NALCO: the power of confusion

A sample of the conflicting policy statements on the Lower Churchill, Holyrood diesel generating plant and the rationale for slinging hydro lines on 43 metre tall towers in a UNESCO World heritage site.

A.  Premier Danny Williams:

"The reason that those lines are actually going through that park and the existing transmission corridor is to take out the dirty emissions that are coming from the Seal Cove-Holyrood plant," said Williams, referring to an oil-burning generating plant in eastern Newfoundland. [CBC story, 24 Feb 09]

B.  NALCO environmental impact submission on the hydro line project (2009):

A key purpose and rationale for the proposed Labrador – Island Transmission Link is to put in place infrastructure to further interconnect Newfoundland and Labrador with the North American electricity system and thus, set the stage for further development and growth in the province’s energy sector and overall economy.

It will also play an important part in ongoing efforts toward securing adequate, reliable and sustainable electricity supply for Newfoundland and Labrador, to address the current and future needs of the province’s residents and industries. [Page ii. Punctuation, capitalisation and italics in original] [Bold added]

…

A key rationale for the project is to put in place infrastructure to further interconnect the province with the North American electricity system, in order to facilitate the future import and export of electricity between mainland North America and Newfoundland and Labrador, and thus, help set the stage for further development and growth in the province’s energy sector….[Page 1] [Bold added]

Similar phrasing appears repeatedly throughout the document’s 199 pages.  Holyrood does not appear as any part of the rationale until page 8. The energy plan makes reference to the Holyrood displacement, but NALCO’s proposal downplays the Holyrood issue in favour of the general development of interconnection “to facilitate the future import and export” of electrical power from the province.

C.  NALCO 20 year capital plan (2008) on the role of Holyrood:

It is important to consider that whichever expansion scenario occurs, an isolated Island electrical system or interconnected to the Lower Churchill via HVDC link, Holyrood will be an integral and vital component of the electrical system for decades to come. In the isolated case Holyrood will continue to be a generating station; in the interconnected scenario its three generating units will operate as synchronous condensers, providing system stability, inertia and voltage control.

Holyrood will not close. The plant will continue to operate under NALCO’s 20 year capital plan with or without the infeed from Labrador. This is in direction opposition to the province’s energy plan released the year before.

D.  The energy plan (2007) commitment on Holyrood:

In the long-term, the current level of emissions from the Holyrood facility is unacceptable. The Provincial Government, through NLH, has investigated the long-term options to address Holyrood emissions and decided to replace Holyrood generation with electricity from the Lower Churchill through a transmission link to the Island. This replacement provides an excellent opportunity to partner with the Federal Government to reduce GHG emissions.

The energy plan envisages the export of wind-generated electricity from the Island.  The infeed environmental document indicates that wind generation is being capped at 88 megawatts because of problems with grid stability.

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New Dawn without light

The Labradorian reported earlier this month that the Innu New Dawn land claims agreement vote scheduled for January 31 had been postponed indefinitely.

Apparently, there were “outstanding issues.”

Apparently, the issues are so outstanding no one is talking about them and apparently no southern media are asking about then either. Might not do any good to ask anyway given that the natural resources department seems barren of information it’s willing to hand out on just about anything of substance.

Bond Papers posted a link to the story on the New Dawn postponement shortly after The Labradorian broke the story.  We also pointed out some questions about the deal when it was announced last fall along with signs even then that the deal might run into opposition.

So where is the deal?

Well, it may be yet another problem for the Lower Churchill project.  That would be on top of the problems with a lack of any evident buyer for the power, with trying to string hydro lines through a UNESCO World heritage site and – the real corker – with news that the Holyrood plant won’t be shutting down even if by some chance NALCO gets to build both the power plants and string the hydro lines down to Soldier’s Pond just west of St. John’s.

