From 61% to 44% since August: NTV poll shows Tory support slides further

For those who have lived by the provincial government’s polling as proof of how popular the governing Conservatives have been, the most recent provincial public opinion polls offer no comfort.

An NTV/Telelink poll released Wednesday [link to NTV report] shows support for the governing provincial Conservatives is currently at 44.3% with 37.9% undecided.

NTV is reporting those figures as being not much different from the last provincial government poll in November, but that’s not the case.

A straight comparison – using the Telelink approach – shows that support for the province’s Tories is down from 51.8% in the CRA poll.  Undecideds in the Corporate Research Associates poll conducted last November stood at 31% on the party support question.

Danny Williams didn’t announce his resignation until the end of CRA’s polling period and it is unlikely his departure significantly changed the poll results.  in other words, undecideds in November increased despite the fact Williams was still the premier at the time CRA conducted the poll.

And in case you missed the point,  support for the province’s Tories has plummeted in the past six months from 61.8% to 44.3%. 

While CRA polling has some very serious credibility problems, Telelink has been notoriously more accurate by comparison.  Their September 2007 poll nailed the Conservative share of eligible voters smack on the money. CRA was 20 percentage points off.  For those counting, CRA was out by something like 32 percent, not the margin of error cited in the poll at the time.  Telelink also got within seven percentage points of the undecided/will not vote (31% polled versus 38) while CRA was basically OTL (18% polled versus 38% actual)

What’s going on?  You can get a good sense of this by looking at the undecideds. Over the past 20 years or so, local polls tend to see a change in “undecideds” when people are unhappy with the incumbent party. They may not be so disgruntled that they switch to the major opposition party;  they may not see the opposition as a viable alternative at that moment.

In this survey, NTV/Telelink did something CRA never does:  they probed the undecideds and asked them which way they might be leaning.  The Tory number climbed but the undecideds were still around 25% according to the NTV report.

That’s still pretty high and it cannot be very encouraging for the Tories.

In Newfoundland and Labrador politics, there are cadres of dedicated party voters.  They turn out and vote the same way pretty well every time.  But the biggest chunk of voters are swing voters.  They are not ideological or overly wrapped up in one party affiliation or another and they are the prize for any party wanting power. When polling in the province changes significantly, odds are the swing voters are swinging. [new sentence added for clarity]

For those who accept CRA polls, you’d have to be worried about the change that showed up last November. This most recent change happened under Danny, the supposedly invincible. he’s gone and the slide is still there. Now the decided party support for the Tories is down again by about 18 percentage points.

Now look at the vote results in the by-elections off the Avalon since 2007. In Humber West, Tory support dropped about 24%, the largest percentage since 2003.  The Liberal vote climbed by a comparable percentage for a combined swing of 45%. That’s in the heart of the Tories’ west coast base.

Remember Danny Williams’ comments right before the by-election about how good Tories have been to the entire west coast?  Yeah, well here’s the payback on that investment.  In the Straits, they rejected the Tory candidate altogether and the Tories retaliated or appear to have retaliated with the air ambulance move.  That couldn’t have helped their overall position on the peninsula.

And in case you are wondering, the swing in Humber West was larger than the 2011 swing in the Straits and St. Barbe that heralded the rise of Danny Williams.

Take Humber West as the example of a trend.  Even when the Tories win, it’s getting pretty clear that they are losing some of their voters.  Some may be core Tories who are getting getting complacent.  Some might be Tories who are just tired of the internal war with their federal cousins.  More likely, they are losing independent or swing voters owing to nothing more radical than fatigue. 

Now consider that in the face of this fairly obvious weakening of Tory support, their most recent decision is to play all-defence with virtually no change in the fundamental direction of the party.  Premier Kathy Dunderdale told reporters in Corner Brook that there’s no change in the overall make-up of her administration until sometime after the fall election.

A defensive game might win.

However, that strategy depends very much on what the Liberals do.  it smacks of the same sort of conventional wisdom slash complacency that led them to count on Danny being around for another one and then some.  Shit happens, as they say.

If the Tories can hold it together, keep a lid on internal fractures, avoid making any controversial decisions, spend like drunken sailors and run a Humber West-style hide ‘em if ya got ‘em campaign, they might  hang on to most of the seats they currently hold.  

That assumes, though, that the Liberals just stumble their way along as they did in 2007.  If the Liberals shift their direction just a bit a lot can change.  Solid local candidates, for example, can make local races competitive in districts outside the metro St. John’s region.  There are plenty of districts that went barely blue in 2007 and there are undoubtedly plenty of polls within districts that reverted – as in Terra Nova – to their former, Liberal voting patterns. It doesn’t take much to swing a poll or a district as the Tories and those familiar with the province’s long electoral history should know.

In the current political environment, small changes can produce disproportionate results. There’s more than enough time between now and October for one change or a combination of changes to produce the sort of political upheavals that happened in the last week of November and the first week of December last year.

2011 could be one of the most interesting political years in Newfoundland and Labrador history.

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Barnes to tackle Tory incumbent

Former conservative member of parliament Rex Barnes announced today that he will be challenging Conservative incumbent Ray Hunter for the nomination in Grand falls-Windsor-Green Bay South.

Hunter will apparently seek the nomination again;  at the very least Hunter doesn’t look like he’s ready to pack it in.

Some observations:

• Hunter’s never been tight with anyone in the Tory caucus.  Danny used to keep him by the door and that was not to guard it.
• Barnes evidently has a good idea Ray is vulnerable and that his candidacy will garner some favour from the party backroom.
• Don’t be surprised if Ray crosses the floor or that the backroom persuades him to retire.
• Don’t be surprised if there are more challenges to incumbents or floor-crossing.

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Humber West post mortem

Granter won. 

Watton lost.

Myers came a distant third.

Tories held the seat and they still do.

That’s the simple result and for the truly simple, that’s all they will see:  no change.

Take a deeper look, though, and  you have a really interesting set of results. The figures used in this post are from Elections Newfoundland and Labrador’s website.

Over the three Danny elections, he polled an average of 3728 votes.  In the 2001 by-election, Williams polled 3606.  In 2003, Williams polled 3823 and in 2007, he actually polled fewer votes:  3755.

Vaughn Granter polled 2109 votes.  That’s 56% of Danny’s average over three elections.  He took 63% of the turnout but consider that Granter left home almost one Tory vote for every Tory vote he got.

Of course, it wasn’t Granter who left them home although the results suggest this was not any great endorsement of the local high school principal.  This by-election was really about Tom Marshall, Danny’s West Coast organizer.  Marshall campaigned hard for Granter, right down to an attack on ACAP debate organizers and their integrity.  And then there was the curious decision to leave the Premier home and bring out Danny Williams for some last minute campaigning. 

But still, for all that the Tories only managed to get 56% of Danny’s vote to the polls.
Meanwhile, Liberal Mark Watton garnered 1097 votes in his first time out.  That’s actually larger than the three-election average of 1088. The Liberals turned out 79% of the average for 2001 and 2003, their best results during the Danny Williams period.

Turnout was also down, coming in at  slightly less than 40%.  Turnout in the two general elections and the 2001 were – chronologically – 53%, 61% and 60%.

So sure, on the surface things look the same now as they did last December as far as seat count goes.

Just below the surface, though, lots of things seem to be changing.

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Think federal equity stake

So the provincial Conservatives are still looking to Uncle Ottawa for a loan guarantee to build the Danny Williams Memorial Money Pit, a.k.a Muskrat Falls and a bunch of transmission lines. This is a really old story.

Danny Williams claimed he had a commitment at one point but for some reason the provincial Conservatives have to keep asking for it.

In the latest version, Kathy Dunderdale – Williams’ chosen heir – is asking again, and Prime Minister Stephen Harper is carefully examining the whole project that he supposedly already committed to fund.

