Roger Grimes and the Lower Churchill

1. From The Independent, a story buried in the print edition last week but given prominence on the website.

Former premier Roger Grimes says when -- or if -- Danny Williams signs a deal to develop the lower Churchill, it will be "almost identical" to the one Grimes nearly signed with Quebec in 2002. He says the project remains undeveloped because of political games played by Danny Williams' administration.

"My assessment of it, quite frankly, is this: if Danny Williams ever does a lower Churchill deal," Grimes tells The Independent, "he'll do the deal I had on the table, or very close to it, because it is the only one that makes any economic sense."

There's another story this week featuring an interview with Dean MacDonald. It won't be online until Wednesday, but as soon as your humble e-scribbler can grab a copy, there'll be a post.

2. As a backdrop to all this, read for yourself the draft agreement Roger, Dean and Danny are talking about.

Combat medicine

From CBC Newfoundland and Labrador, this profile of Lieutenant Commander Bob Farrell, a Canadian Forces medical officer recently returned from a tour in Afghanistan. [Note: ram file]

Let's do the Time Warp

Let's take a little trip through the Magic Time Machine of Hansard, back to March 12, 2002.

Danny Williams, then Leader of the Opposition was in full flight, debating Bill 65, an act to amend the Fishery Products International Act.

Mr. Williams:...It did not have to happen. We have a black eye now on the business reputation of this Province. People do not like heavy-handed intervention. They do not like it, and that is what happened in the business community. The national media are looking at it and they now see our intervention as heavy-handed. If it had happened back in April of last year, back in May of last year, there would have been no problem.

The hon. Member for Lewisporte talked about his concern about a privitive clause. We all share that concern. There should be no need for a privitive clause. There should be no need to hide behind your mistakes, so that people who have a right to sue you can rightfully sue you. We have done it; it is out there. You have this unique legislation that talks about privity, so you cannot sue us because we made mistakes. That is wrong. That could have been prevented. The legal opinion that you had last spring said that you could change that legislation for public policy reasons, and you did not do it. [Emphasis added]

Black eye on the business reputation of the province?

Think Fishery Products International after Danny Williams came to power. Think Hebron and threats to take out ExxonMobil. Think Abitibi and the threats to expropriate.

Privitive clause?

No need to hide behind your mistakes?

Think Max Ruelokke and Danny Williams' argument that the courts had no right to review government's decisions, or to be accurate their persistent failure to act as the law directed.

Something suggests Don Burridge was carrying a brief he did not write on that one.

But you know, when you go back to what Danny said then and what happened later...

It's astounding, time is fleeting
Madness takes its toll
But listen closely, not for very much longer
I've got to keep control

...

It's so dreamy, oh fantasy free me
So you can't see me, no not at all
In another dimension, with voyeuristic intention
Well-secluded, I see all
With a bit of a mind flip
You're there in the time slip
And nothing can ever be the same
You're spaced out on sensation, like you're under sedation
Let's do the Time Warp again!

Man, that was fun. We'll have to do the time warp again, really soon.

More like a small gene pool

The local New Democrats are still a little miffed that Karen Oldford decided to run for the Liberals in Labrador West instead of the party of Tommy Douglas.

"I'm quite disgusted.… I've never heard of this stuff happening before," said Nancy Riche, responding to Karen Oldford's decision to run for the Liberals in the March 13 byelection in Labrador West.

NDP president Nancy Riche said she is appalled that the Liberals competed for a candidate her party had lined up to run in Labrador West. NDP president Nancy Riche said she is appalled that the Liberals competed for a candidate her party had lined up to run in Labrador West.

"It really speaks to principles [and] lack of principles and ethics, I think."

That's a quote from the CBC story.

As much as Nancy Riche is a solid commentator and a savvy political operative, this comment suggests the early stages of late onset pinocchiosis.

Now that we have a bit more information, the whole thing sounds like typical daily life in the small gene pool known as Newfoundland and Labrador politics.

