23 July 2007

Anderson charged

[Correction: Anderson was charged with one count each of fraud, uttering forged document and breach of trust]

Outgoing member of the House of Assembly Wally Anderson (Lib - Torngat Mountains) is facing one count of fraud, one count of uttering a forged document and one count of breach of trust by a public official.

The charges arise out of a police investigation resulting from information provided last year by Auditor General John Noseworthy.

Two reports thus far:

The Telegram.

CBC News. CBC reports that Anderson is represented by St. John's lawyer Bernard Coffey. Coffey was appointed last week as co-counsel to the Cameron inquiry into breast cancer screening at Eastern Health.

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The Confederation referendum and humour

Every now and again you hear someone repeating the line that in 1948, Newfoundland (the "and Labrador" part came later) should have regained independence and only after that looked at the possibility of Confederation.

There were even a bunch of people who tried to stop Confederation through legal manoeuvres.

It's not a new argument, by any means.

In fact, it was such a common argument at the time that The Confederate even took to lampooning it in an editorial cartoon.

Nothing quite hurts in politics like having a joke made at your expense or having your position lampooned.

Just ask Tom Rideout.

Anyway, as a summer treat, here's a vintage cartoon panel from the 1948 referenda on the future of Newfoundland (and Labrador).

It plays on the idea that the real proponents of the independence first argument were Water Street merchants and their associates who had dominated politics in the country. Oddly enough this was the same crowd who surrendered independence in the country by nothing more than a resolution of the legislature in February 1934.

There are proponents of the same anti-Confederate agenda around these days.

Wonder who they might be fronting for?




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Coming Soon: The Greatest Movie Ever!

He's not Spider Pig.

He's Harry Trotter!





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22 July 2007

ALCOA bid off; Rio may pocket US$30 billion in asset sell-off

BHP has reportedly backed away from purchasing ALCOA. Share prices are down for the American aluminum company.

Meanwhile, Rio Tinto's plan to sell off non-core assets in ALCAN could bring the company US$30 billion according to The Australian. Analysis by Goldman Sachs JBWere said Rio could divest of the company's uranium, coal and other assets and focus on iron ore, copper and aluminum all of which are in high demand in the growing Chinese and Indian economies.
GSJBW said the potential sale of Rio's uranium, thermal coal, industrial minerals, gold and diamonds divisions and non-strategic assets in iron ore, copper and aluminum could net $US30 billion ($A34.15 billion).

The brokerage estimates Rio Tinto could receive $US8 billion ($A9.11 billion) for Pacific Coal, $US4 billion ($A4.55 billion) for Coal & Allied and $US5 billion ($A5.69 billion) for its uranium division, which includes its majority stake in Energy Resources of Australia Ltd.
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Summer fiction

On the day after the last instalment in one of the most popular works of fiction in written times, comes this endorsement of one of the great works of local fiction: the rigged Confederation referendum.

Yep.

It had to be rigged.

After all, Newfoundlanders and Labradorians could never decide the fate of their country on their own. After all, as some of the townies told Lord Amulree, the ordinary Newfoundlander just wasn't fit for democracy.

In his own way, former CBC producer Bob Wakeham turned Telegram columnist repeats the townie nationalist fairy tale that is, after all, the only salve they can apply to their wounds from a half century and more ago.

There's no way they lost the referendum fight because they were politically inept, disorganized and that their fellow countrymen and women had brains enough to think for themselves - no matter how they voted.

Good heavens no.

Democracy? They weren't fit for it.

Why is it that it is only the local nationalists who tell Newfoundlanders how stunned they are? Sure they accuse everyone else of doing it but who was the last person who told you that Newfoundlanders always sign bad deals?