Well, at least that’s what Kathy told us what Stephen said which is basically what happened before when Danny told us over an dover again that Stephen gave a loan guarantee which he apparently never did since Danny and Kathy have to keep asking for it.

Yes, yes, it is just more of the same but let’s just make this really simple.

Let’s remind everyone of what Stephen Harper said in 2006 when Danny Williams asked him to finance the Lower Churchill:

A Conservative government would welcome discussions on this initiative and would hope that the potential exists for it to proceed in the spirit of past successes such as the Hibernia project.

Hibernia project.

1992.

8.5% Equity stake.

How big a piece of the Muskrat Falls pie is Kathy willing to sell to Stephen Harper to build Danny Williams’ legacy?

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Kremlinology 32: the St. Valentine’s Day Massacre

Since 1949, not a single Premier has left office and then come back later to campaign on behalf of a by-election candidate for his party while his party was still in power.

Not one.

Once they resigned, they were gone.

They handed over the keys to the eight floor washroom and buggered off to the sun or the Wet Coast or whatever they were up to after quitting.

But not the Old Man.

In Humber West, the Conservatives under the curious leadership style of Kathy Dunderdale flew Danny Williams out to campaign for their hand-picked candidate.

Vaughn Granter seems to be having some tough sledding in the by-election in Williams’ old seat.  Granter is usually seen practically running from door to door, bundled up against the cold like some blue-clad moustachioed gnome.  CBC’s Doug Greer caught Granter on one portion of his frenzied campaign and heard yet again about Granter’s extensive experience in dealing with parents and students.  This is not surprising since Granter is a teacher but it does not logically follow that a high school principal is a natural community leader ready to step into the shoes vacated by one Danny Williams, Q.C (Quixotic Conservative).

Hisself’s sudden appearance smells of concern in the Connie bunker about Granter’s chances. Put that with Tom Marshall’s appearance on open line trying to claim the environmental debate his candidate buggered was somehow tainted.  Then add Tom’s unexplained cancellation of a budget consultation on polling day and you have some pretty solid clues that all is not well with Danny’s legacy in Corner Brook.

The fact that Danny tried to claim the seat is still his – he left it vacant on December 3 – seems all the more curious.  What really demolished any lingering doubts about Granter’s current status on the leaderboard was Danny’s use of The Phrase:  “Nothing could be further from the truth” to deny troubles for the provincial Tories in the mill town. More often than not that phrase used to signal that one could not be, in fact, any closer to the truth.

Danny’s sudden appearance in Humber West may do more than signal Vaughn Granter’s in trouble and may lose the by-election.

His appearance suggests Kathy is not up to the job or, much worse, that maybe she is merely the premier for show.  The real leader had to come out of hiding to finish the job for his ersatz replacement.  On the face of it, one can easily think that Dunderdale and her entire team can’t win a by-election in a supposedly safe seat without Danny.  You have to wonder why. 

One must also wonder why Kathy Dunderdale spent so little time campaigning in Corner brook.  Dunderdale did make a brief appearance in the campaign early on and a couple of cabinet ministers showed up.  For the most part, though, Kathy hasn’t been out running around with the candidate she wants in the House with her.  She hasn’t even been heard talking him up all that much.  What gives with that?

In a manner of speaking, Hisself’s sun-tanned appearance is a bit like taking a Tommy gun to Kathy Dunderdale’s leadership.  He’s shot it full of holes. 

If Mark Watton wins on polling day or even comes a decent second, people around the province will start to wonder about her her ability to lead the party and the province.  Sure the faithful and the pitcher plants will cheer and pretend all is well.  But  among the politicians and the politically inclined, the view may be decidedly different. 

There may well be questions about Dunderdale’s ability to do the job.  In a caucus where her leadership does not have deepest of deep support, there could be a move to replace her before she gets to wear the crown officially.  Political parties in Newfoundland and Labrador aren’t known for their internal stability when unfettered ambition smells the stink of weak, ineffectual leadership.

Just think of it this way:  unless Vaughn Granter blows Mark Watton into dust at the polls, Danny’s trip to Corner Brook will be seen as the St. Valentine’s Day massacre of Kathy Dunderdale’s political credibility and maybe her career.

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Signs of the Granterdannerung #hwblxn

First Danny Williams emerges from his hiding place to campaign in Corner Brook on behalf of the hand-picked Conservative candidate in Humber West.

Then Tom Marshall suddenly  - and for no apparent reason – cancels his budget consultation in Goose Bay originally set for polling day in Humber West.

No weather excuses.

No real explanations at all.

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Kremlinology 31: The Auditor General’s examination of the offshore board mysteriously vanishes

The year:  2008.

The case:  Auditor General John Noseworthy suddenly took it in his head that the offshore regulatory board fell within his jurisdiction.

Boom.

Right out of the blue without any warning.

And it was odd too, because despite mounds of evidence that the board wasn’t subject to the provincial auditor general and that Noseworthy’s office didn’t think it had the legal right to audit the board (it has only recently been added to the list of entities subject to audit), Noseworthy threw a major-league tantrum. 

In the end, Noseworthy quietly started to review the board in 2009.

In early 2011 – three full years after the racket started – Noseworthy still hasn’t issued a report on the board nor has he indicated when - if ever -  it might appear.

How very odd.

2008?

2008.

Something about that year stands out.

What could it be?

Oh yes. 

That was the year of Danny Williams’ jihad against Stephen Harper if memory serves.

Hmmm.

Maybe it was just a coincidence.

Wonder where John’s report is?

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Dunderdale admin awards lucrative government legal work without tender

Danny Williams’ former law firm got potentially lucrative provincial government legal work without competing in any way. 

The information is in Telegram editor Russell Wangersky’s weekend column. The Telegram didn’t turn it into a news story.

Last week, the Dunderdale administration announced that Roebothan, Mackay and Marshall would head up a law suit against the tobacco industry.

According to Wangersky, there was “no tender call, request for proposals or other competition. As for whether other law firms were considered or offered a chance to bid on the work, the Justice Department replied:

The province felt Roebothan McKay Marshall was the local law firm that best met the requirements for this work. As well, a number of local firms are conflicted as they represent the tobacco industry.”

The Dunderdale administration also refused to disclose the financial aspects of the deal.  The provincial government has new contractual arrangements with both Roebothan, Mackay and Marshall and an American firm retained in 2001 to handle the litigation.

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Twitter or Huckster? Political uses of social media

Front page of the Telegram with a glorious picture. 

Way better advertising than he could ever buy with cash and Steve Kent nailed it.

Of course, Steve Kent is one thing above anything else:  a marketer.  He knows how to sell you something and the commodity he sells best his himself.  You can tell Steve Kent is good at it because he has done very well for himself in a relatively short period of time.

You can also tell because he uses the textbook lines to describe his interest in social media:

Twitter is really about having a dialogue. It’s about engaging people in conversation and it’s not just another approach to communicating messages in the traditional sense

The front page Telegram story would have you believe that Kent is a keen political trendsetter using social media like Twitter in order to “have ‘more human’ interactions with his constituents.”

Here is an example of those “more human” interactions, the dialogue, the conversations:

-  The Provincial Government is investing $2 million so schools across Newfoundland and Labrador can receive 1,450...

-  Storm has started, but dinner theatre is a go at Reid Centre for @mount_pearl Frosty Festival!

There’s some stuff about a pothole and a flat tire, lots of repeating of other people’s messages – called re-tweeting – and a few sports scores. Not very deep or detailed and all pretty pedestrian stuff.  If this is “more human”, then you’d hate to see the other “interactions.”

Still, good on Kent for going with this sort of thing.  He’s not alone;  he might be the only provincial politician to embrace twitter professionally but there are plenty of others out there.  Most locally tend to use Twitter this way:  very sterile and pretty much for putting on the official face.

