01 September 2010

Hebron awards FEED-EPC contract

On August 27, 2010, the consortium developing the Hebron oilfield offshore Newfoundland and Labrador awarded the project’s front-end engineering and design contract to WorleyParsons.

ExxonMobil is the lead partner on the project.

Under the contract, ExxonMobil may, at its discretion, award WorleyParsons with the project’s Engineering, Procurement and Service contract.

According to the project timetable, the consortium are anticipating project sanction in early 2012.

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Throw money at it: provgov to study garbage

gus Sometimes it seems as if Gus Portokalos’ brother wound up running the Newfoundland and Labrador government.

While Gus wanted to put window cleaner on everything, Gus’ imaginary brother in the provincial government likes to throw money at it.

The most recent example is a fund set up with a research centre at Memorial University. There is now $300,000 available to probe garbage.

Apparently, there are “unique waste diversion challenges” in Newfoundland and Labrador. 

So now the fine folks at the province’s university can get up to $15,000 to study ways of “reducing the amount of waste created, reusing materials and products, recycling or reprocessing waste, recovering some useful benefit from waste, and disposing of waste that has no further economic or environmental benefit.”

Ummm.

Right.

And these sorts of thing, the sorts of thing they’ve been doing everywhere else for decades, are not only unknown to people in Newfoundland and Labrador but we must fund university-level research to crack the garbage code that apparently bedevils us.

Once the researchers produce answers to the refuse puzzle, the second pillar of the anti-trash strategy will cut in:  they will tell people about it. And maybe, once they’ve told people about it, those people might come up with suggestions to – in the words of the guy running the research centre -  “shape research questions, leading to new ideas which then encourage further research to achieve implementation.”

So they’ll think about something.  Then they’ll tell people what they thought about.  And then the people they told will come up with new things to think about.  So the people doing the thinking will go back and think some more about the stuff they’ve been told to think about.

And maybe at some point, after all this thinking and talking and thinking and talking, someone might be able to do something with the garbage.

The technical term for this approach is GIGO:  garbage in, garbage out.

People unused to the refined language of the government and the university will only look at the complete lack of action on waste reduction since 2003  and think “circle jerk”.

And they will be right.

This is the administration, after all,  that is now renowned for its inability to do stuff.

This is the administration that took almost four years to take the waste management strategy of their predecessors, photocopy it, move all the target dates back a decade and then announce it as their own, brand-new strategy.

Just in time for an election.

And now three years after that announcement, they toss money at a bunch of people to supposedly figure out what to do with garbage.

This is the same administration that gave a consultant some unspecified hunk of public money to spend 18 months studying ways of keeping young people in the province. The result of the cogitation was truly Earth-shattering in its inventiveness:

1.  Create jobs.

2.  Put services in major centres. Like maybe St. John’s, Gander, Grand Falls-Windsor and Corner Brook?

3.  Link education to the labour market.

4.  Build “an understanding of the benefits of immigration and diversity through public education, community dialogue and strengthened curriculums in the education system.”

Well, d’uh.

And it even came with a spelling mistake in the bit that talks about education.

Brilliant!

There is no way that anyone could possibly invent this policy.  It is, after all, nothing more than a hideous self-parody of an administration that is obviously lacking any sense of direction.

Reductio ad argentum, indeed.

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Parsons back in custody

The Royal Canadian Mounted Police arrested fugitive Andrew Parsons on Tuesday night.

Following up on a tip and surveillance, RCMP officers found Parsons in a Marystown house where he was hiding along with a woman from Ontario who allegedly had come to the province to assist Parsons.  Parsons ran from the house.  Officers chased him into nearby woods where he was cornered with the help of police dogs.

Parsons escaped custody on Saturday but the police waited until Sunday to issue a news release notifying the public.

Parsons is scheduled to appear in Provincial Court at Grand Bank on Wednesday.

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While the local media are a bit behind the curve,  Melissa Lee DeClerk pleaded guilty today on  a charge of attempting to assist Parsons in his escape.  

Provincial Court Judge Harold Porter accepted a joint submission on sentencing from the Crown prosecution service and Defence counsel and sentenced her to one week in jail and one year's probation.

