For those interested in this sort of detail, and from the good folks at the Hebron project website, comes this picture of the project timelines:
Note that the partners don’t anticipate giving this project the green light until the early part of 2012.
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1. Number of days Tom Rideout was premier: 43.
2. Number of days the House of Assembly sat in 2009: 43.
3. Average number of days the House of Assembly has sat each year of the current administration (since 2004): 43.
4. Number of provincial Conservatives in the House of Assembly: 43
5. Number of boil water advisories in effect in Newfoundland and Labrador as of June 2009, the last date the list was updated: 239 (Some communities were affected by more than one boil water order.)
6. Total number of boil water advisories in the province as of April 1, 2008: 228.
7. Total number of communities affected by boil water advisories in the province as of June 2009: 174.
8. Total number of communities in Newfoundland and Labrador: 593. (Yes, that means 29% of communities had at least one boil water advisory in place in June 2009.)
9. Longest time under boil water advisory: 20 years 11 months (Branch, 01 Jan 1989.)
10. Total number of days in which someone made reference to boil water advisories or drinking water quality in the House of Assembly since 01 January 2008: 2.
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Hitchhiker’s Update:
Some of these things are linked. Some may be purely coincidental.
1. Hydro-Quebec plans to buy NB Power including the Point LePreau nuclear generating plant. October 29.
2. Ontario Senator Lowell Murray thinks it’s time for the federal government to get interested in the Hydro-Quebec/NB Power thingy. December 15.
3. Ontario considering sale of hydro-electric generation, transmission and distribution assets. December 16.
4. Government of Canada announcements plans to sell off the Candu reactor division of Atomic Energy of Canada Limited. December 17.
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Sometimes, things that don’t appear to be connected things scream out to be connected.
Take, for example, a piece last weekend in the Globe on one of the legends in the newspaper business. Harry Evans was in Toronto flogging his memoir, My paper chase. He thinks that news is whatever anyone tries to suppress. “Everything else is advertising, ” he contends.
On the same weekend, a Telegram editorial revealed that the local daily tried to get government polling results this past August but came up with six blacked-out pages. Proprietary information don’t you know and there was just no way the government could release stuff that belongs to a third party and still comply with the province’s access to information act.
News is what The Man wants to suppress, sez Harry.
Not in this case.
That story of the blacked out bits - the suppressed bits - never made it to the news pages. The Telly did run a story last September based on a few pages of numbers that the government did happily send out but the full-on research report story doesn’t seem to have made it to the news section.
And the story that did appear took such a high-level picture it missed some of the details within the numbers they did have. It wound up telling you – in the very first two sentences - that:
Residents of the province are split on their satisfaction with the government's handling of health care, according to recent polling commissioned by the Williams administration.
Satisfaction levels in other areas, however, remain high.
This is hardly news for anyone who has been reading the CRA polls as if they actually had something to say that didn’t exaggerate the actual results they got. The rest of the story didn’t add anything else.
Now this way of handling the suppression of polling information is rather odd. The questions being asked would potentially be very controversial stuff. After all they were questions like:
and according to the Telly-torial:
Other questions touched on topics such as the phasing out of pesticide use and the image of the commercial seal hunt.
All pretty obviously related to public policy and all pretty obviously no the stuff covered by section 27: “trade secrets of a third party, or … commercial, financial, labour relations, scientific or technical information of a third party…”. Yet that was the basis on which the provincial government kept the information secret.
So at the end of it all we wind up with information being suppressed and the story about the suppression winding up as an editorial. And the bit on polling that did wind up on the news page was little more than the usual advertising copy that polling results have become in this province’s news media. Sometimes the ad copy comes with third-party endorsements from people supposedly with absolutely no connection to the subject of the story either.
Not so long ago, such blatant suppression of information that legitimately belongs in the public domain using a trumped-up excuse would have prompted a much sterner response and not one confined to the editorial page.
Things have changed, though, as Harry noted and as pretty well everyone dealing with news media can tell you. The change is not glacial, either, well at least not the way glaciers used to melt in the days before Al Gore. Rather the transformation of newsrooms is as easily seen as the curious drop in online viewers highlighted by a couple of earlier posts.