Not all of them are like that, though.  Take Tony Clement, the federal cabinet minister.  this guy is on Twitter and he and his personality are right there.

And these guys are distinctly different from other high-profile people who are using Twitter.  News media types are especially notable for just putting themselves and their distinctive personalities out there for people to take or leave as they see fit. They don’t just tweet news or mundane lines teasing up a story on the conventional media for television or radio. Sports, movies, personal comments, jokes are all as much part of the twitter mix as something about what stories they are working on. Two that come easily to mind are Kady O’Malley from CBC Ottawa and David Cochrane, CBC’s provincial affairs reporter in  from Newfoundland and Labrador.

The contrast between the pols and the media is night and day.  One is carefully packaged and guarded, by and large, while the other is more natural.  Guess which one better reflects the online, social media world? 

Yeah.

It’s the news media types.  They have no less at risk than the pols but the ones who are using successfully have come to understand that a key part of their overall success is rooted in them being anything but a coif and a voice. Their personality and their personability has become part of the overall package that draws loyal followers. They aren’t “more human”, they are just human.

Authenticity, it seems, is like sincerity. If you can fake that, you’ve got it made in politics. Odd thing is, most politicians real don’t need to fake either.  Why some do remains a mystery.

Incidentally, it’s interesting to see how Twitter turns up in some election campaigns. In Humber West, Liberal Mark Watton has been using his Twitter feed to push out campaign-related information.  He’s tweeted at least once a day.  Conservative Vaughn Granter tweeted on Sunday but hadn’t done anything with Twitter since Tuesday of last week. The NDP candidate – Rosie Meyers – doesn’t appear to have a Twitter feed.

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Canada’s SAR system: an insider view

Ottawa Citizen defence columnist David Pugliese posted this comment from a former Coast Guard employee on search and rescue.  Interesting to see the quote from the Ocean Ranger inquiry report.

Some people like to quote selectively from it to suit their purposes.  The helicopter basing discussion  - the St. John’s base recommendation from the report was supposedly not implemented - is a classic example of an issue that was essentially invented by someone based entirely on a misrepresentation (deliberate or otherwise) of that report.

Pugliese’s correspondent offers a useful and possibly provocative perspective.

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Traffic that needs no loan guarantee

1. Cheryl Gallant sinks
2. Here’s hoping… (political campaigning in Humber West)
3. The road not taken (public debt, Conservative fiscal mismanagement)
4. If only… (Search and Rescue)
5. Humber West:  Mark Watton on CBC Morning Show
6. Will the fake Premier Dunderdale please stand up?
7. A rose by any other name would still stink to high heavens (patronage politics)
8. Abuse and power
9. Taking the voters for grantered
10. The Force

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If only…

One of the most tragic and despicable beliefs to come out of the Cougar 491 crash in 2009 is that the outcome might have been different except for search and rescue service in Canada.

These days, politicians and others are latching onto is something they call “response time”.  Now we’ll get back to that term in a minute but let us establish right from the outset that the most recent version of the search and rescue belief, whether from a grieving family member or a politician, is rooted firmly in the claim that search and rescue helicopters made the difference or could have made or will in the future make all the difference,  “if only…”.

That basic idea has been there from the beginning:  if only a helicopter from the Canadian Forces had been in St. John’s then more people might have been saved that day. If only the squadron -  or a helicopter – had been in St. John’s, then more might have been saved.  If only search and rescue didn’t have two different response times, then things would have been different.

The Transportation Safety Board report issued Wednesday is the most thorough and technically proficient examination of the crash to date. It identifies 16 factors that contributed to the disaster.  Altering any one of them may have saved lives.

Not one of the factors identified was search and rescue “response” time or anything else related to search and rescue helicopters.

There’s a reason for that.

There is not now nor has there ever been a single shred of evidence that anything – absolutely anything -  related to search and rescue response would have made the slightest bit of difference in this case or one comparable to it.

This brings us back to the idea of response time.  People are using that term to mean the time it takes a helicopter crew to receive an order to go, to board the aircraft, warm up, do pre-flight checks and then launch the aircraft from the airport where it is. 

That’s really “launch time”.  Right now 103 Squadron in Gander launches within 30 minutes during daytime working hours and up to 120 minutes at other times.  In practice, the launch time is much lower during “off hours”.

What people with the SAR fixation need to realise is that in order to deliver a response time of 30 minutes (as they are demanding), Canada would have to spend every penny of public money and even then there’d be no guarantee it could deliver that response time in all cases at all times.

You see, response time is really about the distance from the helicopter or ship to the incident. 

Take a look at any map of Canada and the surrounding ocean and you’ll get an idea of the magnitude of that demand and why it is ludicrous. Just think how many ships, helicopters and crews would it take to have someone ready at any given location with 30 minutes of a crash, all day long, all year long.

That’s what a 30 minute response time means.

And if you want to talk about 30 minute launch time you can understand that the Canadian Forces currently hits that time to launch helicopters more often than not.  Even after normal working hours, the sorts of launch times are not – apparently – trending toward that extreme time of 120 minutes.

Families whose loved ones died in a tragedy can be understood for their beliefs and their actions both as a natural part of grief and out of a human desire to ensure no one else feels the sort of soul-wrenching pain they have endured. Theirs is tragic belief in ever sense of the word tragedy

But for others, for the politicians and journalists, the ones who, even inadvertently, feed the belief in falsehood despite all the evidence, it isn’t so easy to find any generosity for them.

And the men and women who provide search and rescue service across Canada when the rest of us are fat and happy in our cozy beds?

They can only look in amazement at the ignorant critics, shake their heads and mutter how much better off we’d all be “if only…” as they head back to do their duty.

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Cheryl Gallant sinks

Youtube is a deadly instrument.

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Kremlinology 30: The Vanishing ‘Stache

Jerome’s shaved off his moustache.

Again.

Last time the province’s health minister went out in public sans ‘stache, he came up with some explanation for it and grew the thing back.

After your humble e-scribbler pointed it out and someone asked him about it, of course.

So what happened this time?

 

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TSB issues S-92 crash report, recommends major changes to civil helo safety regime

A complex series of events involving 16 significant factors contributed to the crash of Cougar Helicopters Flight 491 in early 2009 and the loss of 17 souls according to the Transportation Safety Board released Wednesday after a two year investigation.

The complete report is available here:  S-92 investigation report.  It is comprehensive and covers all relevant factors from crew backgrounds to key operating systems to passenger injuries and safety equipment.

The TSB investigation made four recommendations:

• The Federal Aviation Administration, Transport Canada and the European Aviation Safety Agency remove the "extremely remote" provision from the rule requiring 30 minutes of safe operation following the loss of main gearbox lubricant for all newly constructed Category A transport helicopters and, after a phase-in period, for all existing ones.
• The Federal Aviation Administration assess the adequacy of the 30 minute main gearbox run dry requirement for Category A transport helicopters.
• Transport Canada prohibit commercial operation of Category A transport helicopters over water when the sea state will not permit safe ditching and successful evacuation.
• Transport Canada require that supplemental underwater breathing apparatus be mandatory for all occupants of helicopters involved in overwater flights who are required to wear a Passenger Transportation Suit System.

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Humber West: Mark Watton on CBC Morning Show

The audio is now available online. [mp3]

CBC set this up correctly:  in-studio interviews so that none of the candidates can hear the others’ interviews and then airing them by random draw.  Watton wound up on first.

Mark got the chance to highlight his considerable experience dealing with issues that are important to Newfoundland and Labrador and talk up his connection to the district. 

Then he turned to dealing with issues he’s getting on the doorstep:  housing, concern about pensions and retirement.  The housing one is particularly striking since, as Mark points out, the city is experiencing a housing shortage despite growth. 