Anyway, here's Wakeham's version of conspiracy:
There’s no doubt that the Brits and the Canucks decided, without consulting the people who just happened to live here, that, by nook or by crook, the "Newfoundland problem," as described by officials in both countries, would be resolved by having Newfoundland become part of Canada; that Confederation was added to the ballot of the first referendum at the insistence of Britain (after all, how could the conspiracy to unite Newfoundland and Canada run its course if Confederation wasn’t a voting option?); and that Canada heavily funded the pro-Confederate, Smallwood side, making the process improper and decidedly unfair.
Confederation was added to the ballot after a popular outpouring of support, not by some underhanded practice. Apparently having choice is a bad thing, if one takes the logical conclusion of Wakeham's comment.

The Confederates raised money on the mainland from many sources, including ex-pats. (Confederation didn't produce outmigration) The Confederates raised cash at home as well

The anti-Confederates had plenty of potential sources of cash on the mainland and elsewhere as well. They just didn't tap into them. They were disorganized, not just badly organized.

And in the end, after all the propaganda and all the argumentation across the country for two years, Newfoundlanders and Labradorians voted.

They voted.

They chose.

They exercised their fundamental democratic right.

In the case of Labradorians, for the first time ever in a Newfoundland vote.

And for some reason, Wakeham and a handful of others others just can't get over it.

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21 July 2007

Brian Tobin on youtube

War stories from the Tobinator:



The state department spokesperson during that incident was Mike McCurry, who later served as Bill Clinton's press secretary.

There was an awesome video of Mike breaking into laughter as he tried to explain to the state department press corps how some mollusks are not sedentary. Mike included hand gestures. That's when it got truly silly and the normally staid and professional McCurry cracked.

Sadly, that clip hasn't made it to youtube, yet.

But... there is a transcript, which includes just a hint of the hilarity at Foggy Bottom that day:
MR. McCURRY: Back here?

Q. Yes.

MR. McCURRY: Over the weekend, I believe. Anybody know differently on that? I think that's right.

Q. Can you bring us up to date on the situation involving the two U.S. fishing vessels off of Newfoundland and their seizure by the Canadian Government?

MR. McCURRY: In Canada -- the fishing vessels. There were two vessels fishing for Icelandic scallops in international waters. The United States Government does not accept the Canadian contention that the Law of the Sea Treaty gives Canada the right to exercise management outside of the exclusive economic zone -- the EEZ -- established under the Law of the Sea Treaty for this species of mollusk.

The issue arises, is this a sedentary species or a mobile species? Our view is that this scallop -- first of all, we call this a "fishing vessel." But as you certainly know, these are mollusks that we are --

Q. Have they individual names? (Laughter) Sam and Bill--

MR. McCURRY: Being that these are mollusks, we sort of believe that -- as you probably know, mollusks can swim. They swim by rapidly clapping their fluted bi-valve shells together as they propel themselves through the water. For that reason, they are not, in our view, sedentary.

Q. Have you gone on the record on any of this? Is this a serious concern?

MR. McCURRY: It's a very serious issue. Under Secretary Tim Wirth took the occasion of a visit here to the Department by a Canadian diplomat yesterday to express some very strong concerns we had about it -- what is a serious issue of the seizing of two mollusk vessels -- mollusk fishing vessels.

Q. (Inaudible)

MR. McCURRY: We could. We would be happy to arrange -- in any event, our hope is that the protest -- we had raised the issue and had been in dialogue with the Government of Canada about this prior to this incident, and we're hoping that we would find a way that we could resolve the issue diplomatically before Canada would resort to this type of action which, of course, we consider unwarranted. We do demand that they release both the vessels and the fishermen without any fine or penalty.

Q. The Canadian Embassy said today that the Ambassador is willing to drop everything and come over here at a moment's notice to discuss this if he's invited. Is he going to be invited?

MR. McCURRY: I do know that we will want to work very quickly with the Government of Canada to resolve this issue. We believe it can be resolved through dialogue and not through provocative action by one side or the other.

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20 July 2007

De Trenton a Bagotville?

During the last federal election future defence minister Gordo promised battalions for everyone.

In Bagotville Quebec on Friday, he delivered a new air force wing. Not exactly a rapid reaction army battalion, as originally promised but something new.