The August Traffic round-up

Were you one of the 12, 969 13,034 people who viewed 18,744 18,828 Bond Papers pages in August?  If not, then you missed out on these, the 10 most-viewed pages:

  1. Orcas and minkes whales off Newfoundland:  video
  2. Ah, that explains everything…
  3. Jerome! if you want to…
  4. Williams, Dexter ink secret energy deal…but with whom?
  5. The Old Man, Old Habits and Old Chestnuts
  6. Court docket now online
  7. Government by Fernando (2006)
  8. Five years of secret talks on the Lower Churchill:  the Dunderdale audio
  9. Bell 206 Crash – Photo Interpretation (2009)
  10. I knew Marilyn Monroe (2008)

An understandable month and a totally bizarro month at the same time. 

The Orcas and minke videos were hugely popular and not surprisingly that came in as the top post of the month.

Whether it’s energy deals, energy non-deals, and the whole racket with Quebec, you can count on those posts being popular.

No surprise, either,  that people are still keen to hear deputy premier Kathy Dunderdale on the story the mainstream media have ignored for almost exactly one whole year.

The Number Six post is just a sign of the number of lawyers – or their clients – who visit BP to keep up on the local political and courthouse scene.

But in the bizarro world of Newfoundland and Labrador politics, nothing came as  such a shock as discovering that people loved a 2006 post, “Government by Fernando.”  In the same vein, the Number 10 post is an old one about a celebrity too, this time Lindsay Lohan.

Every month people find something intriguing or entertaining at Bond Papers.

There’s no way of knowing in advance exactly what they’ll read and that makes it pure fun.

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31 August 2010

Bury my lede at Muskrat Falls

The Proponent [NALCOR Energy] has failed to justify the Project in energy and economic terms and has not provided an assessment of greenhouse gas (GHG) emission reduction in possible export markets as required in the detailed criteria provided in the EIS Guidelines.

You can find that statement as an attachment to a letter, dated January 26, 2010,  from the joint review panel appointed to conduct the environmental review of the Lower Churchill project.

The attachment lists, in painful detail, the areas of the NALCOR submissions to date that come up so short that the panel could not commence full public hearings.

But just look at those words:  “failed to justify”. They tell you, in the clearest way possible, why the Lower Churchill project is on hold. That’s something premier Danny Williams didn’t admit, incidentally until May 2010, but it is true.

NACLOR failed to justify the project on energy or economic grounds.

And those deficiencies are the reason the provincial cabinet is not even close to giving the thumbs up to start construction.

Forget the Premier’s claims about Hydro-Quebec. They are simply a diversion, a smokescreen. They are, as noted here many times, a complete nonsense given all that is in the public domain and the Premier’s own comments in April 2009.

As a result of that letter from the joint review panel, NALCOR spent another eight months pulling together more information in an effort to meet the review panel requirements.  NALCOR submitted the information to the joint review panel on August 9 and the panel began distributing the information to interested parties for comment on August 12.

Interestingly, that’s the same day Premier Danny Williams held a surprise news conference to accuse the Government of Quebec of interfering in a funding request to Ottawa for a project that, as the public subsequently learned doesn’t actually exist. As it turns out, a power line between Nova Scotia and the island of Newfoundland is merely a hypothetical project that depends on construction of the Lower Churchill. Still, the local media dutifully reported his claims without question and the story went national just like a spark touched to dry embers in the hot, dry woods of a central Canadian summer.

Sheer bunk though, all the same.

You’ll also find that quote from the environmental panel in a Telegram news story, dated Saturday August 21*, under the headline “Nalcor weighs risk and reward”. The article starts out with this line:

The province’s energy corporation has laid out a possible development scenario for the Lower Churchill.

That isn’t news, by the way, even though the most important idea is supposed to go right at the start of a news story.  The development scenario and the rest of the stuff at the front and in the middle of the article is exactly the same stuff that’s been talked about by NALCOR and its predecessor dating back to the 1990s.  It’s the development scenario laid out in the original environmental submission this time around. The complete document record of the review is available online.

You have to read all the way to the end of the Telegram article, though, to find any reference to the environmental panel’s January decision.  And even then the fact the panel told NALCOR their work was fundamentally lacking is presented as if it were merely the innocent stimulus to further action by glorious team at NALCOR:

Timelines associated with the joint federal-provincial environmental assessment panel have dragged on longer than expected.

The panel said Nalcor’s previous filings were lacking.

A pesky inconvenience at worst.

But as a result of this little setback, NALCOR did all this wonderful work, which the Telegram has now told us all about.  Now the panel will “now assess those filings before deciding how to proceed.”

Yay, NALCOR.

