24 January 2011

Unsound public finances: Tom Marshall’s travesty

 

"It would be a travesty if we don't use this windfall we have, this oil — which will be gone one day — if we don't use that to get rid of this massive debt that our people and our governments have accumulated."

That was finance minister Tom Marshall late last year when he released the provincial government’s financial update for Fiscal Year 2010. He made the comment to CBC’s Jeff Gilhooley during a live interview.

debt expenses

Auditor General John Noseworthy’s most recent report on the public accounts (for Fiscal Year 2009)  pretty much demolishes Marshall’s claims that he and his fellow Conservatives have been managing the province’s finances in a sound way.

The chart shows debt expenses by fiscal year over the past decade. Incidentally, just to make sure you don’t get screwed up in this and subsequent posts, notice that the Auditor General mislabels every fiscal year.  The period covered in this chart is from 1999 to 2009.  That’s the way your humble e-scribbler will refer to the dates.

This chart shows just exactly how much money the provincial government spends every year to service the public debt.  Very little of that is actually going to pay off a debt.  The overwhelming majority of that money goes just to pay the interest that comes due every year.

Take a good look at those numbers.

In 2009, the provincial government spent the better part of a billion dollars doing nothing but paying interest on outstanding debt.

Those figures also tell you that what the province’s finance minister and even the Auditor General call “net debt” isn’t really the measure of public debt that you should be fixed on. After all, if the provincial government really had reduced public debt by almost three or four billion dollars, we wouldn’t be back paying debt servicing costs the likes of which the government hasn’t seen since 2001.

The number you need to look at is gross debt, or, as the Auditor General labels it in the chart below:  “liabilities”

AG- key balances

That shows the total amount owed now and in the future by the government and its corporations and agencies.  When it comes to figuring out interest payments and so on, that’s the figure the banks and other creditors look at.  Think about it for a second:  if you have a mortgage on your house, the bank doesn’t check every year to see how much cash you have in the bank or anything else to figure out the interest payments you need to make on the loan.  They just know how much you borrowed and what rate of interest they are going to apply.

So when you look at that line called “liabilities” you will see that the provincial government had $13.733 billion in 2004 – the first full year the Conservatives were in power – and owed $12.559 billion five years later.  Not surprisingly, the debt servicing costs in 2009 were not far off what they were way back before Tom Marshall, Jerome Kennedy and the rest of the provincial Conservatives worked their supposed financial miracles.

Take a look at these two charts and you’ll know why your humble e-scribbler has been harping on this point for pretty well the whole span of Bond Papers. Paul Oram’s resignation in the fall of 2009  - note the year! -just highlighted the issue.

Take a look at those numbers and you’ll understand why Tom Marshall simply has no credibility when he talks about his administration’s management of public finances.

And if you look at those figures you’ll understand that, even if the Muskrat Falls deal was brilliant – and it isn’t – the provincial government has far more pressing issues to deal with rather than build someone’s political legacy. That deal would take the gross debt from $12.5 billion to between $17 and $18 billion.

Tom Marshall’s already given us a judgment of his own performance as finance minister:  a travesty. They haven’t reduced the public debt to any appreciable degree.

So what would it be if the same guy and his cabinet colleagues then increased the public debt by another 50%?

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23 January 2011

NL Auditor General notes poor fin mgt practice

From September 2002 until March 2009, Government had been preparing periodic financial statements to show the Province’s results of operations and financial position.  Officials of the Department of Finance indicated that these financial statements were only distributed to the Minister of Finance/President of Treasury Board, other Treasury Board Ministers, the Deputy Minister of Finance, the Comptroller General, various officials of the Department of  Finance, and the Auditor General.  Officials of the Department of Finance advised that for the year ended 31 March 2010, periodic financial statements
were only distributed to the Deputy Minister of Finance.

From the Auditor General’s report on Fiscal Year 2009.

No wind, please. We’re Nalcor.

The Telegram reported on Saturday that the provincial government’s energy company isn’t really interested in developing wind energy until after they get the hugely expensive Lower Churchill up and running.

Oh yes, and they also want to sell power to Ontario some day in the misty future despite the crowd up along having a bit of a glut of power.

Regulars readers of these e-scribblers will find the first one to be a gobsmacking revelation of the magnitude of finding out that Liberace was gay.

The second one’s just funny because it really a case of Nalcor putting a very brave face on a very badly bungled job.  After all, they rejected flatly Ontario’s interest in building the project five years ago. 

Then after another five years of trying desperately to interest Ontario, Quebec and anyone in northeastern North America with a electric socket in the power they came up with nothing other than this brilliant plan:

  • make the people of Newfoundland and Labrador bear the entire cost of the project and,
  • let Nova Scotians get 35 terawatt years of electricity for free.

And it is funny. 

Your humble e-scribbler doesn’t relish the thought of the New Brunswick- like electricity prices that are headed to consumers on the island – guaranteed to at least double within the decade – and the extra burden of hauling around all that public debt but what else can you do but laugh?

If you didn’t laugh at the sheer stupidity of the idea, you go completely off your nut.

Heck, you might even believe that the Conservatives were seriously interested in sound management of the province’s finances.

Right. 

Laughter it is, then.

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22 January 2011

Watton to carry Liberal banner in Humber West

Corner Brook native Mark Watton wants to represent the people of Humber West in the House of Assembly.

He has the Liberal nomination.

And he’s got a pretty good line:

…do people want a PC government that’s going to be one seat bigger or do they want a PC government that’s going to be one seat more accountable?

 

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Black Smoke Traffic

For the week of January 17 to 21, the top 10 Bond Papers stories as chosen by the readers:

  1. Tory angst may be well founded
  2. Tim Powers?  Rick Hillier?  No thanks say NL Tories
  3. AbitibiBowater properties up for sale
  4. Ontario flush with electricity
  5. Non-res building up 23% in Q4
  6. No power cable for PEI?
  7. Fin minister Tom Marshall talks debt reduction – audience pees in pants with stifled giggles
  8. Fisheries agreement delayed again
  9. Iceland opportunity lost
  10. New gas find offshore Israel

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21 January 2011

Mill shelves controversial tire burning proposal on eve of by-election

Corner Brook Pulp and Paper quietly shelved a controversial proposal to burn tires as part of the mill’s power generation on the eve of  a provincial by-election.

Word came late Friday in a routine statement from the provincial environment department on applications under environmental protection laws.

The provincial environment minister was supposed to rule in December on a proposal from the west coast paper mill.  The provincial government postponed that decision to January 15 claiming that it had received more public submissions on the project than it could handle by the initial deadline.

While the initial announcement of the proposal met with little public reaction, a series of protests, letters to the editor and a Facebook campaign made it clear some area residents strongly opposed the tire burning idea.

The second deadline came and went with the excuse that the minister newly appointed on January 13 needed time to review the proposal.  Shortly afterward, the minister’s office indicated he’d have an announcement by week’s end.

The decision to shelve the proposal comes on the eve of a by-election to fill a Corner Brook seat in the provincial legislature vacated by Danny Williams, who quit politics in early December.

Both opposition parties pledged to make the proposal a key issue in the by-election but by Friday only the Liberals had a candidate to face the Conservatives.  Mark Watton, a lawyer who had previously been a political staffer in the Prime Minister’s Office and chief of staff to cabinet minister Ken Dryden, is expected to be the only person to seek the Liberal nomination that closes on Friday.

On  Wednesday, high school principal Vaughan Granter won the Conservative nomination.

Friday’s decision by Corner Brook Pulp and paper doesn’t necessarily remove the tire proposal.  The mill could bring the proposal back after the by-election.  At the same time, the provincial environment department ships used car and truck tires to facilities in Quebec for burning.

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Fin minister Tom Marshall talks debt reduction - audience pees in pants with stifled giggles

According to voice of the cabinet minister, provincial finance minister Tom Marshall is interested  - again – in talking about the provincial debt.