I used to be commonplace to see the same person being courted by at least two parties at the same time. That was back before the ice sheet retreated and Pangaea split up; you know back when your humble e-scribbler was actively involved in politics.

Young readers will be excused for googling Pangaea to see who played lead guitar.

In the run up to the 1989 Cucumber Battle between Tom "Shakeylegs" Rideout, right, and Clyde "Unconscionable" Wells, there was one candidate who was fiercely pursued by both Grit and Tory suitors. In the end, the candidate elected to go Tory figuring that Rideout would win. It was a fair bet and had the candidate chosen correctly, well, a cabinet seat was waiting either way. That wasn't part of the inducement; it's just a natural conclusion given who the individual is.

Trevor Taylor ran as a Dipper, if memory serves. Ditto Wally Noel, the former King of Pleasantville who could easily knock off the singularly unimpressive natural resources minister even if he ran again even for the Radical Looney A-ha-ha Party.

Floor crossing is an old sport in this province after an election. Sometimes people start out working with one party only to see the error of their ways and switching to another team.

If Nancy really wants to find the culprit in this little drama, she can look to Jack who hit the road after 16 years as head of the local NDP having done nothing obvious in the meantime to give the part a reasonable shot at being the official opposition, let alone take government.

As good as she is at partisan politics, Nancy couldn't hope to undo a decade and a half of inertia in a handful of weeks.

Province wants assets for free?

Fish minister Tom Rideout confirmed Wednesday that any sale of Fishery Products International Limited must include transfer of FPI's most valuable asset - fishing quotas - to the provincial government.

Rideout gave no indication the provincial government was prepared to purchase the quota or any other assets. His comments suggest that the provincial government will use its power under the Fishery Products International Act to obtain the quotas for free. Under the Act, any sale of FPI assets must be approved by the Lieutenant Governor in Council.

As CBC News reports, the provincial government acquired fishing quotas as part of a deal to keep the Arnold's Cove fish plant from closing.

A 2005 review by the province's auditor general found substantive problems with the Arnold's Cove deal.

Auditor General John Noseworthy reported that the provincial government provided $3.5 million in financial assistance to Icewater Seafoods Inc. contrary to government policy that prohibits direct financial assistance and loan guarantees to primary fish processors.

Noseworthy said the allocations were acquired by Newfoundland and Labrador Industrial Development Corporation (NIDC) in order to avoid concerns raised by the federal government over transfering quotas to the provincial government directly. As part of this transaction, the provincial government, through NIDC, "received a groundfish quota from High Liner Foods Incorporated comprised of allocations for [nine] groundfish species totaling 3,676 metric tonnes for 2004-05. In addition, the company agreed to pay NIDC a minimum annual lease fee of $50,000 relating to this quota."

Noseworthy concluded the provincial government violated the Financial Administration Act by advnacing money from the Department of Finance to NIDC. Noseworthy said the pre-commitment "would not meet the requirement in the Financial Administration Act for 'an agreement to be entered into for the provision of goods or services to be delivered in a subsequent fiscal year.'"

Noseworthy said that while Ice Water Seafoods was required to pay $50,000 annually to lease the quotas, that amount did not cover the carrying costs of the $3.5 million, estimated at $200,000.

While the deal was presented to the public on the basis of retaining control over the right to fish in waters adjacent to the province, Noseworthy said that Icewater subsequently transferred 72 tonnes of its allocation to a Nova Scotia interest for processing in that province. An additional 300 tonnes was transferred from Icewater to an unnamed Newfoundland and Labrador processor.

While the provincial government invested $3.5 million in Icewater, there is no indication the provincial government is planning any investment in a future operator of FPI assets. However, acquiring a business interest with no capital investment is similar to a fear being expressed about the province's oil patch and the upcoming energy plan.

In a December 19, 2006 article in the Financial Post, bureau chief Claudia Cattaneo said "[t]he province is expected to unveil an energy plan early in the new year that will bring back government ownership and control of oil and gas resources in Canada for the first time since the 1980 National Energy Program. One the greatest fears is that the plan will mandate equity ownership in oil projects by the province without contributing capital...."

