Nalcor: Generations #nlpoli

Telegram editor Peter Jackson took a hard look this week at the implications of Nalcor’s effort this week to jack up electricity rates.

As part of the company’s rate application to the public utilities board,  Nalcor said a relatively dry season on the island had deleted its water reservoirs.  As a result it had to burn more oil to make electricity and therefore ratepayers needed to cover that cost.

Jackson notes that with Nalcor’s plan to scrap the Holyrood generating station, we’ll be left to rely on Muskrat Falls and its relatively small reservoir.  That small reservoir means the Muskrat Falls generators will depend on a water management arrangement with Churchill Falls.

And then Jackson puts everything in perspective:

Politicians and Public Debt #nlpoli

Remember the debt clock?

Finance minister Tom Marshall went around the province during that year’s budget consultation – now “rebranded” as “engagement” – with this big electric counter that purported to show how much interest on taxpayers were racking up on the public debt.

$1,400 a minute back then.

“That clock is ticking away showing a tremendous amount of money on interest that I'd rather see go into programs," said Marshall,  in a CBC story about the annual budget circus.

Now here’s the real question:  what year was that?

Decision-Based Evidence-Making #nlpoli

The government’s “renewal initiative” is supposed to be guided by something called “evidence-based decision-making.”

It’s right there, right after “affordable and sustainable public services” as one of five principles listed in the colourful little hand-out the government has been using as part of its “engagement” exercise.

How odd then that so far the Liberal administration has failed to apply the principle of supporting decisions with evidence.

Using his words #nlpoli

Politicians are usually very careful about the words they use.

That’s why it’s important to notice the words Premier Dwight Ball used this weekend in an interview with Tom Clark for Global’s current affairs show The West Block.

Ball said there was “no real sure fix” for the provincial government’s financial problems. But he did say that the government’s plan would involve revenue-generation, controlling expenses, efficient spending, and “what Ottawa can do to help initiatives around infrastructure.”  Ball also said that the provincial government would be applying for the same “sustainability” funding that Alberta was getting.

So what does that mean in concrete terms?

Old whine still sour #nlpoli

"I'm concerned that we have an aging asset,”  natural resources minister Siobhan Coady told CBC in explaining the most recent break downs at the Holyrood generating station.

About two years ago, in the midst of darknl,  then-Premier Kathy Dunderdale said pretty much the same thing:  “We've talked incessantly, it seems to me, over the last number of years about the aging facility in Holyrood and the fact that that facility needed to be replaced.”  Before that, Nalcor and its supporters used “aging infrastructure” and the inevitable climb of oil prices as the excuse to build the multi-billion dollar Muskrat Falls project.

The old whine in new skins isn't any sweeter in the ear whether it is coming from Coady or Dunderdale.

Indeed, what’s most disturbing about Siobhan Coady's media interview is that in the two years since darknl we have learned that the lines someone fed Coady are not true.

Yet someone still fed Coady the false lines and Coady used them.

Get the message: get a grip #nlpoli

Two former Premiers sent a very pointed message to Premier Dwight Ball this week about the way Ball has been handling the provincial government’s massive deficit problem.

Brian Tobin was in St. John’s to present a cheque on behalf of the Bank of Montreal to the celebration of the 100th anniversary of the Great War. Tobin said people need to understood that the current cabinet felt a problem far worse than any other in the province’s history.  people need to pull together, but for Ball personally, Tobin said that while it was best to be consistent and right, if you had to pick between the two, it was better to be right.  “Do the right thing,”  said Tobin.

Grimes did media interviews on Wednesday in addition to offering a guest post at SRBP.  He told Ball that it was important to put everything on the table.  Grimes specifically cited Muskrat Falls, with the billions in borrowing to finish the project, as well as energy marketing and offshore oil equity stakes.

Fiscal Stabilization Program #nlpoli

On the one hand, it’s great to live in a country that has a program to let the federal government shunt money to provincial governments that run into financial difficulties.

On the other hand, it’s disappointing that the current provincial administration is talking up the prospect of getting more hand-outs from Ottawa rather than bringing its spending in line with its revenues.

“The Fiscal Stabilization Program, introduced in 1967, compensates provinces if their revenues fall substantially from one year to the next due to changes in economic circumstances. …  A province is eligible for stabilization payments if economic conditions cause its revenues to decline in excess of five per cent in one year. The maximum amount payable is $60 per resident.”

Unless the federal government changes the maximum payable, we are talking about a mere $31 or $32 million for Newfoundland and Labrador.

The legal authority for the Fiscal Stabilization Program is in the Federal-Provincial Fiscal Arrangements Act.  The amount of money a province can receive comes from a formula in the Act that compares one year’s provincial revenue with that of the year before. The formula distinguishes between resource revenue and non-resource revenue.

The Act sets a limit on the maximum amount available to a provincial government.  The limit is $60 per person in the province according to the most recent sentence.  If the formula gives a larger amount than the $60 per capita,  a provincial government can receive the full amount.  Anything beyond the $60 per person maximum would be considered a loan.

A Quebec government summary says that no “province received benefits under this program until 1981-1982, when British Columbia received benefits. Québec qualified for a payment twice in the early 1990s. However, since the “minimum 5% decline” threshold was restored in 1995-1996 (after having been abandoned in 1972), no province has received compensation.”

-srbp-

From a decade of prosperity to $2 billion deficits: What happened?

By Roger Grimes

Reflecting upon becoming the eighth Premier of Newfoundland and Labrador 15 years ago this month, I found myself chatting with a few friends and associates about where the province found itself fiscally at that time, what happened during the next decade, and where we find ourselves today.

During my tenure as Premier, we were a persistent “have not” province with a deficit problem of roughly ten percent. We ran annual deficits of roughly $500 million on a total budget of $4.5 billion. Now, after a decade of unparalleled prosperity and “have” status within the Equalization system, we find ourselves with a twenty-five percent deficit problem comprised of a $2 billion deficit on an $8 billion total annual budget.

Using data aggressively #nlpoli

These days campaigns are about collecting information on voters and using the data.

The Ted Cruz campaign has been especially aggressive in  Iowa with a mailer that highlights the poor record of some voters of participating in caucuses.

The thing came in a brown envelope (above) and consisted of  single sheet of yellow paper (below) marked like a ballot that showed a score and percentage grade for voters named on the sheet. 

These folks don’t typically turn out to vote, so Cruz was trying to goad them into participating. Voting records are public in some American states so campaigns can tell who voted and who didn't.  Your neighbours.

You can tell if it worked by the results from Monday’s caucuses.

-srbp-

Newfoundland government finance, 1832 to 1949 #nlpoli

Before Newfoundlanders stopped governing themselves in the early winter of 1934, they’d run a sometimes arduous course.

Newfoundland gained a limited form of self-government in 1832 and in 1855 gained Responsible Government.  That gave control of  virtually everything except defence and foreign policy to a cabinet made up of members of the elected assembly and the appointed upper chamber of the legislature. 

By the 1880s,  the government wanted to expand the economy beyond the fishery.  They started a railway project to open up the interior of the island and the western coast, much the same way that the Americans and Canadians had used the latest technology – the railway – to expand to their west.

Junkyard wars

Syrian rebels have been using modern technology in the simplest of ways in their war against the Assad regime in Syria.

In the picture at left,  a rebel crew are shown using an angle meter app for the iPad to check the alignment of a mortar barrel before an attack.

According to a story in the Daily Mail last September,  the photo shows members of the 'Ansar Dimachk' Brigade, which operates under the Free Syrian Army, using a tablet "to help fire a homemade mortar towards a battlefront in Jobar, a suburb of Damascus."

The rebels have also been using iPads for other purposes as well, as the following video shows.

