18 December 2010

Be happy in your work!

The Telegram editorial board stands resolutely in favour of political indolence.

So, when you think glumly about the lameness of local politics, and about how a poorly challenged majority seems to be coasting along on autopilot — just imagine how much worse it could be.

And be thankful.

Seldom does one see an editorial board in a supposedly health democracy lauding ignorance and apathy with such unbridled enthusiasm.

For those who don’t follow the link, incidentally, the Telly was not comparing the state of affairs in Newfoundland and Labrador with North Korea or, for that matter, any other autocracy, petty despotism or kingdom on the planet.

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The Traffic for December 13 to 17, 2010

Be amazed.
Be very amazed.
  1. Connie Leadership 2011 – Mid-December Night’s Ruminations
  2. The return to “normal”
  3. How to win without news media – Part 2
  4. Of pipelines and such
  5. Game changer:  Watton eyeing run in Humber West and Tire burning decision on back burner
  6. Conservatives to give back seized hydro assets
  7. All your base are belong to us
  8. Dunderdale confirms Bond story on Fortis and Enel
  9. Shawn Through the Looking Glass and Williams’ disgraceful Christmas card (tie)
  10. Irish Wanking Bankers
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17 December 2010

Jerome!’s out – Connie Leadership 2011

CBC has confirmed the rumours swirling around for a couple of days.  Jerome! Kennedy – presumptive front-runner to replace Danny Williams – won’t be running for the job.

CBC is also reporting that he’ll announce his intentions publicly next week. Don’t be surprised if Jerome! also indicates he won’t be seeking re-election next fall.  Williams got Kennedy into politics and Kennedy has enjoyed his leading role in cabinet because of his close personal relations to Williams.

Interestingly, Jerome! was one of the two cabinet ministers who hung around with Danny after Danny told cabinet he was quitting.  The other was Tom Marshall.

Marshall is also reportedly considering a run for the job.  As CBC notes, no one is officially in the race. The closest anyone has come is education minister Darin King. Some have suggested Kathy Dunderdale should stay on.

So far no one has asked Joan Burke if she’s interested in the job.  She’s been reputed to have a team in place and some cash in the bank. 

If the Conservatives settle on either Dunderdale or Marshall, the party would be appointing a caretaker who might stay only long enough to see the party through the next election.

Since 1949, incumbent political parties in Newfoundland and Labrador have had no shortage of potential rivals for the top job from the moment it became vacant. This is the first time in 61 years that a party has had apparent difficulty attracting candidates.

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A political blade edged with the sharpest sarcasm

A line from a resolutely partisan source within the past 24 hours, noting that in the two weeks since Danny Williams high-tailed it, the provincial Conservatives have managed to settled two nagging public sector labour disputes:

Imagine how much they could have done if Danny left seven years ago.

Williams resigned on December 3 after seven years as Premier.

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Game changer: Watton eyeing run in Humber West

Mark Watton, whose experience includes a stint as a senior advisor in the Prime Minister’s Office and chief of staff to cabinet minister Ken Dryden, is thinking of seeking the Liberal nomination in Humber West.

There’s a story in the Friday Western Star.

Now a lawyer who has been working out of Toronto since 2008, the 36-year-old is seriously thinking about throwing his hat in the ring as a Liberal candidate for the byelection to replace former premier Danny Williams in Humber West.

He will be returning home to Corner Brook for the Christmas break in the coming days and will use that time to do more thinking before making a decision.

Regular readers of this corner will also know Watton as the author of nottawa, a political blog he’s maintained for the past few years or so.

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Aussies buy Labrador uranium miner

Australian miner Paladin Energy Ltd (TSX:PDN)(ASX:PDN) announced Friday that it has concluded a definitive agreement for the purchase of the uranium assets of Aurora Energy Resources Inc.. Aurora was a wholly owned subsidiary of Fronteer Gold (TSX:FRG)(NYSE Amex:FRG).

Aurora Energy holds title to significant uranium assets within the highly prospective Central Mineral Belt in Labrador, including the Michelin deposit as well as the Jacques Lake, Rainbow, Nash, Inda and Gear deposits and has secured the most prospective ground within the CMB.