The official National Defence news release makes it sound like a bit of an odd creature comprising air force personnel that would deploy in a humanitarian crisis. Even the defence minister's speaking notes are vague on the nature of the new organization, which he termed an air expeditionary wing. It will apparently consist of aircraft of an unspecified type along with army personnel, mostly medical and logistics from the sound of it. O'Connor said that Canada's allies are creating this type of organization.

Well, sort of, Gordo.

The American air force uses air expeditionary wings but primarily as collections of air force squadrons to support joint military operations. They aren't self-contained entities with attached soldiers and sailors. They also aren't necessarily permanent organizations. They are pulled together for the mission.

What this Canadian air wing sounds like is a headquarters apparatus that will have aircraft attached to it for mission purposes, while the aircraft will be located somewhere else. The Canadian Forces have been down that road before.

But what about the "battalion" promised to Trenton? Check this story from the Belleville Intelligencer, dated in late June:
"We're trying to acquire land at this moment," he said. "We have to wait and see whether we're successful in acquiring the land.

"I want to resolve the land issue first. If and when we acquire that land, then we can announce what we're proposing to do."

One rumour circulating locally reports the government may move the airborne project to CFB Bagotville, Que., should the Trenton deal fail. When asked for comment on the rumour, O'Connor expressed confidence in the land talks.
Did the Trenton land deal fail that quickly?

Meanwhile, the people in Goose Bay are wondering when Gordo will be heading to their town to deliver on his election pork promises.

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Scotia confirms predicted economic slowdown

Scotia Economics' latest forecast for Newfoundland and Labrador confirms the predictions thus far that the province's economy will drop to the bottom of the pile for growth in 2008, after leading the country in 2007.

Here's the section, for the record:
Newfoundland & Labrador will lead the Atlantic provinces in overall growth this year with a 4.8% advance before dropping to 1.2% in 2008. The province will benefit from mining and oil & gas extraction this year, given the resolution of earlier labour and production issues. An expansion at the White Rose oil field late last year is providing an additional output boost. Oil and gas production is expected to level off in 2008, as production peaks at the Hibernia and Terra Nova fields. Following labour issues last year and given strong pricing, nickel production should increase this year. Production started up at the Duck Pond mine earlier this year, providing a boost in output for copper and nickel. Exploration activity for uranium, iron ore and oil and gas remains vibrant.

Newfoundland & Labrador’s seafood processing industry is finding it difficult to replace older workers, given relatively low wages and competition amongst Atlantic Canada’s fisheries for the small pool of available workers. Shrimp and crab production are expected to remain the same as last year, although a modest increase in the E.U.’s import tonnage cap for cooked and peeled cold-water shrimp should be of some benefit. Newsprint mills continue to push through cost-cutting initiatives, although further shutdowns could be required.

Private investment should decline this year and next as no major projects are on the horizon. Potential projects, including the Lower Churchill dam, a second refinery at Placentia Bay and development of the Hebron and Hibernia South oil fields remain on hold. The services sector could see stronger tourism activity this year due to an increase in convention and cruise bookings, although Canadian dollar strength continues to pose a threat. Household incomes and retail sales will get a boost from tax cuts passed in the last provincial budget, although a diminishing population and net westward outflow of workers could limit the impact.
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19 July 2007

SOL Day 23: Announcing another announcement previously announced

Like every other news outlet in the province, CBC is reporting that federal fish minister Loyola Hearn released management plans for two marine protected areas in Newfoundland and Labrador.

Okay.

The official fisheries and oceans news release includes this odd comment:
"As we move closer to these two new Marine Protected Areas, it shows what can be done for the environment when everyone works together," says Minister Hearn. "This is another example of how Canada’s New Government is taking real action to protect our precious marine environment."
It's odd because there's no way of knowing what Hearn means by "move closer to these two new Marine Protected Areas."

These MPAs aren't new. They received official MPA designation in 2005, but the actual work at Eastport, for example, began in 1997 with the establishment of a joint management project involving a local fishermen's committee and the fisheries department. Eastport remains a model for co-operative management of fisheries resources. Ditto Gilbert Bay where that MPA is protecting a subspecies of North Atlantic cod. Another project at Leading Tickles is struggling along but it hasn't achieved the same success as the other two.