Mark nails a number of hard critiques of the current administration  - if housing is so important for the Conservatives it is odd they’ve never raised it in the legislature  - and then and delivers his ballot question cleanly:  do you want a member who speaks for the government or one who speaks for you?

No one can say that voters don’t have a clear choice in Humber West.

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Who’s the Boss, again?

Now it can be stuck in someone’s head like Level 42 has been haunting your humble e-scribbler for a week now.

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Will the fake Premier Dunderdale please stand up?

Seriously, gang…

Is it more disturbing that someone started an obviously fake Twitter account for Kathy Dunderdale in the general style of a dozen humourous fake accounts, including one during her predecessor’s term of office?

Or that she was so shit-baked people couldn’t tell the difference between the real Kathy and the fake Kathy that she sent out a media advisory proclaiming she doesn’t have a Twitter account?

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Imagine if they were fiscally responsible

Feast your eyes on labradore’s latest offering about public debt in Newfoundland and Labrador.

The only people left who think the current administration (since 2003) acted and are acting in a fiscally responsible manner are those who just refuse to see the obvious.

Labradore offers this projection of the provincial net debt if a quarter of oil revenues had gone to actually paying off debt over the past few years.  The light coloured bits are what would have disappeared.  The dark green are what would have remained. The two together are what the Conservatives actual record looks like from basically doing nothing except paying off what came due.

Never Read Stuff Late at Night Update and Correction:  The charts are based on the assumption of taking 25% of the windfall oil revenues for spending and 75% for debt reduction. That's what happens sometimes when you read things late at night.

It actually doesn't change the overall thrust of this post or labradore's original, though since the charts illustrate what an aggressive debt reduction approach could have achieved while at the same time fueling significant increases in public spending.

Consider this to be the complete opposite of the Williams and Marshall approach in which they basically did shag all to reduce the province's debt burden to any meaningful degree.

*original continues*



And the share of the public debt borne by each man, woman and child in the province?

In the cleverly colour-coded chart you can see the blue line – what the Tories did – and the red line representing what might have been, had the current administration done as labradore and a few other brave souls recommended.



Odds are pretty good that a government with the fiscal track record shown in this chart could actually raise the cash on its own to build a viable Lower Churchill project.  On its own, that is, which would be in contrast to going cap in hand to Uncle Ottawa looking for a gigantic multi-billion dollar handout. Like say both Danny Williams and his hand-picked successor have been doing.

There’s a provincial government that is genuine in its aspirations and one that can be legitimately proud of the efforts it has made to ensure Newfoundlanders and Labradorians live in a province that is strong and fiscally sound.

And then there are the people who talk about legitimate aspirations but who fail repeatedly to embody them, let alone achieve them.

Just for good measure, let’s give labradore the final words on this.  They are all too accurate:

There was, of course, nothing responsible or prudent about Danny Williams’ tenure as Premier, and nothing, other than name, that was conservative about it. He chose a different track. 

That is why a government that collected over $9-billion in oil revenues during its tenure still presides over a $9-billion net provincial debt. 

And that is why the provincial net debt per capita this fiscal year was over $17,000 and rising, when in the alternative universe it would have been $7,000 and falling, and falling fast.

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Abuse and power

Last fall when the provincial government debated a resolution to appoint the current child advocate, the minister then responsible for the department of child, youth and family services - Joan Burke  - reminded everyone that the advocate’s position came from a recommendation by some very thoughtful members of the House of Assembly.

They comprised a Select Committee on Children’s Interests created by the House of Assembly in 1994.  Their report, issued in 1996 after two years of study and consultation recommended a number of actions designed to change fundamentally the way the provincial government approached children's’ issues

Those thoughtful members, interestingly enough, specifically rejected the very idea Burke embodied as minister, namely the creation of a separate department to deal with children, youth and family issues within government. They were concerned that such an approach was unnecessarily costly, may serve to marginalize family issues with government and would not encourage the fundamental change in attitudes to children and family issues they felt families and children in the province needed:

It seems contrary to Committee members, therefore, to isolate the needs of children and youth into a single ministry. It is the fear of the Committee that issues affecting children and youth would be "marginalized" into a junior ministry. The goal of government, however, should be to educate and involve all departments and levels of government in designing and implementing appropriate social programs and policy.

The purpose of the child advocate was to speak for the interests of specific children and children generally.  The select committee recommended and Roger Grimes’ administration established the position as an officer of the House of Assembly, separate from the government. In that way, the advocate’s office was supposed to speak for children and families to those with power.

This is a crucial point.  It’s hard to imagine anyone in our society with less power than children. Families are often not much better off, especially when dealing with government.  Just as children are the least powerful of our society, it is equally hard to imagine anyone more powerful than the provincial government armed with all the legal means to accomplish whatever purposes it wants.  The advocate was supposed to provide some balance, largely by making much louder the weakened voice of the child.

All that background is what makes the child advocate’s intervention in most recent story of child protection in the province troubling in the extreme.

Carol Chafe is responding, in largest part, to a complaint brought by a minister of the Crown against the news media and the parents of two children taken into custody by officials of the minister’s department. The parents complained to the news media and the news media dutifully reported the story.

The minister, for her own reasons, decided to try and use the child advocate’s office to a purpose for which it was clearly never intended:  namely as an agent acting on behalf of the most powerful authority in the province. 

Note that Chafe did not make any public comment – as she should have – when the story first broke.  Neither she nor any of her officials appear to have made any efforts to intervene in the case, to deal with the media or the family.

Not until now, that is. 

After Charlene Johnson lodged her complaint.

In a very poorly written statement, Chafe acknowledges that people have a right to know certain things and that the media ought to report.  Then comes the “but” and it is a big one:

However, when children are the central part of the story their right to confidentiality, privacy and safety must trump all other interests.

Asked by CBC’s Ted Blades in an interview on Tuesday to balance the need to discuss a significant issue with the trump card, Chafe couldn’t do it. That isn’t really surprising.  This story carried on for a week.  if Chafe genuinely understood her role and was convinced that the children’s interests “trumped all other interests” she’d have been on this before Charlene Johnson called her in.

Chafe didn’t need anyone’s approval to get in on the case. She has a wide scope of action under the act that governs her office.

Well, the correct phrase is actually had a wide range of powers.

Under changes made to the child advocate’s act in 2008, an entirely new clause (15.2) inserted in 2008 gives a cabinet minister the right to order the advocate to cease an investigation based on the very vague claim that an investigation is not in the public interest. There is no requirement for proof nor does the advocate have any right to appeal the decision to a third party. One letter from the minister and the investigation stops.

Period.

On the face of it, what the people of Newfoundland and Labrador are seeing here is yet another example of how the current administration has steadily reduced, muzzled or eliminated any means by which someone may question its decisions.  The process, as Carol Chafe likes to talk about, has been one of erosion. 

Piece by piece.

Slowly.

Almost imperceptibly.

But once they emerge into the light, as with Carol Chafe’s intervention a handful of months into her new job, there can be no mistake about the result.

Power, once appropriately constrained, has its hands free.

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Here’s to hoping…

That all those cabinet ministers and political staffers working hard to take Humber West for Grantered and the Conservatives are not campaigning on the public dime. 

Annual leave or leave without pay.

But campaigning on the public payroll?

Not on.

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Rio Tinto capex of US$277 million for Phase 2 expansion at Labrador mine

From a Rio Tinto news release issued Tuesday:

“Rio Tinto has given the go-ahead to a further US$277 million investment (Rio Tinto share US$163 million) in the next phase of a project that will ultimately raise the Iron Ore Company of Canada’s (IOC) concentrate production capacity by 40 per cent to 26 million tonnes per year (Mt/a).  

