  (If this one had been on tee shirts and mugs, your humble e-scribbler could have bought a condo in Florida right next to the Old Man’s place.)

 

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Kathy Dunderdale: The New Paternalism

Dunderdale has sought to continue key points of the Williams government, including development of the Lower Churchill megaproject, but she has already shown a different approach on labour relations.

She ordered ministers to settle a 13-month strike involving a small group of support workers on the Burin Peninsula, and later asked ministers to end a nearly two-year negotiation with physicians that concluded last week with ratification of a new pay package.

That’s the way cbc.ca/nl described Kathy Dunderdale on a story Wednesday that did everything but explain that the Conservative caucus met on Wednesday to endorse the deal that had already been cooked up in order to avoid a leadership contest.

Note that last paragraph, though.  It shows how readily conventional news media are already absorbing the new Conservative Party political narrative about the kind of leader Kathy Dunderdale will be.

It’s right in line with a comment by Conservative parliamentary assistant Steve Kent, as reported by VOCM:

Kent describes Dunderdale as a compassionate, thoughtful, and principle-centered leader.

The new premier may well be all those wonderful things but the point to notice here is that in the construction of the whole idea Dunderdale personally directed that ministers clear up not one but two embarrassing situations.  She has the positive qualities.  She personally bestowed benefits.

Incidentally, this is exactly how Dunderdale described her role at the news conference in which she announced the deal with doctors.  There’s no accident to this:  lines like that are worked out in advance and comments don’t wind up on the page in some sort of arbitrary fashion.  They are selected to convey very particular ideas.

Dunderdale’s prepared statement describes opening the lines of communication with doctors as “my first priority…”. According to Dunderdale’s prepared remarks, the two ministers directly involved in the negotiations merely played a role.

This is essentially the same construction used by Danny Williams:  he did things or directed them, especially when they were beneficially. Ministers took orders in a clearly subordinate role.

You can see the same sort of construction in the way his most ardent supporters describe Williams:  he personally bestowed pride, courage and so forth on the poor benighted people of Newfoundland (and Labrador). Take as an example this comment on a post by Nalcor lobbyist Tim Powers over at the Globe and Mail:

2:12 PM on November 27, 2010

I know we have to believe there are strong leaders out there who will step forward and continue the work of Danny Williams. Quite frankly, with the news of his departure, I felt somewhat orphaned, a sense of being left alone surrounded by those who will, again, try and rob us of what we have achieved. …

Williams is a father figure, in the classic paternalist sense.  His departure orphaned his children.

What this political line ignores, of course, is the role that Kathy Dunderdale played in the Williams administration,  She was Williams’ hand-picked Number Two and his hand-picked successor. Like Tom Rideout before her, she represented a direct link to the older Conservative Party and its supporters who predated Williams.

Had she felt strongly about the doctor’s dispute or about the Burin situation she was in a position to change the government’s position. She didn’t. She supported it consistently. Similarly, both Tom Marshall and Jerome Kennedy held ministerial portfolios that gave them both legal and political power to resolve the matters long before the government finally settled both. The truth is that cabinet changed its approach to these two issues for reasons other than the arrival of a new leader who is compassionate.

In other words, the reality of how political decisions get made is considerably more complicated.  It’s also not something politicians really want people to know about, let alone discuss.

Instead, politicians fall back on time-worn attitudes to politics that people quite readily accept without even realising what the words actually mean.

Premier Kathy Dunderdale is no change from the resurgence of paternalism in Newfoundland and Labrador politics.

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2010: The year in review

For the year-end post, you’ll have to wait until Friday to find out what the readers picked as their favourite stories of 2010.

For today, here’s another view.  Your humble e-scribbler has picked one Bond Papers post or topic from each month as a reminder of the year’s events.  I f you take the time to wander back through the archives, you’ll find all sorts of things from the UFO story that ran among last winter to a couple of posts on education.  There are also posts on the fishery that got some public attention – h/t to CBC’s Fisheries Broadcast.

So much more happened in the province than people seem to remember and the stuff they do remember is often not the most important things.

In any event, here’s the Year in Review:

January:  Spending scandal:  when “facts” aren’t true

February:  Three on one topic:  Deep Throat, Deep T’roat and Deep Throats

March:  The Fragile Economy:  staying the course

April:  Jon Lien:  mensch

May: The search for meaning challenge – yet more unfounded news media claims. 