Hearn might mean "moving closer" in the sense that he went to Eastport to make the announcement but other than that the phrase is a head scratcher. The management plan is good news but the MPAs have worked with some sort of management plan from the outset.

In the Summer of Love, there is obviously no reason not to announce an announcement of a previously announced announcement.

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Hillier not looking at political career

All that speculation about Chief of Defence Staff General Rick Hillier looking at a future political career?

Turns out the idea Hillier would head to Newfoundland and Labrador to try his hand at the premier's job was just the usual bumpf from north of the Queensway.

Turns out the word from the horse's mouth makes it clear the other stuff was from the equine's other end. And that pretty much describes the sort of foolishness typically found at the small local blog Web Talk.

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18 July 2007

SOL Day 22: Cash and Pictures and some Hickey-ups with facts

On this, the 22nd day of the Summer of Love campaign, the provincial government issued no fewer than six cash announcements.

The biggie was Premier Danny Williams and finance minister Tom Marshall handing out cheques in their own districts to support the 2008 Newfoundland and Labrador Summer Games and an ironman competition. The cheques came complete with grip-and-grin photos distributed by the provincial government information service.

Also announced:

- Funding for the Baccalieu Trail tourism industry;

- $575,000 in funding for medical student bursaries;

- Tender award for construction of a new courthouse in Corner Brook; and,

- Another announcement on the Nicholsville bridge in Deer Lake in which transportation minister John Hickey shows a Rideout-esque propensity for saying things that are not backupable. Would that make them Hickey-ups?

In the release Hickey claims that "[t]he Williams Government assured the people of the Nicholsville area from day one that we would replace their bridge in a timely fashion and we have delivered."

What Hickey actually said on Day One - October 30, 2006 - was that the bridge was closed.

What Hickey actually said on Day Two was this:
If we look at the whole Humber Valley district here, there are a number of bridges … that need work," Hickey told CBC News.

"Many of those locations only have one bridge in and out of the community or location, so it will be something we'll be putting on our list of priorities for review when budget time comes."
What the provincial government actually said on Day 19 was that they were working on some solution but that they would look at all the choices before deciding:
"Government’s primary concern regarding the Nicholsville Bridge was the safety of the general public. We addressed that by closing the bridge," said Minister Hickey.

"We are aware of the anxiety of residents regarding the future of the link and we began reviewing our options immediately after we made the decision to close the bridge. However, we want to ensure due diligence before making any pronouncements."
Hickey didn't announce funding for the bridge formally until May 11, 2007; that would be Day 195 or thereabouts.

What a Hickey-up that release was.

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Hebron talks going somewhere. Or nowhere. Maybe. Sort of.

A vice president of Chevron, the lead partner on the Hebron project, was in St. John's this week for meetings on an unspecified topic, as CBC reported.

Premier Danny Williams is downplaying the significance of the visit.

Sort of.

Williams seemed to be playing coy with reporters in Corner Brook on Wednesday saying only that James Bates "...could be in [town] for some interaction with some officials...".

The logical deduction from that comment is that Bates also might not be in town for talks with government officials.

Williams also said that while "at this particular point" he would not say negotiations were back on - obviously they aren't - he said that "[i]f there's going to be negotiations on the project, I would estimate that it would be sooner rather than later."

Williams also said the talks are exactly where they were when they broke off and that the provincial government's position is exactly where it was at that time.

Given the Premier's extensive use of conditional language - "could", "if", "would" - no one should be at all optimistic that talks actually will begin at all, let alone by the fall.

Maybe there's a clue in Bates' background and other appointments. Bates is general manager, asset development with Chevron Canada. He previously held an appointment with Chevron Nigeria. But, as the link indicates Bates also sits on the board of the Centre for Cold Ocean research and Development at Memorial University. Bates may well have been in St. John's in connection with that responsibility.