The pressures in newsrooms are well known.
Other stuff that adds to the pressure may not be so well known or sufficiently appreciated for what they are and what they do: the nasty - and often-time orchestrated – comments, short public attention spans and memories, The Attitude about advertising and what it buys, and even editors who publicly criticise the milquetoast reporting of today as too aggressive. All add up such that it becomes much much harder for the crowd in the newsroom to do what Harry did and what many of the reporters and editors might like to do.
This is not a local phenomenon alone. It is also something that isn’t confined to one single outlet and it certainly isn’t affected by corporate ownership. The problem applies as equally to news outlets owned by large corporations as it did to a locally-owned vanity publishing enterprise that died twice. So-called independent media, that is stuff that isn’t corporately owned, also brings its own problem of rather strong ideological biases.
This is not a post which reaches a logical or orderly conclusion. Frankly, your humble e-scribbler can only note the phenomenon just as with the curious drop.
But there is no mistaking the connections among a bunch of things you might not think were actually related.
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Under Standing Order 9 of the House of Assembly, it’s pretty simple:
9. If at 5:30 o’clock in the afternoon except on Wednesday, the business of the House is not concluded, the Speaker shall leave the Chair until 7 o’clock. At the hour of 5 o’clock on Wednesday afternoon the Speaker
adjourns the House without question put. (1951 SO 7 R&S 1999)
Deputy speaker Tom Osborne decided to toss the rulebook in the corner this afternoon during debate on a resolution to fire child and youth advocate Darlene Neville.
The business of the House was not concluded at 5:30 pm.
There was no prior motion to extend the sitting or vary the rules.
Osborne simply interrupted the speaker who had the floor and put the whole 
The reason?
The Speaker’s Annual Christmas party – right, not exactly as illustrated - was scheduled to start at 5:30.
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Harvest Energy Trust announced today that the trust has been sold to Korea National Oil Company (KNOC).
Included in the sale is the oil refinery located at Come by Chance, Newfoundland.
Until this sale, KNOC operated only one other project in Canada, the BlackGold oilsands operation acquired in 2006.
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In the House of Assembly on Wednesday, natural resources minister Kathy Dunderdale confirmed what Bond Papers told you about on December 11:
There are no provisions of the final benefits agreement signed in August 2008 that cover a work cancellation and mandate that it has to be replaced by work of equal value or the cash equivalent.
Dunderdale issued a highly misleading news release on December 11 that claimed “any such issues were contemplated in the Benefits Agreement and the replacement value of the work was captured and protected."
As you learned here last week, nothing could be further from the truth.
Dunderdale told the legislature on Wednesday (December 16) that the agreement contained a provision on amendments and another on dispute resolution. There was no dispute, according to Dunderdale, as the parties came together and achieved an agreement.
Well that’s not the same as having “the replacement value of the work” already “captured and protected”. That’s not “copper-fastened”, either as Dunderdale also claimed. That’s people getting together and hammering out a new deal which could include provisions among the partners as to who will foot the bill for what amounts to a political decision – the replacement benefits – rather than a purely commercial one.
. And as for that section on amendments, here it is in its entirety:
No amendment to this Agreement is effective unless made in writing and signed by authorized representatives of all Parties
Nor is the new deal an actual, finalised agreement. As Dunderdale told the House of Assembly, there is an agreement in principle that must now be translated into a legal document. There’s still lots of room for further changes, in other words in a project not due to be sanctioned until 2012.
By the end of the questioning, Dunderdale became so rattled that she abandoned her false claim last week that the benefits were secured within the agreement:
Mr. Speaker, the parties came together, we did not even need to use mechanisms provided in the Hebron Benefits Agreement. [Emphasis added]
That pretty much blew what was left of her credibility out of the water.
Dunderdale also disclosed that the total value of the cancelled work is less than $50 million. Her office earlier refused to disclose what they claimed was commercially sensitive information.