Sanford Limited acknowledges purchase offer

Sanford Limited, the New Zealand fishing enterprise with slightly less than a 15% interest in Fishery Products International Limited confirmed for New Zealand media in late January that it had received unspecified offers for "most of its Canadian business" held through FPIL.

Managing director Eric Barratt is reported to have indicated that while the outcome of the offers was unknown, the offer(s) would not be detrimental to the carrying value of the company's investment.

Sanford recently disposed of its Argentinian assets. Barratt told the Dominion Post that several offers were being considered for FPIL, but that selling out of overseas fisheries was not part of Sanford's international structure.

In May 2006, Bond Papers reported on Sanford's 2005 annual report. At the time, the company directors noted that they were prohibited by Newfoundland and Labrador law from increasing their investment in the company. Increasing their investment would have shown Sanford's confidence in the medium- to long-term viability of FPI under its current ownership and management.

As well, Sanford was compelled to write down the value of its shares, which had been booked at CDN$11.00 per share, due to persistent trading of FPI shares at less than CDN$6.00 per share.

The Minister for High Dudgeon

Recreation minister Tom Hedderson "takes great offense" at allegations surrounding the selection of Corner Brook as the site for the next Newfoundland and Labrador summer games. He also finds the allegation "contemptible."

"It is very upsetting to me that completely unfounded allegations of political interference by the Opposition may have taken some of the good feelings of pride and expectation that the people of Corner Brook and all of the athletes across Newfoundland and Labrador who will be there in 2008 should be feeling right now," said Minister Hedderson. "I urge all involved in the planning and preparation for these games to ignore the senseless innuendo taking place for crass political gain."

For some reason that is completely unfathomable to normal human beings, politicians in Newfoundland and Labrador seem to feel that their emotional condition qualifies as news.

It doesn't.

Just about every paragraph of this news release is an expression of some form over emotion in reaction to the idea that a member of the opposition might make an allegation that maybe the awarding of the games wasn't kosher, that it might be politically motivated. There are few facts, if any, except that Corner Brook last hosted the games in 1986, while Harbour Grace hosted the games in 1992. The original release was much better in explaining the rationale behind selecting Corner Brook.

What we have here is a highly predictable news release from the Liberal member for the Harbour Grace-Carbonear district. It actually isn't worthy of a response.

If there was a reply, one might expect the minister to merely state the reasons offered in the original release, note the number of strong bids received and wish the bidders better luck the next time around.

What we get instead is more just more of the melodrama that passes for politics in Newfoundland and Labrador. The Premier loves to express his anger, his frustration or his pride in this that or something else. Now his ministers have caught the same political disease.

Now to be fair, not so long ago, the Liberals used to do exactly the same sort of thing. It was silly then. It is even sillier now, especially considering that this administration was elected on the pledge that they were bringing a new approach to government. Some of us thought that the foolishness would go; little did we know that what Danny Williams' team they really meant was that they would raise silliness to a new height.

Harbour Grace-Carbonear didn't get the games. Too bad. Suck it up and move on. The opposition member alleges political interference. Wow: that's original. The minister is irked. Who really gives a sweet you know what.

The risk being run here is that people who are already tuning out political news out of disgust at the House of Assembly debacle will just become convinced that politics in general consists mostly of people being sooky. Forget the important issues the province is facing: let's just yak about what - in the bigger scheme of things - is simply irrelevant.

Given Tom Hedderson's comments today, it would be hard to blame them for changing the channel, or in the case of these two legislators, changing the incumbent next time out.

Arse-lickers of Satan

Another blow for bad ideas

Nova Scotia maintains barriers to inter-provincial free trade in beer.

Beer.

That's positively un-Canadian, for cryin' out loud.

Restrictions on beer?

Another blow is struck for the cause of provincialism.

Protectionism isn't a new thing for Nova Scotia, of course, but one can only wonder why the province insists on repeating the mistakes of the past and others, closer to home, continue to advocate the same counter-productive approaches from the murky past.