-srbp-

AG reports on suspected frauds in FY 2014 #nlpoli

In his most recent report, Auditor General Terry Paddon disclosed alleged frauds identified during his review of the provincial government's accounts:

• The finance department's Professional Services and Internal Audit Division discovered a potential fraud of $42,000, less about 10% that had been repaid, that occurred in the the division's examination of the Provincial Courts bank reconciliation processes. The Department of Justice and Public Safety referred this matter to the police for investigation. 
• The same division reported a suspected fraud in the Department of Transportation and Works' depot involving thefts of automotive fuel and supplies as well as inappropriate use of employee resources. "It was concluded by the Division that due to the poor state of records and lack of effective internal controls at the depot, it was not possible to prove that any fraud had occurred. No further action was taken."
• During a routine review of travel claims, the Department of Justice and Public Safety identified irregularities that totalled approximately $1,300. The Department forwarded the matter to the police for investigation. 
• The Department of Child, Youth and Family Services reported that A foster parent may have committed fraud by submitting claims for funding for overnight babysitting when no babysitting services were provided. CYFS turned the matter over to the police and the individual is no longer a foster parent. 
• The Department of Advanced Education and Skills identified an alleged forgery of documentation submitted for reimbursement of approximately $30,000 for medical transportation costs and possible false documentation to support $27,000 in client rental payments.  Both cases are with the police.
• The Forestry and Agrifoods Agency identified an alleged misappropriation of funds by an employee of the agency that involved deliberately delaying the submission of cash remittances and personally using the funds during the intervening period.   The agency recovered the $21,000 involved,  terminated the employee but did not report the matter to the police.  
• Nalcor Energy identified a theft of petty cash of $360.  Nalcor revised its procedures for handling petty cash.
• The Provincial Information and Library Resources Board informed the AG of a fraud against the board involving a cheque that had apparently be altered.  The board subsequently recovered the $7,100 from its bank but did not report the matter to the police. 
• The Newfoundland and Labrador Housing Corporation identified an instance of improper retention of public money in which two employees were using their assigned corporate procurement cards to make purchases for personal use. Overall, the improper transactions amounted to $5,156 ($4,698 related to one employee and $458 to another). The $5,156 has been recovered from both employees and one employee has resigned. The other remains an employee of the Corporation. The Corporation has not referred the matter to the police. 

 -srbp-

S and P lowers NL rating, cites uncertainty of fiscal policy #nlpoli

Standard and Poor's said on Friday that the company had lowered its credit rating for the Government of Newfoundland and Labrador and Newfoundland and Labrador Hydro from A+ to A with a negative outlook.

In a news release, the company said the "negative outlook reflects our view of the uncertainty of the magnitude of the government's expected fiscal policy response to lowered offshore royalties and projected operating and after-capital deficits."

S and P's base-case forecast for 2014 to 2018 gives the government an "average operating deficit of about 7% of adjusted operating revenue and average after-capital deficits of close to 19%

of total adjusted revenues."  S and P calls this weak.  The company also said that it considers the government's "budgetary performance is subject to considerable volatility, given its high reliance on resource royalties...."

The company said it considers both the province's debt burden and contingent liabilities level to be high.  The company cited unfunded pension liability and the risk associated with Nalcor and Muskrat Falls as key issues in these areas.  "We believe the province has an incentive to provide extraordinary government support to Nalcor in the event of financial stress." Standard and Poor's also considered the government's luiqidity level to be low.

S and P  noted the strong federal-provincial financial relationship,  the provincial government's financial management history,  and strong budget flexibility as factor's working in the provincial government's favour.   "We believe that the province's economic and fiscal situation will make public acceptance of fiscal measures, such as tax increases and spending reductions, much more acceptable despite their unpopularity."  

The negative outlook reflects the uncertainty of the magnitude of the government's expected fiscal policy response to lowered offshore royalties and projected operating and after-capital deficits. We could revise the outlook to stable if the newly elected government takes the fiscal measures necessary to establish an improving trend in its budgetary performance beyond fiscal 2017, and develops a credible plan to restore budgetary balance in the medium term. Conversely, we could take a negative rating action should the province's budgetary performance show signs of weakening further beyond what we expect for fiscal 2017, particularly if projected after-capital deficits remain near 23% of consolidated operating revenues or the tax-supported debt burden reaches 270% of projected consolidated operating revenues [currently 100%].

-srbp-

E.A.M.

-srbp-

Moody's warns NL government on finances #nlpoli

Moody's Investor Services is the second rating agency to give the Government of Newfoundland and Labrador a negative trending  in light of the government's financial problems.

In a release, Moody's said that the "negative outlook for the Province of Newfoundland and Labrador reflects the rising risk that the province's fiscal position will deteriorate further than previously expected in an environment of protracted low oil prices and reduced economic activity. Without corrective fiscal action, this will lead to significant deficits, resulting in rapid debt accumulation across the medium-term."

Moody's expects oil to sell at US$33 a barrel in 2016 rising to US$38 a barrel in 2017 and US$43 a barrel in 2018.  The company expects that this will lead to significant deficits, with the deficit for the current fiscal year expected to reach 32% of revenue.  

"The outlook could be revised back to stable if the province introduces and implements a comprehensive fiscal plan that limits debt accumulation and debt service at levels in line with similarly rated peers, or exceeds these levels for a short period only."

Although the company describes the provincial debt level as low compared to its rating peers,  the company cautioned that "a lengthy period of consolidated deficits, along with a long-term expectation of recording debt in excess of 200% of revenues ... could result in negative pressures on the rating."

Gross debt is already more than 200% larger than anticipated revenues and net debt is almost guaranteed to hit or exceed that trigger, if the company includes consideration of the financial implications of Muskrat Falls.  

-srbp-

Revelation: Labrador hydro edition #nlpoli #cdnpoli

“I wonder how I would feel if a province or a region in another province prevented Hydro-Québec from building its transmission line. I would feel exactly like the people in the West do now. I understand them.”  

Quebec City mayor Regis Lebeaume had a revelation.

Great.

Let's have a chat about another transmission line, shall we?

-srbp-

Jerry Earle won't retweet this post #nlpoli

Apparently the surest way to piss off a couple of university academics a.k.a the NDP policy brain-trust is to point out how their take on the government’s financial crisis is out to lunch.

Short recap:  Math prof and Indy columnist Tom Baird got hold of an access to information response that explained the calculations behind a comment by cabinet minister Susan Sullivan on Twitter in March 2015:

In 2014 NL taxpayers will pay $744 million less as a result of tax deductions – affordable?

The ATIP request asked for a breakdown of that $744 million figure. Tom left off the cover page from the response when he posted a link to it in his Independent column in 2015.

“Tax cuts made during the Williams-Dunderdale era now cost the government $744 million in revenue each year,” Baird wrote, “ according to a recently released document from the Department of Finance obtained through an access to information request. This accounts for more than two-thirds of last year’s $1.1 billion budget deficit.”

That just doesn’t look right

Revenue problem #nlpoli

Jon Parsons  has an interesting take on the provincial government's financial mess.  It’s worth taking a few minutes to go through it.  Follow some of the links he offers as well.  Altogether they form what you might call a different perspective on things:

 The current deficit and debt…are the result of decisions that were made by a small number of people, and also because of the whims of the global trade in oil.

The key element of Parsons’ argument is that we are not dealing with a spending problem but a revenue problem.  We don’t bring in enough money largely because local elites have given away gigantic benefits to the local rich and to multi-national corporations.

The idea we have a revenue problem isn’t new and it certainly isn’t unconventional.  The province’s three political parties and the public sector unions all basically say the same thing or have made the same claim over the past year.

Turmoil tamed #nlpoli

Few people would be brave enough to start out a book on politics in  Newfoundland and Labrador with the words “Paul Lane.”

Fewer still could bring it off successfully.

Telegram political reporter James McLeod does both and more in a deftly written and insightful new book, Turmoil, as usual.

DBRS downgrades government rating #nlpoli

DBRS issued a revised rating for the provincial government on Thursday.  It remains "A" but a change to trending from "stable" to "negative" for long-term debt.  DBRS' short-term debt rating remains R-1 (Low) with a stable outlook.

In a news release, "DBRS has also confirmed the Guaranteed Long-Term Debt ratings of Newfoundland and Labrador Municipal Financing Corporation and Newfoundland and Labrador Hydro at “A” and has changed the trends to Negative from Stable."