This is the second phase of a three stage expansion that was announced in May 2010 with a US$400 million investment (Rio Tinto share US$235 million) to raise production capacity from 18 Mt/a to 22 Mt/a. 

Phase two of the project will increase IOC’s spiral and magnetite concentrate production capacity by an average of 1.3 Mt/a to 23.3 Mt/a from 2013.

Recent studies have highlighted an opportunity to improve time to market through
bringing forward some capital items from the third stage, resulting in higher level of
production earlier. The third stage of the planned expansion to 26 Mt/a is currently under study and a final investment decision is expected by 2012. 

Rio Tinto chief executive, Iron ore and Australia, Sam Walsh said the project was an
important development in increasing IOC’s production at a time when global demand is escalating.

“Global seaborne iron ore demand is projected to increase substantially over the next decade, and IOC’s concentrate is well placed to complement the increasing use of lower quality ore to meet that demand,” he said.

“With high iron content and very low levels of impurities, IOC’s concentrate provides
significant value to steel producers as ore grades from direct shipping mines continue to decline.” 

The project’s construction is set to start immediately to capitalise on the brief Labrador summer construction season and will be fully commissioned by the end of 2012.”

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Taking the voters for grantered!

Last week Humber West Conservative candidate Vaughn Granter didn’t have the time to discuss issues.

He would need – by his own estimate – a couple of days at least to get up on the issues and that would take time away from his goal of knocking on all the doors in the district before polling day.

Fast forward a week and after he’s been taking a sh*t-knocking from people for his stance, Vaughn is changing his tune.

Here’s one of his recent twitter updates:

Having a great day door-to-door with Ministers Clyde Jackman and Darin King. Enjoying good conversations of all the issues. 8 days to go!

Conversation on the issues?  Given Vaughn’s admission last week he wasn’t up on the issues and that he didn’t have the time to bone up, he must have stood quietly on the door step while Darin and Clyde did all the talking.

Either that or Vaughn’s just good at taking voters for grantered, already,

Ah well.  Time will tell. Voting day is seven days away.

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Building permits value drops again in December

The value of building permits in Newfoundland and Labrador dropped again in December, to $76 million from $90 million in November according to figures released on Monday by Statistics Canada.

Permit values during 2010 peaked in October at $191 million.

Consistent with previous months, St. John’s accounted for the lion’s share of the permit values with $42 million worth.

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Feds and province release Lower Churchill transmission line EIS document

The federal and provincial governments released the environmental impact study scoping document on Monday for the proposed transmission line that will carry electricity from the Lower Churchill to St. John’s.

The draft environmental impact study guidelines and scoping document identify the information that Nalcor will be required to address in order to prepare the environmental impact study.

Members of the public now have until March 21 to submit comments on the document. The Canadian Environmental Assessment Agency has up to $200,000 to assist groups and individuals to participate in the project review.

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A rose by any other name would still stink to high heavens

Pity Clayton Forsey.

He’s the Conservative member of the provincial legislature from the district of Exploits. Like many of his colleagues, he visited a town in his district recently and handed out a cheque from the provincial government as a “donation” toward the town’s up-coming tourism festival.

The regional weekly newspaper covered the event and described it this way:

Denise Chippett is the chairperson of the Come Home Year committee. She said the celebrations was enjoyable for all; what also helped were substantial donations from Exploits MHA Clayton Forsey and the town's volunteer fire department.

This week the Telegram picked up that line and started poking into it. The story appeared in the Saturday edition this weekend but sadly it isn’t available on line. The Telegram noted that Chief Justice Derek Green’s report into the House of Assembly spending scandal recommended that members of the legislature not make “donations” from their constituency allowances or with other government money.  If they did so out of their own pockets,  the politician is supposed to make it clear where the money came from.

Forsey is clearly bothered by the Telegram’s questions and, as the Saturday quotes him,  Forsey is quick to distance himself from that scandal.  The money is from a government department, Forsey says.  There’s a small fund in the municipal affairs department to help out with anniversary celebrations, as in this case.

"I've always presented cheques on behalf of departments. Ministers
don't always get out to these districts," Forsey said.

Of course you have to pity Forsey on two counts.  On the the first, he is merely getting nailed publicly for what his fellow government caucus members do on a regular basis.  As Forsey says, he “always” hands out government cheques. it isn’t really fair that he gets singled out in this way.

On the second, you have to pity Forsey for not appreciating that what he and his Tory buds are doing is exactly what the House of Assembly mess was really all about;  they are just using a different means to get there. You see, the main problem with the spending scandal was not that a few fellows defrauded the Crown, although that was bad enough.  The allowances system that existed in the House between 1996 and 2006 allowed individual members to engage in the old political practice of doling out goodies to constituents.

In his report, Green calls it “treating – providing food, drink or entertainment for the purpose of influencing a decision to vote or not to vote.”  That’s not exactly what this is, but the idea is related to the term more people know:  “patronage”.

As George Perlin described it nearly 40 years ago, “the dominant factor in Newfoundland politics has been the use of public resources to make personal allocations or allocations which can be perceived in personal terms….” The objective of this exercise is to connect the politician personally with the distribution of government benefits and garner political support in the process.

Consider that in this example, Forsey holds no government office and therefore has no right to hand out a cheque for government funds in preference to anyone else. Do opposition politicians get the same consideration?  Doubtful.  It’s more likely that a backbencher from the majority party caucus would carry the cheque.

In truth, the money did need to come in a cheque at all.  These days, the money could just as easily have come in a bank transfer from the department to the town.  Nor was there any need for a politician to have anything to do with it.  After all, as Forsey explains, there is a small fund available to any town holding some sort of anniversary celebration.  All the town had to do was fill out a form and wait for the bureaucrats to process it. The same thing should happen no matter where the town is, that is, no matter the political stripe of the person sitting in the legislature for that district.

But there’d be no political value in that, hence Forsey and his colleagues carry right on in the fine old tradition of pork.

The real value – the political value  - of the whole set-up, after all,  can be easily seen in the comment the chairperson of the anniversary committee gave to the paper.  It tied the money to Forsey.  And as Forsey noted he does this sort of thing all the time. Of course he does; so do his colleagues.  The money comes from municipal affairs or from the tourism, culture and recreation department where a bunch of small grant programs keep Tory politicians busy with cheque presentations.

There is absolutely no difference in what Forsey and his colleagues are doing and what virtually all of his predecessors  - leave the convicted criminals out - did with their constituency allowances between 1996 and 2006. All that happened in 2007 was that the pork-barrelling and patronage became the exclusive domain of the majority party in the legislature.

And in the end, that wasn’t really much of a change at all.

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The Force

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Environmentally debatable traffic, Jan 31 to February 4

Two stories this week to lighten the mood.

First:  a poster in the Health Sciences Centre announcing an event for February.  Someone crossed out the first “r” as a spelling mistake.  Likely the same person changed the spelling just down the hall to read nook-yoo-lur medicine.

Second:  Surely to merciful jumpin’s Conservative candidate Vaughn Granter did not dismiss Liberal Mark Watton’s experience in the Prime Minister’s Office or a federal cabinet minister’s office as cavalierly as it sounded.

“Some experience”?

“Could be some advantage”?

Could be a disadvantage?

That’s pretty sad for a guy who isn’t from Corner Brook originally who is trying to play himself as the local boy.

Take a listen to the campaign report linked above, by the way and notice that Granter did little besides run down his opponent and talk himself up personally.  Mark Watton, on the other hand, talked sensibly about issues that are actually of concern to the people in the district.

Huge difference.

Anyway, for those who came for the weekly hit parade, here are the week’s top stories as selected by readers.