Getting rid of $1.32 levy per case would be selling the farm, there, Rodney?

Get a life.

It's surprising that some politicians in Atlantic Canada didn't try to make the East Germans an offer on The Wall. You know, seeing as how they aren't using it any more. What a waste of all that good concrete, not to mention the guard dogs and land mines.

Dipper moves to Libs

The New Democrats are claiming that the provincial Liberals "poached" their candidate in Labrador West.

of course, candidates aren't like fish. You can't poach them if they aren't poachable.

Ending parliamentary immunity: as easy as pie

Last week, Premier Danny Williams stated his unequivocal support for allowing anyone to sue parliamentarians in Newfoundland and Labrador for comments made in the legislature.

If the Williams administration decided to act on the Premier's comments, it would be remarkably easy to achieve the goal. In this, the first of two articles, Bond Papers will briefly discuss the notion of privileges and immunities and how they apply in the House of Assembly. In the second article, we will examine the implications of removing parliamentary privilege and immunity as it relates to free speech.

It is important to note that Premier Williams made the comments in response to a reporter's question during a scrum:

Let's change it. From my perspective, I think the legislature should have the exact same accountability [ i.e. being sued for defamation]. That's a democratic practice that goes way, way beyond me. But from my perspective, I'd be prepared to be held accountable...those laws get changed [sic]...or anybody else in the House has to be held accountable for what they say. I have no problem with that.

Like all Westminster style parliaments, the House of Assembly and its members enjoy certain privileges and immunities. Privilege exists for several reasons, one of which is the constitutional separation of powers. The notion is embodied in Article 9 of the Bill of Rights, 1689, "that the freedom of speech and debates or proceedings in Parliament ought not to be impeached or questioned in any court or place out of Parliament."

This notion has been reaffirmed by courts in Canada. In New Brunswick Broadcasting v. Nova Scotia (Speaker of the House of Assembly), a case heard on appeal to the Supreme Court of Canada in 1993, the majority held that:

Our democratic government consists of several branches: the Crown, as represented by the Governor General and the provincial counterparts of that office; the legislative body; the executive; and the courts. It is fundamental to the working of government as a whole that all these parts play their proper role. It is equally fundamental that no one of them overstep its bounds, that each show proper deference for the legitimate sphere of activity of the other.

Freedom of speech is also widely held to be an important right of legislators for the wider public interest it serves. Members of the legislature are entitled to make whatever statements they wish in dealing with a public issue. The same privilege extends to those called before the legislature or its committees as witnesses. All may speak freely and openly without fear and without concern that comments out to be proven true before they are made.

As in all Westminster parliaments, the House of Assembly is master of its own privileges and immunities. Term 7 of the Terms of Union revived the Newfoundland constitution as it existed in February 1934. That constitution included several aspects, including the fundamental power of the legislature to decide its own internal business.

The Terms of Union also provide that the Canadian constitution applies to Newfoundland and Labrador except as varied in the Terms. This general provision not only reinforces the inherent privileges and immunities of the legislature but also provides that the provincial legislatures can establish their own procedures free of interference of the courts. This notion is affirmed in New Brunswick Broadcasting (1993).

The House of Assembly established in section 19 of the House of Assembly Act that the legislature and its members enjoy the privileges, immunities and powers of the federal House of Commons.

The privilege - including free speech - is established easily.

It can also be removed as easily.

If the Williams administration wished to remove privilege and immunity related to free speech for the House of Assembly, it need only introduce an amendment to section 19 of the House of Assembly Act. Given that the administration enjoys the support of a majority of members, it is likely the measure would pass and receive Royal Assent. Only a majority of 50% plus one of members in the legislature at the time would be needed for the measure to proceed through each of the three stages a bill goes through.

Privilege may be a part of the constitution, but it is a portion which applies only to the legislature. As such a simple majority of members may remove a constitutional provision dating back at least to the 16th century.

Thank God for snow days

Seems like Simon's posts are better - if that's possible - when he's stuck indoors.