June:  Roger Fitzgerald’s bias – the House of Assembly is at the point where partisan bias openly displayed by the Speaker is now commonplace.

July:  Calamity Kathy’s story doesn’t add up.  The local media are already praising her political genius.  Here’s another example of how short their memories are or how low are their standards.

August:  Good to the last fish

September:  The politicisation of public emergencies

October:  Breasts:  they’re not just for gawking at

November:  Reversing the entrepreneurial drive

December:  How to win without news media – Part 2

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Is Gerry Byrne completely nuts or what?

Byrne says to saddle his constituents with massive debt and increased electricity prices.

That’s not exactly how Gerry Byrne might want to say it but that is exactly what the federal politician is looking to do.

The member of parliament for Humber-St. Barbe-Baie Verte wants the federal government to backstop Danny’s Get Outta Dodge legacy plan.  Danny wants exactly the same thing and, to be frank, that’s one of the few ways this pig of a deal will fly.

The other way is for Byrne’s constituents to pay for it with a guarantee of doubling their electricity rates – or worse – for electricity they could get more cheaply using other ideas.

Now why, in a likely election year, would a federal politician want to shaft his his constituents twice over with double their electricity rates and increasing their public debt by $4.0 billion or more?

Has he gone completely insane?

Totally bonkers?

Been spiking the eggnog with oxy?

Heavens knows, but Byrne is obviously getting very, very bad political advice from someone who clearly hasn’t thought this through and who most definitely doesn’t have Gerry’s political best interests at heart.

And rest assured, gentle readers, that whatever imp perched on Gerry’s shoulder, he certainly doesn’t give a toss for Gerry’s supporters. So how did this ludicrous thought get inside Gerry’s skull?  There’s a question begging for an answer.

Someone ought to get the miserable idea out damn quickly though before it festers any further and we ordinary mortals get screwed.

From VOCM, in case they disappear the story:

Liberal MP is encouraging the federal government to step in with support for the Muskrat Falls hydro development. Ottawa has been asked to help finance the subsea link across the Cabot Strait, as well as for a federal loan guarantee. Gerry Byrne says the latter wouldn't cost anything and says the federal government should recognize that when it comes to climate change the development of the Lower Churchill is vital. Byrne says the Lower Churchill is an absolute essential plank in the overall Canadian climate change strategy and for that reason there should be no hesitation in participating.

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The Top Stories of 2010

So it’s time for the obligatory top stories posts. 

Danny quits?  Been there, done that, shoulda printed tee shirts in 2006 when he announced it.

The big story coming out of Williams’ hasty departure is the evident panic within the Conservative Party.  Ordinary Conservatives were obviously expecting Williams to carry on.  His abrupt exit left them decidedly uneasy. For its part, the party leadership seemed to be caught flat-footed and despite initial claims there would be a leadership contest early in the New Year, someone started to work behind the scenes to engineer a deal to keep Danny Williams’ hand-picked successor in place through to 2012.

But the deal as it is currently shaping up is a stop-gap, at best.

Dunderdale was planning to retire from politics. Like Tom Marshall – another supposed successor – Dunderdale is getting toward the end of her political career.  She isn’t likely to be the one to lead the party through two general elections. So sometime between 2011 and 2015, the provincial Conservatives would be back in the leader-finding business again.

If Dunderdale packs it in before October 2014, the province will be plunged into an election thanks to Danny Williams’ Elections Act fiddling in 2004.  If she hangs on for four years, the party will still have to spend the early part of 2015 running some sort of leadership contest.

And in the meantime – the second biggest story to flow from Williams’ escape -the policy doldrums that have beset the Tory party since 2006ish will continue.  Odds will remain decidedly against the provincial government launching any significant new programs unless it involves spending bags of money, that is. There’s also no chance the provincial government will reform its fiscal policy to cope with a massive public sector gross debt.

In the worst case scenario – the third biggest potential story to come out of Williams’ departure -  the Conservatives will forge ahead with Danny Williams’ Get-Outta-Dodge legacy plan and move the province into an even more precarious financial position.  Remember when the public sector debt and  and the size of the economy were the same number?  You will.