"...DBRS believes that the Province’s ability to implement a fiscal response sufficient to slow the deterioration in the credit profile is limited. Without a material improvement in the fiscal and debt outlook supported by a credible multi-year fiscal plan, a one-notch downgrade is likely."

A chasm they can't ignore #nlpoli

That didn’t take long.

The fundamental strategic political problem Dwight Ball and his senior advisors have been busily building since last year exploded on Wednesday with the leak of a treasury board directive to departments, agencies, boards, and Crown corporations.

Ball has been promising that he would deal with the provincial government’s mess without layoffs.  As recently as last week Ball said that attrition – job vacancies due to retirements – were the only way he’d consider job reductions in the public service.

Yet,  the ministers of the treasury board have recently sent a note to departments, agencies, boards and Crown corporations asking them to come up with options to reduce spending by 30% over the next three years. There is no commitment that government will cut that much.  This is an exercise in generating options for the cabinet to consider.

Will DBRS re-do its rating for Newfoundland and Labrador? #nlpoli

Premier Paul Davis was proud of the fact that a bond rating agency had confirmed the province's credit rating.

Curiously, he never told anyone which rating agency it was and, as it seems,  very few if any news outlets reported on the release issued on November 19 by Dominion Bond Rating Service.

DBRS confirmed the provincial government's rating at "A" for long-term debt and "R-1 (Low)" for short-term debt.  They also confirmed Newfoundland and Labrador Hydro at 'A' for long-term debt and "R-1 (Low)" with stable trending.

What's interesting, though, is that DRBS doesn't seem to have had access to up-to-date financial information even though they issued the rating in late November 2015.  Here's the basis for the stable rating,  according to the news release:

Updating the Alternative Spending Plan #nlpoli

In April 2013, SRBP ran a series of posts about public spending. The goal was to show how the government could have avoided its serious financial problems by having a financial policy more sophisticated than “spend it all.”

 A couple of very dramatic years have passed since then.

 Let’s update the projections and see what we get.

Process Question #nlpoli

Finance minister Cathy Bennett told CBC that "everything is on the table and we have to make sure that we don't leave anything that potentially could help us move to the destination that we all want to get to...So, my answer would be everything is on the table."

Soooo, my question would be "where is that destination?"

‘Engagement’ can be an excuse for avoiding action #nlpoli

by Craig Westcott

The Ball administration is off to a shaky start. Actually, it seems afraid to start at all. Tuesday’s press conference announcing 15 months of public consultation on how to handle the deficit is another indication that this administration is afraid to act. To use a tired cliché, the Liberals are like the dog that caught the car and doesn’t know what to do with it.

 Granted, the party has only been in power about a month, with much of that month being down time due to Christmas and the New Year’s holidays. But the Liberals had plenty of time to prepare an action plan. It has been obvious for the past two years that they would inherit the new government. That’s why the lack of a transition plan is so perplexing.

 Ball and his ministers need to send signals, already overdue, that they are changing the way we “do government.”

Thank you, Danny Williams #nlpoli

Rob Strong has been a key player in the local oil and gas industry pretty much since the earliest days.  He knows what he is talking about.

Strong pointed out to VOCM on Wednesday that the Hebron field won’t be the cash cow for the provincial government some people hoped/pretended it would be.

Analyst Rob Strong says he fears that on the front end of a project, that will have a 25 year life, this province won't reap any benefit for being a partner in the development.
Strong says when oil was at $100, Hebron type crude was being discounted by $35. He says that means in the short term, the picture does not look as bright for Hebron owners. This province has a has a 4.9 per cent share in the development.

What Strong is pointing to is a deliberate cut in the provincial royalty offered as a gift to the oil companies by Danny Williams and Kathy Dunderdale in 2007.  Dunderdale, the natural resources minister at the time, said that she and Williams wanted to give the multi-national oil companies “some downside protection if the price of oil went very, very low.”

Clarity #nlpoli

From the announcement of "intense" public consultations to solve the provincial government's financial crisis:

Question:  Health care spending eats up as you were saying  almost 40% of the budget, you must have some idea some clue as to why that is, why are we paying more per person than on average?

Premier Dwight Ball:  Well the interesting thing about what we... Minister Bennett mentioned this in her comment, the thing about health care in particular,  I spent quite a number of years and we are certainly very pleased to have Dr. John Haggie and other many resources that we have within government and outside of government feeding into a process , Minister Bennett mentioned the aging population that we have in our province right now, so given where we are,  you'd anticipate an even higher portion of the budget but what we are not getting is as we spend money in health care we are not seeing the improvement in health outcomes aso that's going to be our focus... how we improve the health of Newfoundlanders and Labradorians...

-srbp- 

Pressure #nlpoli

A curious thing happens in societies where a huge amount of the collective income derives from outside the local economy and the local tax base.

They do not see a connection between the money they receive and the action of earning it.  The money that flows into the collective pot – the government treasury – seems to appear by magic.

That might sound a bit odd but if you think about it this way, you may get the idea.  Whatever you did for your first paying job, you could see a direct relationship between the labour you expended and the cash you received in exchange.  Painting a fence earned you an amount of money. 

Paint two fences and you could get twice as much money. Or paint another bigger fence and you could get a bit more, Depending on how big the fence was and how much more paint you needed and how much more time it took you to finish painting, as a result,  you could get more money for painting the fence.

And if everybody in your community painted fences or had the same basic connection between labour and reward,  you could all understand it when someone asked you to give a bit of your fence-painting money so that you could buy a fire-truck to fight fires in your town.  That extra bit of money for the community is a portion of your individual earnings from fence-painting or ditch-digging or tree cutting, or whatever it was that you did to make money. 

But what about a place where, in addition to that cash, you all shared in something like money that came from producing oil?

Enough #nlpoli

You can easily lose track of the number of former cabinet ministers who will tell you the same thing.

Ask them about the one lesson of government and budgets that stands in their minds.  They’ll likely all tell you some version of the same thing.

There is never “enough.”

No matter how much money you put into a department,  that department will always want more or have a way to spend more.  Doesn’t matter the department.  You can never spend “enough” such that you can safely say you can then turn to another department and start trying to give it “enough.”

Equalization... again #nlpoli

Equalization is a really simple idea.

In order to ensure that Canadians across the country have access to comparable services regardless of where they live,  the federal government sends money to provinces that don’t make enough on their own.

The federal finance department website describes the scheme pretty well.  We’ve reformatted the website version to take out the bullets.

St. John's Land Prices 1997 - 2015

An argy-bargy erupted on Twitter Wednesday involving a bunch of Danny Williams Fan Klubbers on the one side and a couple of people who have a few issues with the recent plan by some folks at St. John’s city council to buy land from Danny Williams that Williams had purchased over the years from the provincial government at pretty cheap prices.

One of the Klubbers raised the issue of the change in land prices since Williams first started the land assembly for what became Glencrest and then Galway.  The idea – apparently  - was that Williams’ asking price for the land was justified since prices had climbed a lot since 1997.

That leaves out a whole whack of details that we’ll return to in another post.  For now, let’s take a look at the change in land prices since 1997.  The source for the information is Statistics Canada’s monthly report of house prices, that breaks down the price for the house and land in a typical parcel.

Let's hear it for the Fraser Institute geniuses #nlpoli

A year after Kathy Dunderdale left office, the Fraser Institute said she was one of the best fiscal managers of all the Premiers in Canada.

Provincial Conservatives repeated the story anywhere and everywhere they could, just as they had done the other time the Fraser Institute said Kathy was a financial genius.

Sound fiscal management was a big thing for the crowd that just finished up their latest term running the place.  Danny Williams listed “sound fiscal management” as one of his big promises when he announced his first cabinet.

In his first budget speech,  Conservative finance minister Loyola Sullivan reminded everyone of the promises he and his colleagues made in the 2003 election.

