Lies, damn lies and throne speeches

One of the glorious piles of foolishness you will see again in Monday’s provincial throne speech is the idea that no provincial or federal government before this current provincial one paid any attention to public sector capital spending.

For too many years, for want of proper infrastructure, our province languished while other regions of the country prospered.

It’s foolishness because every government delivered capital spending, even in the leanest of times.

Take a look at this table.  It shows public sector capital spending in the province from 1991 to 2011.  That’s federal and provincial spending combined and it includes construction as well as equipment.  The figures are compiled by the Statistics division of the provincial finance department using Statistics Canada figures.

The section marked Red I basically reflects provincial spending during the early 1990s recession combined with what appears to be any federal money that went into Hibernia.  That would account for the peak in 1995 and the drop off in the last year of the project before the GBS tow-out and first oil in 1997.

Blue II represents the combined federal and provincial Conservatives’ “stimulus” spending.

Red III  is a bit of an anomaly but since it covers both a federal and provincial election period, odds are good that there is a connection.  Anyone who can offer a reasonable explanation is welcome to chime in on that one.

What’s curious is that the first three years of the current provincial Conservative administration is roughly the same as that Red II period in terms of total capital spending.  It’s not because the provincial government was flat broke;  it wasn’t.

To the contrary, the provincial government had cash and announced a fair dollop of spending in the run-up to the 2007 election.  What seems to be reflected in this diagram is that a great deal of the capital works announced by the provincial Tories around the 2007 election just didn’t happen until two to four years later.

It’s one of those curious things but the current crowd what is ruling over us seem to have a chronic problem delivering their capital works projects.  They can announce them alright, but finishing the delivery seems to be a problem.

Oh.

And there is no coincidence that capex is peaking in 2011, a definite provincial and likely federal election year.

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Fried Clyde dumps Danny’s fish policy

Remember earlier in the month when fisheries minister Clyde Jackman abandoned the fisheries reform process?

Let’s just take a jump back to something that stood out from his newser at the time:

What Jackman did mention one too many times for comfort was the idea that some people think time will take care of the whole thing.  In other words, in an industry dominated by people rapidly approaching retirement, most of the people who would be “restructured” will simply leave the industry on their own if nothing else happens. He also talked about signs that prices might be climbing again soon, perhaps another clue as to what some in the provincial government might be hoping for.

No surprise, then, that Jackman is on the front page of the Telegram on Tuesday with this to say:

“…how can I justify, going forward looking for $190 million dollars, to justify a 30 per cent reduction (in harvesting), when the report clearly says that if you leave it alone it will restructure to an even greater degree than the ask that the FFAW put forward?”

How indeed, except that there is a difference in sheer human cost between an organized series of cuts and the wholesale slaughter that may well leave nothing much in the fishery to restructure when it is all over. You can see the same thread running through the front end of the letter Jackman sent to the processors and the union representing fish-plant workers and fishermen, now called “harvesters” in polite circles.

Perhaps the most interesting thing about Jackman’s letter is that he winds up abandoning the position he and his colleagues championed for seven years. Gone is taxpayer-funded bailouts and buyouts.  In two successive federal elections, Jackman and his colleagues tried to get commitment after federal commitment to doing just that.

What’s even more bizarre  - some might say disingenuous - about the Dunderdale’s government’s supposed concern for public spending is that it doesn’t apply to things like Muskrat Falls. 

It’s also a bizarre strategy to take in an election year especially when there are so many rural seats the Tories currently hold but where their grip might be weakening a bit.

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Selling cheap power to Quebec

The always reliable labradore has unearthed some fascinating information about a power deal between Nalcor and Hydro-Quebec.

Bottom line:

• Nalcor took forever to publicly announce the deal, and
• They are selling power into Quebec for about 20%
• of what Labrador and Newfoundland customers are paying.

Not bad, eh?

They even get a volume discount, something that will not be available to the residential consumers who will be bearing the full cost of Muskrat Falls in the future just so Nalcor can sell more cheap power to customers outside the province.

That’s the only way the “economics” of the current proposal make any sense to the people behind the scheme.

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Dunderdale government to cure arthritis

From the Throne Speech:

As My Government follows through in implementing its provincial wellness plan and its healthy aging strategy, it is also turning its attention to chronic diseases. Arthritis, cancer, chronic pain, diabetes, heart disease, kidney disease, lung disease – unlike many acute illnesses that can be treated and cured – are chronic conditions which can remain with people for the rest of their lives. My Government will move forward this year to release a new Chronic Disease Management Strategy which will include a comprehensive and collaborative approach to chronic disease prevention and management throughout the province.

Chronic disease prevention.

Arthritis listed first.

As someone with arthritis, your humble e-scribbler is not going to hang around waiting for them to deliver on that one.  Hint: no one knows what causes arthritis. But if they can improve the pathetic arthritis support delivered via Eastern Health’s bureaucratic monstrosity, then more power to ‘em.

Gotta say too, now that Hisself isn’t writing the speeches any more, they are much better. One more mangled Kennedy quote and people were going to start flinging themselves under busses voluntarily.

But this speech has some decent writing including nice turns of phrase and some great structuring.

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New Dawn up for vote yet again

Apparently, the Matshishkapeu Accord will be back for the Innu people of Labrador to vote on.

This must be the final, final, final version of the final agreement announced two and a half years ago as being the final agreement.

Note, though, that all the feds have announced on Monday was a financial deal.  The rest of the land claim is still up in the air.

Just sayin’, in case anyone figured this was a done deal.