The Hebron partners – including the provincial government’s NALCOR Energy -cancelled the work because it was deemed “uneconomic and has significant execution and schedule risks” for the project Dunderdale estimates may cost as much as $7.0 billion.
If the agreement in principle is actually signed, it is unclear at this point if the $50 million of replacement work will be provided by the oil companies or by the provincial government’s energy company in its capacity as an equity partner on the project.
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“The die is cast!”
That’s what then-education minister Joan Burke said back in 2007 when the current provincial administration unveiled its plan to give Sir Wilfred Grenfell College something called “autonomy” from Memorial University.
She was arrogantly dismissing concerns raised about the feasibility of creating a second university in the province.
Burke even used the word “independent” in a news release in 2007 - “Grenfell College is about to gain independence…” – something she predicted would happen in 2008.
Well, in 2009, none of the promises came true.
And you can tell none of the promises came true because the announcement was made by Darrin King, the education minister, and not Danny Williams, the premier behind the whole drive.
You can also tell there’s nothing to get excited about because the release is gigantic – 13 paragraphs – and there are no fewer than five media contacts. The way these things usually go, the less positive news there is, the more names are listed as media contacts.
Under the proposed approach, Grenfell will lose its separate and proud identity, becoming instead something to be called Memorial University - Corner Brook.
It also won’t get a separate president or senate, as recommended by two consultants hired in 2005 to look at the whole idea of Grenfell “autonomy”. Their Option 1A was the one supposedly on the books to be implemented.
Instead, the current senior official – named the Principal – will continue to be called the Principal and will report directly to the President of Memorial. And there will be a separate budget presented to government through Memorial University in St. John’s.
Whoopee ding.
The whole thing looks suspiciously like the consultant’s Option 2A but without the administrative clout of having a separate president for the new university at Corner Brook.
And what were the disadvantages noted for that by the consultants, you may ask?
That’s right. The consultant’s considered that the approach government ultimately would actually reduce Grenfell’s autonomy and offer little change from the status quo.
Looks like the die for Grenfell autonomy Joan Burke talked about wound up getting cast alright, cast aside.
Expect lots of negative reaction to this as the magnitude of the broken promise starts to sink in for people in Corner Brook.
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If the Telegram editors ever get jammed up for copy, they could easily recycle Ray Guy columns from 40 years ago.
Most people wouldn’t be able to tell the difference between goings on then and now.
Back then, partridgeberries were the economic salvation of this cove or that harbour. These days, cranberries will replace the income from a pulp and paper mill in Grand Falls.
Back then people were complaining about the great partisan conspiracy against the beloved saviour of His People.
These days, Bill Westcott is lacing into Peter Pickersgill on much the same basis. Poor Pickersgill has the extra misfortune of not only being the progeny of mainlanders but of being not pur laine hisself:
Despite spending a lot of his adult life in Salvage, we must remember PIC is not even an (Island-born) Newfoundlander, one of da boys! His genes, I think are rooted in Winnipeg and Ottawa.
That explains everything, of course.
There is no way the truth could be known by someone who wasn’t born here or who doesn’t live here.
Sure John Hickey said so dealing with another one of the confounded traitors:
Of course Mr. Waugh is entitled to his opinions on any and all Labrador matters, even as he writes from the comfort of his Nova Scotia home.
And Bill Westcott?
He writes his truth from Florida.
That must be Florida, Bonavista Bay.
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Despite the huge difference between the price offered and the real value of the assets being acquired, no allowance is made for the increase in electricity prices likely to result from the enforcement of a new international treaty significantly limiting carbon emissions. This deal is not acceptable as currently structured. The price is too high for the benefits to be obtained.Despite the huge difference between the price offered and the real value of the assets being acquired, no allowance is made for the increase in electricity prices likely to result from the enforcement of a new international treaty significantly limiting carbon emissions. This deal is not acceptable as currently structured. The price is too high for the benefits to be obtained.
His Honour John Crosbie inducted eight new members into the Order of Newfoundland and Labrador in a ceremony at Government House last week.