1. A short piece on the growing tendency of elected officials hiding behind appointed officials...likely telling us how "accountable" they are all the while.

2. A longer piece on how Newfoundlanders (and likely less so Labradorians) are joining the ranks of the world's remittance labourers.

And their government is jiggy with that.

When minds are closed

They miss an interesting study that suggests one way to improve Canada's global competitiveness.

Of course, those same closed minds leap at trivial issues and petty jealousies hold them back from thinking new thoughts.

On the trivial issues front, look around for a long list of who funded the study and who worked on it. Yep. It's a conspiracy to get at our vital bodily fluids.

Petty jealousies? Plenty of those too. How ironic that St. John's Mayor Andy Wells greets the idea of Halifax being a major hub city with the same derision people in Mount Pearl reserve for his pet idea of annexing their city to his own fiefdom.

That's just like shipping government jobs out of a capital city to the hinterland. Wells opposed it when it means moving taxpayers from his city to the various bits of Newfoundland and Labrador devoid of public servants. Wells is in favour of the big waste of money - of course - when the jobs are flowing from Ottawa into his tax base.

Typical.

Wells derides Halifax as an oil centre yet misses the fact that St. John's is rapidly losing its status as an oil and gas centre largely because of the policies he advocates.

Anyway, go against the grain. Keep your mind open. Read the Conference Board of Canada's study on major cities.

You'll be rewarded with sensible observations like this one:

The Balkanization of our Economic Space

Every volume of this report emphasizes the adverse consequences to Canadians of chopping up our national economic space. The non-tariff barriers to interprovincial
trade, mobility and investment are at times so severe that they inhibit the kinds of east–west connections that characterize our deep connections outside Canada. People cannot move easily to work, some industries cannot recruit easily, students face difficulties in transferring credits from one post-secondary institution to another, and supply chains across provincial borders can face obstacles that global supply chains have eliminated. In an age of global mobility, it simply makes no sense to add degrees of difficulty to the movement of people, goods and services from one province to another.

Separated at birth 2

Conrad Black, left [Photo: canada.com], is suing an author for allegedly defaming Black's wife.

Danny Williams, right [Photo: Greg Locke], is threatening to sue people for defamation.

What's the difference?

Well, much like the grumpy-looking visages, there isn't much of a difference actually. At least on this point.

Except, maybe that Black's lawsuit demonstrates both a breathtaking command of obscure words that mean really bad things and an almost fetishistic penchant for hyphens.

Danny Williams likes short sentence. Crisp ones. Half sentences. Fragments really. Sometimes half-thoughts.

The purpose is both cases is the same: people with money, power and a penchant for free speech seek to chill free speech for others through the use of the courts.

Bonus points on this snow storm Tuesday for anyone who could read about Black's law suit and didn't have to look up harridan and slattern.

Government helps cut price on FPI sale

If current speculation is correct, Clearwater Seafoods Income Fund is floating a $43 million debenture issue to purchase some of the assets of Fishery Products International Limited (FPI). There's an option for an additional $6.0 million to be issued.

Something's in the works: fisheries minister Tom Rideout [Right] issued a news release on FPI on Monday.

If it turns out to be true, Clearwater will buy up FPI for about half the value of the income trust proposal, dithered and delayed by the Williams administration until it became useless.

Almost 50 million bucks is less than half the value of FPI's income trust fund proposal.

The impact of government policy is obvious.

Makes one wonder what was the cost per share of Tom Rideout's little dance on the tailgate of a truck in front of FPI's headquarters this time last year and the subsequent decision to prosecute the company for exporting fish.

Curious that exporting undersized fish was one of the ways FPI subsidized it s money-losing groundfish operations. That was very likely something FPI briefed government on in December 2005 when the company let government in on its financial situation and its plans for getting out of the fiscal hole.

That little tidbit did become public until after Rideout's little tailgate party. Odd that, in light of Rideout's very public declarations about the company.