Prior to and during the election, we outlined a number of commitments to the people of Newfoundland and Labrador. I would like to focus today on three major commitments: 

First, to balance the Budget on a cash basis in four years and restore sound fiscal management; 

Second, to expand the economy and create jobs; and 

Third, to ensure that our health and education systems meet the needs of Newfoundlanders and Labradorians and are sustainable into the future.

In hindsight, it all looks like some kind of sick joke.  And it would be finny too if we all weren’t the ones living through the awful truth of just how badly wrong the Fraser Institute and all the rest of them were.

Metrics #nlpoli

Telegram editor Russell Wangersky tried on Monday to put the government’s financial mess into some shape that people could understand.

The simple fact, to put a shortfall of $2 billion into perspective, is that if the provincial government wanted to cover those costs outside of oil revenues, it would have to not only double the province’s income tax rates, but double the provincial share of the HST as well. (Given the current five per cent federal and eight per cent provincial breakdown of the 13 per cent HST, that would bring this province’s total sales tax to 21 per cent.)

If we could do that, we’d break even, says Russell.

Well, ummm,  no.

Russell’s got the right idea.  He just missed another billion dollars of borrowing in the budget for capital spending.  The way the government reports its spending that capital works borrowing keeps getting left out but it is stuff we have to pay for. 

And that  $3.0 billion is just to cover this year.  Next year,  the problem is due to get worse again.

The Bridge to Ottawa #nlpoli

Premier Dwight Ball said everything is on the table to deal with the massive financial problem facing his administration.

And then, in a string of year-end interviews,  Ball immediately took everything off the table.

No cuts to spending as that would slow the economy.  Ditto for tax increases.  Even “efficiency” went out as Ball told the Telegram’s James McLeod that you couldn’t deliver existing services without the existing staffing levels.

Ball told NTV’s Mike Connors that we “need to find a way to bridge us [from] where we are currently until the commodities rebound and be [sic] the significant contributor we need them to be."

The bridge Ball wants to take is a familiar one.  According to McLeod, Ball is “ counting on infrastructure money from the federal government to help out some, and he’s also taking a close look at the equalization formula, to see if the province can wring any more money out of Ottawa.”

What are Ball’s options in Ottawa?

Up the harbour and down the shore, again #nlpoli

Today marks SRBP's anniversary.  The first post appeared on January 3, 2005.

Events of the past few weeks are a reminder of both how much has changed - we have a new government party - and at the same time, how little has changed.  Read on and you will see how little has changed.

Danny Williams and the Conservatives won the 2003 election promising to cure all the province's financial ills by "growing the economy."  Danny Williams said time and again that he was all about "jobs, jobs, jobs."   They'd attacked the Liberals over their poor financial management and promised to do things better.

In the middle of 2006,  CBC updated the world on Williams' progress. "These days," SRBP wrote, "the Premier is feeling a bit beleaguered, at least if a piece that aired recently on CBC is anything to go by.

The Premier's own take on things doesn't really have any evident shred of optimism. 

Rather the Premier appeared to be speaking defensively: gimme credit for saving the place from imminent bankruptcy. We have things going on that no one can control. In the meantime,we are working on planning to plant seeds for future growth. 

Interestingly enough, the province was never facing imminent bankruptcy: that was the Premier's fiction. The other factors he mentioned [in the interview] were specific to ... some companies in the fishery alone. The same factors - like Chinese competition and high exchange rates - don't affect other economic initiatives or don't affect other industries in the same way.  

The segments with the Premier were an interesting clue to Danny Williams' current state of mind. If March was manic, then June is borderline depressive.

That June 2006 post continued:

What was pretty clear in 2003 was the province could get out of its budget woes with some careful planning and with the continued economic growth coming from the offshore and Voisey's Bay. We all knew that growth was coming. Danny knew it too and that's why he ran the election on the up-note of growth. 

What no one knew was that oil would hit US$70 a barrel and the cash would be pouring in at a rate no one in the province had ever seen before. That allowed Danny Williams to avoid making a whole bunch of good decisions and to crank up spending to unprecedented and, and in light of the economic slowdowns, likely unsustainable heights. 

These days, though, there is no mistaking the point that the provincial government is in a hard spot. There are some factors in the economy that are beyond Williams' control. The stuff that is within his purview either foundered for one reason or another or simply have never existed. 

And that goes to the core point of this piece from shortly after the 2003 election: government needs to focus on what government does. 

In largest measure, since 2003 Danny Williams has focused his considerable talents in areas where, as Premier, he simply can't have an impact. He has been trying to run in the business sector rather than applying his managerial skills to running a government that will in turn create an environment where the private sector will develop the economy.

If he wanted to create jobs, he should have stayed in the private sector and put together the deals to create jobs and generate wealth. Instead, we have wound up with a mismatch between Danny Williams' considerable skills and the challenges at hand. 

Worse still, the centralizing tendency of government bureaucracy merely reinforces the most pernicious attributes of Williams' own hands-on leadership style. This has slowed down government's processes such that many policies are done one at a time rather than in parallel.
 Government has slowed to the point where it has taken three full years to get even the vaguest idea of some policy areas - like widening Hydro's mandate - and others, like the role and impact of the Business department or Danny Williams' own economic development seeds still haven't been seen at all.

... 

Running government is like drinking from a four-inch firehose.
 The most important thing for an incoming administration is having a way of figuring out how much to drink so it can avoid getting drowned. An incoming administration has a list of the things it definitely wants to accomplish and sets to work on them right away. For everything else there is a framework that identifies what is important, what is not important and gives a guide that helps triage the stuff that pops up along the way. 

In a sense, we are looking at a Premier and a government, three years into its mandate, that is increasingly being driven on some major issues instead of doing the driving. It's a variation on the idea discussed in another "Outside the Box" column from early 2004.

Back then, it looked like those columns were just penetrating insights into the flipping obvious. In hindsight, the observations seemed to be all too relevant.

2006.

Government spending ramped up to unsustainable heights based on oil at US$70 a barrel.

Now here we are in 2016 with Danny Williams' legacy of unprecedented financial mismanagement staring us plainly in the face.

And just to show how timely a column your humble e-scribbler wrote for the old Independent in late 2003,  here's that column again for your anniversary reading pleasure.  Note the bit at the end.  That isn;t what Dwight Ball talks about when he refers to consultations, but it is the sort of thing that would change the way government operates in this province fundamentally.

---------------------------------

Up the harbour and down the shore 

If Danny Williams wants to solve the government deficit problem by producing new jobs, as he said he would, he will have to create something between 50, 000 and 100, 000 new jobs in the province over the next eight years. 

To put that in perspective, there are about 219, 000 full-time equivalent jobs in the province today according to the Economics and Statistics branch of the provincial government. Since 1996, the economy produced about 31, 000 new jobs. To meet his commitments, Danny Williams will have to produce twice or three times as many jobs in the next eight years as the province could create in the past eight. 

And he will have to do that while providing increased health services to an aging population, providing education, services, roads, water and sewer and all the other things people expect from the provincial government. And he can'’t lay off government employees or increase the deficit. 

Sounds impossible? 

It is. Just look at our collective experience in the province and you can see why making promises like "“Jobs, Jobs, Jobs" ” is nothing short of silly. Politicians seem to forget that whenever government tries to create jobs, it fails and fails miserably. 

Stupidity, someone once said, is doing the same thing over and over and hoping for a different outcome. To stop being stupid, politicians need to focus not on creating jobs - something they can'’t do - and focus on politics, something they can do. 

That'’s why, a decade ago, the provincial government decided to get out of the job-making business. It decided the best it could do is creating a climate where entrepreneurs - – people with ideas - – could focus on making jobs that last. There was a bit more to it, though. The regional economic boards were supposed to be a way to let people in the different areas of the province decide for themselves what they would do to develop their local economy. 

The boards were also part of a wider move toward more regional control over a number of things, including health care and education. After all, politics is about who decides. In a province as big as this one, with a very small population, the "“who"” who decides often shouldn'’t be someone hundreds or thousands of kilometres from the issue. One major problem is that it has been hard to wrestle power out of the hands of bureaucrats and politicians in St. John'’s who want to keep deciding just about everything, right down to who can and cannot ride the local school bus. 