The there’s the fourth biggest story to come out of Williams’ departure:  who will replace him.  Bottom line is that we still don’t know.  Likely we won’t know for upwards of four years.

Ready for a fifth story tied to Williams’ surprise retirement?  Hurricane Igor.  Absolutely.  A huge story that affected thousands.  Revealed some serious problems inside the province’s emergency response organization.  And let’s not forget that natural disasters seem to be tied to the political future of certain types of political leaders.

Danny Williams’ political exit may wind up being the most commonly selected top political story for 20120 in Newfoundland and Labrador.  But it’s all the other bits related to his retirement that dwarf the event itself.

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Counting your chickens

There’s something very odd about the way the provincial government and its agencies make huge announcements about not much.

Like say just before Christmas when Nalcor announced that it had signed a letter of intent with SNC-Lavalin to oversee construction of a generating plant and overland transmission lines if the Muskrat Falls deal goes ahead.

Big deal, right?

Well, maybe not. Here’s a line from the Montreal Gazette:

Leslie Quinton, SNC-Lavalin's vice-president of global communications, said: "We don't usually comment on letters-of-intent signings, but in this case we can say it's very good news for our Newfoundland office."

It will be even better news if the project goes ahead.  you see an experienced company like SNC-Lavalin usually doesn’t count its chickens before they are hatched.

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Media trends: the technical term is “suckass”

In a normal place, news media would not use this sort of commentary from a politician about his own caucus, well not unless it was to ridicule the comment and the politician who issued the statement.

Then again, they don’t call this particular media outlet voice of the cabinet minister for nothing:

Terra Nova MHA Sandy Collins says he's extremely pleased to see such a smooth transition of power after Danny Williams announced he was stepping down earlier this month. Collins says it could have been a difficult time for the party and government, but it went smoothly much to the credit of Premier Kathy Dunderdale.

Hey Gerry!

Ed Murrow called.

He said he wants his awards back.

Either that or put a disclaimer that any resemblance between this sort of shite and journalism is purely coincidental.

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For the love of three oranges…

Via the Globe and Mail, a tale of one man and his Christmas orange tradition.

Not the colour.

The fruit.

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Pop Drop 2010 continues

Newfoundland and Labrador’s population dropped again in the third quarter of 2010, according to the latest estimates from Statistics Canada.

International migration is up, but wasn’t enough to pull things into the growth category.

Could it mean that the recession is over?

Well, at least it could be over to the extent that Newfoundlanders and Labradorians are feeling comfortable enough to venture off  - again - to Alberta or Ontario or wherever it is they will go to find work. The growth in population from the second quarter of 2007 onward is attributable to the North American recession.  As in previous recessions, outmigration from the province halted and more ex-pats started flowing back in as the economy slowed down.

That pattern started to change a the middle of 2009.

For those like finance minister Tom Marshall and his colleagues in the provincial cabinet - who tried to imagine this was due to the attractiveness of local economic opportunities -  these figures are bad news.  They confirm that their interpretation is wrong. If their view was correct, the population ought to be growing at a much greater rate than it has been for the past year or so.  Locals would be finding work and staying while more people would come from outside to take up the extra jobs created by a booming economy that somehow managed to escape the ravages of the worst recessions since the 1930s.

Short answer:  it didn’t.  And to go with that there are still some major economic problems in the province that the politicians aren’t talking about.  Let’s see if they start talking about them in 2011.

As a last point, as you can see from this second chart, the population of the province has dropped more often each quarter than it has grown over the past five years.  And if you were to extend that back to 2003, you’d see the downward trend continues.  In fact, the trend goes back before 2003.

So much for the government’s pronatalist policy.

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The politics of history - editorial version

The history of politics in Newfoundland and Labrador is very much the history of patronage.

The practice is accurately described in this Western Star editorial titled “Independence” (04 September 1956):

If an electorate thinks that the prime purpose of democracy in action is to provide patronage for their particular constituency and the politician gets the feeling that in order to curry votes he has to descend to the level of the electorate, then it is understandable at least why he follows the path of least resistance, expresses no disagreement whatsoever with the party in power, thereby hoping to be able to wheedle from the government patronage and public funds for his constituency where votes will reward him by returning him to office again.