Yes, if Clearwater's debenture issue is intended to finance an FPI purchase, the people of Newfoundland and Labrador should demand a public inquiry into government's (in)action over such a long period. The consequences of what appears to be neglect and bad policy could be dismantling of a company developed with public money with assets sold off for less than their real value. Take a look at a write-down Sanford took last year as a result of the FPI shenanigans.

Don't forget too that, as Bond Papers noted last may, changes to the FPI legislation were intended to make it easier to sell off the company in bits and pieces. Some others have only figured that out now.

But that easy sell-off wouldn't necessarily extend to Clearwater, a company from outside Newfoundland and Labrador and therefore - by definition - one of the foreign demons Danny Williams' administration likes to fight against.

That's where the whole thing gets a bit murky.

The provincial government wants to acquire - completely free of charge - FPI's quotas. If Clearwater wants the whole company or the bits with quota, expect the provincial government to veto the deal or try and squeeze its advantage.

But if Clearwater wants any other part of FPI at all, like say the valuable overseas marketing arm, the whole FPI saga could be over in a matter of a few weeks.

It only took three years to break up a once-proud company, with the help of the provincial government.

Changing the channel

In politics, they call it changing the channel.

That's when an incumbent is taking a few smacks in the skull without let up. So he starts talking about something else entirely.

It's especially important when the provincial pollster is in the field.

Like right now.

After all, this Premier does nothing if he doesn't try to goose polls to demonstrate how much support he has. He needs those numbers to dazzle people, like say a columnist for the Globe.

The provincial government issued 55 news releases last week in an effort to change channels from the by-election loss and the ongoing spending scandal in the House of Assembly. That's the latest aspect of the spending scandal, which of course is different from the previous scandal, as Danny Williams will tell you.

It is different of course since this aspect of it happened since he became Premier and despite earlier assurances that all inappropriate spending was stopped on 22 October 2003.

But I digress.

Let's put that 55 releases in a week in some kind of perspective.

Since the government started it's online news archive in 1996, last week was the seventh heaviest week of releases.

Those 55 releases are the second highest number for Danny Williams' administration. Only Budget 2005 beat it out, but only but two releases.

The typical number of news releases for February over the past two years is around 34. During the same week in 2004, the provincial government issued on 19 releases.

Yessirreee Bob, that's a serious effort at changing the channel.

Manitoba, Ontario move closer on electricity

Manitoba has the electricity Ontario needs.

Manitoba will develop new supplies of electricity to feed demand both in Manitoba and in Ontario.

Ontario gets the power.

Manitoba gets Ontario's cash.

Everybody is happy.

Everybody, that is, except a few people who see plots and schemes in everything designed to rob Newfoundlanders and Labradorians of their precious bodily fluids.

The concern in this province should be that the Lower Churchill will not be built simply because everyone else will get power to market before we do. No one should worry about some secret plans on the mainland to rob us blind; that's just another fantasy devoid of any basis in fact.

In the meantime, some people will continue to advocate that Newfoundland and Labrador follow the successful example of Enver Hoxha's Albania: no export of anything to anyone for any reason. Everything was developed, if it was developed at all, on a go-it-alone basis.

The approach was so successful the country was propped up by hand-outs from outsiders.

Enjoy the story from the weekend Winnipeg Free Press.

Equalization made easy

For those who can't quite figure out this Equalization thing, a short piece from the Edmonton Journal.

If you can't figure out, you aren't alone. There are about five people who actually understand how it works.

Neither of the five currently work for any provincial government in Canada.

Rectifying history

The past is whatever the Party chooses to make it....
If the facts say otherwise then the facts must be altered.

George Orwell, 1984

Apparently someone at Confederation Building read 1984 - or more likely saw the movie - and didn't get the point.

One of the major activities of The Party's Ministry of Truth was the constant rewriting of history to conform to whatever mythology The Party was spreading at the moment, especially about Big Brother.

Witness the latest Newspeak utterance from the Premier's propaganda department announcing the by-election for Labrador West.