The so-called infeed down through the park is being sold on the basis that it will replace the Holyrood plant would most of us would take to mean that the plant would be shut down.  In fact, NALCO’s 20 year capital works plan labels the Holyrood generating plant as an absolute necessity for decades to come including the scenario if hydro power starts flowing down from Muskrat Falls and Gull Island.

Onto that pile, you can add the New Dawn agreement. As a columnist for The Labradorian puts it:

Seeing that the much-vaunted New Dawn deal - which was supposed to pave the way for the development as far as the Innu are concerned - is facing so much opposition in the communities that the Innu Nation has indefinitely postponed a referendum on the matter, then it doesn't look like it will help the cause much, after all. The New Dawn just might bring to an end instead. [Emphasis added]

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Tourism group/daily newspaper oppose hydro lines through UNESCO World Heritage site

Hospitality Newfoundland and Labrador has joined the growing list of groups and individuals opposed to NALCO’s plan to string hydro lines through Gros Morne, a national park and UNESCO World Heritage site.

"Running towers in front of dynamic and dramatic landscape is going to take away from the natural beauty of it," [HNL president Bruce] Sparkes said. [CBC story]

"From a photographic, awe-inspiring point of view, it's going to take away that. And who wouldn't say, 'Gee, too bad they put that pole line there?'"

The editorial in the Tuesday edition of the province’s other daily newspaper also joined the chorus of opposition.  The Western Star is published in Corner Brook, in Premier Danny Williams’ district:

The route of the power line and towers can be diverted around Gros Morne Park at a cost of only time and money.

Any modest higher cost for construction pales in comparison to the loss Gros Morne Park will suffer.

Williams supports the proposal to build the towers in the park based on a trade-off.

"The reason that those lines are actually going through that park and the existing transmission corridor is to take out the dirty emissions that are coming from the Seal Cove-Holyrood plant," said Williams, referring to an oil-burning generating plant in eastern Newfoundland.

The Holyrood plant will not be taken out of service if the line from the Lower Churchill is built.  NALCO’s 20 year capital plan includes retention of the Holyrood plant which it calls an “absolute necessity” for decades to come.

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Attacking the messenger: the editorial reaction

The Grand Falls-Windsor Advertiser takes an editorial position on the Premier and his comments about Mark Griffin.

For the Premier of the province to hurl insults at an ordinary citizen of the province who felt the questions he asked of his MHA were worthy of publication is embarrassing and infuriating.

Perhaps it is not Mr. Griffin who is posturing for votes with his comments, but rather Mr. Williams.

The letter has produced what the author was seeking when he wrote it - it has garnered answers from his MHA.

Unfortunately, it has also brought a comment from the Premier that was unnecessary, uncalled for and intolerable.

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The issue behind the Abitibi upset

Human resources minister Susan Sullivan responded to Mark Griffin’s letter about Abitibi printed in last week’s Grand Falls-Windsor Advertiser.

The root of this whole issue is really the upset in central Newfoundland among people who believed that somehow magic would occur and the mill wouldn’t close. They expected the ministerial committee to do things that were likely never even discussed. 

That’s what happens in these cases. 

Some people just imagine magical results. Like they did in Harbour Breton or Stephenville.  The difference in this case is that there isn’t any place to sop up all the laid-off workers.  As a result people are edgy. They  want to point fingers.

You can tell this is part of the local political dynamic by the line Sullivan uses that essentially sits the whole thing in the hands of the union.  You’ll hear that a lot:  “We only did what the union/workers wanted.” As Sullivan describes it:

"At two specific meetings I was present with Minister Dunderdale when she said clearly to the unions when she said 'Do you understand if you vote in this manner these are the repercussions, these are the consequences; this could happen and this could happen, and ultimately the mill could close. Do you understand that? 'We want to make it clear you understand what the repercussions of your vote might be.' We made that abundantly clear to them and they told us, yes, they were clear, but they had their own decisions to make. We said that was fine."

In short hand:  Hey don’t blame us.  Those guys knew what they were doing when they turned down the last offer.