Paladin will pay Fronteer Cdn$260.87 million for Aurora through the issuance of new shares in Paladin.

According to a news release, “Paladin considers the CMB to be one of the few remaining, underexplored uranium districts globally and this acquisition not only provides Paladin with a noteworthy mid-term development asset but also offers an excellent opportunity for both significant new discoveries and expansions of the existing deposits. This highly strategic transaction fulfils Paladin's long held ambition to expand its footprint into Canada, a leading country in uranium mining, both in terms of resources and its stable political and business environment, providing the Company with an important new platform from which to plan its continued growth.”

Paladin plans to continue further testing and exploration to define the size of the assets it now holds. John Borshoff, managing director and CEO of Paladin said that the company intends “to advance these assets and will commit to regional target identification and testing upon resolution of the current uranium mining moratorium, which was put in place by the Nunatsiavut Government to provide the necessary time to complete a Land Use Plan and Environmental Protection legislation, both on track for completion by March 2011. The goal will be to advance towards a definitive economic study and district development plan once a sufficient resource base has been defined thus benefiting Paladin shareholders, our customers and the stakeholders of Nunatsiavut and Newfoundland and Labrador.”

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Muskrat Falls: Internal contradictions

Nalcor headman Ed Martin is supposed to be selling the Muskrat falls plan for the Conservatives to help their re-election bid.

He is talking up the economic wonderments of a power line from the island of Newfoundland into Nova Scotia.

One of the things such a line makes feasible, Martin claims, is a thermal plant to turn natural gas into electricity.  Natural gas is currently so cheap that American generators are selling electricity from their gas plants in the United States to New Brunswick.

But, as the Telegram reports,

Martin said converting natural gas to electricity would also require a small gas turbine plant and a lot of study.

“Our focus right now, no question, is the Lower Churchill … and that’s going to be a five- to six-year construction project.

“We’d have to see if gas was there, we’d have to run the economics, it would be sometime after that. But, once again, five or six years is not that long a time.”

“There” is onshore at Parsons Pond.  But there is also gas offshore Newfoundland and Labrador so it is not like there is a shortage of available gas nor is the idea of using the gas to fire a generator such a novel idea.

However, note that Martin says that gas generation is something to be studied down the road a ways, once the Lower Churchill is done. “We’d have to run the economics, it would be sometime after” Muskrat is up and running.

Gas-to-electricity generation is not green but it is a lot less environmentally damaging than burning diesel at a plant like the now infamous one at Holyrood.  Don’t forget that the main use for the power at Muskrat Falls is to replace the evil generators at Holyrood.

So with all that firmly in front of your eyes, note that Kathy Dunderdale keeps insisting that all the alternatives to Muskrat falls have already been studied and that the Falls option is the cheapest. As she said on the last day of a very short session of the legislature:

“Mr. Speaker, they are going to have to pay a lot less for Muskrat Falls power than for any other alternative that is available to the people in Newfoundland and Labrador, Mr. Speaker…”

“We have considered all of the options available to us…”

So if Ed Martin hasn’t already studied the cost of generating electricity from natural gas – by his own admission, no less – then how can Kathy Dunderdale say that Ed Martin has already studied replacing Holyrood with gas generation and found that such a plan would cost more than $6.5 billion?

Well, she can’t. 

Not unless Ed Martin is fibbing.

And if Ed isn’t fibbing then that means that Kathy Dunderdale is fibbing or doesn’t understand her briefings.

Now there’s a shocker.

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16 December 2010

Dunderdale blunders on term sheet power sale provisions

Kathy Dunderdale obviously needs a briefing on her old boss’ retirement plan.
In the House of Assembly on Tuesday, Dunderdale said:
Mr. Speaker, while it is true that Emera will own the Maritime Link for thirty-five years, they will only have the ability to wheel one terawatt of power across that link.   Mr. Speaker, all rights above the one terawatt lie with Nalcor.
Unfortunately, for Dunderdale that isn’t what the term sheet says. Under Term 7 (d), Emera can buy additional power for sale in Nova Scotia, and under 7(e), Emera can step in between Nalcor and a power sale to a third party:
image
The company can buy that additional power and run it down the line or build new lines to carry it either with Nalcor as a partner or on its own.