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Related:  “The politics of history”

Merry Christmas and all that Traffic! – Boxing Day edition

The top stories for the week of December 20-24, 2010, as determined by the readers of Sir Robert Bond Papers.

1. Williams’ abrupt departure “shocking”: Dunderdale
2. Williams to head Rogers sports empire?
3. The horrors of democracy
4. Connie leadership 2011:  Fairity got the call, too 
5. Belinda Stronach pictorial (Sadly the macleans.ca link is dead and apparently unrecoverable)
6. Potholes and compensation
7. Delacourt and the rumour mill
8. Muskrat Falls:  Internal Contradictions 2
9. Internal contradictions:  the editorialist version
10. Of Death Eaters and Horcruxes

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A Christmas Festival – arr. Leroy Anderson

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Joy to the World!

That way it should be:  Tuba Christmas!

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Good King Wenceslas

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Once in Royal David’s City

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Gesu Bambino

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Delacourt and the political rumour mill

From Susan Delacourt at The Toronto Star comes a column taking issue with two of her colleagues at other publications who have taken, it seems, to writing about a rumour as if it were true.

Delacourt quite rightly chastises her colleagues and truthfully her metaphorical pen has an edge to it that ought to cause corporeal real wounds it is so skilfully wielded.

Journalism involves investigating tips or questions, determining their accuracy, and telling the public the facts.  The difference between Misters Spector and Cohen is that they seem to have taken a little shortcut there, or worse, done it backwards. They've reported the rumour and asked other people  to investigate. I would hope that Mr. Cohen is not teaching young would-be journalists to do the same. Apart from being supremely unfair, it's also just plain lazy.

Over the past few weeks, the local political world has been beset by all manner of story.  Your humble e-scribbler tossed up two separate ones so that readers could be aware they are out there.  Neither was presented as fact.

One of them merely added a bit of colour to what had existed as whisperings but that was quite clearly becoming fairly obvious true:  within the Conservative party someone  - alone or in concert with others – had resolved to avoid a leadership contest over the next couple of months and instead have Kathy Dunderdale carry on as leader of the party and, by default as premier, until sometime after the 2011 general election.

The other, as David Cochrane reliably tweeted, is one that he tells us all he’d checked into it a couple of weeks ago and received a denial from Danny Williams’ publicist. 

That one is important, though, not for the substance of it but for the fact that it existed in the first place. Danny Williams’ left abruptly and without apparent cause or explanation.  As a result, a great many people are wondering why Williams left as quickly as he did.  A great many of those are Conservatives who have been left very unsettled by his departure. 

And if nothing else, the rather speedy exit he made created the climate in which the party is now engineering a little story to avoid a leadership contest of any kind at least until after October 2011.  People are searching for an explanation.  The Maple Leafs’ rumour seems as good as any of the others that are flying around the entire province but which are more obviously preposterous.

In a sense, that’s the same sort of discussion Susan Delacourt offers after slapping her two colleagues.  She recounts the story of the rumour story itself.  That’s actually quite useful since by telling the whole tale, Susan has helped inoculate people against this sort of foolishness in the future. 

Nothing kills corruption like daylight.

Good on Susan for spreading a little daylight on this nasty infection.

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Krampus!

Think of him as the anti-Claus or the Counter-Nicholas.

In many parts of central Europe, Saint Nicholas may bring presents to the good boys and girls but Krampus is the one who deals with the naughty children.  Some versions have him coming around at the same time as Nicholas.  Others have him coming around a few weeks beforehand.

As you can see from this video, the tradition continues and attracts quite a large crowd as various interpretations of Krampus roam the streets.

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Connie Leadership 2011: Fairity got the call too!

Kevin O’Brien told VOCM is isn’t interested in replacing Danny Williams.

Did anyone else have him in the race except your humble e-scribbler?

Sheesh. 

No one wants to be Ernie Eves.

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Marshall wants Dunderdale for Premier

Of course he does.

The fix is already in.

“This is not the leadership you are looking for” Update:  As the Telegram reminds us all, Tom Marshall pledged to take time over Christmas to think about the leadership.  Christmas must have come and gone while no one was looking.

It’s almost as if someone called him up and told him the right decision to make.