That would certainly explain the Premier's use of conditional language, since saying definitely that Bates was here for an exchange of information could have easily been acknowledged with the proviso that there are no negotiations. The Premier's vague response suggests that he was merely trying to keep alive the prospect formal negotiations might resume in the fall.

Straight answers like yes or no - something the Premier definitely didn't give in this instance - are usually a sign of credibility. Vagueness suggests something else.

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It's not easy being green or accountable

Note: Then environment minister Tom Osborne announced a consultation into new pesticide regulations in February 2004 to replace pesticide regs introduced the year before. In September 2005, he announced the new regs would be implemented shortly thereafter. They were introduced in April 2007.


Environment minister Clyde Jackman is in the hot seat these days and it isn't from the swelteringly humid weather.

Jackman is facing increasing public criticism for his decision to reduce the demands on the law care industry to notify people living adjacent to a property where the companies will be applying pesticides and herbicides.

Until very recently, companies were required to give written notice to neighbours within a 50 metre radius of the property being sprayed. Jackman quietly reduced the distance to a mere 15 metres. When we say quietly, we mean he changed the requirements in the regulations without any notice to the public.

There are a couple of things to notice about this.

Firstly, there is no requirement in the Environmental Protection Act that the minister notify the public to changes made to terms and conditions of a license for pesticides.

The Act allows the cabinet to make regulations and those regulations, such as the amendments gazetted on April 20, 2007, empower the environment minister to set terms and conditions of a license to hold and apply pesticides.

So when Jackman says he merely changed the terms and conditions of license [revised, added aside] - and that he did not legally need to notify people - he is correct. That's what the law provides and that's what he did. However, in using this argument that conditions are somehow not regulations, Jackman is engaging in the same game of petty semantics as Tom Rideout recently did on the Green accountability bill.

The terms and conditions are an integral part of the regulation and as it occurs,* Jackman's power as minister to set and enforce any terms and conditions result from regulatory power conferred on him ultimately by public statute. They are not merely internal administrative rules on what type of pen to use or what colour paper a form shall be printed in. The terms and conditions are integral to the license itself.

Secondly, though, and flowing from that, Jackman's actions are an all too common feature of government in Newfoundland and Labrador. Increasingly, substantive powers are delegated from the legislature to the cabinet - such as the break-up of Fishery Products International - and mandatory public disclosure as would be required legislative change is eliminated entirely.

In the case of making regulations, it is normal to give cabinet the power to establish regulations. It would extremely cumbersome to bring a bill to the legislature each time some part of the myriad regulations governing life in the province had to be changed.

However, the regulations gazetted on April 20 simply repeat the delegated authority established when the new regulations were introduced in 2003 and give authority to the minister in as broad a set of terms as possible.

Nowhere is public disclosure established beyond the historic requirement that any legislative measures take effect once published in the Gazette. How many people are aware the Gazette exists, let alone how many read it? To make that the standard of public disclosure - of accountability and transparency - in the 21st century is to sanction the passage of the Green bill in a manner the Green commission report expressly condemned.

That's really the root of the current problem: a lack of public disclosure.

Province may not have made pesticide reg changes as claimed in '05

It is important to note here that pesticide and herbicide spraying are well know issues of public health and environmental concern. They are so well known that Jackman's predecessor issued a news release in February 2004 on a public consultation on the proposed pesticide regulations. The consultation included a discussion paper outlining the issues and a consultation period of 60 days.

As it turned out, the whole business was so involved that it took 18 months to produce a news release that the amended regulations would be introduced. It is interesting to note however that there is no evidence on the provincial government website that any amendments were made to the pesticide regulations until the changes made in April 2007.