If that weren’t good enough for you, there’s nothing in the term sheet that says Emera cannot buy power in addition to the Nova Scotia Block for its customers in the United States or anywhere else in the Maritimes. After all, Nalcor would be foolish to turn down the prospect of selling power to help pay off its massive debt burden, should it wind up up building Muskrat Falls along the lines in the term sheet.

So if Dunderdale can get such an obvious point completely wrong, it makes you wonder what else she doesn’t understand about this proposal.
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Irish Wanking Banker

Here’s a link to the Telegram story about the youtube sensation.

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Holiday Greetings 2010 from Afghanistan



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15 December 2010

Connie Leadership 2011–Mid-December Night’s Ruminations

1.  Rick Hillier:  The number of people still pushing this is getting pretty funny.  Hillier already gave a pretty clear “no” in two different CBC interviews before Don Martin got him at CTV.  Aside from being somewhat coy and flirting a bit, Hillier didn’t give any sign that he is seriously considering it and – here’s the kicker – there’s no sign anyone is organizing on his behalf.

2.  Be careful what you wish for:   Rick Hillier is the potential political nuke capable of vapourising everything around him. If he really wanted to be premier of Newfoundland and Labrador, he’d actually be better off running for another party and starting with a completely clean slate.  If he did want to run, Hillier would be better off starting his own party so he could pick and chose his candidates and build a team entirely of his own choosing. 

Would he really want Danny Williams’ cast-offs?

3.  Saviour Syndrome:  Some people still have their heads firmly rooted in the idea of a saviour so it isn’t surprising that they are casting around for someone to take away their considerable anxiety.  Rick fits that bill and that’s the only bill he seems to fit.

Anxiety. 

Nervousness.

More than a few provincial Conservatives are likely suffering a bit of extra flatulence this holiday season as they think of facing the future without their magic political bullet long gone.

4.  Fabian Manning:  The senator is reportedly making calls checking on his support among his former colleagues.  He still seems like a really long shot.

5.  Steve Kent:  The supremely shitty public reaction the Draft Steve idea got may well have told him that, unlike Frank Moores, now is definitely not the time.

6.  A deal to avoid a fight:  Privately some people are talking about the prospect of an orchestrated coronation in order to avoid a bloodbath on the convention floor.  Interesting idea but the sort of negotiation that would have to go on to deliver a coronation still leave the chances of a bloodbath – or just a lot of bad blood – even if there is no sign of it in public without luminol and an ALS.

7.  Jerome!:  Considered the heir-apparent to Danny’s throne, Jerome Kennedy seems to be the de facto front-runner even without declaring.  Two things might be interesting to chat about over the holidays:  First, think what would it mean if Jerome! actually did apologise publicly to the doctor he used as a public political punching bag?  Hint:  it is exactly the kind of statesman-like act that people expect of a Premier worthy of the name.  

Second, if not Jerome!, then who? 

8.  Inception:  Pretend for a moment you are a Conservative back-room boy.  Take out your calendar.  Fit in a leadership convention, a provincial budget, a federal election, and up to three by-elections between now and June.  Minimise the overlap. 

Now take out your token and see if it spins irregularly on the table.

 

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Shawn through the Looking Glass

Shawn Skinner is the latest Conservative cabinet minister to find himself swept through into the looking glass world of the province’s natural resources ministry.

This is the bizarro world, you may recall, where the complete cock-up by the provincial government – expropriating an environmental mess – turned magically into a world where AbitibiBowater appeared to abandon its responsibilities and the provincial government rode in to save the day.

There is the truth.

And then there is a natural resources news release and never the twain shall meet, so it seems.

Or to paraphrase a famous old, former politician:  nothing could be further from the truth.

On Tuesday, the newly minted minister issued a news release to tell the people of the province that a draft bill in front of the legislature is about denying compensation to AbitibiBowater for the expropriation in 2008.

The action we are taking through these amendments will ensure that Abitibi-Consolidated will receive no compensation from the Government of Newfoundland and Labrador.