In the news business, they call it burying the lede.  That’s a news story that starts out with secondary information and puts the main point farther down the piece.  News stories are usually written with the most important thing at the top and the least important information at the bottom.  Some call the style an inverted pyramid because the big part is on top.

The style evolved over time and it has a number of advantages.  People skimming quickly through a newspaper can get the main point of each story by only reading the first sentence or first paragraph.  Editors running the story who are also jammed for space can safely hack off stuff at the end without losing the important information.

What makes this Telegram story stand out is that it doesn’t just bury the news, it puts the kernel of hard news in a place where editors would normally cut.  Not only that, but people may not even read all the way to the end.  And if they only read the first bit, they’d be fooled into believing that everything is hunky dory with the Lower Churchill when – as a matter of fact – it isn’t.

This Telegram story could easily have been written in the provincial government’s communications department.  But it wasn’t.  And that’s where an article like this  gets it’s persuasive impact on readers.

In the marketing world, a favourable news story is worth considerably more than any amount of paid advertising. That’s because the news story comes with the perception that the news is vetted by a reporter and a layer of editors and ultimately the producer or owner. If it is in the paper or on the air, it must be newsworthy and the information in it implicitly comes with a stamp of truthfulness.

Research tends to bear out that perception.  A 2008 Ipsos poll of Canadians reported that 69% of respondents had trust and confidence in conventional Canadian news media to report the news “fully, accurately and fairly”.  A more recent Gallup poll of American audiences suggests that Americans have considerable faith in conventional news media, even if it is lower than Canadian.

The distortion of reality, the burying in a wider sense, isn’t just confined to this sort of writing. You can find it as well in the stuff that doesn’t get reported locally at all, ever. A good example of that more recently was a story in the Toronto Star on energy issues.  It appeared five days before the Telegram puff piece on NALCOR and it goes to one of the major problems with the Lower Churchill project:  a lack of markets.

The massive, state-of-the-art BĂ©cancour cogeneration electricity plant is capable of powering 550,000 homes. At the moment, however, the only action its gas turbines are getting comes from the dehumidifiers that prevent them from rusting out.

Apart from providing steam for an industrial park neighbour, the plant, 150 kilometres northeast of Montreal, sits largely idle, victim of policies and planning in a province overrun with electricity.

Such is the extraordinary electricity surplus in Quebec that several hundred million dollars are being spent and lost each year dealing with the problem, and consumers are footing the bill.

Hydro-Quebec has so much surplus capacity that it can afford to shutter this plant and others.  The company is still building more hydro and wind capacity.  it forecasts a surplus for 2011 that is enough to power 77 billion 100 watt light bulbs for an hour.

Try and think of the last time any one of the conventional local media reported any discussion of the Lower Churchill that did anything but report government pronouncements or reaction to government pronouncements?

Keep trying. 

There might be one or two, but by far they are outweighed with the sort of stuff the Telegram ran in late August burying the news about the Lower Churchill from last January under a mountain of cotton-candy fluff.

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* 2009 average paid circulation for the Saturday Telegram was 40,166 according to the Canadian Newspaper Association.

Transcontinental claims the Telegram reaches 78% of adults in the St. John’s census metropolitan area and 88% of “managers and professionals.”

Updated 0848 to clarify a sentence.

30 August 2010

Corner Brook soldier dies of wounds rec’d in Afghanistan

pinksen Corporal Brian Pinksen, 21, a soldier with Second Battalion, the Royal Newfoundland Regiment, died at a hospital in Germany today of wounds received in Afghanistan.

Corporal Pinksen was wounded eight days ago while on a foot patrol in Nakhonay, a village 18 kilometres southwest of Kandahar.  An improvised explosive device planted by insurgents detonated, wounding Pinksen and another soldier. Both were serving with the battle group centred on 1st Battalion, the Royal Canadian Regiment.

From the Canadian Forces release:

Cpl Pinksen was treated on scene and evacuated by helicopter to the Role 3 Multi-National Medical Facility at Kandahar Airfield then subsequently moved to the Landstuhl Regional Medical Centre in Germany.  He arrived in Ramstein, Germany on 25 August and succumbed to his injuries earlier today at the Landstuhl Regional Medical Center.

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Related:

Math problem: oil production, oil prices and oil royalties

“Back of the envelope calculations”,  a recent Telegram story assured us all, “put royalties for the first three months of the [current] fiscal year on pace with government’s $2.1-billion target.”