Jackman's predecessor - today the justice minister - was eloquent in his statement at the time:
"One of government’s main goals is to reduce and, ultimately, eliminate the unnecessary use of pesticides, as the public must be reminded that there are alternatives to addressing lawn problems besides using pesticides like proper lawn installation and maintenance. Actions such as banning the sale of fertilizer/herbicide blend products from domestic markets and mandatory certification and training for vendors of domestic class pesticides, which will also help educate consumers to make wise decisions on pesticide use, will indeed play an important role in helping us achieve our goal."
Calls were made by several groups, including the Canadian Cancer Society, for a ban on the use of pesticides and herbicides for cosmetic use since the products involved have possible or probable carcinogenic effects. While the government did not enact the ban, its intention to apply tighter controls and eventually promoting alternatives to pesticide use was plainly evident.

Source: Statistics Canada

There was good reason to restrict pesticide application in the province. As recent information from Statistics Canada shows, pesticide use in Newfoundland and Labrador doubled from 1994 to 2005/2006. The proposed 2005 regulations may have reduced use somewhat in the province, but further loosening of the restrictions on notification make it effectively much easier to use pesticides and that is essentially contrary to the policy goal of this administration when it introduced the new regulations less than two years ago.

Being fully aware of the likelihood of public controversy resulting from any changes to the pesticide regulations, it is astonishing that Jackman failed to make any mention of the changes introduced in April and any other decisions he made as a consequence of the new powers.

Perhaps he was afraid of embarrassment since it appears the 2005 announcement was never implemented. However, the minor embarrassment for such an admission might pale if the new regulations actually improved public protection.

As it stands, the reduced notification period does not appear to do that, at least as measured by government's stated intention in 2005. As well, the intention in 2005 of applying restrictions to use around public spaces - absent from the 2003 version of the regulations - appear to be toothless in the final version. Under the April 2007 regulations (s. 8.1), pesticides not listed as exempted or as being a reduced risk may still be applied at or near senior citizens homes, hospitals, personal care homes, licensed day care centres, parks and other open spaces and near schools either where the building will be unoccupied for at least 48 hours after the application or with a special exemption as granted by the minister.

The provincial environment minister is under fire from concerned citizens and some advocacy groups for failing to disclose changes to regulations. Maybe he felt it might be embarrassing if the changes promised in 2005 had not been implemented. Well he should be in a government which claims to be accountability and transparent as often as another government says it is "new".

But, as it turned out, Jackman is in a controversy all the same and his tortured explanations of the past few days are not helping matters.

In the days ahead, he may well come to appreciate why it would have been better that he had simply made the announcement in April in the first place.

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* This marks a change. In the original version the phrase read "as a matter of law". in the absence of a legal opinion on the point, the author is not able to make such an authoritative pronouncement. The amended version more accurately reflects the situation without implicitly carrying any legal interpretation.

16 July 2007

Advocating give-aways

Simon Lono at Offal News has been doing a bang-up job of exposing the misinformation being spread by some people in the province on everything from fisheries to hydro-electric projects and development of aluminum smelters.

Well, one of the little pieces of information the economic myth-mongers won't acknowledge is the massive subsidies necessary to put heavy industrial projects in places like Iceland.

Iceland Review
reported in early July that Century Aluminum Iceland will pay a mere three cents per kilowatt hour for power (US$0.03 per kw/h) from Reykjavik Energy Company for 40% of the power demand on its new smelter. The remaining power will come from another Icelandic company.

According to Iceland Review, farmers in the tiny country pay upwards of six cents per kilowatt hour for electricity.

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Chaos in Control

There are times when deputy premier Tom Rideout seems to be channeling the late Don Adams in Adams' most famous role, that of Maxwell Smart, left.



One of those times has been the series of media interviews Rideout, right, has done trying to explain why the Green accountability bill is not actually in place today, despite the fairly obvious way in which Rideout and his colleagues attempted to suggest it was when the bill was passed - extremely quickly - on June 14.

"Zany" and "madcap" are fine words to describe comedy, but it has been entirely bizarre to have Rideout engage in the sort of semantic gymnastics that would make Buck Henry and Mel Brooks envious.