You can see that real issue too in the portion of the article in which Griffin responds:

"What I would have thought would have been an appropriate approach would be an attempt on the part of government to broker a deal, to mediate deal if they could," Mr. Griffin told the Advertiser.

"If they attempted that and the end result was there was no deal, so be it, but it seems that the government's approach was 'we are not getting involved in the relationship between the union and the company', as if to say that is government policy. There are many examples in our history of government getting involved in these private relationships."

Government getting involved in private relationships.  Like say Stephenville where the government laid millions on the table to subsidize the mill.  You can find plenty of references to that power subsidy coming up online and elsewhere in discussions about the Grand Falls-Windsor mill.  For those who want some discussion of it, you can find references at this old post from 2006 and 2005.

You can see the political upset this is causing in certain quarters by the attacks being mounted against Griffin personally by the Premier – his usual smear that someone has a “political agenda” or “political aspirations” – and some of his staunchest supporters.

We are in polling goosing season after all.  Surely it doesn’t help the partisan illusion of invincibility derived from overwhelming popularity if people actually start voicing concerns about government policy and actions. As one wag put it, the issue doesn’t have to be correct, true or even remotely plausible to capture the popular imagination.  After all, said the wag, the current administration has thrived on things that aren’t true.  They are afraid of this issue because they know too well the power of a highly emotional issue and the political damage it can cause.

All that’s as maybe.  The Abitibi issue has legs and it is causing political problems in central Newfoundland for an administration that has been remarkably able to make these issues disappear.

Let’s see if they can work their magic again.

So far their efforts haven’t been working.

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Comment update:  You can find additional detail in a series of columns by Roger Pike in the Advertiser.

Williams backs hydro lines through UNESCO World Heritage Site; protests mount on line

Danny Williams sees no problem.

“When park officials look at what the trade-off happens to be for the benefits we get at the end of day ... I think they will see the benefit,” he said.

Meanwhile, protests are mounting such that even voice of the cabinet minister is reporting them. One online petition has started and the same crowd have started a Facebook group.

The  petition  - Save Gros Morne National Park – includes the following:

While only early in discussions, now is the time to let the government know that a new massive transmission line cutting through Gros Morne National Park would be a terrible mistake. The environmental and visual integrity of the park would be damaged forever. This would have disastrous consequences for the local economy which relies on the tourism industry to survive.

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Norsk Hydro planning for two more years of downturn

Like the groundhog seeing his shadow, Norsk Hydro is preparing for a economic downturn that will last at least another two years.

The company said it was in the process of raising new funds, which it would be able to borrow, and did not rule out further production cuts as the global economic slump ate further into demand for raw materials.

Hydro has already announced cutbacks of 22 percent compared to last year, including at its Karmoy and Soeral smelters in Norway and Neuss in Germany.

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Verbal tics (5) and wandering into a math minefield

Two things stand out from this scrum by the Premier and finance minister a little over a week ago. [CBC video link: “Premier Danny Williams and Finance Minister Jerome Kennedy respond to the latest from the nurses union. The union said Friday that it would not return to negotiations until its strike vote is completed.”]

First, Danny Williams utters only 11 of his now famous “you know” verbal tics in the entire nine minute scrum.  He racks up a mere four in the first two and a half minutes and only hits 10 by the end of four minutes.

Either he’s much more comfortable with this subject – the nurses’ labour negotiation – than he was with other subjects or he’s been doing some anti-tic practice in the past couple of weeks.

Second, finance minister Jerome Kennedy gets himself into a bit of a pickle when he brings up the projected deficit.  He puts the shortfall at about $500 million based on assumed production levels and assuming CDN$50 per barrel for oil and then adds on the $400 million from loss of the Equalization option.  We’ll grant him that even though it’s a bit of a fiction.

Then Kennedy starts down the dangerous road, mentioning the need to allow for “growth”.

How much growth?

Six per cent.

6%.

Or put in other terms about six times the rate of inflation.

That’s pretty typical for an administration that has been known to ratchet up spending by about 14% annually in some years.