And so in this looking glass world, Skinner tells us, a thing is not what it is;  it is what it ain’t.

Abitibi is already compensated to the tune of  $130 million federal tax dollars for the clusterfrack called the expropriation.  They do not need any further compensation, since they already have it.  Thus, in Skinner’s construction, the bill is not about what it is, but what it is most definitely not about.

Don’t worry if your head is spinning at this point.  Skinner’s is too.

His noggin must be twirling since Skinner then describes Fortis, Enel and a raft of other companies whose property was expressly seized and whose legal rights were brutally extinguished to have been mere “bystanders” to the whole affair. 

Once again, there is the truth of what the bill expresses says  - take Schedule E as the bit we are talking about - and there is what Skinner says. Those two things can only exist in the world inhabited by the average Dannystanni cabinet minister.  Here is Schedule E:

1.  The "Acknowledgement and Consent Agreement (Water Use Authorization)" dated 24 April 1997 between the Star Lake Hydro Partnership, the Mutual Life Assurance Company of Canada ; and the Crown, and all amendments including the Supplementary Acknowledgement - Crown Water Use Authorization dated 9 May 2001 and assignments of them.

2.  The "Acknowledgement and Consent Agreement (Crown Water Power Licence)" dated 24 April 1997 between the Star Lake Hydro Partnership, the Mutual Life Assurance Company of Canada ; and the Crown, and all amendments including the Supplementary Acknowledgement - Crown Water Power License dated 9 May 2001 and assignments of it.

3.  The "Hydro Consent and Acknowledgement Agreement" dated 31 July 2002 between the Exploits River Hydro Partnership, Clarica Life Insurance Company, and Newfoundland and Labrador Hydro and assignments of it.

4.  The "Agreement for the Purchase and Sale of Power and Energy" dated 18 September 2001 between Abitibi-Consolidated Inc. and Newfoundland and Labrador Hydro, and all amendments, including the Assignment dated 31 July 2002 between Exploits River Hydro Partnership, Abitibi-Consolidated Inc. and Newfoundland and Labrador Hydro, and assignments of them.

5.  The "Restated Agreement for Non-Utility Generated Power and Energy" dated 24 April 1997 between Abitibi-Price Inc. and Newfoundland and Labrador Hydro, and all amendments, including the Assignment dated 24 April 1997 between the Star Lake Hydro Partnership, Abitibi-Price Inc. and Newfoundland and Labrador Hydro, and assignments of them.

6.  The "Acknowledgement and Consent Agreement" dated 25 April 1997 between the Star Lake Hydro Partnership, the Mutual Life Assurance Company of Canada ; and Newfoundland and Labrador Hydro, and all amendments and assignments of it.

7.  The "Acknowledgement - Power Purchase Agreement" dated 24 April 1997 between the Mutual Life Assurance Company of Canada, in its own right and as agents for the Canada Life Assurance Company, the Maritime Life Assurance Company, Sun Life Assurance Company of Canada, the Standard Life Assurance Company and Industrial-Alliance Life Insurance Company, the Star Lake Hydro Partnership; and Newfoundland and Labrador Hydro, and all amendments and assignments of it.

So let us have no more of this nonsense, shall we?

Instead, let us talk of what this bill is.

It is a step toward settling the outstanding claims for companies who have a legitimate right to compensation for the brutal and unnecessary seizure of their property and for the cancellation of their rights gained by entering into good faith agreements with the provincial government and its Crown corporation Newfoundland and Labrador Hydro.

Fortis defaulted on a loan.  The provincial government has now assumed the payment of that bill.  Sunlife, Manulife and the others can likely produce comparable evidence of injury.

Neither politicians nor the media have bothered to talk about these companies.  The politicians did not speak of them because it was uncomfortable to talk about the facts of the expropriation. You can tell how uncomfortable it is since politicians never seem to want to talk about the facts of the matter. This release is confirmation of that, if nothing else.

As for the media, it remains a mystery as to what they report and what they don’t but that is another story entirely.