The Order of Newfoundland and Labrador recognizes individuals who have demonstrated excellence and achievement in any field of endeavour benefiting in an outstanding manner Newfoundland and Labrador and its residents. An individual who is not a Canadian citizen or current or former long-term resident of the province, but who has demonstrated excellence in their field, and has benefited the province and its residents in an outstanding manner, may be nominated as an honorary member.
As Chancellor of the Order, the Lieutenant Governor presented an insignia of the Order, a stylized pitcher plant, to each inductee, as well as a miniature of the insignia, a lapel pin and a certificate signed by the Chancellor and sealed with the Seal of the Order.
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In the next of this series of snapshots of the provincial government’s financial state, let’s take a look at few more charts.
First, there’s net debt. That’s the sum of assets less liabilities. This table was taken from data compiled by RBC economics from provincial budget documents going back to 1981. The scale on the left is measured in millions of Canadian dollars.
The jump in 2003 is one your humble e-scribbler can’t readily explain and there seems to be some discrepancy in the government’s financial statements. RBC has used the second set of figures but there seems to have been a revision done in 2004 to the figures for the previous year.
The big drop over the two years between 2006 and 2007 is attributable to one thing and one thing only: a doubling of the provincial government’s financial assets, basically represented by temporary investments. That’s all oil royalties flowing from deals struck before 2003.
So when you see the provincial government crowing about debt reduction, they are really talking about the increase in cash they have, not the real reduction in liabilities. There is $1.8 billion in temporary investments held by the provincial government directly and another pile of cash and on-financial assets in various agencies and Crown corporations that brings the total assets up to $4.4 billion. The $12.4 billion in liabilities minus the $4.4 in assets gives you the current net debt of $8.0 billion.
That’s clear from the second chart which shows only the liabilities as presented in the Public Accounts from 1998 to 2008.
Now some smarty-pants will notice that there hasn’t been a huge drop since 2005 that would equal the $2.0 billion plus a few more contributions that brought down the unfunded liability. Well that’s because there have been some other liabilities incurred since 2005, like some new borrowing. Overall, though, there has been a reduction in the total liabilities with the biggest reduction being the change in unfunded liabilities.
Incidentally, that pension liability is still there but there is now cash to deal with it.
Now as a last chart, let’s take a look at the net borrowings numbers. We looked at the net borrowings per capita, but let’s look at the actual net borrowing figures for the past decade. Remember that net borrowings are the total amount borrowed less any money set aside to pay the debt when it comes due.
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Under questioning in the House of Assembly on Monday, natural resources minister Kathy Dunderdale couldn’t point to a section of the benefits agreement that allowed a replacement of work cancelled by the Hebron partners in September.
Dunderdale could only say that there was an unspecified “sub-agreement”.
She’ll probably have trouble finding the magic clause she thinks is there. The benefits agreement is specifically identified as a stand-alone document that isn’t affected by other parts of the overall deal except as provided within the benefits agreement. There’s no section that refers to offsets for cancelled work.
Dunderdale told the legislature the provincial government was represented through NALCOR Energy as the equity partner when the decision was made to chop the “sub-sea drilling template and the components of the field mooring system and positioning and docking system.”
However, when asked about the potential impact on communities like Marystown, Dunderdale answered as if the provincial government didn’t have an equity stake:
Mr. Speaker, some of these questions are better put to the operators to explain the scope of work, the magnitude of work, the kind of expertise that is required and the kind of services that are going to be required to do this work. All we can do, as a government, is negotiate an offshore oil and gas project with specific benefits around the kind of work that is required to construct. In this case, Mr. Speaker, modification needs to be made in order to reduce delays and proper execution.
She’s right, of course. The 4.9% stake amounts to exactly nothing when it comes to substantive decisions if the government acts as an oil company/partner. The Big Players needed to “reduce delays and [ensure] proper execution” and the provincial government – apparently reduced to a bit player - simply followed along.
That evident lack of control exercised by the provincial government is the opposite of what people were told when the equity stake idea was being sold politically. But it is consistent with the spirit of a section of the financial agreement that obliges the provincial government to back the oil companies on any regulatory issues as the oil companies see fit.