But, the Telegram headline says, that’s because “surging production” is offsetting “softer” prices.

Unfortunately, the Telegram didn’t see fit to show us the back of the envelope so no one can tell exactly how they came to that conclusion. It must be a provincial government envelope, though because the numbers don’t quite add up.

As forecast

As it looks,  revenue projections are likely to be on target with the forecast.

The provincial government’s oil royalty is a function of oil prices and production. The Telegram reported  - quite rightly - that the provincial government forecast oil royalties of $2.1 billion based on total production of 90 million barrels and and average price of oil at US$83 a barrel.  The provincial government also allowed the Canadian dollar would be close enough to the American dollar that there wouldn’t be any sizeable windfall from a cheap Canadian dollar.

The Telegram also reported that oil production is on track to come in around 101 million barrels.  The offshore regulatory board’s actual figures for the first four months of 2010 (April to August) show oil on track to hit 99 million barrels. Still, that’s 10% above the government’s spring forecast.

As for crude oil prices, they have not averaged US$83.  The Telegram puts the average price of Brent crude at US$80 a barrel the week the story appeared. This is where it gets interesting.

For the first four months of the current fiscal year, Brent crude has averaged US$77.71 a barrel. That’s about six percent below forecast.  If you take out the April average of $84.98 – because it is the only month averaging above $80 dollars this year – you get an average price about 10% below the government’s forecast average.

With production above and price below, the one pretty much cancels out the other.

No surge

Production isn’t actually surging, though.  In fact, production at about 100 million barrels is only slightly above last year’s production total of around 97 million barrels. As for price, there’s no surge there either.  The average currently showing in 2010  - including April - is only about a dollar above the 2009 fiscal year average.

In other words, everything is tracking to bring in the same average price and the same yearly production as 2009. The provincial government forecast an increase in royalties to $2.1 billion from $1.8 billion. 

All three fields should be in payout and according to the pre-2003 royalty deals, that means they’d be paying more to the provincial treasury.  Hibernia didn’t hit payout until June last year, so it appears the extra cash is solely the result of having the big field paying higher royalties for a whole year instead of just part of it.

That means that the slightly higher royalties are coming from old development deals, not from something happening to oil prices and production.

Still on track for another big cash deficit

And what does that mean for the provincial budget? if you relied only on the  Telegram story you might be fooled into believing that the provincial government might balance its books this year.  It might do so using accrual accounting, but there won’t likely be a balanced budget on a cash basis.

In fact, the current fiscal year looks a lot like the last one, including the fact everything is on track for another whopper of a cash shortfall.

For some unfathomable reason, the Telegram decided you didn’t need to know that the provincial government’s budget forecasts a cash deficit of nearly a billion dollars. Nor did they mention that last year the provincial government had a cash deficit of about $500 million. 

Instead, they left you with the Pollyanna-ish view that everything is looking great.

Maybe it is, but one thing is for sure:  it has nothing to do with “surging” oil production or “soft” oil prices.

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29 August 2010

Second escape from police, accused faces two sexual interference charges

A man who escaped police custody on the Burin Peninsula for the second time in two years is facing two charges of sexual interference and two charges of breaching probation orders.

The Provincial Court docket for Grand Bank shows that Andrew Kenneth Parsons is due back in court on Wednesday, September 1, 2010 for election and/or plea.  Parsons was remanded in custody last week.

But he won’t make that court date unless police can get him back in custody.

There’s no word on how Parsons managed to escape. This is the second time in as many years that Parsons did a runner from the Royal Canadian Mounted Police detachment in Marystown.

Media reports on the escape don’t give any indication of why police had Parsons in the nick. The Telegram quotes unnamed police sources as saying that Parsons is scheduled to appear on “a number of serious criminal offences.”

Nor do the local media reports have much else to say beyond giving Parsons’ physical description.

According to vocm.com, police said that Andrew Parsons is “not a threat to the public.” 

The Telly appears to have also gotten the same line on safety from police:

Parsons is not considered dangerous but the police said because of the nature of his charges, “there is a definite need for public concern.”

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Update:  Kudos to Glen Payette of CBC’s Here and Now for adding way more details to this story on a whole bunch of levels.  CBC Radio Noon got the details of the escape by interviewing the CBC division media relations officer.  Payette did the same thing, but he also added the guy’s crim record and – for the first time today – someone other than your humble e-scribbler reported what the guy’s been charged with.