1. Tweet of the week (early edition)
2. More of the same…
3. Financials key to Lower Churchill
4. Not the best campaign strategy, maybe
5. A Hugh Shea for our time
6. Strings and all
7. The old hum on the Humber
8. PIFO:  newly minted minister in trouble in own district
9. Ronald Harper
10. Finance minister cops to unsustainable spending

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Why don’t more women breastfeed their babies?

Good question.

You’ll find one woman’s take on it at cbc.ca/nl. 

Beware, though, of one figure that is likely off.  Both Debbie Cooper and Pam Pardy-Ghent claim that 66% of new mothers breastfeed their babies. 

That might be the number who start breastfeeding when the baby is born. Some call it the initiation rate.

The last time your humble e-scribbler checked the local stats the percentage still at it six months after the baby was born was a tiny fraction of that figure.

Try 11 or 12 percent.

And that’s really where the challenge lies.  The overwhelming majority of women who start breastfeeding just don’t manage to keep at it. 

We need to get to 66% still breastfeeding at six months in.  That’s a figure we can reach in this province within two years with just a modest effort by the provincial government. and community groups.

66 at 6 in 2.

Simple.

Practical.

Attainable.

Breastfeeding  it’s what your bazongas are for.

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Finance minister cops to unsustainable spending

The provincial government hasn’t really been managing the public purse in a sustainable and fiscally responsible way.

Your humble e-scribbler has been saying that since 2006.  There have been plenty of charts and graphs to drive the point home.

In 2009, Paul Oram said that government spending is unsustainable, but unfortunately he said it on the way out the door as he left politics. 

But you don’t have to just accept that just because you read it here.

Now you know that government spending is unsustainable because no less an authority than Tom Marshall – the province’s finance minister – is saying that in every single one of his pre-budget consultations.

Take a look at the slide deck for his presentation.  You’ve seen similar slides here and in some of the conventional media maybe.  You’ll find the information is a wee bit familiar and that’s because the figures your humble e-scribbler uses and the ones Tom is using come from the same place:  the provincial finance department.

But Tom’s slides are better because they are accurate and up-to-date. Now Tom doesn’t give you all the information you’d but what is there is enough to scare the bee-jeebers out of any doubters out there.

Before we get into the details, let’s just say that True Tory Believers should turn away and go play Free Cell or something.  They really should not read on.  Fan Clubbers should really not read beyond this point.  They are putting their heads in jeopardy.  Their whole world only keeps making sense because they have convinced themselves that nothing at BP is real, that it is all wrong and just some sort of partisan plot. 

So if they keep reading to the end, your humble e-scribbler cannot be held liable for the resulting carnage as their skulls collapse.  After all, if your faithful servant says these things only because he is a Liberal and then Tom Marshall says the same things then either Tom is telling whoppers or I am a Tory or…

You can see how easily they could wind up in the Waterford trying to make those two things fit into the same twisted mental space.

Anyway, here goes.

This slide from near the end of Marshall’s presentation shows the net program expenses – everything except debt servicing and capital costs – compared with the consumer price index and the growth in the economy. This is a really good comparison because it shows the changes in the core government spending without things like the “stimulus” capital spending.

This is the sort of spending that would be very hard to cut if revenue dropped drastically.  And you can really see the point if you recall that so much of the economy – 30% or so of the labour force – is paid out of net program expenses. This is your health care spending as well.

Now just because Tom Marshall used it, let’s look at the slide showing the comparison between the growth in gross health care spending – with capital works tossed in – and the consumer price index.  This slide together with the one above illustrates the astronomic growth in spending over the past four years.

 

This slide also shows you a comparison which pretty much destroys any argument that the rate of gro9wth was the only thing Tom and his friends could have done.  You’ve heard all the excuses about catch-up and making up for previous neglect or that costs are just going up because things are booming.

Don’t look at 2009-2010 because that’s the recession year when the costs of goods and services didn’t grow very much at all.  Look at the two years before that.  The provincial government could have boosted spending by double the rate of inflation and they still would have boosted spending by a huge amount.  Instead, they went for triple or more.  in 2007, the year of the last election, they boosted spending by what looks like six or seven times the rate of inflation.

And all that spending was built on what Tom Marshall acknowledges are windfalls from the price of oil.  They are windfalls driven by price and by production of a non-renewable resource.  All wonderful to spend and spend more as long as the cash is rolling in.  But when the prices don’t keep skyrocketing and the money isn;t flowing in, you have a hard time driving spending up at the rate people want.

That’s the definition of unsustainable spending.

Not surprisingly, you can see all the problems in the final slide Marshall used in which he laid out his “challenges”.

That second bullet, the one about high dependence on resource revenues is the bit about price and production.  Great going up but prices do go down.

Skip down a bit and you’ll see the other point:  there’s pressure to continue spending increases and people are used to seeing growth of nine percent on average over the past seven years.  Inflation averaged around two percent each year or thereabouts over the same period.

All the stuff that comes before this points to that bullet about the “Need to control expenditure growth”.  Problem is that expectations are there for continued growth and those expectations are on top of the real need that comes from having an aging population and that is on top of the commitments to boost public spending on megaprojects like “equity” stakes. 

If that weren’t bad enough the combination of election year plus the unsettled Conservative leadership combine to make it very difficult for politicians to make the tough choices and actually control spending.

Remember 2007?

If you’ve forgotten already, scroll back up and look.

A very popular leader with a reputation for toughness and they still couldn’t spend in a responsible, prudent manner.

And if all that weren’t enough to make you cringe, take a look at that last point.  There you have the provincial government’s great plan to reduce public debt:  they will pay it off as it comes due.  That means about $200 to $300 million a year.

Divide that into the $12 billion gross debt and you can figure out how many decades will take  - theoretically - to get to zero at that rate.  Yeah don’t bother.  Let’s just sum it up by saying the current administration does not have a debt reduction plan at all.  Not really.  They don’t.  If things get really bad, they can just roll debt over and that’s what governments have done over the past couple of decades. They could pay off some debt as it came due;  otherwise they just spent as they needed and ran up the debt bill.

We aren’t done yet, though.

That middle bullet about a “requirement” to borrow to pay for the Lower Churchill.

It is only a requirement because the provincial government already made the decision to add another $4.0 to $6.0 billion to the public debt.  They don’t absolutely have to do it and, frankly, the deal as laid out currently is one that doesn’t make any sense.  It would be a huge risk for any government or private sector company that had a healthy balance sheet.  Even with a federal loan guarantee, it is sheer foolishness for the province with the biggest per capita debt load in the country.

Upside:  admitting there’s a problem could mean that Tom Marshall and his colleagues will start sorting out the mess they’ve made.

Downside:  Tom’s admitted to some or all of this in the past in the pre-budget consultations only to bring down a budget each time that did exactly the opposite of what was needed to fix the problems. Only Danny’s gone:  the rest of the people responsible for seven years of unsustainable public spending and unsound management of the public purse are still in charge.

We can hope for the best but experience tells us all to expect the worst.

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Ronald Harper

Compare this Conservative Party spot…

with this classic political spot:

The Conservative spot is darker and much less hopeful than the one that so obviously inspired it.

And for Newfoundlanders and Labradorians, they will recognise the Danny Williams’ phrasing in the Harper spot.

Aren’t Canadians determined, too?

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More of the same…

But different.

A good first step is how the Premier described her first meeting with the Prime Minister.

But she was bit vague on the destination piece.

Headed somewhere but not sure where the frig that might be.

Solid leadership!

Kathy Dunderdale had a courtesy meeting with Stephen Harper.

20 minutes.

Very much routine stuff for those familiar with these things and never the chance to get into detailed discussions on anything.

Lots of vague talk from Dunderdale about stuff but very little concrete detail.

She knows the bus is moving and she knows about the doors and seats but where the driver is headed?

We’ll get back to you on that bit.