So even with oil prices down, mines in limbo and mineral revenues down drastically, a thousand people out of work in central Newfoundland who knows what else, the government is actually planning to increase overall spending in 2009 by six per cent.

That alone would whack $400 million or so onto the deficit all by itself.

Looks like all that the federal changes to Equalization did was take away the convenient federal transfer that would have covered some of that planned unsustainable increase in public spending. Now they just have to stick it on the provincial Amex card.

But still, if you look at where Kennedy headed as he wandered into that mathematics minefield, we are looking at government booking a $1.2 billion deficit this year, the largest in the history of Newfoundland and Labrador, before or since 1949. 

In fact, in one single budget, these guys sound like they are going to add more debt to the shoulders of Newfoundlanders and Labradorians than the entire debt millstone that sank the country in 1933-34.

If you go back and look at the assessment by PriceWaterhouseCoopers in 2004, the projected deficit for next year – based on the finance minister’s own numbers – will look worse than anything in that document.

That probably explains why Kennedy’s voice trails off at the end of his discussion of the coming deficit.  he realised what he’d said.

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Williams lends credence to other expropriation theory

The Premier may have been trying to deflect one set of questions about the expropriation of AbitibiBowater’s hydroelectric assets when he told reporters:

Williams explained that the province didn't need the power from the Exploits River in order to accommodate the Long Harbour plant. He said 70 megawatts were freed up when the Stephenville paper mill closed, and an additional 54 megawatts of wind power has also been added to the grid.

In the process, though he just leaves hanging the question of why he bothered to expropriate the hydro assets in the first place including Star Lake, a site that wasn’t feeding power to the ABH paper mill at Grand Falls.

If NALCO didn’t need the assets and the assets weren’t going anywhere and the only thing they could do is generate electricity, why exactly was the provincial government in such a rush to seize them?

Failed Star Lake bid?

Eliminating any potential competition – guaranteeing NALCO’s monopoly position - seems to be the prime motivating factor. As the Telegram renders the Premier’s comments,

he said the most important fact is that the province, through Nalcor Energy, a Crown corporation, will take full control of the power at the end of March. [Emphasis added]

No details update:  Premier Danny Williams will confirm that NALCO tried to buy a portion of Star Lake but he won’t give any more details.

So if they didn’t need the power – as the Premier said in another interview - why try and buy in? According to the Premier, it was to bring “provincial ownership of the resource.” 

Odd statement that since the Premier knew that legally the provincial government owned the resource already. Al the Star Lake partnership had was a set of water rights leases and agreements.

Forget the conspiracy theories.  This is looking more and more like a case of “Why buy when you can seize?”

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Mark Griffin: traitor

The poor guy asks a few questions.

This is what he gets for his troubles:

"It's really unfortunate when one of our own comes out and betrays us like that," [Premier Danny] Williams said of Griffin.

The "We are not amused" update: And who exactly is this "us" of which he speaks?

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Chutzpah

The old definition of chutzpah was killing both your parents and then seeking the mercy of the court because you are an orphan.

The new definition of chutzpah is signing a deal for less research and development money than the regulations required  - Kathy Dunderdale and Hebron - and then claiming credit for all the new research and development money that came from someone else’s initiative.

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Bootie call stats – humping your leg version

As labradore has noted, a story turned up on voice of the cabinet minister on Friday claiming that there had been 4900 live births in the province in 2008.

Interestingly enough, the provincial government’s own research and analysis division figures for 2008 don’t jive with what labradore notes would be the most dramatically successful breeding program in the world.

In the third quarter of 2008, there were 1,138 live births in Newfoundland and Labrador. Couple that with the first quarter result of 1025 and you have 2163 live births in six months of 2008.  That makes it highly unlikely that the other 2800 occurred in the remaining half year, especially considering the seasonal variation.

Maybe there’s a discrepancy because the bootie call also gives cash for adoptions. Still though 400 adoptions would mean four hundred babies brought into the province from outside since the total number of births captures all children born in the province.