But the logic remains. Take Eastport, for example, or other areas of the province where local fishermen have had a greater say in how the resources they depend on are managed. They make sensible decisions based on science, their own knowledge and their own interests. They virtually eliminate poaching. They close fishing in areas where it needs to be closed and develop new ways to improve the price they get for their product. 

Maybe it is time to take these ideas a step farther and create a form of regional government that promotes economic development and administers health care, municipal services, education and even social welfare programs. New regional councils, elected regularly, would sort out local priorities and make decisions on that basis. The provincial government can look after setting broad strategic goals, much like the federal government set down basic principles for Medicare and then lets the provinces actually deliver the services. But the decisions on where hospitals go, or indeed if a new hospital is actually the best way to deliver health care in that particular region are left to the people who will be directly affected. 

Transferring power for some decisions from St. John'’s to new regional governments wouldn'’t be a magical solution to job creation or anything else. It also won'’t guarantee equal success everywhere. What it will do is involve more people in deciding what the future will look like in Newfoundland and Labrador. In an odd way, a new approach of regional government -– a county system - might help people realize that the issues up the harbour are much the same as the ones down the shore or in the four distinct regions of Labrador. 

For the provincial government, those politicians can look at projects like Voisey'’s Bay or the offshore for the government revenues they generate, rather than the number of jobs. The deficit problem might just get sorted out by thinking outside the box for a change.

-srbp- 

Consistency #nlpoli

"We need to find a way to bridge us [from] where we are currently until the commodities rebound and be [sic] the significant contributor we need them to be." That’s what Premier Dwight Ball told NTV’s Mike Connors in an interview that will air in full this coming Sunday.

The words are very familiar. 

We heard them just a few short months ago.

"I have laid out a five year plan,” Conservative finance minister Ross Wiseman told the House of Assembly last spring, “to bridge the commodity revenue dip and get us back to surplus, step by responsible step." 

Advice #nlpoli

New governments often wind up in a bit of a pickle.

They walk into a new job where they are supposed to be the folks in charge, but they very often aren’t the people who initially know how everything works. They don’t know how to get things done but they have things they need to accomplish.

The folks who do know how everything runs are the public servants.  According to the theory,  the public servants are supposed to be the impartial professionals who give every government expert advice n how to handle every problem.  They are supposed to be separate from the politicians.

The theory is one thing. 

Practice is another.

Do election signs work? #nlpoli

Apparently, they do.

In four randomised field experiments, researchers at Columbia University found that lawn signs increased vote share by about 1.7%. They published results of their research online on Christmas Day.

That isn’t going to win an election single-handedly but it could be the difference in a tight race. The advertising didn’t drive turn-out but it did increase awareness of a candidate.

Sasha Issenberg, author of The Victory Lab, looked at lawn signs for Slate magazine in a 2012 article. Issenberg noted studies that showed a correlation between signs and voting. In one study, “households that displayed either an American flag, football insignia, or campaign sign were 2.4 times more likely to have a resident who voted in the elections than houses which had none of the three.”

-srbp-

Top SRBP Posts of 2015 #nlpoli

1.  The Dunphy Shooting:  Serious questions  In January, we are supposed to get the results of the police investigation into the shooting of Don Dunphy.  Then there'll be a public inquiry.  Maybe then we'll get the whole story into both the shooting and the efforts to spin the story over a couple of tweets that ended with the shooting death of their author.

2.  DHDM 2:  St. John's East  The biggest political upset in recent newfoundland and Labrador political history was Nick Whalen's defeat of Jack Harris in St. John's East.  Harris and his team were beaten by a young upstart who worked really hard.  The NDP campaign was hampered by a combination of arrogance, the incompetence of the national campaign, and just sheer laziness on the part of the local NDP.  For Whalen supporters, the night was all the sweeter as the upset in St. John's East became the story out of Newfoundland and Labrador, replacing the heavily spun story that Seamus O'Regan,  the good friend of the prime minister and guaranteed cabinet minister was really where all the news would be.

3.  Rumpole and the Family Compact  The last year of the Conservative term in office was marked by a series of abusive appointments.  None was more odd than the sudden switcheroo of Pam Goulding and her husband, Mark Pike, as chief judge of the Provincial Court.  Pike had a year left in his term of office and was certain not to be re-appointed by a new Liberal administration in light of Pike's disastrous term. As the story filtered out of the Confederation Building some people within the government at the time tried to get Pike appointed to a second term a year early.  When that provided to be impossible, the people looking to manipulate the appointments process did the next best thing:  Pike quit inexplicably and cabinet stuffed his wife in the job.

Infant Holy (low brass quintet)

Santa Baby

-srbp-

The Merry Christmas Financial Update and other sick jokes #nlpoli

First, anyone who keeps talking about the two percent HST cut simply has no idea what the hell is going on in provincial finances.

Seriously.

Give it up.

You are only embarrassing yourself.

Second, absolutely no surprises in the latest update on provincial government spending. Well, no surprise for anyone who has been following SRBP faithfully.

For the rest of the folks out there,  the whole thing probably came as quite a shock.

Blind in one EY #nlpoli

The new Liberal administration is firmly, irrevocably committed to completing the Muskrat Falls project regardless of the final cost to the people of Newfoundland and Labrador.

We know the Liberals will build the MF project because Dwight Ball said precisely that several weeks ago. We cannot let it fail,  Ball told a CBC audience in September.

We know Ball is committed to building Muskrat Falls because he told reporters on Monday that “cancelling this project is not what this review is about.”

Ball and the Liberals have argued for some time now that the problem with Muskrat Falls was nothing more than bad management.  To prove this, Ball and natural resources minister Siobhan Coady announced on Monday that they would send an accounting firm back to do what the same firm just finished doing a few months ago.

Mr. Speaker Osborne #nlpoli

Members of the House of Assembly had the good fortune of having two fine candidates for Speaker.

While SRBP endorsed Scott Reid, the House made an excellent choice in Tom Osborne. Tom is the longest-serving member in the House having first been elected to the House in 1996. He held a number of cabinet portfolios in the first Williams administration before crossing the floor to sit as an independent. he eventually joined the Liberal caucus.

Osborne brings considerable experience to the job, plus he brings a reputation for fairness and integrity. He is well-liked and widely respected.

Adios comments section

The comments section at SRBP is gone,  this time for good.

The theory was great.

People could offer their own views on your writing and then you could have an exchange of views based on mutual respect,  even if the conversation got animated.

In practice,  online comments – whether on blogs or on conventional media sites – quickly became the domain of  arseholes.  They post under a variety of fake identities and spew what most arseholes spew. More often than not the same arsehole had multiple identities to increase the quantity of mayhem.

So it is that newspapers have started to shut down the comments functions on websites.  No one will mourn their loss.

Scott Reid for Speaker #nlpoli

Liberal member of the House of Assembly Scott Reid is a candidate for Speaker of the House.

By the looks of things,  members will have a competition for the Speaker's chair.  That will be a first.
In the past,  nomination of the Speaker was treated as a prerogative of the Premier.

Having a competition for Speaker will be a key element of reforming the House and separating the House from the control of the government.  Scott Reid has the personal integrity to uphold the traditions of the House,  to protect the rights of members, and to resist any efforts to curb the legislature.

Reform of the House is an important feature of the Liberal platform.  Reid has the professional knowledge as a political scientist and the experience as a political staffer to guide the reform.  Scott also has the personal qualities the new Speaker will need to work with both his newly elected and veteran colleagues to bring about that reform.

The Speaker has significant responsibilities to manage the statutory officers, such as the child and youth advocate,  the privacy commissioner, the chief electoral officer,  and the auditor general.  Scott's personal commitment to the integrity of those positions will be crucial to successfully reforming the way those positions have been filled and the way the incumbents fulfill their responsibilities to the people of Newfoundland and Labrador.