But it is good to get rolling in this new bus and new driver who is dissimilar in a differential way from the previous occupant of the conducting position.

Dunderdale’s list of things she mentioned in the meeting are the same things her predecessor used to rattle off so it’s a bit unusual to hear her talking about things as if there’d been some radical change of direction in the province.

Oh.

That was the point.

But then Dunderdale said she is “in the same place’ as her predecessor.

So things are the same.

But different.

It is a new relationship but she wanted to hear some acknowledgement from the Prime Minister of those “legitimate aspirations” of her tribe and that he “understands” those things and is the prime minister of the whole country, then things will be different.

So that would mean things are still just like they were with the former premier.

But not.

Somehow.

Like in a meeting with federal cabinet minister Peter Mackay, Dunderdale talked about a multi-billion dollar megaproject for which Dunderdale sought a federal loan guarantee.

Which must be somehow different from the times Danny went to Ottawa looking for a hand-out to build a megaproject.

So things are the different.

But the same.

And firstly and fore mostly, she wants some respect.

Never heard that before.

And there wasn’t any talk about the fishery.

Ditto on the sameness file.

So in a last scrum question about the relationship, Kathy made it clear that her predecessor could “articulate” his views clearly and that things were different now, as she embarked on some kind of new path, a yellow brick road to respect for the “legitimate aspirations” of the crowd of people down this way.

Sounds all very familiar, right down to the bit about not being sure exactly where things are going and the inability to articulate specific details.

But God does she spit Quebecish gibberish like “legitimate aspirations.”

It’s all fit to make you aspirate your breakfast.

Projectile aspiration.

Given Dunderdale’s load of bafflegab and pure bullshit, such aspiration would be perfectly legitimate and likely most respectable.

Plus ca change.

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If the Danes can do it…

Maybe Kathy Dunderdale can resurrect Danny Williams big dream of a tunnel connecting Labrador to the island. Remember the Stunnel?

Surely you remember Danny Williams stopping by the side of the highway during the 2001 by-election or the 2003 election – anyone recall which? – and marvelling that he could see the mainland or some such.

Anyway, the whole goofball idea priced out at a few billion dollars and Williams quickly dropped it as unrealistic.

But then people used to say that increasing the provincial public debt by 50% was unrealistic too, until Danny and his successor committed to doing it.

Go big or go home, Kathy!.

So if Danny was planning to rack up the debt by just 50%, go the rest of the way.

And follow the example set by the Danes.

They are planning to build an 18 kilometre tunnel underwater to connect Denmark and Germany.

The estimated cost is  only US$5.9 billion.

Now sure the traffic between Sweden and Norway to Germany and the rest of the continent through Demark makes this much more commercially viable than a link between Blanc Sablon and St. Barbe.  But since when did that ever stop a politician from pissing public money down a hole.

Every great Premier in the province’s history – at least as popularly assessed -  has had at least one gigantic financial mess to his credit. 

This could be Kathy’s.

Just saying.

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Not the best campaign strategy, maybe

In a city where the environment is a big issue, a chance to speak in a public meeting on environmental issues during a by-election might be a good thing.

Well, especially if you are a candidate.

Lots of people protesting tire burning.  Government conveniently dodges a bullet on the issue right before the writ drops. You promise to be a strong “voice” for constituents.  Might be an idea to show up for a few hours in a debate format, say a few words and then get back to whatever else you are doing.

Even if the audience is hostile, it works to show you have the stones to face them.  How are you gonna stare down a hard-nosed cabinet minister like Kevin O’Brien or Charlene Johnson if a few hippies scare you crapless? 

And after all it’s only a couple of hours.

Even if you want to play the company-town-man, you are likely to get more of your own votes with the days of coverage of you tackling the tree-huggers rather than putting out some completely lame-assed excuse delivered via a representative.

These points are evidently lost on Conservative Vaughn Granter.  He begged off a debate sponsored by a local environmental group.  The VOCM version quotes an “associate” who says the man has a “door-to-door” strategy.

Whatever.

If he’s as overwhelmingly popular and as phenomenally well-known in the city as Granter claimed with on Open Line with Randy Simms on Wednesday, then Vaughn could skip a couple of doors and no one would really notice.  That is, he could skip them in a good cause like generating some media coverage to reach more people and reinforce his messages.

In another place, the candidate hisself could be heard on Wednesday babbling some drivel about having to spend a couple or three days boning up on the issues and that would just divert  from his plan to shake every door and knock every hand. Not aware of the issues and the party position such that he has to do an intense three days holed up with a set of briefing notes?

Hardly something you’d want to admit, one might think.

Vaughn isn’t much on current affairs, then?  Wee bit vague on what’s up?

Yeah.

Not the best line and not the best strategy, maybe.

Just saying.

.At least Vaughn has a few days to change his mind or get up to speed.  The debate is set for February 10.

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Tweet of the Week (early edition)

Ken Dryden dropped in to Corner Brook last weekend to endorse his old chief of staff – Mark Watton – who is running in the by-election to fill the vacancy in the House of Assembly by Danny Williams’ abrupt departure.

Watton is a Liberal, in case that wasn’t obvious.

Seems some provincial Conservative supporters are a bit spooked by Dryden’s visit and, by extension, by Watton’s chances. Here’s an example of Twitter comments by one passionate provincial Conservative on Tuesday night:

Unable to recruit local volunteers or what?…what does Ken Dryden know about the issues facing Corner Brookers? …I'd rather someone who had known where Corner Brook was located prior to visiting.

To quote a great conservative thinker, what a terrible thing it is to lose ones mind. Those of you who know the original quote – before Dan Quayle babel-fished it – will get the point.

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Financials key to Lower Churchill

From 2006, an article by Craig Westcott that appeared originally in the now defunct Independent. 

Premier Kathy Dunderdale went to Ottawa today with her hand out looking for some federal financial aid to get the Danny Williams retirement project off the ground.

The key is still in the financials.

Let’s see what, if anything, she gets.

And then let’s see what that will cost us.

Growing interest:  Solving interest rate riddle critical to Lower Churchill project

At a Memorial University lecture hall one evening last week, Gilbert Bennett stood and gave a 45 minute talk on the challenges and opportunities of the Lower Churchill River hydroelectric project.

Then his real work began. For the next 45 minutes, people in the crowded lecture hall peppered the vice president of Newfoundland and Labrador Hydro with questions.

They asked him about everything from the chances of getting redress on the infamous Upper Churchill deal to what kinds of benefits the Innu Nation members can expect from the project.

Then came one of the toughest questions to answer, but one that is critical to the viability of the $6-billion to $9-billion project that Hydro is hoping to have on stream by 2015.

“The surprise for me tonight,” said one man, “was that this project, to get off the ground, is going to take as much as 10 years. Interest rates are starting to rise. Isn’t there a risk in taking this project so far out?”

Bennett allowed there is. “I’m with you in that interest rates are going to be essential,” he admitted.

And that was putting it mildly.

<Growing interest>

As Bennett himself pointed out, there are a number of key factors that have to be resolved before the Lower Churchill hydro project can get sanctioned for construction. A land claim and impact benefits agreements must be negotiated with the Innu Nation. The federal and provincial governments have to agree on the form the environmental impact statement will take and who will head the review. And the province must decide who will develop the power plants at Gull Island and Muskrat Falls, who will get the power from them, how they will get it and how the whole thing will be financed.

“As you can see, we have a lot of work to do,” Bennett told the gathering.

But among all the challenges and risks, perhaps none is more important than the matter of interest rates. If the Upper Churchill was a boondoggle because of BRINCO's inability to negotiate a re-opener clause to cover inflation, the killer for any Lower Churchill project could be interest rates. And that’s because just like the man in the lecture room observed, this project is going to take a long time to develop.