Here’s a excerpt from the VOCM online story, quoted here since it may have been disappeared by the time this gets posted:

Marshall proposes several measures in doing so. First, the government needs to balance sustainable and prudent spending with the implementation of steps to lower taxes and net debt. He says the province has to maximize the benefits from its non-renewable resources now so that it is prepared for when they are depleted. Finally, he argues that it is important to diversify the economy, such as focusing on the Lower Churchill Project.

Marshall’s talked about sustainable spending before but only to the extent of making clear he wasn’t the teensiest bit interested in actually doing it. In fact, Marshall’s record is of a profligate spender who never met a deficit he didn’t like.

And just to get the point across, note that current provincial gross debt is about $12 billion.  That’s roughly where it’s been for the past four years and it higher than it was in 2003 when Marshall and his crowd took office. 

Tom mentioned lowering the net debt.  Well in order to do that he’d have to stop overspending as he’s done the past two years.  According to the most recent financial statements, the province’s net debt went up in 2009 and it is set to go up again in 2010 (the current fiscal year) if current trends hold.

So while that whole “sustainable and prudent spending” thing is a great objective, Tom and his friends haven’t done it yet.  After seven years, Tom’s got to have cajones the size of watermelons to talk about debt reduction and fiscal responsibility with a straight face, expecting the people in the province to take him seriously.

Ditto the part where he talks about maximising benefits from oil and minerals.  Tom and his former boss specifically rejected any suggestions to set aside sovereign wealth funds, real debt reduction and any other ways to accomplish the goal of putting the money from oil and minerals to work for the future.

And double ditto for the bit about diversifying the economy.  The current fragile state of the provincial economy is a direct result of provincial government policy since 2003. 

That leaves the Lower Churchill.

Reducing net debt, right?

Okay, Tom Marshall’s current plan is to force taxpayers to borrow at least $3.0 billion and put a total of about $6.0 on the provincial government’s gross debt load.

Tom also wants ratepayers in the province to accept electricity rates roughly double what they are currently to pay for electricity.  Can you say “uncompetitive” boys and girls? 

And he’d like to ship power free to Nova Scotia for 35 years.

Surplus power would enter the market at uncompetitive rates so the chances of export are pretty much slim and none as it now appears.

Given all that’s going on in the province and what Tom Marshall and his pals have actually done since 2003, the finance minister’s audience on Thursday must have peed in their pants with stifled laughter as he rambled on.

Surely no one would take Tom seriously, not with all the evidence against him.

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20 January 2011

No power cable for PEI?

Federal transport minister Chuck Strahl said Thursday the federal government won’t be helping the province fund an electricity line from the island to the mainland, saying that the project didn’t make the province’s own Top 20 priorities.

The provincial government is trying to secure funding for the project through a federal green infrastructure fund.

According to the Charlottetown Guardian:

Prince Edward Island isn’t the only province looking for an electrical cable.

The $1-billion green infrastructure program has already funded an electrical cable in British Columbia at a cost of $440 million. The federal government picked up $130 million. The program also funded a $160-million power cable in the Yukon. The federal government picked up $71 million.

Newfoundland and Labrador and Nova Scotia have a joint application for a cable between those two provinces. That mega-project will cost between $800 million and $1.2 billion. They’ve asked the federal government for $375 million.

Strahl said he recognizes the province wants to construct the cable and the federal government is working to find the money to fund the project.

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Ontario flush with electricity

And so much for that market for Lower Churchill power…

Ontario residents were bemused to discover that on New Year’s Day 2011, on average, they were paid to use electricity.

If that seemed unusual – and it is – it’s only the start.

Within the next two years, the conditions that produced the bonus New Year’s power could crop up about one day in every seven, according to an analysis by the agency that runs Ontario’s power market.

A big reason: about 5,000 megawatts of wind powered generation is due to be connected to the Ontario grid in the next few years, producing surges of power that are more than the province needs.

via Toronto Star

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Fisheries agreement delayed again

Did anyone really expect that fisheries minister Clyde Jackman would actually tell the people of the province officially, with a news release that the long-awaited fisheries restructuring agreement would be delayed yet again?

Good because he didn’t.

Instead, Jackman dropped a comment to the Northern Pen, a weekly paper on the province’s Northern Peninsula.

A draft copy of Newfoundland and Labrador’s fishing industry MOU has been sent back for fine tuning delaying its release by another “two or three months”.

Speaking to the Pen on Monday, fisheries minister Clyde Jackman confirmed that he had read the 100-page document but it required some tweaking.

And if the rest of Jackman’s comments are any indication there’s no wonder the fishery is in a mess.  The fish minister doesn’t even have a sweet clue about incomes in his own industry:

One thing that really stood out was the difference in incomes for the different parties,” he said.

“In some places you have plant workers earning $10,000 and supplemented by EI while in others, they make multi thousands of dollars.”

The smart-arses can ignore the fact that ten thousand is multi-thousands.  Just note that those sorts of figures can be found readily in a report on the crab industry contained in a report government received back when Trevor Taylor was the fisheries minister.

Meanwhile, the province’s official opposition party did manage to get the story some wider coverage than Jackman may have liked.  A news release the Liberals issued did get picked up by the major media in St. John’s, likely much to Jackman’s chagrin:

“What that really means is that the plan is dead for the next year,” said [fisheries critic Marshall] Dean. “By taking another two to three months to ‘fine tune’ it, Jackman is removing the MOU from any consideration of funding in the next provincial budget, which is expected in March. If there is no funding for the plan in the budget, nothing can happen with the plan until the following year’s budget in 2012. That’s a full six months after this coming fall’s provincial general election. It looks like Minister Jackman has finally found a way to ground the MOU until after the election.”

Given this government’s handling of the MOU – which has now taken four years and gone through three different fisheries ministers – Dean thinks there is no will on the part of the PCs to deal with the fishery at all.

The story also wound up on CBC’s Fisheries Broadcast.

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Related

-   Good to the last fish:

At the same time, there are still thousands of people in Newfoundland and Labrador trying to squeeze a very meagre living from processing fish for a few weeks a year and then collecting government hand-outs for the rest.  A report delivered to the current administration when it was still young pointed out that the typical fish plant worker made less than $10,000 a year from labour, picking up another $5,000 in employment insurance premiums.

There are still way too many of them – plants and plant workers – for them all to make a decent living from what fish, and now snails, there is to turn into frozen blocks. The only thing that has changed in the better part of a decade since that report is that the workers are finding it harder and harder to collect enough weeks of work to qualify for the EI.

Tom Rideout meets the Bride of Frankenstein

Up the creek with Jackman and Rideout

New gas find offshore Israel

Funny the things that slip by.

Over Christmas the Globe and Mail ran a story on new oil and natural gas finds in Israel.  The twenty trillion cubic feet of natural gas in one set of offshore finds will reshape the Middle East and more energy finds could reshape global energy supplies.

Estimated to contain 16 trillion cubic feet of gas – equivalent to more than a quarter of Canada’s proven reserves and enough to meet Israel’s domestic demand for 100 years – the Leviathan field is believed to be the largest such deep-water gas discovery in a decade.

The find actually dates from  June 2010 as a story in the Jerusalem Post shows.

In January 2009, the discovery of the natural-gas field 90 kilometers offshore from Haifa, known as Tamar, in which Noble Energy has a 36% working interest, was made by the US-Israel consortium including the Delek Group, through its subsidiaries Delek Drilling and Avner Oil Exploration, Isramco Negev 2, Dor Gas Exploration. Tamar is the largest exploration discovery in Noble Energy’s history, which last year also discovered a natural-gas field at Dalit with gas reserves estimated at 500 billion cubic feet.

“The Leviathan exploration has the potential of being twice the size of Tamar, which was the largest gas discovery globally in 2009,” Richard Gussow, a research analyst at Deutsche Bank, said Thursday.

In addition, there’s been a major oil discovery onshore as well of a field roughly the size of Hibernia with additional prospects offshore.

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19 January 2011

AbitibiBowater properties up for sale

An advertisement appearing in the Telegram on Wednesday put the Stephenville and Botwood properties still owned by AbitibiBowater up for sale.