Consider Rideout's efforts to explain that while today might well have been June 14 when the bill was passed, tomorrow did not actually mean June 15. Rather it meant some date four months hence.
Since Green didn't say the act comes into effect today, we, in consultation with him, said what can come into effect today comes into effect today, what needs time to come into effect tomorrow comes into effect tomorrow, and tomorrow is Oct. 9, 2007.
The latest instalment in Rideout's apparent audition tape for the forthcoming Get Smart movie came in the Telegram's July 14 edition in which Rideout took exception to having it pointed out that a week before he acknowledged that the accountability provisions of the Green bill would not take effect until October 9th, Rideout had said they were in place now.

In a letter to the editor, Rideout accused the Telegram's Rob Antle of engaging in petty semantics and then explained that now was in fact not now but then, and when then arrived, Rideout's statement would be accurate, retroactively in the future. The whole thing has been eerily reminiscent of Max Smart attempting to explain that Antonio Carlos Carioca, also known as "The Lover" was in fact "The Blaster" and that Carioca's boat was named El Amador, which is Spanish for "The Lover".

The problem for Newfoundlanders and Labradorians in all this, though is not that Rideout, right, and his fellow members of the legislature have demonstrated remarkable unaccountability in dealing with a bill on accountability, using their own version of the Cone of Silence.

Nor is the problem that Rideout apparently cannot tell time.

Rather the problem is that, to paraphrase a former English teacher, chaotic use of language suggests a chaotic thought process.

For those who aren't familiar with the local cabinet, let us recall that Rideout is the minister of fisheries. He is the province's attorney general and as such is the chief legal advisor to cabinet. He is also the government house leader and, as such, is responsible for piloting the government's legislative agenda through the House of Assembly. Rideout is also the deputy premier and, as such is, in a manner akin to Dan Quayle, a mere heartbeat away from the most powerful office in the land, an office he one occupied.

Of all the people the Premier might have chosen for those extremely important jobs, he chose Tom Rideout.

The problem for Newfoundlanders and Labradorians in all the Green mess might well be that chaos is in control.

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15 July 2007

BHP Billiton considering US$50 billion bid for ALCOA

In the wake of Rio Tinto's successful bid of US$38 billion for ALCAN, mining giant BHP Billiton is reportedly considering making a US$50 billion bid for ALCOA.
BHP Billiton is already heavily involved with Alcoa through marketing arrangements in the US and its 39.25 per cent stake in Alcoa of Australia, which operates the Portland and Point Henry aluminium smelters in Victoria that provide about 30 per cent of Australia's aluminium production, and the Kwinana, Pinajara and Wagerup alumina refineries in Western Australia.
Meanwhile Rio Tinto is reportedly looking at options to cope with ALCAN's debt.
"We will be looking at the full range of Rio Tinto businesses in the new, larger Rio Tinto," he told ABC television.

He did not specifiy which parts of the business could be sold but said there could be some that "don't quite fit" or would be more valuable in the hands of another company.

"We might find buyers that are willing to pay more for them than we would necessarily see ascribed in our valuations or in our balance sheet," he said.

Analysts have said that Rio could offload its aluminium smelters or Alcan's engineered products division.
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13 July 2007

Kruger closes CB paper machine, other companies may follow suit

Kruger Inc. announced late on Friday that it was shutting down a newsprint making machine at the company's Corner Brook mill effective July 22.

The company blamed the rising Canadian dollar for the unexpected shut-down.

Other factors also likely played a role, namely surplus capacity in the North American market coupled with surplus production capacity.

Editor & Publisher reported on July 5 that North American newsprint demand fell year over year by slightly over 8% in May and was down 11% in the first five months of 2007. The online edition of the newspaper industry journal also reported:
Further closures by Abitibi-Consolidated Inc. or Bowater Inc. are not likely to come until after the two companies merge, which is slated for late July. Mid-sized companies also are expected to indicate plans to close high-cost machines this year, noted Dillon.