"It is a pleasure to announce that residents of Labrador West will have the opportunity to go to the polls and vote for new representation on March 13," said Premier Williams. "The legislation was amended in 2004 to ensure a district does not go without representation for a prolonged period of time."

Seems that some Winston fouled up. He or she was supposed to go back and amend all the previous amendments to the amendments to conform to the current distortion. The factual material would then be dropped down the memory hole whence it could not escape.

A quick check of the 2004 changes to the Elections Act shows that the time to call a by-election was reduced from 90 days to 60 days. The original version was introduced by the Wells administration in 1992. Prior to that the government could wait pretty much as long as it pleased to call a by-election. That's what happened in 1987 when Clyde Wells was elected leader of the Liberal Party. The Tories decided to delay the by-election in Windsor-Buchans as long as they could. So, as premier, Wells introduced changes to the Act to prevent that kind of abuse.

Danny didn't have to wait that long to get his seat in the House.

The Williams change was a cosmetic change at worst. At best, the changes brought in by Danny Williams were inconsequential, tiny, insignificant even, at least when it comes to ensuring that the people of any part of Newfoundland and Labrador were properly represented in the House of Assembly in a timely way once a vacancy had occurred.

Only The Ministry would view it otherwise.

By the looks of it though, someone will be sent off for re-education.

Of course, he/she and his/her error will be erased as if they never existed.

Oil and Gas Week 2007

What a difference a year makes.

For Oil and Gas Week 2006, there was no news release from the provincial government praising the future potential of the industry.

Nope.

There was an announcement that consultations were starting on an energy plan due later in the spring or summer.

Hebron negotiations were moving ahead on a deal for the fourth offshore field.

The oil industry knew that the Hibernia partners would be looking to develop the 300 million barrels at Hibernia South.

Now it's 2007.

No Hebron.

No Hibernia South.

No energy plan. It's only been under development for 10 years.

Natural resources minister Kathy Dunderdale issues a news release talking about all the undiscovered potential offshore Newfoundland and Labrador. Not a peep about the contribution the oil industry already makes to the provincial economy and to the government's treasury.

Then she adds this thought:

We are continuing our efforts to establish a competitive and efficient offshore and onshore regulatory regime that encourages exploration and the timely development of discoveries, while also ensuring a fair return to the people of the province and industry...

The competitive regulatory regime for the offshore already exists and what needs to be adjusted is being adjusted - by the offshore regulatory board. Dunderdale's recent rejection of Hibernia South - based apparently on a series of flimsy excuses - hasn't done a thing to creative a competitive environment for the local offshore sector. Rather it just adds to a very difficult environment in which government demands remain incalculable.

The folly of that can be found in a number of documents, including - oddly enough - a paper written almost a decade ago by former Peckford advisor Cabot Martin. He noted at the time that the oil industry makes its capital decisions on the basis of long-term calculations measured in decades. How true.

Leaping ahead a few years, its easy to see that decisions to investigate Hebron and try to bring it onstream were taken almost a decade ago based in no small measure on the competitive offshore royalty regime the province had at the time. Likewise, the decision to shelve the project means that it will be a while before the proponents come back to the negotiating table.

By comparison, note that Newfoundland and Labrador has never accepted zero royalties, as the Americans did to jump-start exploration and development in the Gulf of Mexico. The local royalty regime also provides significantly better royalties to the provincial government than the American federal regime would provide if the recent Congressional decision is implemented.

There's been nothing done in the past three years to encourage exploration. To the contrary, exploration continues to putter along at an incredibly slow rate due in no small measure to the climate created by Hebron, Hibernia South and the foot-dragging on the gas royalty regime and the energy plan.

Any change in the current freeze offshore will depend on what sits in that energy plan. If it turns out to be a plan modelled on such paragons of sensible economic development as Algeria or Venezuela, we can expect the oil industry to invest its billions somewhere else. Danny Williams' prediction of a better tomorrow a decade from now will have to turn into a longer timescale.

With little or no action in the province's offshore, it seems words now have to serve as a poor substitute.