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The horrors of democracy

From a recent Telegram editorial:

Those same Republicans are now saying these heroes, many of whom suffer from chronic respiratory diseases, must stand aside until the country’s fattest fat cats get to keep their three per cent tax holiday. 

One could hardly imagine any greater depth of moral bankruptcy.

And from the news:

The US Senate on Wednesday approved a long-awaited multi-billion-dollar health package for emergency responders to the terrorist attacks of Sep 11, 2001.
…
The legislation was to be passed later Wednesday by the House of Representatives and sent to President Barack Obama's desk for signature. The approval by both chambers of Congress would come on the last day before lawmakers head home for a holiday recess.

Moral bankruptcy indeed.

Democracy is a messy business but as this bill demonstrates, in a healthy democracy parties can reconcile their contending points of view in a compromise that works for all.  In the end, the health care bill passed the Senate unanimously.

The Congress also passed a bill repealing the “don’t ask, don’t tell” policy that discriminates against homosexuals serving in the American military. And those are just some of the measures passed as the members head off to a Christmas break.  The legislators will be back in January, incidentally, hard at work passing laws and keeping the current administration accountable to the people whose money the government spends.

All that noise  that hurt the ears of the Telegram editorial board is, in fact, an essential feature of any democracy worthy of the name.  It is, to be sure, a very necessary and very natural expression of a thriving society where people can argue about ideas,  have strong disagreements and then find a middle ground that allows everyone to move forward.

Compare to the current goings on in Newfoundland and Labrador.  The legislature sits for a handful of days a year.  When it does sit, as in the eight day wonder just completed, the members spoke about a handful of pathetic bills that did little more than change the punctuation is some straight-forward bills.  They spoke about those bills – debate is hardly the word for it -  with some of the most incoherent speeches delivered in this or any other legislature on the planet.

At the same time, the governing Conservatives are busily working to avoid having any sort of open political competition within their own party for the Premier’s job recently vacated in an unseemly haste by Danny Williams.   These denizens of the proverbial smoke-filled rooms and politicians like Jerome Kennedy and Darin King are afraid. 

They are afraid not only of debate, perhaps, but of their own inability, ultimately, to bring people together.

They seem to be genuinely distrustful of politics itself.  After all, debate and reconciliation, are core features of politics in a democratic society.

Seriously.

The problem in 2001 that Tories are pointing to was not that the Liberal leadership produced differences of opinion.  Those differences exist as a matter of course in every group of human beings. The political problem for Liberals came from the fact that Roger Grimes hard trouble bringing people together on his own team in a common cause.

The Conservative effort to deliver a leader without an open competition will do nothing except point out that the Conservatives not only lack a suitable replacement for Danny Williams, they are desperate not to risk their hold on power.  What’s more, Jerome or Darin or Kathy know that they lack the leadership skills to reconcile the factions within their own party.  Otherwise they wouldn’t stand for a back-room fix.

And in the process, Newfoundlanders and Labradorians should be highly suspicious of whomever the back-rooms boys settle on to run the Conservative Party.  After all, how can the people of Newfoundland and Labrador trust them to bring people together in much larger causes than who gets to head the Tory tribe?

Politics is supposed to be adversarial and the more open the differences the easier it is for people to consider the various aspects of difficult ideas.  Consider what might have happened, for example, had the legislature done what it is supposed to do and forced the cabinet to explain and fully justify something like the Abitibi expropriation.

The job of holding government accountable is not just for the opposition. Government members have a role to play as members of the House.

Newspapers and other media also have a role to play in a healthy democracy.  Usually, the role is to question and to criticise those in power.  Yet instead of showing any enthusiasm for democracy, the Telegram editorial board is slipping into the same anti-democratic way of thinking it offered in March and April 1931.  At that time, the country supposedly needed a break from democracy and the Telegram was all in favour of it.

Simply put:  just as one could not be a democrat and support the imposition of an unelected government in 1931, one cannot support democracy and hold out the recent session of the legislature as anything other than the embarrassment that it is.
 
If, as the Telegram editorial board contends,  the most recent session of the United States Congress is a sign of moral bankruptcy and if  the House of Assembly is a repository of nobility and virtue by comparison, then let us all hope the province is very soon beset by every form of political debauchery the human mind can imagine.

There is, after all, something much more horrible than democracy.