Recently, some producers announced closures. Catalyst Paper Corp. indicated last month that it would indefinitely idle its 134,000 tonnes/year No. 4 newsprint machine at Port Alberni, B.C., by Sept. 1. More recently, a June fire at Abitibi-Consolidated Inc.’s Grand Falls, Nfld., newsprint mill resulted in a decision to shut the mill down for three weeks for repairs. Meanwhile, Kruger Inc. reportedly announced downtime at several mills.
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Docs finger short time span in review foul up

Dr. Joe Tumilty, president of the Newfoundland and Labrador Medical Association, said on Thursday that errors in the review of radiology reports from the Burin hospital can be traced to the speed in which the review was conducted.

In late May, health minister Ross Wiseman ordered the review completed in 10 days, while Eastern Health had indicated (likely as Wiseman had been briefed as well) only two days earlier that Eastern Health would need four to six weeks to complete the assessment of records on what was estimated at the time to be 3,500 patients.

Tumilty comments echo ones he made in late May that the review "must balance timeliness with quality control."

Tumility's comments Thursday came in the wake of revelations that an administrative error led to the omission of as many as 1,000 reports from the initial review. Tumilty did not comment on whether or not the review to date had actually balanced timeliness with quality control.

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12 July 2007

The Darwin Awards of Crisis Communications

Health minister Ross Wiseman and how not to handle a crisis, a detailed commentary at Persuasion Business.

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11 July 2007

Burin radiology timelines

The tick tock:

February 2007: Concerns raised within Eastern Health of reports by a radiologist at Burin hospital. Eastern Health initiates preliminary review of sample of records [Source: News media coverage//Hansard]

May 10: Unidentified officials in Department of Health and Community Services advised of issue by EA officials. [Source: Hansard, Question Period, Answer by Ross Wiseman, May 23]

May 18: Wiseman briefed by department officials on Burin radiologist issue. [Source: Hansard, May 22, May 23]

May 22: Eastern Health announces suspension of radiologist at Burin and a review of 6,000 patient records involving 3,500 patients.

Announcement made immediately before news conference announcing public inquiry into breast cancer testing.

EA chief executive George Tilley states it will take four to five weeks to complete the review, initially stating it would take "several" weeks.

May 24: Minister of Health and Community Services Ross Wiseman publicly orders completion within 10 days. [ Source: media coverage//Timescale - Hansard, May 24]

May 29: End of Week 1 from date of announcement.

Jun 05: End of Week 2.

Jun 08: (Two weeks after announcement) EA announces review of 4,600 records completed. Review did not include an unspecified number of bone density scans that would be completed at an unspecified later date.

Jun 12: End of Week 3

Jun 19: End of Week 4

Jun 22: Through his lawyer, suspended radiologist expresses confidence in his own abilities despite media reports.

Jun 26: End of Week 5

Jul 03: End of Week 6

Jul 05: Wiseman meets with Tilley, accuses Tilley of mismanaging Burin radiologist case. [Source: Wiseman news media briefing, July 11, media debrief by CBC Radio.]

Jul 09: Tilley tenders resignation. EA announces resignation, which came as a "surprise".

Asked about government involvement in Tilley's departure, Wiseman ducks the question, stating that the matter is between EA and Tilley:
"Keep in mind Mr. Tilley is an employee of Eastern Health, and the board chair [announced] the board has accepted his resignation, and those issues in and around that employment relationship are better directed to Mr. Tilley himself," Wiseman told CBC News.

Wiseman described the departure "as a personal decision that Mr. Tilley came to an understanding with his board as to what his future was going to be." [Emphasis added]
Jul 10: End of Week 7

Jul 11
: EA announces 1,000 - 1,100 reports from review unread due to apparent discrepancy in list of patients and reports. Acting EA CEO says list reconciled manually based on scheduling and billing records.

Jul 11: Wiseman admits meeting with Tilley on 5 July and accusing Tilley of mismanaging radiologist issue. [Source: CBC Radio news debrief] vocm.com attributes comment toWiseman that "Eastern Health of Eastern Health did not advise government they needed more time." Wiseman apparently made no reference to his insistence that 10 days was sufficient to read 6,000 radiology reports.

-srbp-