But still, notice the figures. 

Two months after the old year ended there are still 800 people who haven’t submitted their bootie call cash applications, if that story is true.  On top of that, the government bureaucrats are so slow getting their act together that only 3300 people have gotten any cash thus far.

That’s pretty sucky all ‘round.  Either people aren’t hearing about the bootie call cash or they aren’t getting their applications in or there just aren’t that many babies being cranked out.

They certainly aren’t getting their cash in a timely way.  Six weeks to process the application and therefore starting out owing people $1200 bucks in benefits right off the bat.  The bootie call consists of a cool grand for the live wriggler and then $100 a month for 12 months.

But let’s go back to that 4900 figure again because something just isn’t right.

The finance minister’s own statement and government’s budgeting on this don’t add up either.  They’ve allocated $12.4 million in 2008 for the project which works out to over 5600 babies.  Then they’ve allocated $9.9 million annually thereafter for it. That works out to roughly 4500 children which is the exact figure in the minister’s statement:

The combined total of births and adoptions each year is approximately 4,500.

So anyway, the numbers don’t add up. Looks like voice of the cabinet minister is just drying humping on the bootie call.

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Holyrood an “absolute necessity” for decades to come: Hydro

Newfoundland and Labrador Hydro is pushing the $10 billion Lower Churchill project and the multi-billion dollar power lines through a UNESCO World Heritage site as a replacement for the Holyrood diesel generating station near St. John’s.

But, Hydro’s 20 year capital plan, submitted to the public utilities board in 2008, notes that “[d]epending on which scenario unfolds, some, or all of the Holyrood generating plant will be required for decades into the future.”

According to Hydro, the Holyrood generating station is an “absolute necessity in the system.”

It is important to consider that whichever expansion scenario occurs, an isolated Island electrical system or interconnected to the Lower Churchill via HVDC link, Holyrood will be an integral and vital component of the electrical system for decades to come. In the isolated case Holyrood will continue to be a generating station; in the interconnected scenario its three generating units will operate as synchronous condensers, providing system stability, inertia and voltage control.

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Prov gov’t expropriated after it lost bid to buy hydro asset

Human resources minister Susan Sullivan appeared on local talk radio today responding publicly to a letter by Grand falls-Windsor lawyer Mark Griffin.  In a letter to the Grand Falls-Windsor Advertiser, Griffin raised several questions about government’s expropriation of AbitibiBowater assets including hydroelectric generators.

Sullivan gave radio listeners three reasons for the expropriation.  The first – and most important – is one that government used from the start: no one wanted to see the company walk away with “our resources”.  The line doesn’t hold up any better now than it did before.  The assets weren’t going to leave the province in any scenario and that’s especially true of the hydro generators which could only produce power in Newfoundland.

For many there has been a suspicion from the outset that there was more to the story than met the eye, much more than the nationalist chest-thumping and theatrics surrounding the expropriation bill.

New information points to an answer to the nagging question of why the provincial government expropriated the hydroelectric assets, including Star Lake which never supplied power to the Grand Falls paper operation. It’s an answer that harkens back to the failed Hebron negotiations in April 2006.

In a February 13 interview with Business News Network’s Howard Green, Abitibi chief executive David Paterson said the provincial government moved to expropriate AbitibiBowater’s assets in Newfoundland only after the provincial government lost out in the bidding for Abitibi’s interest in one of its hydro projects. [video link]

“We hadn’t said we were going to sell the assets,” said Paterson, “other than we had a deal on a joint venture power dam and our partner [in that project] was going to buy us out…”.

Paterson said the provincial government  - presumably Newfoundland and Labrador Hydro - had bid for the AbitibiBowater interest in the joint venture but had been outbid by the partner.  He said the provincial government had been “blocking the transfer” to what Paterson described as an existing investor in the province.

“and now they’ve expropriated them as well,” said Paterson.