A big part of this story, though, has been the bizarre approach B Division took to this escape and the news release.  For some unknown reason, they refused to say what the guy was charged with. 

CBC Radio Noon host Ramona Deering started the interview with the straightforward question of why the guy was in custody.  Media relations officer Staff Sergeant Boyd Merrill ducked the question referring only to the guy having been remanded in custody pending another court date on charges Merrill obviously wasn’t going to talk about.

Maybe they are sensitive about the escape.

Okay.

Well, if that’s the case, then the little darlings can get over that one pretty quick.  If you are going to traipse through the words looking for marijuana plants in some grow-op near St. John’s then you can suck it up and talk about a more embarrassing moment.

Sound media relations practice for organizations like the police is built on simple ‘just the facts’ story telling using – we can only hope – plain English instead of CopSpeak.   Ducking obvious questions or dancing around issues that are apparently quite simple (even if a wee bit embarrassing) just aren’t part of a good MR practice. 

And hey, reporting every possible tip or lead as if each was credible doesn’t balance out the credibility ledger.  At some point, people will start to wonder whether or not this guy is doing a third-rate send up of the Scarlet Pimpernel:  “They seek him here.  They seek him there.”

Statoil explores renewables

Norwegian energy company Statoil is expanding its interest in renewable energy.

The company plans to develop the world’s first floating offshore wind farm.  Possible sites include one off Maine, two off Scotland or another off Norway.

Statoil has other offshore wind farms already in development.

Meanwhile, in Newfoundland and Labrador, the provincial government is focusing its energy future on eventually developing a $15.5 billion hydroelectric megaproject.  According to the 2007 energy policy, everything else is on hold until the future of the Lower Churchill wet dream is settled.

Unfortunately, the future of the Lower Churchill, a.k.a. the Great White Whale, is also up in the air indefinitely.

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Maine’s energy future

Maine Governor John Baldacci can easily list off the elements of his state’s energy future.

“This year Maine signed a Memorandum of Understanding on tidal energy with Premier Dexter of Nova Scotia, on offshore energy research. There is a huge development in Eastport with the Portland-based Ocean Renewable Power Company. We can learn from each other and share our experiences with each other.

“We are working collectively as a region. It’s important that we are in sync, especially with the issues surrounding Hydro-QuĂ©bec and New Brunswick’s nuclear plans.

Newfoundland and Labrador didn’t make the cut.

Wonder why not?

Maybe it has something to do with the current administration’s obsession with a $15.5 billion wet dream for which there are neither markets nor money.  There are plenty of other generation and transmission opportunities, smaller and more financially feasible, even on the island of Newfoundland. 

None will be developed  - including a connection from the island to Nova Scotia – unless it involves the Great White What of the Lower Churchill.

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28 August 2010

Danny Williams and the National Post: Fact Check

No surprise Danny’s miffed at the National Post. 

Nor is it any surprise that the most thin-skinned person on the planet  - short of someone actually without an epidermis at all - claims that it isn’t about him.

And it’s really absolutely not the least bit of a shock that between the two of them -Danny Williams and the National Post -  readers will wind up being about as in  touch with reality in Newfoundland and Labrador as people who get everything they know about the universe from Glenn Beck.

Rather than go through the errors and nose-pullers in detail let’s just take the biggest whopper for each of them:

For the Old Man, it would be the contention that “Abitibi operated in our province for 100 years”.

Sure 65% of the province’s population may have trouble with numbers, math, logic and reasoning but few likely would have listed the province’s best-known Rhodes scholar among the innumerate.

Those that did can go to the head of the line.

The Anglo-Newfoundland Development Company opened the Grand Falls paper mill in 1909.  Abitibi started operations in 1912 but not in Newfoundland and Labrador.

This is 2010.

Right off the bat, anyone with that information would know that it is absolutely utterly and totally impossible for a company that is 98 years old to have been in operation more than two years before it existed.

I am my own grandpa indeed.

But then you have to consider that Abitibi didn’t arrive in Newfoundland and Labrador until 1969, a fact noted in some of the AbitibiBowater bankruptcy proceedings and a point that has curiously escaped every single reporter in this province for the 18 months or so the Premier has been saying this complete bit of nonsense.

Even a Rhodes scholar ought to know that 100 is not 41.

As a result of his repeated numerical blunder, one must wonder if Danny actually reads anything laid in front of him, whether his high-priced help are really that incompetent, whether he cares about facts at all, or if what we see here is some combination of all three.