The receivers are inviting bids for six parcels, four of them associated with the former Stephenville mill and two for land, buildings and a deep-water dock facility at Botwood.

deloitte ad

The ad was placed by Samson Belair/Deloitte and Touche, receivers for a numbered Newfoundland and Labrador company created during the recent restructuring of AbitibiBowater.

Any environmental liabilities would pass to the new owners with any sale of the properties in the same way that provincial taxpayers are now liable for the entire Grand Falls mistakenly expropriated in 2008 by the Williams administration.

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Non-res building up 23.% in Q4

The value of non-residential construction in Newfoundland and Labrador increased 23.6% in the fourth quarter of 2010 compared to the third quarter, according to figures released Monday by Statistics Canada.

Of the $103 million in industrial, commercial and institutional construction in the province, $62 million of it was in the metro St. John’s region.

That’s interesting given a recent comment by finance minister Tom Marshall that it was time for the private sector to step in a drive the economy for a while. BMO noted recently that provincial economic growth is driven currently by capital spending. 

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17 January 2011

Tory angst might be well founded

Conservatives across Newfoundland and Labrador seem to be in a bit of a tizzy. Danny Williams’ sudden departure has the caucus so spooked they are trying to engineer a backroom deal to avoid a leadership contest.

On some level you have to wonder why they might be so uptight.  After all, to casual observers they would appear to be guaranteed an easy victory in October’s general election with or without the Old Man.

But then you see things like an online poll at The Western Star:  “If you were a Danny Williams supporter, are you less likely to vote PC now?”

So far, 46% of respondents are saying yes, they are less likely to vote Tory. 15% say they are more likely to vote PC and the remainder  - 39% – answered “no”.

Even in the government’s own polls, Danny always ran way ahead of the party.  In the most recent government poll, though, support for the party dropped about 10 percentage points compared to a poll done three months earlier. That wasn’t good even when people thought Danny would still be around for the fall election.

Now that he’s gone, things will likely turn out very differently.  People who barely won their seats at the peak of supposed Danny-mania in 2007 might not have such an easy time of it in 2011.  They might need a boost, like say from a cabinet appointment, to try and counteract the loss of Danny Williams’ entire coat.

Stop and think about it for a second, though, and the long term trend of Danny running in front of his party’s support and the Western Star online poll are pointing in the same direction.  It would make sense that people who had voted Conservative in the recent past would now be thinking about shifting their vote.  They were Danny Tories, as it were, not committed Tories.

All that would lead explain why Conservatives in the province are a wee bit out of sorts these days. 

And if the number of soft Tory votes is actually close to the 46% the Star found, then politics over the next eight or 10 months is going to be way more interesting than anyone suspects right now.

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Layton renews call for Conservative-style tax cuts

On a visit to St. John’s Monday, federal New Democratic Party leader Jack Layton renewed his call to cut taxes from home heating:

Layton called for the federal government to cut taxes to home heating in this year’s budget, and he called on Prime Minister Stephen Harper to extend a program to provide subsidies to people who make their homes more energy efficient.

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The King’s Speech

Via the BBC, a short article on King George VI and his speech impediment.

The article includes the complete audio of the King’s speech in September 1939 that forms the climax of the recent movie.

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Rick Hillier? Tim Powers? No thanks, say NL Tories

Whatever is going on in Newfoundland and Labrador these days certainly is politics but it most certainly is not democracy.

What is dizzying, to borrow Tim Powers’ word, is the pace at which the province’s Conservatives are trying to keep a back-room political plot hatched over Christmas from exploding into a catastrophe as large as Danny Williams’ polling numbers.

“Everyone should have a right to put their name on a ballot assuming they adhere to the rules,” write Tim Powers in the Globe and Mail last week.  That is certainly true but it assumes that the rules are clearly known or, to be more accurate faithfully applied by the “officials” who, after exampling Brad Cabana’s nomination documents, “decided they didn't fit the criteria set out by the party.”

Perhaps the most useful way to look at this political farce is to use not Brad Cabana as our test subject but no less a person than Tim Powers. 

You see, when Danny Williams took to his heels and fed the Confederation Building, Tim’s was one of the first names some people offered up as a potential replacement.

Some other contenders, like finance minister Tom Marshall and then-education minister Darin King said they would take the time over Christmas to talk with friends and family.  They’d come back after Christmas end let the world know what they’d decided.

By Friday, December 24, though, that had changed.  Marshall, King and presumed heir-apparent Jerome Kennedy held news conferences to say that they’d be backing Kathy Dunderdale instead. Dunderdale, you may recall, was supposed to be the interim leader and had indicated she had no interest in the job. 

Off went everyone to Christmas holidays.

Another minister dropped out and by December 30, Dunderdale wanted the job. Virtually the entire caucus, she said, backed her.

Curiously that was the same day the party announced it would accept nominations for leader until January 10. 

Now if either Tim or Rick Hiller – living in Ottawa, were still pondering their future, they certainly wouldn’t have had much time to get their papers in order.  By the time the party announced that it would accept nominations, the race was effectively over. That’s exactly the point that cabinet minister Ross Wiseman and his executive assistant made to Cabana on January 5.  Since the entire caucus and their district associations backed Dunderdale, the odds of winning were very slim.

Besides, wrote Chick Cholock, Wiseman’s executive assistant, a contested leadership would put at risk Danny Williams’ legacy. “We do not want a Party [sic] divided now that Danny has moved on,” wrote Cholock in an e-mail.”

None of the arguments Wiseman and other Conservatives have offered about Brad Cabana had anything to do with following rules or his quality has a candidate. 

They had everything to do with an apparent desire within the caucus to avoid a contested leadership fight of any kind.  In other words had Tim or Rick decided to go all-in  now that the caucus made a decision, they would almost surely have been met with exactly the same arguments that faced Cabana:

  1. They wouldn’t stand a chance since all the people now determined to be party members had already decided, and
  2. a leadership contest in itself created the risk of fracturing the party beyond repair.

The Conservatives could lose the October election, as Cholock suggested in an e-mail he sent Cabana before nominations closed on January 10.

Wiseman and others did slide in another interesting qualification that doesn’t appear anywhere in the Conservative Party constitution.  Cabana hadn’t lived in the province very long, Wiseman noted in a scrum he gave after Cabana revealed Cholock had visited him on January 5 to try and discourage him from running. Nor had Cabana been very active in party functions, apparently.  There are two other grounds by which both Tim Powers and Rick Hillier would be disqualified.

If you are tired of the tedium that is federal politics, there is a drama unfolding in Newfoundland and Labrador.  But  the party that Danny Williams built is hell bent on showing that what they are up to is about as far from democracy as Parliament Hill is from excitement.

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16 January 2011

Overture: “William Tell”

Sadly, split into two bits:

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Overture from “The Barber of Seville”

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Political blarney stone gone

Danny Williams’ political backside used to be like a blarney stone on legs.

Any politician of any stripe loved to kiss Danny’s hind bits in hopes some of Williams’ magic would rub off.  

The latest sign Danny’s butt is out of visible power comes from Jack Layton.  The federal New Democrat leader now claims he can get a better indication of what is going on in the province by meeting with ordinary people.

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Iceland opportunity lost

Danny Williams’ obsession with signing something he could have called a Lower Churchill deal before he quit politics ignored a far better opportunity for Newfoundlanders and Labradorians.

According to documents released by Wikileaks, the Icelandic government sought American financial assistance in 2008 to deal with its crushing foreign debt situation. The government was looking for a loan of $1.0 billion with “medium term maturity”.

The Newfoundland and Labrador government had twice that much in cash at the time as the result of gigantic oil price windfalls.  It also had the capacity to borrow billions more if needed. The Icelandic loan would have guaranteed payoff from the interest rate charged.  An Icelandic bailout might also have given the provincial government influence in Iceland and the country’s energy and fishing industries.

Instead, the Williams administration pursued his obsessive desire to develop something on the Lower Churchill river that would enable him to retire from politics.