Ironically,  Newfoundland and Labrador Hydro is reportedly handling the compensation talks with all the companies whose assets were seized. Paterson told the Globe and Mail on 17 December: “[It] basically consists of Newfoundland telling us what they are going to do and we have to comply.”

The description of the partnership sounds like Star Lake, a joint venture between Abitibi and Enel North America.  The Star Lake partnership came in response to a call for proposals in the early 1990s from Newfoundland and Labrador Hydro for a small hydro projects that would displace some of the generation at Holyrood. The project sold power directly to Newfoundland and Labrador Hydro.

Star Lake was expropriated in December 2008.

To date neither the provincial government nor the companies involved have answered any questions about the expropriation. Earlier this month, the province’s natural resources department refused to answer a series of questions on the expropriation posed by Bond Papers. The questions included ones that went directly to the issue of Star Lake: 

1. Why were all the hydro assets expropriated under Schedule C and the various licenses and permissions terminated (Schedule E)?
2. Why was this done in December?
3. Why was Star Lake included when it was a response to an NL Hydro RFP?

If Abitibi wasn’t planning to sell its other hydroelectric assets in the province, the company may have been looking to sell its power directly to the Vale Inco project at Long Harbour. All that stopped, as would the possibility of selling the hydro assets to Vale Inco, one the privately held generation was seized by the provincial government in December.

This also puts a different light on one of the curious lines in the provincial government’s news release on the Long Harbour project:

The company has also agreed that it will pay the island industrial rate for its power supply, surrendering its option to have a better rate should other industrial customers obtain a better rate for whatever reason.

Once government seized the Abitibi assets and all the company’s water rights, Vale Inco didn’t have a choice. The existing assets were gone as were three projects which together could have supplied Vale Inco’s power needs. There wasn’t any way to develop an alternative to NALCO’s government-enforced monopoly position.

The notion of seizing assets after a failed negotiation isn’t new, either. In 2006, the Premier public vilified the partners in the Hebron talks when negotiations collapsed.  He talked openly about the need for legislation which would allow government to seize properties containing commercially viable oil finds if the finds were not developed within a certain period of time.

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Romanes eunt domus

Somewhere in the cupboard, your humble e-scribbler has a coffee mug with the words “Illegitimi non carborundum” on the outside.  Inside there’s a translation of this supposedly Latin phrase: “Don’t let the bastards get you down.”

The only problem is the phrase isn’t Latin at all. It sounds like Latin but according to those that know these things, the phrase is just one of those things that got passed down and transmogrified over the years.

That source of all knowledge – Wikipaedia – has a typically lengthy entry on the whole thing.

The phrase cropped up again in a scrum on Thursday, with a new variation: “illegitimati”.  Same difference.  It’s still mock Latin.

At times like this, it is worthwhile to go back to Monty Python.  A little proper Latin and a properly funny Latin lesson to correct the phrase that translates as “People called Romans they go the house.”

More offshore R&D cash

The Supreme Court of Canada declined to hear an appeal by oil companies into a court decision on research and development rules set by the offshore regulatory board.

That means more money for research will flow in Newfoundland and Labrador from Hibernia and Terra Nova.  White Rose already operates under the new rules that fix a percentage of revenues to be spent on research and development.

The decision will also affect the Hebron field when and if it is developed.

Under the provincial government's agreement with the Hebron partners, $120 million is earmarked for R&D activities.

Despite that spending commitment, Ruelokke says the R&D rules will still apply to the project.

"It'll be bound by whatever our guidelines require."

If the R&D formula works out to be more than the Hebron agreement target, more research and development spending will be required.

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Hydro towers likely to confront cabinet in retreat

The provincial cabinet may be retreating to Corner Brook for a couple of days but they won’t be able to retreat from a number of controversial issues, including their plan to sling hydro lines on 40 metre tall towers through a UNESCO World Heritage site.

The plan apparently came as surprise to tourism operators in the region.  They’ve got serious reservations about the scheme.