The Hebron partners were originally supposed to submit a development application this month to the offshore regulatory. However, the changes made to the fabrication program a year after final agreements were signed points to the potential for further delays.
The Hebron project is not yet sanctioned by the partners. Under the agreement with the provincial government, they do not have to sanction the project – that is approve it for development – at all. They don’t have to green-light the development even if the project clears regulatory approval.
The final agreements signed in 2008 provided for less oil and possibly fewer local benefits than the 2007 memorandum of understanding.
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Net borrowing per person is higher now than it was in 2000, according to the province’s audited financial statements.
The number hit $13,074 in 2004 and has stayed in the same neighbourhood ever since. Part of the reason for that is a drop in population since 2004. The other reason is the increase in net borrowings since 2000. Net borrowings increased in the period from $5.8 billion in 2000 to $6.6 billion last year.
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1. From CBC New Brunswick, a panel discussion involving the leader of the New Brunswick Conservative, Green and New Democratic parties and energy minister Greg Byrne.
2. From CBC Newfoundland and Labrador on 01 Dec 09, an interview with former premier Roger Grimes on the latest developments in the Churchill Falls saga.
3. CBC Radio Crosstalk with guest Jim Feehan discussing Churchill Falls.
4. Premier Danny Williams scrums with reporters after a speech in Calgary. At no point does Williams point out for the Alberta reporters that he spent five years trying to get Hydro-Quebec to take an equity stake in the Lower Churchill without any discussion of redress for the 1969 contract but couldn’t get them interested. That was at the same time that he insisted that he wouldn’t cut a deal with HQ without redress.
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The provincial government owes the Government of Canada more than a half a billion dollars in a combination of overpayments for federal transfers and a loan received in 2005.
That’s according to figures contained in the provinces audited financial statements known as the Public Accounts. The federal debt for 2008 was $535,150,000 down from $568,247,000 in 2004.
But in Fiscal Year 2004, the total amount owed to the federal government stood at $191 million, made up entirely of accumulated overpayments for Equalization and health and social transfers.
In the way the transfers are made, overpayments occur for every provincial government and every provincial government has some level of debt from this source. The overpayments result from the difference in using estimates of taxation and population to make calculations in advance and then comparing those with actual performance calculations made after the payments are set and dispersed.
In Newfoundland and Labrador’s case, the provincial government - and some other provinces – took advantage of a federal interest free loan in 2004. Under a measure announced by then finance minister Ralph Goodale, provincial governments who had qualified for Equalization in the preceding the years could qualify for an interest-free loan from the federal government.
Newfoundland and Labrador received a loan of $378.4 million. About $100 million of that has been repaid.
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Jean-Thomas Bernard, economics professor at Laval, finds the Hydro-Quebec move to the Maritimes a bit puzzling since he believes that HQ will have to bring expensive power online to feed the Maritimes.
"My position is that cheap hydro is gone, definitely gone," Bernard said.
"We still have a fair amount of (undeveloped) hydro but this is expensive hydro. We're talking about 10 cents (per kilowatt hour), 12 cents," he said, referring specifically to the Romaine megaproject far from Montreal on the province's north shore - poised to begin bringing 1,550 megawatts of power online for Hydro-Québec in 2014.
On the other hand, Jean-Thomas Bernard also thinks that New Brunswick would actually win from this deal:
However, Bernard said in the long-term Hydro-Québec may regret this deal because the corporation may wind up selling its power to New Brunswick at a much cheaper rate than to its other customers in the United States or in Ontario.
The same issue is at the heart of both Bernard’s comments. He is looking at the pricing issue and the cost of developing new power projects.
In the short-term HQ gains markets; in the medium to long term it may face a situation where it could sell the power more lucratively elsewhere but be forced to sell at lower prices in New Brunswick under the terms of the MOU.
It’s an interesting observation about a complex issue.
But here’s an idea for you to consider: if La Romaine and other new HQ projects are being developed at the price of around 10 to 12 cents per kilowatt hour, how would the Lower Churchill compare to that?