Under Williams’ retirement plan,  the taxpayers of Newfoundland and Labrador will have to borrow almost three times the size of the Icelandic bailout and face guaranteed doubling of current electricity rates to finance a dam on the Churchill River and expensive transmission lines.

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15 January 2011

Connie Leadership 2011: Party delays appeal hearing

According to the Telegram, the provincial Conservative Party is postponing the appeal into it’s decision on Brad Cabana’s leadership bid.

The party is postponing the hearing date from January 21 to January 24 to accommodate one member of the hearing panel who has a scheduling conflict.

The party rejected Cabana’s leadership nomination claiming that he did not have enough signatures of people the party recognises as members.  Cabana and the party both contend that the party has an open membership process.  The party contends that open membership doesn’t mean it is actually open.

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HQ signs new power deal with Vermont

Starting next year, Hydro-Quebec will ship power to Vermont under a new 26 year power purchase agreement, according to the Montreal Gazette.

The starting price for the power is US$58.07 per megawatt hour.

By contrast, and if it goes ahead, the recently announce Muskrat Falls project in Labrador will produce power in 2017 for about $143 per megawatt hour according to Newfoundland and Labrador Premier Kathy Dunderdale.*

Under the new agreement, Vermont utilities will purchase up to 225 megawatts of energy, starting in November 2012 and ending in 2038.

The agreement includes a price-smoothing mechanism that will help shield Vermont customers from volatile market prices, the utilities said.

Under the proposed 824 megawatt Muskrat Falls project, the only confirmed customers are Newfoundland and Labrador  - where the power isn’t needed – and Nova Scotia where Emera will receive 35 terawatt years of power in exchange for building a $1.2 billion intertie between Newfoundland and Cape Breton.

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*Edited to clarify the reference to Muskrat Falls

Connie Leadership 2011: Spooky stuff

In the middle of the 1990s, some guy  - a “prominent young St. John’s lawyer” apparently thought the Tories should have a leadership contest because the caucus was behind Len Simms:

His reasoning: Simms will win anyway so endorsing a competitive political race would be a waste of PC party funds. It came down to money for him.

Now there’s an unfailing testimony to the sterile decline in respect for the value of democracy in the PC party of Newfoundland.

That prominent St. John’s lawyer? You guessed it — Danny Williams [via The Telegram letters page last week]

As Premier, Danny Williams gave Len Simms a plum patronage job heading the province’s housing corporation.

Hmmm.

Makes you wonder now about all the Danny sightings in and around the Confed Building the past couple of weeks and the rumours that he helped broker the back-room deal to keep Kathy Dunderdale in place.

Whatever is going on in those Conservative back-rooms and the front seat of an Escalade, it sure as heck ain’t about democracy.

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Dunderball - Traffic for Jan 10-14, 2010

Who would have thought a mere two months ago that the ruling Conservatives could be embroiled in a political clusterfrack entirely of their own making?

Who would have thought that Danny Williams would be parking in the Confed Building parking lot with Kathy Dunderdale the day before a surprise cabinet shuffle?

Well, all of that has gone to making this another big week for Bond papers traffic.  Not surprisingly, all but one of this week’s top 10 posts are all about the bizarre psychodrama that is the province’s Conservatives.

The other one is an op-ed from Kelvin Parsons that the conventionals carried and the Liberals sent along here as well. Any of the other parties who want to do the same thing are welcome to send their submissions along as well for consideration.

  1. Brad and Circuses
  2. Is anyone surprised?
  3. Logically Challenged Conservatives
  4. Cabana candidacy causes Connie caucus consternation
  5. Dunderball Run!
  6. The persistence of patronage politics
  7. The caucus’ worst nightmare
  8. Kremlinology 29:  Easybake Tories
  9. Cabinet Shuffle Bored
  10. A sweet energy deal for someone

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14 January 2011

Money for nothing

A change in lyrics, if ya notice…

No Muskrat Falls in BMO forecast

Curiously, BMO’s latest economic forecast for the province doesn’t include any reference to Muskrat Falls.

The bank’s economists forecast overall economic growth in the province of 3.,9% in 2011 driven by provincial government infrastructure spending totalling $5.0 billion “over the next several years.  BMO says that the province’s capital spending hit 3% of the province’s gross domestic product in 2010.

BMO forecasts continued strong capital spending over the next three years.  While the bank mentions Hebron, Hibernia South and Long Harbour, there’s no reference to Muskrat Falls. That stands out like the proverbial sore thumb since the forecast is up-to-date enough to note the change in Conservative leadership late last year. it’s also odd because the forecast of capital spending comes entirely from the provincial government’s figures.

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Related:  Labour force indicators raise questions about economic health and competitiveness

Building permits value drops almost 50% in November

The value of all building permits issued in Newfoundland and Labrador in November 2010 dropped 49.3% from the month before, according to figures from Statistics Canada released last week.

The value of non-residential permits dropped 74.5% in the same period while residential permit value increased 4.3%

Those were the largest drops of any Canadian province.

In St. John’s, the value of permits dropped 60% from $149.8 million in October to $59 million in November. Permits in September for St. John’s were valued at $54.5 million.

You can get a better perspective on these figures by comparing them with a post from last December.

Paternalism on display

Members of Danny Williams’ personality cult tend to infantilise themselves and those around them. It’s an expression of paternalism, one of the hallmarks of the past seven years in local politics.

Take for example, this comment on a post by Nalcor lobbyist Tim Powers over at the Globe and Mail:

Cullihall

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. You are correct: we cannot take a step back. Danny has set the bar high enough that no politician will dare settle for less and survive the people's wrath. Deceitful people, like the PM and other provincial people will continually try to impede us as they have always done. Thankfully, we now have the confidence and pride to stand up to them.

The basic construction here is that a group of people were childish and incapable of properly looking after themselves until a strongman political leader stepped into protect them.  This strongman then gifted the child-like people with self-esteem.

The same sort of ideas have cropped up in several online comments by different people.  They all have variations on the same idea:  he gave us pride.

Take a look at the words “I felt like an orphan”.  The idea behind it, though, seems to be paternalism, although your humble e-scribbler has rendered it a little differently.  Individuals are supposedly incapable of governing themselves and must be cared for by an authority figure. While it is usually referred to as paternalism, having someone who is apparently not part of a ruling elite advance the idea seems to be more a case of reducing oneself to a child-like state of incompetence, i.e. infantilizing.

You can see here the victim mythology that is prevalent in certain segments of political culture in Newfoundland and Labrador.  According to this view, outsiders take advantage of the place and its people, sometimes helped by locals.

surrounded by those who will, again, try and rob us of what we have achieved

And that’s a related and very intense part of Williams’ political message:  fear of outsiders with the corollary that only Father Dan  - or some comparable parental figure - could protect his children.

Is it any wonder how many of Danny’s loyal followers have used Brad Cabana’s birthplace as a reason to suspect him and his motives?

Minnie on Night Line proposing all sorts of conspiracies including that Cabana is a Harperite plant sent to cause strife among the Danny faithful?

Or Ross Wiseman in a scrum with reporters noting, almost as a throw-away line, that Cabana hasn’t been in the province very long.

Talk about dog-whistling Ross.

But it all fits the pattern.

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Empty gestures and tells

The fact that Kathy Dunderdale volunteered a certain comment in a scrum on Thursday tells you it was a prepared line, likely to try and counteract the fairly plain idea that her leadership is a done-der-deal cooked up in a back-room somewhere before Christmas.

Dunderdale volunteered that she “would have” welcomed a contested leadership for the Conservative Party.  She changed the verb tense because the one that first spilled from her lips actually confirmed the “done deal” impression everyone has but the damage was done.

It’s a bit like the Conservative Party website. Before Christmas it proudly displayed a heavily photoshopped shot of the new Premier, identified as the party’s “interim” leader.

Now the whole thing is gone.  It looks like the Conservatives don’t have a leader at all.

You can tell the Conservatives have a mess.

The tell you they have a mess by all their gestures to deny there is a mess.