Now for the Post stuff:

Well, the name of the province is Newfoundland and Labrador but that’s really the smallest part of the problem with the Post editorial.

The rest of it is a litany of things that never happened, as Williams easily pointed out.  Most of his comments in reply were just the usual self-serving blather but there’s no denying that the  magnitude of the factual errors in the editorial would stun a herd of the hardest-headed mountain goats in British Columbia.

The easiest thing to do is take the biggest error:  “… time and again, Ottawa graciously bails Mr. Williams out from his blundering anyway.”

The idea that Canadians have paid for all Williams’ blunders is just foolish.

Sure he managed to score a couple of billion extra from the feds in 2005 but for the most part, the major blunders of his administration haven’t cost all taxpayers in the country a penny.

Only provincial taxpayers will bear the load – way more than $130 million – from the expropriation fiasco.  They’ll also be taking their proportionate chunk of the NAFTA settlement as well.

Only the taxpayers in Newfoundland and Labrador will be coping with the huge cash deficits Williams’ administration is racking up.  They’ll be the only ones dealing with the fall-out from a record of wild public spending even his own cabinet ministers agree is unsustainable.

His huge gift to Big Oil  - section 5.1 of the Hebron financial agreement - won’t affect Ottawa a tiny bit even if it makes the provincial government nothing more than a vassal of the oil companies on some issues.

In the end, though, the Post is still the Post.

But word is Danny is looking for a post-politics gig.

Maybe Kory should give him a call.

If the guy can handle a piece of chalk, there’s the makings of a new star in the Reform-based Conservative Party news heavens.

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The Return of the Konavalov

Once more, we play our dangerous game, a game of chess against our old adversary…

Russian hunter-killer submarines are stalking Royal Navy ballistic missile submarines in the North Atlantic.

Royal Navy submariners report the highest number of contacts with Russian submarines since 1987.

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Traffic Drivers: August 23-27 2010

Saludos, my darlings, and you know who you are.

Top post this week is from 2006.

Believe it or not.

  1. Government by Fernando.
  2. VOCM “news” has no source.
  3. AbitibiBowater reaches expropriation settlement.
  4. Mr. Premier, what are you trying to hide?
  5. Lower Churchill costing:  recap.
  6. Bashing your own guys over the head is soooo strategic.
  7. Could nothing be further from the truth?
  8. And the NAFTA/expropriation winner is…?
  9. The old trading federal cash for a deal with Quebec trick.
  10. Good to the last fish.

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Still more orcas and minkes

Via cbc.ca/nl, comes yet more video – the fourth – of orcas hunting minke whales off Newfoundland.

You can find other video in an earlier Bond Papers post.

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27 August 2010

Does Danny have them all cowed?

Craig McInnes of the Vancouver Sun asks a good question – make that a very good question  - about the federal party leaders (Jack, Ig, and Elizabeth) and other provincial premiers:

It's not that surprising that Williams' parochial vision is wildly popular back home on the Rock, given his success in turning Ottawa-bashing into a profitable enterprise. What surprises me is how timid our federal politicians have been in taking him on. Two days after the announcement of the $130-million settlement with AbitibiBowater, none of the leaders of any federal parties and no other premiers have criticized either Williams for getting us into this mess or the federal government for picking up the tab. [Emphasis added]

Does the bull of St. John's have them all completely cowed?

It would certainly seem so.

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Good to the last fish

Two stories this week each highlighted in their own way the ongoing and largely ignored fisheries crisis in Newfoundland and Labrador.

On the one hand, you have a story about a fish plant converting to produce canned whelk – sea snails – for an overseas market. A local fish company will – as the Telegram described it -  “start with between 12-14 positions for four to five weeks with a possibility of future expansion.”

That story made the major media in the province.

The second story was a hearing by a provincial government agency into a request by another local fish company to move one of its processing licenses from one community on the province’s northeast coast to another on the southeast coast.  The plant is only major employer in the northeast coast town. There are no other economic prospects in the area for the plant’s aging, seasonal workforce.

For those who may not be familiar with the fisheries crisis in this province, let us put it as succinctly as possible:  there are fewer and fewer fish in the ocean.  You can see this in the fact that fish plants have now turned from processing  the creatures that swim through the water using their fins and tails to packaging up things like snails and jellyfish.