“Stand almost anywhere in the park and, given this proposal, the one thing that would catch your eye is a 50-foot transmission tower,” said [Todd] White. “I can’t sell that.”

Letter to the Editor update:  from Greg Knott of Norris Point -

Gros Morne National Park is widely considered around the world to be one of the most beautiful places on the planet and should be preserved as is, at all costs, to protect its visual and environmental integrity for all generations around the world to enjoy ... forever.

 

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Auto sales in NL off big time

According to DesRosiers Consultants, automobile sales in Newfoundland and Labrador dropped 34.2% in January 2009 compared to January 2008.

That’s the biggest drop in the country.

Saskatchewan faired best with a seven percent drop when comparing January to January.

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Paranoid delusions and the pain of loss

The usual crowd on voice of the cabinet minister’s night time show are in a lather over Konrad Yakabuski’s column in the Thursday Globe and Mail suggesting the expropriation of AbitibiBowater’s hydro assets was part of a Machiavellian plot to guarantee low cost power to Vale Inco for its Long harbour project.

Abitibi hydro – 116 MW.  Vale Inco need – 100 MW starting in 2012.

Now there are a couple of things right off the bat. 

First, the world can always be reinvented to fit the paranoid delusion of the moment and the tinfoil hat brigade thrives on paranoia and delusion.  In this case, they loved the Globe for featuring a border war with Quebec despite the facts to the contrary about the border issue.  It’s a pet cause of theirs and they felt vindicated that the Globe had supposedly paid attention to them and what they think is the truth.

Once the Premier stated that there really wasn’t an issue, the same crowd decided – as they now argue – that the evil Globe is just trying to stir up controversy and undermine their local hero. 

Why they pay so much attention to one newspaper is a mystery.

Second, there was no apparent shortage of electricity on the island.  The closure of the Stephenville mill  in 2005 freed up a bunch of megawatts and there is some extra capacity around in the system for the foreseeable future anyway. There are several small hydro projects in various stages of planning all of which could have been developed, if needed, to meet the demand at Long Harbour.

Beyond that it is just too much to imagine that any government would deliberately throw one crowd out of work in order to put another bunch somewhere else to work.

Yakabuski is right that the Crown expropriated the most valuable assets of the AbitibiBowater operation at Grand Falls-Windsor.  The really valuable one in the long run is the hydro generation both from existing projects and the ones on the planning books. The provincial government expropriated not only the mill-related generation but also seized Star Lake which was built to supply power directly into the electricity grid on the island.  They also cancelled all AB’s water rights thereby preventing them from establishing any generating capacity that wasn’t controlled by the hydro corporation.

Yakabuski’s musing really comes apart on the matter of timing.  Once the workers voted down the second restructuring proposal and the company announced the mill would close, the mill was gone. Expropriation simply allowed NALCO to scoop up all the hydro assets, establish a near complete monopoly on electricity generation and do it all for little or no cost. Expropriation didn’t cause the mill closure; it was – at best – a by-product.

The letter that seems to have prompted Yakabuski’s column has to be seen in a wider context as well. There are a great many people in central Newfoundland who never believed for a moment the mill would ever close.  They believed, apparently, that it was all a bluff or that the government had some sort of magical plan that would make all the hurt go away.

Its author poses a series of questions that really should be seen through the lens of that shock. Many people in central Newfoundland are looking for answers for what, to them, must appear to be an impossible outcome of this whole process.

People naturally come up with all sorts of possible explanations for really bad things and this letter must be seen in this light. Great plots make for good fiction but they are usually not the stuff of the real world.

In the real world, bad things happen for perfectly understandable and far less complicated reasons.

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NL new home starts forecast to drop by 17.4%

Canada Mortgage and Housing Corporation (CMHC) is forecasting that new single home starts in Newfoundland and Labrador will be down 17.4% in 2009 from 2008. Re-sales of existing single family dwellings is expected to drop 14%.

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