Scott will likely have competition from Tom Osborne.  Osborne has wanted the Speaker's job for some time now.  Kathy Dunderdale saw to it that Osborne didn't stand a chance after the 2011 election.  Tom Osborne would be a fine Speaker.

But for your humble e-scribbler,  as good a man as Tom Osborne is, Scott Reid is the choice.

-srbp-

The Quick Clay Dam #nlpoli

A very short post by James Gordon at Uncle Gnarley contains a whole lot of information about the dam Muskrat Falls.

Gordon is a retired professional engineer with a 60 year career that took him to projects in 15 countries. He knows about hydro-electric dams. Six of Gordon’s projects won awards of excellence for design.

Gordon took a look at the plan for Muskrat Falls. Here are a couple of key points.

Nalcor plans to use the North Spur as a key part of the dam. “The hill consists of three layers of sand, and two layers of quick clay, sloping downstream, on a deep foundation of quick clay extending down to far below tidewater.”

Even after Nalcor takes measures to counteract the tendency of quick clay to liquify when it is disturbed, two layers of quick clay will remain within the main body of the dam.

“To my knowledge, Gordon wrote, “quick clay has never before been used to form part of a dam structure, nor has a dam been built on a quick clay foundation.”

“Since the design of the North Spur dam is without precedent, and the consequences of a failure are catastrophic, it becomes imperative to have the design reviewed by an independent panel of experts – a Review Board, to provide added assurance that the design is acceptable.”

-srbp-

Changing the direction. Changing the tone. #nlpoli

A month ago,  a CBC “analysis” by David Cochrane warned against a band of Liberals running the government with too much power.

Two weeks ago,  another CBC “analysis” by David Cochrane told us that Dwight Ball was an “unlikely” fellow to be Premier who now faced an enormous task of dealing with the government’s financial problems based on a campaign platform that was, supposedly, “greeted with enormous skepticism in the final week of the campaign.”

And now we have the latest Cochrane “analysis” that tells us that the public service is liking their new bosses.  The administration has been delivering on “Ball's campaign promises of evidence-based decision-making and to bring [sic] stability to cabinet by ending the practice of frequent shuffles, thereby leaving ministers in place long enough to build command of their portfolios.”

What changed?

Well, it certainly hasn’t been Dwight Ball and the Liberals he led to a substantive victory in the recent election.

The Bonds of Muskrat Falls #nlpoli

15 minutes.

That’s all Tom Marshall said it would take to sell out the bonds on Muskrat Falls.

He also said that a federal loan guarantee would lower electricity prices for consumers from Muskrat falls.

The price one wasn’t true at all, as it turned out, and the bonds aren’t all that popular either.

Revisiting the spring budget: a little thought experiment #nlpoli

Last spring,  SRBP looked at some speculative budget projections using some different prices for oil and  assumed growth in revenue from non-oil sources.

The results weren’t pretty.  The only way to get to a surplus was if you managed to hold spending constant.  Even a modest increase in spending would throw everything out of whack.   And in the one scenario where you got a surplus, it vanished as oil production dropped.

Well, folks, reality turned out to be uglier than the optimistic forecast of the provincial government at the time and its pet economist, Wade Locke.  The assumed average price of oil last spring is now a distant memory.  The most recent forecasts from the United States suggest oil may hover around US$50 a barrel until we are into the next decade.

So let’s take another look at those figures.

Baker Ball's Dozen: three challenges facing the new administration #nlpoli

The new Liberal administration will take power later this morning.

Dwight Ball will lead a cabinet of 12.

This is only the fourth time since 1949 that we have changed the party governing the province. It’ the second time we have done so in this century.

The task ahead of the new cabinet is daunting. From 11:00 AM this morning, everything is down to the baker’s dozen of them. Here are the challenges they face.

The deficit in perspective: HST version #nlpoli

Some people are upset that the provincial sales tax won’t be going up by two percent.

The current harmonized sales tax rate is 13%.

If you wanted to – if it was even possible to – raise enough money to balance the books by hiking the sales tax – the new rate would have to be 41%.

That’s 14 times higher than the cancelled increase.

It’s a bit more than triple the current HST rate.

Clear?

-srbp-

The Tory-gram Returns #nlpoli

And there it was.

Top of the front page. 

Screaming headline.

Economist warns Liberal plan doesn’t make sense.

Right underneath a picture of the new Liberal Premier-in-waiting and the new Prime Minister smiling as they met in Ottawa.  Title: Happy Liberals.

About as objective as Fox News and then you read the story.

Their economist shitting on the Liberals is….

wait for it…

Wade Locke.

Hands up who didn’t just piss themselves laughing?

Friends in high places: changing the HST in a hurry #nlpoli

According to a statement from the federal finance department on Wednesday,  “the federal government will take any necessary steps to ensure that the [HST] rate increase does not come into effect on January 1, 2016.” [CBC]

That came out of the first meeting between Prime Minister Justin Trudeau and Premier-designate Dwight Ball.

Ball wrote two federal cabinet ministers last week asking them to do what they needed to do in order to halt the two percent increase in the harmonized sales tax included in the provincial Conservatives’ spring budget.  Ball promised last spring to roll back the rate hike.

He issued a news release about his letter a couple of days before he met with Trudeau. Local media covered it.

But what would have to happen in order to halt the hike?

Good question.

Two solitudes #nlpoli

CBC and the Telegram  carried a story on Tuesday that the province would be hit by a “mild recession” next year. There’s not much real news in that since oil and minerals will all be down in price for the foreseeable future. Major projects are coming to an end.  All known.  All foreseen. But since the Conference Board of Canada issued the release and used the words “mild recession” and so that makes it news.

Later on Tuesday,  everyone carried the story that Premier-designate Dwight Ball had written to the federal government to try and forestall the two percent hike in the harmonised sales tax. Same thing:  news release, therefore news.

At the risk of repeating the same thing again, let’s just recall that the latest change in oil prices means that 36% of government spending this year will be covered by borrowing from the banks.

The sales tax hike won’t make much of a difference this year.  The  $50 million or so it will bring in between January and March will amount to precisely 1.6% of the revised borrowing. It was frig-all before oil dropped. It is even moreso frig-all now when compared to the magnitude of the provincial government’s financial problems.

We can say that revenues won’t be much better next year.  This is another point worth bearing in mind.  The local media have habitually followed slavishly behind the provincial government’s lead over the past decade and talked about last year, not the year coming up. and in truth.  Well, this whole HST thing is another example of chasing mice when the deer are just over the hill.

The Hundred Days #nlpoli

“A new government has a very small amount of time in which to lay the groundwork for its term of office. It has about six months to show things are different and about a year to start showing signs of results. In fact, they really have about 100 days to make a mark, and when it comes to things like re-organizing the departments and getting political and public service staff changes made, they have even less than that.

“The reasons are pretty simple: The outside world wants to figure out what government they really elected. For the government itself, they need to sort out the basics so they can cope with the onslaught of demands that come with the force of a three inch fire hose. Put another way, the new government has a short time to take control of the public agenda. That’s the only way they can filter the workload down to a manageable level, let alone do the things they want to do. Without control of the political agenda, they become followers rather than leaders.”

That’s the first two paragraphs from a column your humble e-scribbler wrote for The Independent was back when it began. It appeared in January 2004 after the Conservatives under Danny Williams had gone through a few less-than-stellar moments.  Go back and read the whole thing to see if any of it applies to current events.

Townies and Baymen (again) #nlpoli

Last week’s post on the political narrative war currently under way was a combination of two separate, but related ideas.

The incoming Liberal administration – like all political parties – is faced with the challenge of identifying itself or defining itself in the public mind.  Inevitably, that also involves the image of and the public attitudes toward the leader.

We’ll turn to the narrative war but first, let’s unbundle the other part of the post, the bit about townies and baymen.  That’s both the most provocative bit for some people and also the bit that is an exploration of some much bigger ideas in Newfoundland politics over the past century.

Voter turn-out #nlpoli

Political scientist Stephen Tomblin is concerned about the low voter turn-out in the recent elections.