They call it fishing out the food web.  Humans started at the top with the really big animals.  Over the centuries and with no apparent slackening of blood-lust, they’ve collectively managed to demolish species after species around the globe until the humans now catch the tiny thing those bigger fish used to eat.

Toward the end of his life, the late Jon Lien used to do talks about this sort of thing.  He had a foil packet covered in Japanese or Korean writing stashed under the podium as a prop.  At the right moment in his talk, Lien would hold it up to the audience and ask if anyone knew what was in it.

None did.

Dried jellyfish was the answer, processed by a local plant and shipped off to the East as a snack food.

Yes, friends, we are moments away from a krill fishery.

At the same time, there are still thousands of people in Newfoundland and Labrador trying to squeeze a very meagre living from processing fish for a few weeks a year and then collecting government hand-outs for the rest.  A report delivered to the current administration when it was still young pointed out that the typical fish plant worker made less than $10,000 a year from labour, picking up another $5,000 in employment insurance premiums.

There are still way too many of them – plants and plant workers – for them all to make a decent living from what fish, and now snails, there is to turn into frozen blocks. The only thing that has changed in the better part of a decade since that report is that the workers are finding it harder and harder to collect enough weeks of work to qualify for the EI.

Oh yes, and the prospect of a fish plant adding up to 15 jobs for a month stuffing slimy globs of flesh into tins makes province-wide news as a positive thing.

As it turns out, there is some sort of poetic symbolism in all this.  Around the time that a bunch of West Country merchants backstopped Giovanni Caboto’s explorations five centuries ago, British fishermen were trying to find a new place to wet their lines.  Seems they’d managed to clean out their own grounds and had started to spread farther and farther in search of new species to decimate.

They found such a place in the waters off Newfoundland where the cod were supposedly so plentiful they could be had by lowering a basket over the side of the ship. Now cod are a species declared commercially extinct in 1992 and teetering on the edge of ecological extinction.

Yet still there are people who want to keep fishing them. And jellyfish, slugs and in the not-too-distant future, perhaps sea snot or microbes.

As depressing as it seems, there are solutions. As Elizabeth Kolbert wrote in a  recent review essay in the New Yorker

M.P.A.s [marine protected areas], smart aquaculture, and I.T.Q.s [individual transferable quotas] —these are all worthy proposals that, if instituted on a large enough scale, would probably make a difference.  … it is in “everyone’s interest” to take the steps needed to prevent an ocean-wide slide into slime.

It is indeed.

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26 August 2010

Could nothing be further from the truth?

And it seems like only yesterday  - 2004, in fact - mainlanders could write stuff like this:

He flatly rejects the already swirling speculation about an eventual run for the federal Conservative leadership (although conspiracy theorists will be pleased to hear that he wants to become bilingual).

Then others have him nicknames. They forgot the most appropriate one, by the by.

But then someone notices a curious turn of events since 2008:

Oh, by the way — anyone notice that Danny hasn’t been criticizing Stephen Harper quite so much any more? Gee, I wonder why.

Hmmm. 

Good point.

Maybe it would be good to wonder why.

 

- srbp -

And the NAFTA/expropriation winner is…

In their offices in the Sun Life Building in the heart of Montreal’s financial quarter, the boys at AbitibiBowater are likely making toasts using the finest single malt scotch they save for just these special business occasions.

There haven’t been too many of them for the managers at the financially troubled company lately but this week, they can crack open the bottle and enjoy themselves.

And while they are at it they can make two toasts.

Their first one should be to Danny Williams. 

Were it not for the Premier’s unshakeable  - and entirely unfounded - belief in his own infallibility, AbitibiBowater could not have achieved its monumental success in Newfoundland and Labrador. 

Not only did Danny Williams’ astonishing business and legal prowess relieve them of the huge liability for environmental cleanup in Newfoundland and Labrador, he voluntarily took their financial liabilities to some of their former employees and handed them all to taxpayers in his own province.

On top of all that, AbitibiBowater will get a nice cheque from the federal government for their troubles. That money will easily cover the minor costs for remediation at the couple of properties they still own in this province and leave pretty much all of Stephen Harper’s $130 million intact.

Sweet. 

And if all that were not good enough, they still get to watch their lawyers humiliate the provincial government in its own courts over those environmental orders cooked up during the NAFTA war. Lay money on judge after judge stuffing the orders up Danny’s nose for as many appeals as he may want to make.