And let us not forget that the bondholders who suffered demonstrable financial loss as a result of the brutal and unnecessary seizure are also the sorts of people one would like to invest in a new hydro-electric project in the province.  They are much like the people who invested in another hydro-electric project oh so many years ago and who had to go to court to protect their investment from government’s ill-considered legal measures.

This bill is about calming them down as well, a point that is likely too close to what is really going on for any provincial cabinet minister to admit.  It is about trying to repair the considerable damage done to the province’s reputation as a result of the brutal and entirely unnecessary seizure bill. What actually happens, what compensation the government does wind up paying for the brutal and unnecessary expropriation will be the real test of whether or not the wounds to the province’s investment climate have started to heal.

As for the unnecessary expropriation bill itself, it would have been unnecessary only if one accepts the the claims made about it at the time.

But that too is another story for another day.

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Of pipelines and such

1.  Chevron and its Caspian pipeline partners are going to drop $5.4 billion to double the capacity of a pipeline bringing crude out of its Caspian Sea production operation. The line will be able to move 1.4 million barrels of oil per day when the project is finished.

2.  The federal government will drop as much as $18 million into a $24 million natural gas pipeline project between Vallee Jonction and Thetford Mines Quebec.

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14 December 2010

Tire burning decision on back burner

Environment minister Charlene Johnson is delaying a decision to permit Corner Brook Pulp and Paper to burn used car and truck tires as a fuel supplement at the company’s Corner Brook paper-making plant.

cbc.ca/nl reports that Johnson will now issue a decision on January 15 because the department received more public submissions than it expected. Johnson was originally supposed to make a decision by December 12.

While some initial reporters suggested there was considerable support for the proposal, protests, a Facebook group and other complaints grew as awareness of the proposal increased.

The Western Star reported in November that Johnson’s department reviewed the tire burning proposal last spring and recommended approving it.

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All your base are belong to us

And not just first base but the fencing and other improvements at a softball pitch.

In a world where money talks, does this sort of thing render some people mute?

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The return to “normal”

If you are looking for a good read, take a wander over to cbc.ca/nl and soak up Andrew Button’s observations on a recent visit to the House of Assembly

But, if the days I spent observing the house are any indication, the peanut gallery has more representation than anyone else in our province's legislature. With the non-stop heckling that goes on there, the house of assembly evokes the detention hall more than the hallowed offices of the Queen's own chamber.

Button is right. 

But that’s not what’s worth noting here.

Rather, pay attention to the fact the piece appeared.  The producers and editors at the Ceeb may have had this underway before Danny Williams hightailed it out of here but your humble e-scribbler is willing to bet there’ll be more of these sorts of pieces in the weeks and months ahead.

You see, the House of Assembly didn’t turn into a drool academy in the past couple of days.  Members of the House have been displaying this sort of behaviour for years.  Arguably, things have gotten notably worse in the past decade, as older hands retired and a new crowd took over.

The taunts are audible from the gallery, as Button noticed, even if the official record didn’t contain it. Some of the stuff hurled back and forth has been quite personal and quite savage.  And the bias of the Speaker in dealing with this sort of behaviour is simply unavoidable.

Yet,for some reason, the number of times this issue turned up in local media in the past seven years is one you can count on the fingers of one severely mangled hand.  it’s not like reporters didn’t see and hear the behaviour

Odd is that, especially considering it is a reflection – as much as anything else – of what Chief Justice Green referred to several times in his report on the House of Assembly spending scandal.  It’s called the “tone at the top.”  That new crowd that started flooding the chamber after 2003 learned their attitude toward the legislature and the people in it from their boss. And not surprisingly, the attitude turned out to be a bad one.

It isn’t odd if you connect it up with another piece of information.  According to at least one editor, Danny Williams and his crew used to mention that infamous Craig Westcott e-mail to reporters and editors whenever the opportunity arose over the 20 months between the date Westcott sent the e-mail and when he made it public via Kevin O’Brien.

Blatant breach of the province’s privacy laws.  An effort to attack a reporter’s credibility.  A sign of the intensely personal way Williams used to take everything.  Any of those reasons might have been cause for someone to have reported the fact Williams’ office was talking up the e-mail.