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Of Death Eaters and Horcruxes

From deep inside the Conservative bunker this past couple of weeks have come one consistent set of stories.

Someone doesn’t want to have a leadership contest.  Whether it is the pressures of time on the party or fear of opening up internal divisions that just won’t heal, Conservative back-room boys have been trying to engineer a coronation.

Until Wednesday, those were just stories.

Then events started to unfold.

A couple of weeks ago, Darin King said he would take the time over Christmas to discuss his political future with family and friends.  Christmas must have come early. 

"My children are not that old — my son's in grade 11, my daughter's in grade 7 — my wife is a full time professional and I'm sure people would appreciate, its very taxing on the family, just time alone that you're away from home," said King.

"To consider taking on another challenge such as this at this point and time for me, it was our conclusion, that it's not in the best interest for us collectively as a family." [via CBC]

Reporters heard about King’s media scrum from a strange source:  Jerome Kennedy.  After announcing he was bowing out of the race because he had two teenage children, Kennedy told reporters that King would be along later with an announcement of his won.

And to confirm that the fix was in, both endorsed Kathy Dunderdale as the leader of the province’s Conservatives.  By default, she gets to remain as Premier.

Now a young family or other unspecified family pressures are usually a genuine explanation of why someone leaves cabinet or even leaves politics altogether. But these aren’t young families.  Both men have teenage children and they got into politics when their children were much younger – that’s the time when a young and needy family would be the reason for someone to stay out of politics.

Wednesday’s announcement by Kennedy and King sounds like  someone who quits a job to spend more time with the kids and then goes after another job that would have him spend less time with the family.  As a story, it just doesn’t hang together.

The stories about a back-room deal only grew stronger as time went by.  If the latest whisperings are true, the back-room manoeuvres involved none other than Danny Williams Hisself.  Williams was the only one who could contain the ambitions of so many for so long.  And as it seems now Williams may have been the one who could convince the ambitious to bide their time a while longer.

There’s no question, though, that someone is working behind the scenes to manoeuvre everyone into a certain position. There might be a few more minor shoes to drop – maybe some staff changes in Kathy’s suite -  but Darin King and Jerome Kennedy made it clear on Wednesday that the fix is in:  it will be Premier Dunderdale leading the Conservatives into the election, whenever it comes.

How long the fix lasts, though, is another question.

Oh…

Just coincidentally, you might have noticed some changes to the government online phone directory lately.  Right at the end of the listings for the Premier’s Office is an interesting entry:



Danny Williams is still listed in the office.  He holds the position of “Premier Dunderdale”.

Makes you wonder.

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Update:  Corrected time references.

Williams to head Rogers sports empire?

Is that why he left office so suddenly?

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Tweet-date:  From a tweet by CBC's David Cochrane (@CochraneCBCNL) earlier on Thursday:

@edhollett raises the persistent Williams to Rogers rumour on his blog. I called DW's people on this two weeks ago. They say "Not true." 

Introducing Premier Dunderdale… along with a primer on the new Premier

Jerome! won’t be running.

And he dropped the hint that Darin, King of Uncommunication is also out of the race to be Premier.

Does any Conservative want to be Premier?

Kathy Dunderdale is only reconsidering her original pledge because people are encouraging her to do so.  It’s not like she – or any other Conservatives for that matter – apparently have the requisite combination of ambition plus ideas to go after what used to be looked on as the most important political job in the province.

This sorry state speaks volumes for the utter devastation Danny Williams wreaked on the Conservative Party, let alone the political system in the province generally.

No one wants the job.

Either that or there is a move afoot within Tory circles to engineer an outcome without running the risk of a divisive leadership campaign.  Even that doesn’t say very much for the current state of the Conservative Party or its pool of  - ersatz? -  leaders.

Undoubtedly, there’ll be more to follow.  in the meantime, amuse yourselves with these oldies but goodies:

A Kathy Dunderdale Primer

A sample of posts on Kathy Dunderdale from the Sir Robert Bond Papers:

• “Patronage and the Public Tender Act”
• “Delusions”
• “Introducing Premier Kathy Dunderdale”
• “TARFU”
• “Calamity Kath Dunderdale:  the Miracle Max Ploy”
• “Calamity Kathy’s Story Doesn’t Add Up”
• “Public too stupid to understand”
• “There’s crap.  There’s bullshit….”
• “Five years of secret talks…”
• “Physician heal thyself:  Dunderdale version”

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Muskrat Falls: Internal contradictions 2

A $6.2 billion megaproject is green partly because it is supposed to displace 500 megawatts of electricity generated at Holyrood by burning Bunker C oil. 