Tomblin thinks it is a sign that voters are disconnected from the political system.  The recent lacklustre election didn’t have the political parties connecting with voters in a meaningful way.  There are lots of issues politicians could have discussed with voters but they just didn’t bother.

Tomblin makes some good points but there are some things about recent elections we should consider as we try and put some meaning on the recent election.

The real Ministry of Magic exposed #nlpoli

The information the Conservatives leaked to David Cochrane Tuesday on the budget update confirmed the extent to which they are actually the ones who have been running the finance department as if it was a ministry of magic.

The cash deficit this year looks like it will wind up being almost $3.0 billion.  Bear in mind that the budget the Conservatives introduced last spring called for a 12% increase in spending  - although they talked about restraint - and for borrowing $2.1 billion to cover a record deficit.

Incidentally, the accrual deficit figures leaked to Cochrane by the Tories leave out the $900 million the Conservatives planned to borrow for public works.  You need to look at the cash numbers to understand the magnitude of what the Tories did last spring.

The Narrative War #nlpoli

The day after a massive Liberal victory in the general election,  CBC’s David Cochrane posted an analysis piece on the new administration.  CBC distributed it nationally.

Cochrane described Dwight Ball as a man “unlikely” to be Premier:

Four campaigns. Two losses. Two wins.  By a combined 75 votes.

Cochrane’s account leaves out relevant context.  When it comes to describing how the Liberals won,  Cochrane focuses not on anything the Liberals did but rather a string of Tory blunders that  - according to Cochrane  - made it easy for the Liberals to win the election essentially by accident.

And now, as Cochrane’s story goes, Ball The Unlikely will have to face enormous financial problems using a plan that Cochrane claims “was greeted with enormous skepticism in the final week of the campaign.”

Election Results #nlpoli

Doing things differently.

That’s what the Liberal campaign was all about.

Now we have to see if Ball and the Liberals actually put that into action.

The youtube election #nlpoli

This is the year of the youtube election.

Some of them, like Alison Coffin’s recession pitch or Dan Crummell’s “I live in the district” spot are simple and straightforward. Others, like those of Conservatives Beth Crosbie and Ryan Cleary are so bizarre that they are funny.  On Facebook, Conservative Alison Stoodley identified Browning Harvey as a threat to public health.

All are reminiscent of a string of videos released by John Ottenheimer during the Conservative leadership campaign a year ago.  Ottenheimer, the outsider candidate,  tried to use humour to attract some attention to his effort.

Great candidate quotes #nlpoli

The Telegram did voters a valuable service the last weekend of the campaign by printing responses from candidates in metro districts to two simple questions.

They asked the candidates to identify the single biggest issue in the district and how they would tackle it.

Some of the replies were fascinating.

Kevin Parsons, is in a dogfight for his seat in Cape St. Francis.  He is the only candidate who didn’t reply to the Telegram at all.

Bill Kavanagh, the NDP candidate in Conception Bay East – Bell Island is running on the Liberal platform. He thinks public consultation is extremely important.  He’s right.  What’s interesting here is the NDP and Conservatives are criticising the Liberals for not having enough detail in their platform when they talk about consultation.

Dan Crummell, the Tory seeking re-election in St,. John’s West thinks he is the biggest issue facing the district and all his friends agree with him, apparently.

The best answer to any question came from Ryan Cleary.  It’s probably the most honest comment Cleary’s made since he lied to CBC about how he changed parties:

Cleary: First, I would be shocked if I were elected. … .

-srbp-

What’s the biggest issue facing your district?

Cape St. Francis - Kevin Parsons, Progressive Conservative (PC): No response as of deadline. [Nuff said]

Conception Bay East – Bell Island - Bill Kavanagh, Bell Island, NDP: There is a democratic deficit in this district and it’s a direct result of a lack of public consultation when it comes to decisions made by our politicians. [Interesting given the Liberal platform calls for lots of consultation and public input.  The NDP and Conservatives call that a lack of detail.]

St. John’s West - Dan Crummell, St. John's, Progressive Conservative: Strong and effective representation by someone who lives in the district. [That’s his only talking point]

Windsor Lake - Ryan Cleary, St. John's, PC: Change.

Weight Problems #nlpoli

If you want to know why Forum Research’s poll is out of line with the other polls done on the provincial election, you need look no further than the data tables for the questions.

This is why pollsters should give out this information. Lots don’t.

Polling firms adjust their sample so that the sample matches the population as a who for sex, age, geography, and so on.  It’s called weighting.

Forum notes that where “appropriate,  the data has been statistically weighted by age, region, and other variables to ensure that the sample reflects the actual population according to the latest Census data.”

That’s where you get the problem.

Abacus poll confirms massive Liberal lead #nlpoli

Residents of Newfoundland and Labrador awoke Thursday to a massive sucking noise as amateur pundits, media commentators, and newsrooms across the province realised they’d read way too much into a single poll on Wednesday.

A new Abacus Data poll shows the Liberal are actually on track to sweep the entire House of Assembly.  The results contradict a lone poll by  Forum Research that had the Conservative miraculously closing the gap with the Liberals.

Never happened, as it turned out.  Every other poll taken during the campaign lines with the latest Abacus poll.  What’s more  the behaviour of the Tory and Dipper campaigns confirms what serious political watchers already knew:  Paul Davis and Earle McCurdy are desperately trying to save the furniture in the face of a potential Liberal tsunami.

The Leaders

The provincial election campaign a decidedly nastier turn on Monday. Conservative leader Paul Davis is trying his best to save the party’s furniture.

Davis’ best is nasty stuff.

Davis called Dwight Ball a liar.

Rarely does one politician openly attack another using words like that.  They try to remain civil and respectful.  Davis is the first Premier since Confederation who, facing imminent defeat at the polls, has thrown any trace of decency out the window.

Selling energy assets a good thing: Danny Williams #nlpoli

 

“It was a previous Liberal government that wanted to actually privatize Hydro. This particular government wants to strengthen Hydro, wants to make it a very valuable corporation: a corporation that will ultimately pay significant dividends back to the people of this Province; a corporation that perhaps some day may have enough value in its assets overall as a result of the Hebron deal and the White Rose deal, possible Hibernia deal, possible deals on gas, possible deals on oil refineries and other exploration projects, where hopefully we might be able to sell it some day and pay off all the debt of this Province, and that would be a good thing.”

Premier Danny Williams, House of Assembly, 30 April 2008

-srbp-

The CRA poll in Election 2015 #nlpoli

Corporate Research Associates’ latest poll is in line with polls by MQO and Abacus.

The table below shows CRA’s quarterly poll results since the last provincial election with the CRA “decideds” skew taken out.

Liberals are at 50% of all respondents, with the Conservatives at 16% and the NDP at seven with 26% undecided or giving no answer.

The parties and Muskrat Falls #nlpoli

The mighty Muskrat Falls turned up a few times in the leaders’ debate on Monday night.

Now that the project’s huge problems are plainer,  folks like Earle McCurdy of the New Democratic Party are working hard to capture the anti-Muskrat vote.  They’d like you to believe that the NDP opposes the project.

The truth is that all three three political parties in Newfoundland and Labrador support Muskrat Falls. 

No party wants to stop the project.

That’s it, in a nutshell.

But for the fun of it, let’s go through this old chestnut again, in detail.

The Debate #nlpoli

The only winner in the debate was David Cochrane. 

He’s no Paul Wells but he did a fine job of wrangling the three leaders.

And that’s the problem for the politicians. 

Real people were talking about the fact the neutral guy didn’t frig up like the guy on the other network.  The other folks – all the party h’acktivists on Twitter  - were just talking about how their guy won, which they were saying before the thing started.

If debates matter at all in Canadian elections, this one was a must win for Earle McCurdy or Paul Davis. They needed to score big points on Dwight Ball in order to stand even a vague hope of shifting a few votes in the last week of the campaign.

Neither did.

Methylmercury and Muskrat Falls #nlpoli

Muskrat Falls has been the big issue in two successive elections.