Even just mention the episode, in passing.

But they didn’t.

Not once.

For those who like to remember those days, think of what happened as being a bit like Brian Tobin’s time.  Tobin learned that he could place a decent story on both television newscasts if he fed it to the Telegram for their front page first. 

And coincidentally, the Telegram seemed to lay off the sort of investigative reporting on things like travel expenses that they used to produce regularly.  With a strong leader, it seems some people think it makes more sense to try and be part of the choir.

And then Brian left the province. 

Poof. 

The Telly does a series on how the provincial government did such a piss-poor job of handling access to information requests.  Over in another corner, it took a national CBC program to reveal that Brian Tobin was on track in 2000 to be the highest spending premier in the country. The sort of stuff that normally would have appeared in local media didn’t; well, didn’t appear not until Brian headed back to Ottawa.

Then, as if by magic, all sorts of stuff started to pour out of every media orifice in the province.  Things might be different these days from the immediate aftermath of Tobin’s time, but events of the past few days suggest that old habits are hard to break.

Things seem to be returning to normal, whatever normal is around these parts.

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13 December 2010

The joys of monopoly

From Dan Leger at the Chronicle Herald comes a simple description of how taxpayers get shafted in any scheme of regulated monopolies:

Emera now pays an annual dividend of $1.30 per share. An investor who has held the stock since it went public has collected $14 in dividends for every share in the portfolio. In 2010, Emera shares have returned 40 per cent, including dividends and stock price appreciation. And at very little risk, because of that whole regulated monopoly thing.

The company also keeps some cash for shopping sprees. Emera owns a hydro company in Maine and is expanding in California and the sunny Caribbean, with investments in St. Lucia, the Bahamas and Barbados. And it’s doing that with profits spun off from its most lucrative market: good old monopolized Nova Scotia.

It’s beautiful when you think about it. Emera gets 95 per cent of its revenues from captive, regulated markets and most of that comes from Nova Scotia and its guaranteed return. The company uses that money to diversify into new markets and new industries, like Labrador hydro, an energy brokerage, a pipeline, wind, tidal and natural gas. And it’s all subsidized by the Nova Scotia ratepayers.

And there’s nothing requiring any of those new businesses to soften the high rates here. For shareholders, that’s sweet. For the rest of us, not so much.

Things don’t promise to get any better for Nova Scotia ratepayers if, by some chance, Danny Williams’ retirement excuse announcement turns into an actual deal.  Emera will be able to buy power for a mere $95 per megawatt hour.  Even at the end of the 35 year deal, the company would only pay $125 per megawatt hour and that’s for the very small payment up front of $1.2 billion for a line between Sydney and Port aux Basques.

Do the math.  That’s considerably below current electricity rate sin Nova Scotia, even 35 years out.  Are Nova Scotian ratepayers likely to get the full benefit of that?  Only time might tell.

Consider, by contrast, the position Newfoundland and Labrador ratepayers will face, guaranteed by Danny Williams and his successor.  They anticipate that,by the time electricity starts flowing from Muskrat Falls, rates on the island will be 40% higher than they are currently. That works out to a bit over 13 cents a kilowatt hour in St. John’s.

And that point, Muskrat Falls cuts in.

Premier Kathy Dunderdale recently estimated it will cost about 14 cents a kilowatt hour to produce power at Muskrat.  On the face of it that looks like rates in Newfoundland would  - at the very least - double from what they are in 2017.  And that would be on top of the 40% increase expected to happen in the meantime.

Nova Scotians would be getting a pretty sweet discount, by comparison, at a mere nine or nine and a half cents.

But if Dan Leger thinks that Nova Scotians have been screwed by bungling politicians and a failed energy policy, he should look across the Cabot Straits.  Newfoundlanders could teach them a few lessons after 40-odd years of politicians who wanted to be energy magnates but who wound up giving rate payers a shock.

The upside, though, is that the most recent example of lousy energy policy is just rancid enough to rouse a few people slough from their torpor and ask a few questions. When Randy Simms and the Telegram editorial board start questioning things, you know it’s got to be pretty bad.