“If you had the right contract, it doesn’t matter,” says Cyril Abery. “You’d have to build into the contract that the price you’re agreeing to (sell the power for) is based on certain interest rates and you’d have to have a clause that if interest rates went up, the price gets adjusted. Otherwise you could get screwed. There has to be re-openers in there. If they do that, there‘s no problem. But if they don‘t do that, yes, it is a problem, especially since today interest rates are low and they‘re probably going to go up.”

When it comes to interest rates and the Lower Churchill project, Abery knows what he’s talking about. From 1985 to 1991, he was the president and CEO of Newfoundland Hydro. He helped negotiate a Lower Churchill deal with Hydro Quebec in 1991 that Premier Clyde Wells ultimately rejected.

“He was nuts in my opinion,” says Abery. “It’s a long story, but the long and short of it is I thought he was nuts. I’m not so sure we haven’t got another one now.”

Abery wasn’t at Bennett’s lecture, but he well understands how interest rates could cripple the development.

So does another former Hydro president and CEO, Bill Wells. He headed the provincial Crown Corporation from 1995 until about a year and a half ago. Like Abery, he too tried hard to reach a development deal on the Lower Churchill.

The problem is that while interest rates may be low now, nobody knows what they will be in 15 years time, if the project is even completed by then. Nobody even knows what they will be next year. And once the project is sanctioned, the developer will be borrowing money every year until it gets built.

“You’re borrowing, borrowing, borrowing, spending, spending, spending (until 2015),” explains Wells. “Somebody’s got to lend you that and that interest cost during the period of construction, that just adds on to the principle because you’re not paying anything back. So at the end of the day you’ve got this lump sum of money that you owe and when you close out your financial agreement going forward for 30 years or 40 years financing, what you’re going to pay in interest is determined at that time, it’s not determined now. So interest rates in 2016, who knows? They may be up, they may be down. And one of the things is, who takes the risk on interest? That used to come up in previous negotiations. It‘s a critical factor.”

Wells says the province, or Hydro, could try at the outset of the construction project to get a lender to agree to a range of future interest rates, as some measure of protection, but that would cost a lot of money.

“Interest is a big factor and then it depends on how you’re financing it,” Wells says.

<Quebec again>

One of the ways the province is looking at raising money to build the project is on the strength of a power purchase agreement with a future customer of the power. That’s how BRINCO financed the Upper Churchill deal in the 1960s. Back then, the only customer BRINCO could get to sign a guarantee that it would buy the electricity was Hydro Quebec. With Ontario and some United States utilities facing the prospect of energy shortages, it may be easier to find other buyers this time around. There will be enough electricity from Lower Churchill to power 1.5 million homes.

But the power will still have to go through Quebec.

“You can’t get the power out of Labrador without going through Quebec,” says Abery.

Williams has raised the prospect of building a transmission line through the Maritimes.

Abery is sceptical.

“We always put that out there to make it sound like we had options,” Abery says. “But everybody in the business knows that’s foolishness. It sounds good in the newspaper. Joe Smallwood started that back in the 1960s calling it the Anglo-Saxon route. It was crazy then and it’s crazy now.”

Abery says any talk of a Maritimes route doesn’t fool Hydro Quebec.

“They just smile,” he says. “I mean you’re in the middle of Labrador. The only border we’ve got is with Quebec. So you’ve either got to sell it to Quebec, or go through Quebec. And there’s no reason you wouldn’t sell it to Quebec. Their money is just as good as anybody else’s money as long as you got enough of it.”

Abery says Newfoundland could sell the power to another customer, in Ontario say, and simply pay Hydro Quebec to wheel it across its transmission lines. The fee for doing it wouldn’t be unreasonable, he notes.

“But the farther you sell it, the more transmission lines you’ve got to build and the costlier it is,” he points out. “The simpler thing is to just sell it to Quebec and let them deal with it. But if you’re getting enough money out of Ontario, then sell it to them. If you’re getting enough money out of Manitoba, I suppose you’d sell it to them. But it would be expensive power. The further you go, the more expensive it is. Transmission lines are not cheap. And you lose energy on the transmission line. That’s why you can only go so far with the transmission line, otherwise there’s no energy at the end of it.”

Wells, meanwhile, sees one way around a purchase power contract with Hydro Quebec or any other customer as the main way of financing the project. But it’s one that didn’t get anywhere in the past.

“If the federal government said ‘We’ll back the project,’ well nobody is going to argue the federal government is going to go broke over (it),” says Wells.

Bennett says obtaining federal backing is an area the utility is going to explore very carefully. He notes Premier Williams raised the idea with all three parties during the last federal election. Stephen Harper, then the Conservative Party Leader, now the Prime Minister, said his party supported the idea of a project “in principle.”

Whether that includes a financial commitment remains to be seen.

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The old hum on the Humber

Politicians running for the government party in Newfoundland and Labrador usually have a simple message;  vote for me or the district won’t see pavement again. 

Now they often get more sophisticated in the presentation these days:  Vaughn Granter, for example, is telling voters in Humber West that he will be their strong “voice” but the idea is basically the same.  Having someone in government will help to bring home all the pork you need.

In Granter’s case, his comments give new meaning to Squires-era political slogan about putting the “hum on the Humber”. 

After all, Humber West has been represented in the House of Assembly by more Premiers than any other district in the province.  Period.  If the good burghers of  Corner Brook are missing something it is not from a lack of patronage, pull, pork or anything else.  Face it: it’s doubtful that Vaughn could succeed where the likes of Joey, Frank, Clyde, Brian and Danny failed miserably.

That’s not all. Over most of the past 20 years Corner Brook has had not one but two senior cabinet ministers.  For the past seven alone, they’ve been pork-teamed by none other than a townie who never lived in Corner Brook for more than a couple of nights at the Glynmill in his life and local boy Tom Marshall.

If this much isn’t clear by now make no mistake: Corner Brookers who might be persuaded by Granter’s truly pathetic appeal can rest easy on the future of their city.  Vote for Mark Watton.  If Tom Marshall, the province’s finance minister, cannot keep the provincial tax dollars flowing for the next 10 months, all by himself then it is only because there isn’t any space left to stuff another ounce of pork inside the Lewin Parkway anyway. 

If none of that makes voters in Corner Brook suck some air between their teeth, then let them consider the sad example of one David Brazil.  He’s the newly minted member of the provincial legislature who replaced the late Diane Whelan.  Brazil campaigned on improving the ferry service to Bell Island, a big voting block in the Conception bay East-Bell Island district.

On January 9, Brazil spoke to VOCM and pronounced himself pleased with his colleagues in government  Great job.  Bright future. VOCM’s disappeared the story but you can still find traces of it via google.

David Brazil won a by-election in Conception Bay East-Bell Island in December, and he feels the PC Party is well positioned. He says they have a good caucus ...

And now as his pal the transportation minister is cutting the service back, all Dave can do is smile and try to foist the blame on someone who had nothing to do with the decision. The best he could say is that the cuts were “unwelcome.”

Voters in Conception Bay East-Bell Island are discovering, likely much to their annoyance, that Dave is not their strong voice inside government.  Instead, he is yet another basenji, a dog that won’t bark.

Is there any reason to believe Vaughn Granter will do any better?  Not really.  There are plenty of decent people sitting on the Tory back benches but take all of them together, plus a buck and a half and you might get a decent cup of coffee somewhere.

Such is the fate of a backbencher in the current Tory administration.

Such will be Vaughn Granter’s fate if he’s elected.

Count on it.

Meanwhile, the people of the Straits-White Bay North voted against Danny Williams himself and look at what happened to them. Not only did they get a member of the legislature who kept the government under close and very public scrutiny, they also got a new health care centre that some would have had you believe would disappear unless there was another basenji sitting faithfully at the feet of Premier of the moment.

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The sun whose rays…

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