In 2011, the parties wanted to talk about the project, while voters didn’t.  It never showed up in the list of any Top Five issues for voters.

The parties wanted to talk about Muskrat Falls because it was something they all agreed on.  The 2011 election was a good example of an election in which the three parties ignored what the voters wanted to talk about and chattered instead among themselves.

Well, in 2015,  Muskrat Falls and its impact on the economy is a huge issue but none of the parties want to talk about it.  The best they’ve done is insist that non-existent export sales will help keep electricity prices low.  It wasn’t true in 2011 and it certainly is nonsense now.

Another Muskrat Falls issue turned up recently and it could prove to be one of the most significant things so far.

The Undull Election #nlpoli

The only people who think this is a dull election don’t know anything about politics.

Seriously.

On the day before nominations closed for candidates,  the governing provincial Conservatives admitted on Thursday that they probably won’t have a full slate of candidates.  Reporters were quick to remind everyone that we haven’t seen that situation since 1972.

That was the year the Conservatives won a majority government and put an end to 23 years of uninterrupted rule by the Liberals under Joe Smallwood. That was also the first time since Confederation that we’d had a change of political party governing the province.  The second one of the two in the 20th century came in 1989.

Think about that for a second.  In the 40 years after Confederation we changed governing parties precisely twice.  Come December we will have done precisely the same thing within the first 15 years of the new century.

Kicking ass in political coverage #nlpoli

The province’s major media outlets have taken different approaches to political coverage in this election from what they did last time.

The result has been one of the most interesting campaigns in recent memory.

First with the political news…

In the second week of the campaign, VOCM has been kicking ass with a series of polls commissioned from Abacus Data.  Tim Power’s firm has been producing poll results with much more interesting and useful data than we’ve seen in the province for a while. Their work so far in the 2015 election has consistently made news.

Details #nlpoli

While the townie media are clamouring for details from people who don’t have the details, it’s important to look at what the people with the details are saying.

CBC’s Ramona Deering had Premier Paul Davis all to herself for a minute on CBC Radio’s Crosstalk.

She asked him what the current provincial deficit is.

“Hard to put a number on that,” said Davis just before launching into a long-winded rambling yack in order to run even further away from the simple question.

The same sheet of paper #nlpoli

In all the elections in the 21st century, the three political parties in Newfoundland and Labrador have proposed what are essentially the same economic policies.

The differences are minor.

Fear and Hope #nlpoli

In his major interview with NTV on the first weekend of the formal provincial election campaign,  Premier Paul Davis insisted that his party was not the same as the federal Conservatives.

Then he argued that Liberal Dwight Ball would not be able to represent the province’s interest in Ottawa because the Liberal leader would not be able to challenge the Liberal prime minister,  who Davis referred to as Ball’s “boss.”

It was a classic Conservative ploy to resort to fear.

Fear a Liberal government, Davis warned.  Bad things will happen.

Ryan Cleary told a gaggle of reporters that the prospect of a Liberal government in Ottawa and a Liberal government in St. John’s kept him awake at night.

More fear.

Then we got the hat-trick of fear. While the other two were pretty much par for the course, the third one was a gob-smacker..  

The possible shift #nlpoli

If the polls are right, we could be looking at an unprecedented shift in politics in Newfoundland and Labrador.

We could be looking at lots of things but it’s a useful exercise to put a bunch of ideas on the table.  That’s about the only way you can tease out rends that others won’t see.

What can we say about these polls?

Possible Extinction Event #nlpoli

A third poll has confirmed that the provincial Liberals have the support of an overwhelming majority of Newfoundlanders and Labradorians.

74% of decided and leaning respondents said they would vote Liberal if an election was held tomorrow.  17% said they would vote Conservative, while only nine percent chose the New Democratic Party.

Asked who they thought would be the best Premier, 36% chose Liberal Dwight Ball, 24% chose Conservative Premier Paul Davis but only six percent chose NDP leader Earle McCurdy.

Invention #nlpoli

The provincial election campaign is barely a week old and already we have seen certain themes and interpretations emerging that are the product not of fact and observation but of invention.

The most striking one is the imagined explanation for the massive Liberal lead revealed through two polls released at the start of the campaign.  Already we have  commentators in local media connect the Liberal lead to the recent federal election.  They call it the “Trudeau Effect.”

Political scientist Amanda Bittner told a CBC audience on Tuesday night that because the poll came on the heels of the federal election “it’s hard to say what is going on there.”  She then talked in the abstract about what potential impacts the poll results might have on voters.

This is a bizarre comment on several levels.

Remembrance Day 2015 #nlpoli

 

- srbp -

Polls and Projections #nlpoli

If you want to get a sense of how accurate polls were in the last federal election take a look at the ones we have in public and compare those to the actual result on polling day.

In each of the tables below,  we are using the official vote for each party as a share of eligible vote.  Basically, that’s what the pollsters surveyed.  They asked people who were eligible to vote what they would do.

The polls must be wrong #nlpoli

Over the past couple of weeks,  some people have been questioning the accuracy of public opinion polls.

People have questioned the polls in the federal election, especially after the defeat of two candidates in metro St. John’s a lot of people thought would win.  The two polls released last week show the Liberals with such a commanding lead that some people – especially Conservative and New Democrat supporters are doubting the accuracy of the polls.

If you are a Conservative and think the Conservatives should be doing better, then you may be disappointed by what follows.  But if you are interested in a better understanding of polls and what you are seeing in public, then read on. You should always look closely at public opinion polls to make sure you understand what you are looking at.

Downfall #nlpoli

On Day Two of the official provincial general election campaign, a new poll by a different polling method lines up with the Abacus Data poll. In both Abacus and Forum Research, results are shown for decideds and leanings.

Forum goes farther than others, though, by showing demographic breakdowns of the responses. The Telegram had the poll first.

In the party choice question, Liberals dominate ever age category.  The narrowest gap is in the 65+ group where the Liberals have 55% of support compared to the Conservatives 33%.  In the 18-34 cohort,  Liberals hold a commanding lead with the support of 70% of respondents.  The Conservatives and New Democrats have the support of 16% and 14% of respondents respectively.

The sex split is equally stark (L/C/N):  62/24/12 for males and 68/19/13 for females.

Abacus – First poll 2015 #nlpoli

No surprise that the Liberals are way ahead in the latest Abacus horse race poll.

No surprise the NDP have fallen and the Tories have held steady.

What you need to look at to understand what this means are the results for three Abacus questions.

Setting fire to your own ass is never a good idea #nlpoli

While Paul Davis and the Conservatives were launching their official election campaign,  Ryan Cleary turned up in a recorded interview on NTV to talk about the controversy he embodies.

The single biggest thing Cleary did was confirm that his answer to David Cochrane last week was a lie.

Did you discuss running in Virginia Waters-Pleasantville, David Cochrane asked Cleary for the second time.

“Absolutely not,” said Cleary clearly.

Yet there was Cleary not even a week later telling NTV’s Lyn  Burry that – in fact – Cleary had talked to NDP leader Earle McCurdy about Cleary running in Virginia Waters instead of the current candidate Bob Buckingham. Cleary brought up the idea by questioning whether Buckingham could run a law practice and be a candidate at the same time.

Media Training 101: Truth and Credibility #nlpoli

Last Friday, CBC’s David Cochrane asked Ryan Cleary about information Cochrane had – apparently from NDP sources  - that Cleary had tried to run in a district where the New Democrats already had a candidate.

They asked him specifically about Virginia Park-Pleasantville, where the NDP had already announced lawyer Bob Buckingham would be the star candidate for the party.

Cleary replied:  “Absolutely not.”

That wasn’t true, as CBC’s Terry Roberts confirmed on Wednesday.

Admission of failure: Conservative offshore negotiations #nlpoli

The news release on the government’s generic offshore royalty  wasn’t exactly a model of clarity and accuracy.

The headline and first sentence referred to the announcement of a “framework.”

The first quote claimed that “establishing the enhanced generic offshore oil royalty regime” was an achievement for the current administration. 

The problem is that none of it is true.