For her part, Premier Kathy Dunderdale seems incapable of answering even the simplest of simple questions. Asked why the proposed dams at Muskrat falls would be connected to Churchill Falls, all Dunderdale would say is this:

As I said last week, Mr. Speaker, we were happy to provide members of the Opposition with a briefing when we did an announcement of this project. I have offered again, because it is a large, complex piece of work, Mr. Speaker. To offer further briefings to the Acting Leader of the Opposition and members of his party, I make that offer again, Mr. Speaker, so he understands the nuances of this deal in a very particular way. Perhaps we can have a more enlightened discussion here on the floor of the House.

Dunderdale is not famous for understanding very much of anything.  At least when Danny was around, people could have some comfort that there was someone around with a clue. Now Dunderdale is in charge. She’s Danny hand-picked successor even if she is just a caretaker until someone else takes the helm.

But the odds are that if Danny’s successor’s successor keeps pushing the Danny Legacy Option for the Lower Churchill,  Dan leger and his fellow Nova Scotians will be in a much sweeter place than anyone in Newfoundland or Labrador.

Leger is right:  political bungling in energy policy tends to leave taxpayers the poorer, but Nova Scotia isn’t the best example of that situation.

Dunderdale confirms Bond story on Fortis and Enel

As you read here on Friday, the provincial government is handing back property seized in December 2008 to Fortis and Enel.

NTV ran the story on Sunday complete with a quote from Premier Kathy Dunderdale.

Dunderdale’s comments give some credence to the idea this expropriation wasn’t about any supposed broken promises by AbitibiBowater.

Maybe it was all about a spurned bid for Abitibi shares in Star Lake.

Maybe it was something else.

Slowly but surely the whole story is emerging.

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How to win without news media – Part 2

A month or so ago, some of you may have read the post called “How to win without news media” and the story of Texas governor Rick Perry and his rather curious media relations strategy.

Undoubtedly, the smart alecks out there caught on to the real story:  Perry didn’t win without conventional news media. Perry used them as an integral part of his media strategy. Perry did media interviews.  Local news media throughout Texas  carried his news releases and other media events.  After all how could they not cover any candidate for the state’s highest elected office?

The secret to Perry’s success lay in part in how he used the media. Perry used his polling to tell him the attitude he needed to take toward conventional news media in order to strike a chord with voters across the state.

The answer was to ignore them, for the most part and kick at them every once in a while.  Most certainly, Perry never kowtowed to them or showed any sort of deference to the conventional media.  And when newspaper editors, long used to being courted, got wind of his attitude and took up their pens against him, Perry profited by their anger.

Rick Perry capitalised on a thread of animosity toward news media that runs through a swath of the North American population and cuts across a wide range of demographics like age, income and education. 

It tends to be concentrated in the Republican or Conservative bits of the population, though. Sarah Palin plays on the anti-media theme, as have a number of successful Republican politicians in the United States over the past few decades.  Palin likes to talk about the media’s negative slant or their dark and sinister side

Conservatives north of the 49th also use the media as a convenient prop, much like their southern cousins.  And that’s really what the media is:  a prop.

Old media hands like Bob Wakeham [audio link] can live in the past all the want. Danny Williams’ rant at the news media last November, all 12 minutes of it, was not an effort to get the heretics to conform.  Rather, Williams was just reciting another part of the catechism that binds his own followers together.  They love Danny and loathe the media and having that outside enemy helps unite them in the greater cause. 

There’s a bit more to it than that, as well.   There’s no accident that Williams singled out the CBC for his ire the other night. Aside from the visceral hatred many ideological conservatives feel toward the Ceeb, the Mother Corp is to some local Conservatives what the New York Times is to southerners:  it symbolises the smarmy, elitists who suppress the Conservatives’ truth.  And let’s not forget the big part of it for these Conservatives:  the CBC is not local.   It is the Canadian broadcaster.

There’s not a shred of reality in the anti-media belief system, of course.  The Ceeb’s been as good an outlet as any local news media for spreading the Williams’ mythology. In that respect, they are the electronic version of the newspaper supposedly run from Quebec that, in fact, tended to favour Williams and the Conservatives more often than not over the past seven years.