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13 January 2011

Cabinet Shuffle Bored

The back room plan to slide Kathy Dunderdale into the Premier’s job isn’t going so well.

The Gang that Couldn’t Shoot Straight is back shooting itself in the foot.

Kathy Dunderdale meets with Danny Williams one day and then the next day there is a surprise cabinet shuffle that Dunderdale explains with some lame comment about getting fresh blood and shifting ministers around to give them experience.

That is most definitely NOT what this is about.

Oh and to be really sure, you can guarantee that it is not about Dunderdale “picking her key lieutenants” as CBC has been presenting it. None of the portfolios involved are biggies.  This is purely a shuffling around at the bottom end of the cabinet list.

So what is it about?

Well, for Derrick Dalley it is a huge promotion that can only mean he is in serious political trouble in his district.  Danny’s coat-tails were barely enough to get him elected last time and without the Old Man, that seat is likely to flip.  This way Dalley gets a nice boost in pay and a higher profile.

Dalley has no background in business so sticking him in that portfolio makes no sense at all.

Charlene Johnson got a sweet little promotion after years of slogging it out in a  department that is usually a starter department for ministers.  She’s a loyal Dan-ite so giving her a higher profile helps bolster the back-room deal crowd:  she takes direction very well.  Johnson’s never shown signs of understanding the portfolio she had and she’s unlikely to inject anything other than further listlessness in a new department that is still struggling.

Here’s hoping there are no more giant controversies in a department known to generate nasty headlines. Charlene had a tough time even with Danny on the ground to shore her up.  With the Old Man out of the picture, she could be a major disaster waiting to happen. 

Ross Wiseman slides downward to environment and conservation.  He isn’t likely to run again so this just keeps around one of the Dan-ite stalwarts until Dunderdale gets through the current crisis and the spring budget.

Darin King gets a huge demotion.  The leadership hopeful and likely internal dissident got the big ole bitch slap for something.  Like he’s paying a double price that includes a bill for the shitstorm he caused by trying to do his old job at Eastern School District.  Darin’s school reorganization is a cock-up of monumental proportions since it has served only to agitate voters needlessly in seats the Conservatives normally would call safe. 

Joan Burke is being called back to the limelight likely to clean up Darin’s mess.  It’s a novel concept and logically, Burke’s arrival should mean the plan goes in the bin.  Burke’s usual approach would be like adding gasoline to a political fire and even Dunderdale couldn’t blunder that badly. 

Putting her back in charge of education also gives Burke the chance to raise her profile again in anticipation of the leadership race that will inevitably follow the next election. 

Everyone knows Dunderdale is just a placeholder.  Well, everyone except people who think she is promoting her key lieutenants for the next election.

Sheesh, what a head-slapper of an idea.

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Scrum Update:  Take a watch of the post-swearing in scrum. The most over-used line – after Charlene talking about “the children” and how important they are -  is the effort to portray this as some sort of renewal and refreshment.

The cliché is so over-worn that all you’d have to say is “deck chairs” but everyone will know instantly how true it is as a description of Thursday’s cabinet shuffle.

As for Darin King, notice that he spoke last of all and started by thanking Dunderdale for the privilege of serving.  If anyone has any doubt that this guy is being punished then let them watch the scrum and seen the proof.

Connie Leadership 2011: Logically challenged Conservatives

So if the whole thing was a slam dunk  because all the Tories – by their own definition – were backing Kathy Dunderdale and Brad was wasting his time, why have so many Tories been so agitated for the past week or more about the prospect he might file nomination papers?

I mean if he had no chance then an experienced political operator like Chick shouldn’t have been so agitated that he took it upon himself – according to Ross Wiseman -  to head out and have a chat with Brad to explain to him why he didn’t stand a chance.

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12 January 2011

Connie Leadership 2011: Dunderball Run!

How many surprising things could we find out on Wednesday in the ongoing  soap opera that is the back-room deal to a leadership contest of any kind within the province’s Conservative Party?

Well, certainly no one would have expected that the Conservatives would send out business minister Ross Wiseman to confirm that the whole thing was, in fact, a lash up.

He didn’t mean to do that, supposedly, but he did.

Wiseman spoke to reporters after wannabe Conservative candidate Brad Cabana accused Wiseman’s executive assistant of threatening him and otherwise trying to persuade Cabana to stay out of the race.

We’ll get to that scrum in a minute.

Let us first of all consider the contents of an e-mail that the executive assistant – Chick Cholock – sent to Cabana, apparently some time in December.  You have to say apparently because in the version posted by CBC the thing is devoid of any identifying marks of any kind. The e-mail could have been typed up on Wednesday or heavily edited to remove any incriminating or dubious statements.

For the sake of keeping this moving, let’s just imagine for a moment that the parties to this farce are not complete imbeciles incapable of organizing even a garden variety Christmas pantomime.  And let’s note that Cholock is either not very well informed, incidentally, or is pulling his nose in the opening sentence, but that is another story.

Let’s just look at this bit, first:

image

In an ideal world there would be no leadership challenge.  They always end badly.  This paragraph displays Cholock’s ignorance of political history in the province.  It also shows a fundamental anti-democratic strain that is, sad to say, not very surprising.

On the other hand, it confirms, as regular readers know, that there are indeed cleavages inside the Conservative Party that are so deep that the back-room types are petrified at the prospect.

Let us now turn to Wiseman’s scrum.  There’s a version on the CBC website and another on the Telegram’s website.

In his first long answer to the first question, Ross states that “it was well known and well understood” that the entire caucus backed Dunderdale at that point as were most of the district associations. Wiseman says that given that it was highly unlikely any challenger could succeed.

That hardly sounds like an open process.

When asked about an open process, Wiseman tries to insist that the process is open but then quickly returns to the point that everyone – caucus and district executives – were all backing Dunderdale and therefore Cabana had a tough row to hoe if he ran.  That was the “backdrop”, according to Wiseman, for Cholock’s comments.

Wiseman insists that Cholock was acting as a private individual when he visited Cabana’s house in the middle of the work week to discuss Cabana’s candidacy.  Wiseman does rattle off Cholock’s extensive experience in the party and his history of party involvement but then claims that any conversation was done on Cholock’s own time and was unofficial. Wiseman did not explain why he was speaking for his executive assistant on a personal matter, as opposed to having Cholock do the talking for himself.

Wiseman also acknowledges that Cabana contacted the Tory caucus seeking support before he submitted his nomination papers.

But here’s the thing:  Wiseman essentially confirms that Cholock went to cabana’s house to explain that Cabana was wasting his time, given that everyone had already declared for Dunderdale.  David Cochrane from CBC asks the question using those words – “wasting his time” – and Wiseman concurs.

But the fix was not in.

Sure.

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The persistence of patronage politics

Former auditor general Elizabeth Marshall made the news this past week in her new capacity as a Conservative senator from Newfoundland and Labrador.

Senator Marshall racked up $51,000 in airfares in a three month period, making her the senator from the province with the highest spending on travel.  According to Marshall’s staff the whole thing was for business class travel between St. John’s and Ottawa.  It’s really expensive to commute to work these days, especially when you live the better part of half a continent from the office.

Some people might credit Senator Marshall with uncovering what became known as the House of Assembly spending scandal.  She was trying to audit one member of the legislature almost a decade ago when the committee overseeing the legislature barred her from finishing the job.

When the scandal finally erupted into public view in 2006, the scandal shook the province’s political system.  Four politicians went to jail, along with the legislature’s former chief financial officer.  Millions of dollars of public money remain unaccounted for, despite an extensive police investigation, supposedly detailed reviews by Marshall’s former deputy and an investigation by the province’s top judge.

In one of those great cosmic coincidences, a local businessman involved in the scandal found out this week he’d be going to jail for upwards of three years. John Hand pleaded guilty to defrauding the public of almost half a million dollars.

Marshall didn’t actually uncover the spending scandal. She was focused on a particular member of the legislature whom she felt was using public money to purchase win and artwork for himself. A subsequent review by Marshall’s successor didn’t add significantly to what others had already found.