AbitibiBowater could use more enemies like Danny Williams. If he wants to practice corporate law after he retires, AbitibiBowater would hire him in an instant to go to work for their competitors. He’s just that good.  

The other toast would be to the biggest losers in the expropriation, namely the people of Newfoundland and Labrador.  The five hundred odd thousand people of the island – and Labrador -  are stuck with the bill for all this. The environmental messes, the legal bills to Toronto and Montreal firms, the severance and all the rest of it.

But supposedly the raggedy arsed artillery of Newfoundland and Labrador have mighty assets now, according to Danny Williams, to cover those liabilities.  These assets would have been sold to unnamed others had Williams not struck with his expropriation sword.  Of course, he fails to mention that the liabilities go with the assets such that who ever owns them cannot get one without the other. But then again  Williams the Great Lawyer knows this already even if he does not share his knowledge with his clients.

That is really part of Williams’ brilliance as a lawyer, however and why companies like AbitibiBowater will want him to work for their competitors once he leaves politics.  Only a truly amazing talent could shag his own clients so completely and yet have them lust for the rogering like a pubescent suicide bomber eager to get down with the 72 virgins he’s been promised.

Both are in for a rude shock, of course.

But unlike the child-fanatic, the people of Newfoundland and Labrador have a good clue that these very expensive assets are far less valuable than they’ve been made out to be.

One of the three companies interested in the timber – and one very seriously considered for a while – was a bankrupt German paper maker looking for massive government hand-outs.

Another even less appealing prospect wanted to turn prime logs to sawdust in order to make wood pellets out of them. To appreciate just exactly how lame is that idea, one need only realise that wood pellets are most often cited as a way of using the scraps left over from making major wood products like furniture or paper. Anything else is a waste of a very valuable log.

Yet to be tallied into the cost of this expropriation fiasco are the payments the taxpayers in Newfoundland and Labrador will have to make to a bunch of companies who are essentially collateral damage in Danny Williams war against – or is it on behalf of? – AbitibiBowater.

Settling fairly with these companies was a condition of the federal government’s payment to AbitibiBowater, according to Danny Williams. Undoubtedly the rather obvious preferential treatment given to these other companies compared to AbitibiBowater, not to mention Williams’ own comments attacking AbitibiBowater, coloured the expropriation bill to the point where the lawsuit could have cost the federal government much more dearly than the $130 million it did.

As it is, Fortis, ENEL, Clarica, Sun Life Assurance, Mutual Life Assurance, Standard Life Assurance, and Industrial Life Assurance will all be restored to their former financial position, according to the Premier during his scrum with local reporters.  Talks are still going on, but according to the Premier, they will get cash or a power purchase agreement or some other arrangement. Fortis is already getting cash: the provincial government assumed responsibility last year for a $60 million loan Fortis and AbitibiBowater had for their hydroelectric partnership. Keep an eye on those talks.  Their outcome could be most interesting indeed.

Whatever the conventional media may be saying about the latest part of the expropriation saga, the winners and losers are not as they initially appear, nor is the magnitude of the loss yet known.

The saga’s last chapter has yet to be written.

- srbp -

25 August 2010

Sticks and stones: NAFTA edition

Danny Chavez?

Danny Arafat?

How about the Cuckoo of Corner Brook?

- srbp -

Bashing your own guys over the head is soooo strategic

An article in the current issue of Embassy magazine examines the European Union’s seal ban and how it is that Canada found itself outmanoeuvred by the anti-hunt movement.

University of Calgary political science professor Donald Barry told Embassy that two things gave the otherwise moribund seal crowd a new lease on life.

One was a hike in quotas that brought the number close enough to a million to give it some propaganda value again.

The other was…

Mr. Barry says another key development was the fierce exchange between Newfoundland Premier Danny Williams and former Beatle Paul McCartney and his then-wife Heather Mills McCartney on CNN's Larry King Live in March 2006. During the show, Mr. Williams alleged, among other things, that the FBI was investigating the International Federation for Animal Welfare and other animal-rights groups for terrorism, and that the McCartneys were being used by the groups.

"The publicity propelled [IFAW] right back into the forefront of the opposition," Mr. Barry says. With IFAW's ability to mobilize support and the Humane Society's strong public relations machine, "you have a series of groups whose strengths complement each other and they're practiced at what they do."

So basically that whole Larry King foolishness turned out to be a gigantic help to the other guys.

And that one trip to Europe did exactly diddly-squat.

Like, no one saw that coming.

- srbp -

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