But for all that, some people cling to their hatred of the Ceeb so intensely that last spring they laid siege to the Corporation’s Parkway bunker last spring for something that the Ceeb reporters didn’t do.  NTV broke the story of the Premier’s heart surgery. Yet, the cultists attacked the CBC and, to a lesser extent, the Telegram.

November’s rant was by no means the first such Williams tirade against the news media.  In fact, it was a regular feature of his fund-raising speech starting in 2006. He’s launched into the same sort of tirade at other times, as well, claiming that he’d have been able to do so much more if only pesky people wouldn’t bother him;  bother him, that is with requests for information about what government is doing.

And, of course, Liberals were always a favourite source of Williams ire.  They were the ones who supposedly gave away all the province’s resources, for instance.  There’s a bit more to this whole thread, however, than just a Tory rant.  Consider, for example, the vicious rhetoric Williams employed in a June 2001 in a speech he delivered to Nova Scotia Conservatives:

The more that I see, the more nauseous and angry that I get. The way that our people and our region have been treated by one arrogant federal Liberal government after another is disgusting. The legacy that the late Prime Minister Trudeau and Jean Chrétien will leave in Atlantic Canada is one of dependence on Mother Ottawa, which has been orchestrated for political motives for the sole purpose of maintaining power. No wonder the West is alienated and Québec has threatened separation. Canadians - and Atlantic Canadians, in particular - realize the importance of dignity and self-respect while Ottawa prefers that we negotiate from a position of weakness on our hands and knees.

Yes, friends, conservatives love to use liberals – with initial capital letters or not – and the media for good measure as scapegoats.  That’s a subtext to all this by the way:  things would be better except for these identifiable groups who conservatives, like Danny Williams, can blame for stuff.

In Newfoundland and Labrador, though, scapegoating is a much more deeply ingrained part of the local political culture than one might imagine.  The most obvious one is something  called Quebec.  All Danny Williams ever had to do was say that Quebeckers were behind it and everyone accepted the idea, without questions. 

No Lower Churchill deal?  Quebec is blocking it.  Ask a question about problems with the Lower Churchill?  Get ready to be labelled a Quebec-lover, code for race traitor.

Lest you think these are peculiar examples, consider the Western Star editorial last spring after the people of the province found out that the provincial government had buggered up the AbitibiBowater expropriation rather badly.

Blame the people who did it?  Heavens, no.

It’s time they admitted their shortcomings in the process.

It’s the duty of the opposition to challenge the government on legislation it brings before the house, and make sure these kinds of potentially expensive hiccups don’t make it into law.

They were asleep at the switch in this matter — there’s now way around it.

They dozed in their seats, didn’t ask enough questions ... and let the bad legislation become the law of the land.

It should be a lesson for all concerned.

Our system works best when the tough questions are asked ... not when  government gets a free pass.

Liberals got the blame not only for the mess but for not questioning it in the beginning.

And what about the sorry state of House of Assembly, sitting for a scant eight days of a fall sitting this year?  The Star’s sister newspaper opted to highlight last week the supposedly weak opposition, the Liberal opposition who, the editorialist claims, have had a whole year to do better than make a single mistake.  And for good measure, the Telegram repeats the same foolishness the Star did, blaming the Liberals for things done by the government:

Governments and their ministers are paid by taxpayers to govern the province.

Opposition members are paid to thoughtfully and thoroughly examine the decisions of the government — not for opposition’s sake alone, but to try to help the province keep from falling into errors like accidentally expropriated paper mills and hydroelectric deals without escalator clauses. It’s a serious job with serious responsibilities.

Get some game. Earn the pay

Danny Williams’ political success came in part from his skilled use of messages that resonated with his audiences.  Blaming Liberals and the news media for everything is a case in point, but you have to add in the notion of scapegoating to truly appreciate the power of his messaging and the extent to which patterns of thought are so thoroughly accepted in some segments of the population in Newfoundland and Labrador.

Danny Williams, like Rick Perry, couldn’t win without news media.  The difference was in how each politician used them.

- srbp -

12 December 2010