The more significant story, though, lay somewhere else.

Between 1996 and 2006, members of the legislature gave themselves the power to take money set aside to help them do their jobs as members of the legislature and to spend it on just about anything each of them deemed appropriate.  While some enriched themselves, and a few spent public money on women’s clothes, season hockey tickets or perfume, virtually all members of the legislature in that decade gave money to their own constituents.

In his lengthy report on the scandal, Chief Justice Derek Green described the practice  - and the problem - as eloquently as anyone might:

“First and foremost, the practice of making financial contributions and spending in this way supports the unacceptable notion that the politician’s success is tied to buying support with favours. Such things, especially the buying of drinks, tickets and other items at events, has overtones of the old practice of treating - providing food, drink or entertainment for the purpose of influencing a decision to vote or not to vote. As I wrote in Chapter 9, it demeans the role of the elected representative and reinforces the view that the standards of the politician are not grounded in principle. In fact, I would go further. The old practice of treating was usually undertaken using the politician’s own funds or his or her campaign funds. To the extent that the current practice involves the use of public funds, it is doubly objectionable.

Related to the notion of using public funds to ingratiate oneself with voters is the unfair advantage that the ability to do that gives to the incumbent politician over other contenders in the next election.”

For his part, former Speaker Harvey Hodder made plain his own attachment to the system this way:
"Some members, myself included, paid some of my constituency expenses out of my own pocket so I would have more money to give to the school breakfast program ... I don't apologize for that."
And former auditor general Elizabeth Marshall saw nothing wrong with the practice of handing out cash, often without receipt, with no established rules and for purposes which duplicated existing government programs.

What Chief Justice Green called “treating” is actually the old practice of patronage.  That isn’t just about giving party workers government jobs.  It’s basically one element of a system in which citizens trade their status as citizens for that of being the client of a particular patron.  The patron gets political power and the ability to dispense benefits of some kind.  In exchange, the client gives the patron support.  Explicitly or implicitly, as the Chief Justice stated, there's a connection between the favour and support.

In a model government bureaucracy, the rules that govern how a particular program works are well known.  Everyone in the society who meets the requirements would typically get the benefit of the program. 

But in a patronage system, the rules are hidden or there are difference between the formal rules and the ones that are actually used to hand out the benefit. The patrons and their associates control access to the benefits and so can reward people who comply with their wishes or punish those who do not.

There are as many variations on the patronage idea as there are societies.  The notion is well known in Newfoundland and Labrador politics. As political scientist George Perlin put it in 1971:
“Historically, the dominant factor in the Newfoundland context has been the use of public resources to make personal allocations or allocations which can be made in personal terms, in return for the delivery of votes.”
More recently, political scientist Alex Marland had this to say about the House of Assembly:
A final, but perhaps most critical, theme is the politics of deference towards charismatic power-hungry men and an outdated paternalistic ethos. Backbenchers, bureaucrats and journalists are scared to be on the wrong side of the executive for fear of harsh repercussions that can harm their careers. A massive spending scandal  occurred because, unlike Peter Cashin had done years before, nobody in the legislature had the courage or whistleblower protections to speak up about questionable expenses.  Political participation is sufficiently limited that interest groups prefer to meet behind closed doors and family networks continue to hold considerable sway within party politics. There is a historical pattern of democratic fragility and of  Newfoundlanders and Labradorians trusting elites to represent their interests.
Marland is understandably scathing in his criticism of politics in the province in the early years of the 21st century.  His assessment of the contributing factors  - way more than the paternalism mentioned above - is thorough and accurate even if his conclusion is a bit pollyannaish.

What’s more interesting is the way that seemingly unconnected events can relate to each other.  Those relationships explain much about the state of politics in the province.  Next, we'll add another element to the picture and discuss the Conservative leadership fiasco.*


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*  In the original version this sentence read "Tomorrow" instead of "Next".  The second installment of this mini-series on patronage and local politics is going to take a bit longer to complete since so many rich examples can be found in current events.
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11 January 2011

Connie Leadership 2011: Is anyone surprised?

Brad Cabana’s candidacy is ruled invalid.

The Telly reported based on Cabana’s Twitter feed. CBC reported based on comments by convention co-chair Shawn Skinner and Cabana.

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Connie Leadership 2011: Acorns and trees

nottawa succinctly describes the way that Danny Williams’ supporters are applying the lessons he taught them to defeat a challenger to their back room plans and yet who claims he wants to carry on with the Williams legacy and style:

Brad Cabana, in a mere few hours, has somehow managed to present the regime with a bit of a conundrum. He's all three enemies rolled into one.

If he wants to be one of them, and if he wants to lead them, then what kind of a traitor/enemy/non-person is he? And what is the appropriate response?

The party brass are meeting to discuss.

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A sweet energy deal for someone

The following op-ed piece is from opposition leader Kelvin Parsons.  It appeared in several conventional news media last weekend.

 

A sweet deal, but not for the citizens of Newfoundland and Labrador

by Kelvin Parsons

The proposed Term Sheet to develop hydroelectric power at Muskrat Falls, Labrador with Emera Energy of Nova Scotia is badly flawed. If it proceeds, it will cause an exorbitant rise in electricity rates and increase our provincial debt by as much as 50 per cent, a worrisome development given that we already have the highest per capita debt in Canada.

The Government of Premier Kathy Dunderdale would have us believe this deal is necessary to provide stable, long term energy prices and that if it doesn’t proceed our energy prices will be even higher. However, neither the premier, nor Nalcor, has provided any information to substantiate that claim. Neither has Ms. Dunderdale or Nalcor offered any proof that energy demand is increasing on the island and that we actually need the additional power Muskrat could provide. It would be instructive to see Nalcor’s energy demand projections given this province has lost two pulp and paper mills under the current government’s watch and our population is projected to decrease over the long term.

As for her contention that replacing the thermal plant at Holyrood with Muskrat power would make this province 98 per cent green, Ms. Dunderdale is not telling the full story. She is failing to disclose that Holyrood generates only 20 per cent of the island’s electricity and that the other 80 per cent is already “green energy” that comes from hydroelectric stations such as the ones at Bay d’Espoir and Cat Arm and from wind farms such as the one at St. Lawrence. Using the premier’s own formula for calculating our “greenness,” which includes the 5,400 megawatts of energy already being produced on the upper Churchill, this province is already 91 per cent “green.”

The premier is proposing that we spend $6.2 billion to build a new power plant in Labrador and run lines thousands of kilometers over land and under water to replace just 20 per cent of our energy production. Adding such a huge financial burden on top of our existing debt - for such limited gain - makes no financial sense.

Refurbishing Holyrood to reduce its emissions is a far cheaper option. Eliminating Holyrood also eliminates the prospect of eventually using this province’s large stores of natural gas for electrical generation here at home. There is much more gas in the oil fields now under production in the Jeanne ‘d’Arc basin than in the Sable reserves off Nova Scotia. And that’s not counting the potential reserves in Western Newfoundland or the large gas reserves off Labrador.

As well, the citizens of this province should be told there are several other potential hydroelectric and wind projects that can be developed on the island of Newfoundland to meet any incremental growth in electrical demand for many years to come. These projects can be developed at far less cost than Muskrat Falls and with much less impact on us as taxpayers and electricity consumers.

Make no mistake, Muskrat will be a financial burden. By the premier’s own admission, the generating and transmission costs of Muskrat Falls power will be at least $143 per megawatt hour. That’s a 120 per cent increase over the base rate Nalcor now charges Newfoundland Power, the main provider of energy to consumers on the island. If there are cost overruns on the project, the base cost will be even higher.

If this project is approved, we will go from having the cheapest power rates in Atlantic Canada to the most expensive. Muskrat’s exorbitant energy costs will also hurt businesses, impair job creation and drive up the cost of living for everyone in this province as the higher electricity charges are added to consumer goods.