But now this green project will also open the chance for Nalcor to build a new thermal generating plant as well, this time burning natural gas. This is a new opportunity, supposedly.

Bonus contradiction:  “Displace” is the word Nalcor uses to bridge the contradiction between what the politicians will tell you about the Holyrood generators and what Nalcor tells the public utilities board.

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Internal contradictions: the editorialist version

Compared to his glorious accomplishments, already praised by the Telegram’s editorialists, their concerns about a few file folders are mere trifling.

Things are slowly returning to the “normal” state of editorial sucking and blowing at different times on the same subject

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Six White Boomers

Merry Christmas, sis…

 

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Montblanc–the art of writing

 

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Potholes and Compensation

If you want to spend a few minutes in that altered state of consciousness called being a cabinet minister, take a listen to an interview transportation minister Tom Hedderson did back in October with CBC Radio’s West Coast Morning Show.

The interview is about damage claims people are filing after using sections of the Trans-Labrador Highway.  Seems that they’ve been hitting potholes and are looking to have repairs paid for by the provincial government due to supposed inadequate maintenance and signage.

In the course of the interview, Hedderson acknowledges that increased traffic has caused increased wear and tear on the gravel road – yes it is a highway that has no pavement – but he insists that his department is doing everything it can to keep the road up to snuff.  He also acknowledges that the road surface will deteriorate after a heavy rain.

So yes, there have been claims for damages but the department won’t be paying anything because – by its own decision – everything they are doing is adequate.

To sum up: 

1.  There are potholes.

2.  There is no compensation.

There is no compensation because the same people responsible for maintaining the road are the same people who make the decision about whether or not they will pay. Hedderson just rubber stamps the decision by officials.

There’s even a Pythonesque moment right at the start where the interviewer asks Hedderson if they have in fact paid any claims to anyone at all.  No, says Hedderson.  Cheese vendor Michael Palin couldn’t have done any better.

Later on, Bernice Hillier asks Hedderson about “legitimate” claims since, apparently Hedderson had said earlier in the year the department would pay for legitimate complaints. “Legitimate” claims get paid, it seems.

Hedderson’s definition of a “legitimate” claim is basically one they’ve paid.

And since they haven’t paid any claims… draw your own conclusion.

That interview aired on October 28.

On October 26, Hedderson issued a news release announcing changes to the Labrador coastal boat service because of improvements in the road network.

"Now that there is a highway link connecting the communities currently served by this run, the time has come to discontinue the passenger and freight service between Lewisporte, Cartwright and Happy Valley-Goose Bay," said the Honourable Tom Hedderson, Minister of Transportation and Works. "This is a natural step in light of the approximately $275 million investment in Phases II and III of the TLH and is consistent with the delivery and maintenance of transportation infrastructure and services in other communities that are accessible by road.”

Wonderful stuff.  People can drive around now on this highway.  In fact, more people are using it and will use it in the future.

But they shouldn’t expect that government will compensate them for damage resulting from using the roads.

That is, unless they use “more legal type means”.

That would be Hedderson-speak for getting a lawyer and filing a damage suit in Provincial Court. Given the laughable way Hedderson handles complaints to his office, that might be a good idea.  Hire a lawyer who will fight bureaucrats and their self-serving, circular logic.

Anyone ever heard of a lawyer like that?

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The triumph of provincialism

In what would otherwise be highly risible, the Globe’s Jeff Simpson laments the triumph of parochial interests in Canada politics while using as an example a provincial politician whom he apparently admires yet who epitomised the attitude Jeff apparently finds so troubling.

Two things on this for now:

1.  Don’t worry: Jeff knows what risible means.

2.  This is yet further evidence of why people in Newfoundland and Labrador should pay no heed to things that appear in the Globe and Mail. 

It is just a newspaper.

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Dunderdale flip flops on future

She’s not running.

She’s running.

She’s not running.