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In 2008, the provincial government quietly invested $277,000 in First Choice Vision Centre according to the audited financial statements of government released recently by the provincial finance department.
There’s no news release or ministerial statement on the cash from either the business or innovation departments in 2008.
First Choice operates retail eyeglass stores across Newfoundland and also has a lens manufacturing facility.
The government received shares in exchange for the cash but there is no information on government’s website that gives any indication what the cash for for.
Unlike previous years, the 2008 audited financial statements contain no explanatory notes on investments.
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The provincial government is still carrying shares in two dead companies on its books as assets even though the companies are now out of business and the chances of recovering any cash from them is virtually non-existent.
A total of $1.0 million in shares in Consilient and SAC Manufacturing are still listed as investments in Volume II of the Public Accounts, the audited financial statements for the provincial government.
SAC Manufacturing went out of business less than six months after the provincial government injected a half million dollars into that company.
Consilient, a high technology company, went bankrupt last year. it was featured in a report by the province’s auditor general on investments that, among other things, lacked adequate documentation and security.
Unlike past years, the Public Accounts section that includes these companies doesn’t contain any notes on existing holdings and any new ones acquired during the year. There is only reference to $3.3 million being available to write-off bad investments.
There is no indication any of the investments have been written off.
That’s despite a note in the 2008 audited financial statements which said the half million dollars for SAC Manufacturing would be written off over a year ago:
During 2006-07, the Province acquired 500 Class “B”Common shares at a cost of $500,000. Commencing in June 2007,
these shares are conditionally redeemable based on after tax earnings. All shares must be redeemed no later than 19 December 2016.During 2007-08, the company ceased operations and, as there is now no reasonable prospect for redemption of these shares, the full amount of the investment has been included in the provision for investment write-downs.
That’s not the only peculiarity in the recent work by the auditor general about one of these companies.
An omnibus report on previous audits, released in November 2009, made up the recommendation related to original audit. The report replaced the original list of five suggested changes and actions with one that wasn’t made originally. The AG then reported that the innovation department was making progress on the phony recommendation.
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The highly touted Hebron offshore oil project hasn’t completed environmental review, it hasn’t been sanctioned and there’s no development application yet but already the amount of work on the project is being scaled back, according to news release from the province’s natural resources department.
According to the release, project lead ExxonMobil has informed the provincial government that it won’t be building the “sub-sea drilling template and the components of the field mooring system and positioning and docking system.”
The release says the elements are “uneconomic and come with significant execution and schedule risks.” Put another way that likely means the companies don’t believe the work can be completed in the province and the alternatives are too costly to consider. The work will now be scratched entirely.
And while the provincial natural resources department claims the cancelled work will be replaced, there’s no guarantee that will actually occur.
The release quotes natural resources minister Kathy Dunderdale as saying that the provincial government “had the foresight to ensure that any such issues were contemplated in the Benefits Agreement and the replacement value of the work was captured and protected.”
There are no provisions of the final benefits agreement signed in August 2008 that cover such a cancellation.
And what’s more the release confirms there’s no such provision when it states that:
An amendment to the Benefits Agreement will now be developed by the parties to implement this arrangement.
If the situation was already “captured and protected” there wouldn’t need for an amendment – that is, a change – to the benefits agreement.
The benefits agreement contains a clause (3.3) which exempts the companies from having to provide any benefit contained in the agreement unless the offshore board approves the benefits plan, the federal and provincial ministers approve the plan and the project is sanctioned.
At least two of those three preconditions have not been met.
The agreement does contain a dispute resolution mechanism. There’s no indication if that has been triggered or if it may be triggered should the companies and government fail to agree on replacement benefits.
But wait: it gets better.
The same news release claims that “[s]hould the operator be unable to identify an equivalent amount of replacement work by June 30, 2010, a payment will be made to the province equal in value to the amount of work not replaced. These funds will then be used by government for a construction project for the benefit of the oil and gas industry.”
The public will never know because the department is refusing to release the value of the cancelled work.
Contacted today by Bond Papers, a spokesperson for the department refused to release what was described as “commercially sensitive” information.
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