But there will be some beneficiaries – just not in Newfoundland and Labrador. Take the case of Emera Energy of Nova Scotia. Ms. Dunderdale claims Emera is paying $1.2 billion for 20 per cent of Muskrat’s energy. That is untrue. That $1.2 billion is being invested in a transmission line that Emera will wholly own for 35 years. The power that will run across that line to Emera will be provided for free. Emera will then sell its free power to consumers in Nova Scotia, recovering its $1.2 billion investment with a guaranteed rate of return. All this has been confirmed by Emera’s president, Bruce Huskilson, in a conference call with investment analysts.

This arrangement is akin to me letting my neighbour take water from my well for 35 years for free, as long as he pays for the hose. Whatever money he gets from selling that water, he keeps it all, not a cent of it comes back to me.

Premier Dunderdale claims the benefit of such a lopsided deal is that Nalcor will be allowed to run excess energy from Muskrat over Emera’s line for sale in the Maritimes and New England. That is true. But Nalcor will have to pay all the associated tariffs and very likely use Emera as the broker. That means more fees paid to our Nova Scotia “partner” and less revenue for the people of this province.

As well, any Muskrat power going to the Maritimes or New England will be sold at a fraction of its production cost. Comparing the current market price in New England of about $50 per megawatt hour with Muskrat’s production cost of $143 per megawatt hour, the people of this province would end up subsidizing two thirds of the cost of electricity going to New England. While Americans and people in the Maritimes would enjoy paying the lower market rate, consumers of electricity here on the island of Newfoundland would have to pay Muskrat’s full production cost plus allowances for profit.

There are other problems with the deal that Premier Dunderdale doesn’t want to talk about. For instance, while Nalcor has agreed to pay half of all cost overruns on the construction of Emera’s Maritime Link, there is no reciprocal agreement on Emera’s part to pay any cost overruns on the transmission line running from Labrador to Newfoundland. That’s despite the fact Emera is getting a 29 per cent ownership stake in our line and will enjoy 29 per cent of all the profits derived from transmitting power from Muskrat Falls to consumers here on the island.

Not surprisingly, financial analysts have hailed the project as a great deal for Emera. They have not made the same assessment for the residents of Newfoundland and Labrador.

The bottom line is this: Premier Dunderdale and her government is asking the residents of this province to pay more than double for their electricity and take on an additional $4.5 billion in debt to finance a project that will provide free energy to Nova Scotia and subsidized energy to consumers in the Maritimes and New England.

As for her contention that keeping Holyrood on stream will lead to energy costs that are even higher than Muskrat’s, to date neither her government nor Nalcor has provided any evidence to back that claim despite our repeated requests to see any such documents.

The Term Sheet to develop Muskrat Falls looks like it was slapped together in a hurry. Incredibly, it’s even worse than the historically unfair Upper Churchill contract. At least in the case of the Upper Churchill, Hydro Quebec pays something for our energy, albeit a pittance of its market value. If Ms. Dunderdale gets her way, Emera Energy will receive Muskrat’s energy for free as well as a 29 per cut of profits on all transmission of energy to our island. Meanwhile, the people of Newfoundland and Labrador will be financing this atrocious deal with even higher debt payments and exorbitant electricity bills.

It’s a sweet deal, alright, but not for the citizens of Newfoundland and Labrador.

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Connie Leadership 2011: Brad and circuses

Conservative Party insiders are so desperate to block any leadership contest that they are willing to creatively reinterpret the party constitution so that only people they chose get to be members for the purposes of deciding who gets to lead the party.

CBC’s David Cochrane reported on Monday that the Conservatives evaluating Cabana’s nomination forms have decided that “members” are only the members of district associations and other similar people described in one subsection of Article 5 of the party constitution:

ARTICLE 5 MEMBERSHIP

1. All persons who are residents or domiciled in the Province of Newfoundland and Labrador and who support the principles and aims of the Party are eligible to become members of the Party.

2. Subjects to Article 5-1 all individual members of affiliated associations and groups who support the principles and aims of the Party shall be members of the Party.

3. Notwithstanding Article 5-1 and Article 5-2, all members of the Provincial Executive Council as defined in Article 7-1 who support the principles and aims of the Party shall be members of the Party. Any member of the Provincial Executive Council who ceases to support the principles and aims of the Party will automatically cease to be a member of the Provincial Executive Council and forfeit all rights and privileges associated therewith.

Now that’s not really ambiguous except to anyone lacking basic English language skills.  The sub-section da byes are relying on is the third one but that only makes sure that the district and provincial executive people get counted as members and that resigning from such a position has a price.

The main bits of the section define membership pretty broadly.

But if the back-room boys succeed in disqualifying Brad Cabana because he doesn’t have any Sub-section 3 “members” on his nomination form, that might not be the only problem they cause.  Cabana is reportedly planning a legal challenge to this bit of  legal tomfoolery, and that would normally be enough of a problem.

The Conservative insiders who are trying to dictate who gets to be Premier may also cause themselves some other embarrassment if not real legal difficulties.

You see, membership also affects who can be candidates in elections.  Plus, under Article 12 of the Conservative party constitution the definition of membership also determines who may vote in a candidate selection process:

Eligible voters entitled to vote for a person to be elected as the Party Candidate are those persons who are members of the District Association, ordinarily resident in the Electoral District at the date of the Nominating Meeting and who are not less than eighteen (18) years of age either at the date of the nominating meeting or at the date of the election, if the date of the election has been set.

So it doesn’t take too much imagination to see that if “members” are only people currently serving on a district executive, then the party will pretty quickly cease to exist.  The only people they can nominate as a candidate to replace Danny for example are one of the people currently sitting on the Humber west executive.

Underneath it all, though, what people across Canada  are really seeing here is the attitude some people have to political parties in Newfoundland and Labrador.  The attitude is consistent with the sort of patronage-riddled, paternalism that has defined the past decade or so of provincial politics.

Under that model, the party is merely the handful of back-room brokers who rule over everyone and everything else. They are accountable to no one except themselves.

Listen to how many people who have said already that if the caucus is decided then Cabana doesn’t stand a chance. That reflects the old-fashioned view of a party and ignores the fact that even under the Conservative constitution, a significant chunk of the delegates to a leadership convention are supposed to be elected in each of the districts.

You can also see the old-fashioned notions contained in this if you look at the complete lunacy of the Conservative position.  Danny Williams argued that Roger Grimes, elected by a convention of elected delegates couldn’t stay on as premier.  To make sure that couldn’t happen again – supposedly – Williams and his colleagues set new rules with changes to the province’s Elections Act that would require a general election under certain circumstances.

Yet, under the Conservative Party’s own constitution, the caucus gets to appoint an interim leader. If by some chance Cabana’s nomination stands, the Conservative caucus will select not one but two caretaker Premiers in as many months. Newfoundlanders and Labradorians have not seen such transient premierships since the 1920s when premiers came and went with the shifting coalitions within the legislature.

Politics in this province is in a parlous state.  The fundamental rot of the whole structure could not be more clearly seen than in the circus that is the once-proud Conservative Party struggling to find someone who actually wants the job while fighting to exclude someone who apparently does.

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10 January 2011

Provincial Conservative membership provisions #nlpoli

Here’s a simple discussion of the membership definitions under the current Conservative party constitution in Newfoundland and Labrador:

“Membership has its privileges”

Interestingly enough, Twitter and other bits of the Internet are showing how few supporters of the Conservative party know what their party constitution actually says.

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Connie Leadership 2011: Cabana candidacy causes Connie caucus consternation

Joe Hickey turned out to be a giant jerk-off but Brad Cabana came out of nowhere and scuttled the carefully laid plans among the province’s Conservative back-room boys to crown Kathy Dunderdale as leader of the province’s Conservatives.

Unless the the boys can find some procedural way to disqualify Cabana, the Conservatives will now have to hold a leadership convention. That’s the one thing they were desperately trying to avoid.

More to follow…

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Kremlinology 29: Easybake Tories

Kremlinology has always been a series about trying to interpret signs to see if they can point out what is going on behind the scenes in politics.