And 24 hours after the last version of the story, Kathy Dunderdale is a model of decisiveness as she confirms she is now thinking about running to replace Danny Williams as Tory leader on a permanent basis.

She’s currently a caretaker leader and premier, as she previous told reporters she had “committed” to the people of Newfoundland and Labrador.

But give it a few days and an apparent tizzy inside her party and things are starting to look differently.  Here’s how CBC described it:

"I opened the door a crack on it last week only because I've been under so much pressure to do so from within the caucus and from across the province generally," Dunderdale said at Government House, where she watched the swearing-in ceremony for David Brazil, who won the Conception Bay East-Bell Island byelection on Dec. 2.

"It's been quite overwhelming and it's very nice. But, I got to tell you, I still haven't had a lot of time to think about it but nothing has changed at this point in time."

 

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Williams’ abrupt departure “shocking”: Dunderdale

From the Friday Telegram;

“The premier leaving was shocking to me,” said [Premier Kathy] Dunderdale. “My first thought was how are we going to do as a government, as a caucus.” [Telegram editorial insertion removed from quote]

That pretty much says it like it is:  Williams’s departure was unexpected.

In her former role as Williams’ deputy premier, Dunderdale ought to have been intimately aware of any major  developments such as Williams’ departure. She likely wouldn’t have been alone. 

And given that Williams had talked on several occasions about when he might leave politics, the party should have been prepared.

Apparently, they weren’t and the result is that the party is scrambling.

You can tell that the party leadership is confused and scrambling by two factors:

First, there are no declared contenders, let alone leading ones.  The one heir apparent – Jerome Kennedy – is reportedly dropping out and may well leave politics altogether. Other than that, no names have bobbed to the surface two weeks after Danny Williams left office and three weeks after he announced his departure.

Second,  the party hasn’t announced a process by which the party will select a new leader.

What’s been happening for the past week is a great deal of speculation about all sorts of prospective candidates, but none it involves serious contenders.

So empty is the field of people even taking a gawk that news media have reported that Kathy Dunderdale is not running, running and then not running again for the leadership all within a 24 hour period. 

CBC ran a story on Thursday that featured Dunderdale saying she would not be running. The Telegram story linked above put it this way: “But Dunderdale said she may rethink that decision because of the support she’s getting to stay on.”  The title of the story is “Dunderdale may reconsider running for premier full-time,”  as if she was working part-time now.  A day later, VOCM ran this story:

Dunderdale still not considering running for leadership 

The Premier says she's not reconsidering a bid at the leadership of the Progressive-Conservative Party, despite her success in the last two weeks in ending some long-standing disputes. Kathy Dunderdale says she's focused on governance, not a leadership race.
Dunderdale says it hasn't been part of her consideration in terms of anything she's done in the last two weeks. She says she hasn't thought about it or changed her mind, but she says it's a business where you can never say never.

While Dunderdale is obviously not interested in taking the Premier’s job beyond the caretaker role she’s already accepted, take a look at the rest of her comment to the Telly:

There’s a tremendous amount of pressure on me to reconsider…

NTV’s Michael Connors reported on Friday that there is apparently concern in the Conservative caucus that they not have a divisive leadership along the lines of the Liberal one in 2001.  That comment has been floating around the legislature for the past few days.

Taken together with the absence of any declared candidates, Connors’ report suggests that some party insiders may be trying to engineer someone into the job without a leadership race at all. Bear in mind that the party hasn’t decided on a process – convention or telephone voting – let alone even opened nominations yet.

It’s not like time is on their side what with by-election (s), budgets and then a fixed date for the next general election.

Seems that’s another Christmas present Danny Williams left to the provincial Conservatives right alongside the current leadership scramble and the Muskrat Falls bomb.

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Be happy in your work!

The Telegram editorial board stands resolutely in favour of political indolence.

So, when you think glumly about the lameness of local politics, and about how a poorly challenged majority seems to be coasting along on autopilot — just imagine how much worse it could be.

And be thankful.

Seldom does one see an editorial board in a supposedly health democracy lauding ignorance and apathy with such unbridled enthusiasm.

For those who don’t follow the link, incidentally, the Telly was not comparing the state of affairs in Newfoundland and Labrador with North Korea or, for that matter, any other autocracy, petty despotism or kingdom on the planet.

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