In the case of recent monumental changes on the provincial political scene, though, it seems that the signs are unmistakeable even to someone with no political sense at all.

To get your head in the right space, recall that when the Tories lost a by-election in late 2009 – one, single political sideshow – the shockwaves rippled through the province like someone had whacked the jello. The surest sign of the anxiety within  the party? 

Tony Ducey, DBA Tony the Tory, wrote letters to every newspaper in the province saying that the Tory party was not dead. Who said it was even sick at the time?  Well aside from your humble e-scribbler.  All jokes aside, there really isn’t a person on the planet who would have suggested, even in jest, that a single belch of indigestion is a sign of a fatal heart attack.

The first clue to the big problems in the Kingdom of Dannystan was Tony’s denial of problems triggered by what was essentially a non-event. One by-election loss does not usually trigger the Gotterdammerung but apparently Tony was petrified that it did.

As everyone knows, much has changed in the meantime and many such tiny traces of evidence pointed to problems.  Some of these clues were unmistakeable.  The most obvious one of all happened last fall when, in the space of a week, Danny Williams went from being the guy who was poised to sweep to a third term as premier to being the guy standing third in line behind you at Canadian Tire.

Turns out that some Tories don’t believe in such obvious signs of resignation as…well…someone saying good-bye.  The rumour running through Newfoundland and Labrador last week was that Danny had actually not quit and run at all.

Nosirreee, Danny had some undisclosed personal business to deal with.  His resignation, His Christ-like admonition that we should all love each other and Kathy Dunderdale as Hisself loved Hisself’s children was merely a way of saying “Hang on, my duckie, this is really a big joke.  I’ll be back once I’ve tidied up a little mess.”  Once that was done, safely from the eyes of the evil news media, he’d come back.  Like maybe around May and then he’d be ready to kick ass and take names again.

That story is everywhere. 

Your humble e-scribbler heard it around town on Friday and got it in e-mails from several spots in the province and outside it.  As comforting as that thought may be to some, and as much as some might like to imagine that Elvis isn’t stone-cold in the ground these decades or that the Gloved One will return, let us be abundantly clear:

Hisself is gone.

That sighting last week in the Confed Building likely has some sensible explanation but rest assured, this is not some script for 22 Minutes again.  Danny is the ex-premier and not likely to be back.

Speaking of rumours – and Lord knows they have been all that most people passed around this Christmas -  the only rumour not flying around the past couple of months has been that Hisself is about to get a semi-permanent guest spot on Doyle with the possibility of a spin-off next season.  in that scenario, Danny would play a former politician slash lawyer slash saviour of the universe who rights wrongs from his office in a converted movie theatre where the roof collapsed. He’d have a couple of sidekicks from his political days and another couple from his legal days.  Think of it as a cross between The Mentalist (the saviour and sidekicks angle), Slapshot (comedy and the jock angle) and Hell’s Kitchen (the histrionics).

The rumour that he wants to go federal is not as much of a joke as it first appears.   You can find evidence of it in a year-end telegram interview in which he insists that his attacks on “Quebec” are aimed solely at Hydro-Quebec, not the lovely people of that province.  And, as Danny claimed in the interview, he always has to qualify his comments so people don’t misunderstand. 

Always qualify. 

Yeah, right.

As far as federal politics is concerned his anti-Quebec tirades make him radioactive but that doesn’t mean he didn’t harbour a few delusions about replacing Steve.

In any event, Danny is gone.

He is not coming back.

The intense and wildly-varied rumour market is a sign of nothing more than the gigantic shitbake that is gripping the province’s Conservatives.  And this latest one is the most bizarre of all.

Think about it for a second. 

If their story is true, Danny would be pulling a turn-around even greater than that pulled by Joe Smallwood in 1969.  The old bugger retired and then, in the middle of the leadership campaign to replace him, announced that only he was worthy enough to succeed himself. 

He launched a comeback and defeated all comers, including John Crosbie.

What’s more Danny would be going against his own mother’s wishes for him.  She did tell reporters, after al,l that she would shoot him if he tried to run again for anything other than the bus.

And Danny’s mom, it should be noted, used to drag her crowd door-to-door to get rid of Smallwood and the Satanical spawn he led.  How friggin’ cruel would the universe be to have Danny come back into politics against her wishes and do it in a way that shows more raw ego than Joe Smallwood. 

What a savage twist would it be to have that sainted woman discover in her declining years that her favourite son is merely the meat-suit for her worst political enemy’s political soul?  metallicarIf you see a ‘67 four-door Impala on Duckworth, you know you have tuned into a new episode of Supernatural. Sam and Dean will be looking for the season-ender to top last year’s season-ender:  the Apocalypse. 

Danny coming back a la Joe Smallwood would bring on something like the Apocalypse. It would certainly make his mom’s head spin around a few times.

Might be good TV though.  Gordon Pinsent could guest star as the ghost of Peter Cashin with Mark Critch as the young, pre-possession Danny. Kevin Noble could play an actor torn between his love of Joe and his love of Dan. There’d have to be a news release on Monday from Terry French announcing provincial government funding to support production of the series which will relocate from Vancouver to St. John’s. Plan is to build on local experience of a TV series shot in St. John’s and starring an old car.

Once you get past the shark jumping tale, though, there is another bit of speccy running around in some Tory circles as well that is worth having a laugh at.  That has to do with the reason for backroom deal currently playing out before our eyes. 

Apparently, Tories are sticking with Dunderdale because she is the status quo and that’s what everyone wants.  Everyone loves Danny.  Everyone loves things the way they are – the polls show that -  so the way to ensure victory in the fall is to keep things just the way people love them.  Think of this as a variation on the Danny:  Resurrection storyline since it derives from the theory that Danny is the key to any future Tory victory. It just confuses Danny with the party.

At least it has the advantage of being consistent with past Tory rationalisations.  Here’s the second paragraph of Tony the Tory’s letter from 2009:

Still, before anyone says that this is the beginning of the end for the PC party in the province and that the tide is turning towards the Liberals, it is not. It's far from it: the PC party is still in the 70s in the polls and have over 40 of the seats in the House of Assembly.

The only problem with this story would be the facts.  Even if we accept CRA polls as being anything close to real, their tracking of Tory party support is not encouraging. The party has been tracking behind its former leader.  In the most recent version, the party support continued the downward trend it’s been on since 2007.  In fact, over the past six months, the party support numbers went up but then dropped  dramatically in just three months.

If the Tories are keeping Kathy Dunderdale it is not because people want more of the Tory same.

No.

They are keeping Kathy because people in the Tory backrooms are scared shitless at the thought of a nomination fight. They are so scared of any nomination contest that they will use any and every excuse to justify the current charade, including claiming that it is nothing more than what the Liberals have done. If that’s the sort of lame-assed stuff they are coming up with, stand by when it turns out that Danny did a few massive give-aways of his on resources, by the by. 

But that, dear friends may turn out to be the least bizarre thing to happen in this year of massive political turmoil in the province.

- srbp -

09 January 2011

Connie Leadership 2011: the caucus’ worst nightmare

Joe Hickey is considering a challenge to Kathy Dunderdale as leader of the province’s Conservatives.

The Telegram reports Hickey has the cash and the 50 signatures and will announce his intentions on Monday morning.

CBC Radio St. John’s Morning Show has Hickey live at 7:40 AM, Newfoundland and Labrador Daylight Savings Time on Monday. Follow this link – here  - to listen live on Monday.

Update:  NTV is running a story generally similar to the Telly’s account.

- srbp -

07 January 2011

Connie Leadership 2011: for the sake of five large and a gang of kids

Apparently the requirements for membership in the provincial Conservative Party pretty wide.

Might be interesting to see if anyone turns up by noon Monday to challenge Kathy Dunderdale for job of leading the local Connies brigade.

Here’s a warning for all you mainlanders who follow the link: this is not really what a “Reform-based” Conservative Party would look like.  Why Danny Williams ever described the party he used to lead that way remains as much of a mystery as the real reason for his very hasty departure.

The link:  “Membership has its privileges.”

- srbp -