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Muskrat Falls power may never go to New England: Nalcor

From Nalcor vice president Derrick Sturge:

"Whether all of the energy ever flows to the New England market - who knows? A significant portion of that (40 per cent) may never hit New England. It may end up in Prince Edward Island or New Brunswick. But the key is that there is the option to flow to the (New England) market."

And then he said the thing is going up with or without a federal loan guarantee.

Newfoundlanders should keep an eye on their wallets with this guy Sturge and his buddies around.

They have no markets for the power outside the province.

That’s why Sturge uses all the conditional language like “may”.  It may go there;  then again, it may not.

Count on the “not’ given that the front end of the story makes it plain that Nalcor and Emera couldn’t actually settle on a price.  Muskrat Falls power was just too expensive.

So in exchange for Emera partnering on a line to Nova Scotia they’ll get free power for 35 years.

Talk about the price is right.

Free is always the right price, except if you are Nalcor customers in this province.  For you guys, Nalcor will be jacking up Newfoundland electricity rates and adding another five billion or so to the public debt.

And for what?

Well, since Nalcor’s own figures show there is no demand on the island that couldn’t be met other ways besides Muskrat, the answer to that question remains as much a mystery as why Kathy Dunderdale threw Shawn Skinner under a political bus last week with the Matthews’ debacle.

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Libya 1986 - OP El Dorado Canyon

This is a short video recounting the American air strike against Libya in 1986. 

The video mentions SA-3 Goa and SA-5 Gammon anti-aircraft missiles.  Together with the much older SA-2 Guideline, they still formed the backbone of Libyan air defence.

Well, that is until the past 48 hours.

Taking out Libyan air defences was the first phase of coalition military action against Muammar Gaddafi’s forces.  Aircraft and cruise missiles reportedly struck anti-aircraft missile sites and airfields.

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High cholesterol Traffic: Now with extra pork!

From a pork-barrel almost appointment to a minister welcoming federal pork that never comes, this week the most popular posts are about Conservatives and patronage.

1. Matthews bails on board position
2. Operation Ridiculous
3. Head-scratching and nose-pulling in latest twist in Matthews appointment debacle
4. Matthews appointment to offshore kept secret until leak
5. Anyone seen John Hickey?
6. The disease spreads
7. Inadvertent media humour
8. Good Tory?  End of Story
9. No more give-aways indeed:  provincial government considering cash breaks for major oil companies
10. Pushback in New England on hydro lines

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Cleary to unquit for NDP again?

Ryan Cleary, former newspaper editor, former talk show host and former NDP candidate is considering another run at federal politics six months, after he packed it in as the New Democratic Party candidate in St. John’s South-Mount Pearl.

Cleary carried the orange banner in the 2008 federal election, lost that one, then took up a job hosting a late night talk show.  Although the gab-fest was well suited to his talkative style, Cleary quit that gig to spend more time with his family and then sought the NDP nomination again.

Last October he gave that up to go back to journalism and now he is apparently considering an offer from the NDP to run again for them in St. John’s South-Mount Pearl.

Talk about on-again, off-again.

A campaign involving Cleary, Liberal incumbent Siobhan Coady and reputed Tory heavyweight Loyola Sullivan could turn out to be an interesting race.  Cleary has the potential to split up the nationalist Conservative vote especially among local Conservatives who are still can’t get beyond the whole demon Harper thing. 

In 2008, Danny Williams’ gang tried to drive the Tories to Coady.  Four prominent members of his caucus, including Kathy Dunderdale and Paul Oram, went door-to-door for Coady.  It didn’t work.  The local Blue Crew that did turn out opted for Cleary, instead.

Cleary also might not be able to count on quit so much spill-over help from Jack Harris in St. John’s East.  The darling of the East End will be in a tighter race of his own against Jerry Byrne. 

As a result, Jack might not be able to give any serious help to the fellow some will soon be affectionately referring to as Yo-Yo Maw.

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The disease spreads

Scott Reid’s dissection of national politics could equally be a commentary on politics in Newfoundland and Labrador since 2003.

Here’s a taste:

We can begin with a Parliamentary Press Gallery that, increasingly, is dazzled by political tactics, bored by substance and disinterested in the awkward obligation of challenging authority. With too few exceptions — and one fewer with the sad passing of the Star's Jim Travers — reporters seem more interested in sounding like in-the-know party strategists than detached observers.

It is they, in particular, who tell us repeatedly that "no one cares." And all too frequently, there is little, if any, suggestion that part of the media's function is to serve as a check on abuse of authority. Put another way, if Woodward and Bernstein had followed the same method we sometimes witness in Ottawa, they would surely have shrugged off Deep Throat, explaining that no one cares about such a technical, complicated story and that, in any event, Nixon's triumph over McGovern rendered the matter moot.

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Provincial government wakes up on EU trade

Almost two years after your humble e-scribbler pointed out the blatant stupidity of the provincial government’s decision to boycott free trade talks, the provincial government is now sorting itself out.

The provincial government trade gang will switch from observers to participants at the upcoming trade talks between Canada and the European Union in April.

The old policy  - supported unquestioningly by the same people who have now turned 180 degrees – was stupid because it jeopardized the existing and future economic interests of the province and left local industry to being left out of a new lucrative market.

What’s worse, the old, stupid policy threatened to increase the dependence of the local economy on  on the American market. As a result, the provincial economy would become even more fragile than it had already grown as a result of seven years of backward economic policy by the provincial government.

It may have taken two years but the current crowd have finally figured it out.

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Inadvertent media humour

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Kelly wins in Corner Brook

Gary Kelly won the by-election for Corner Brook City council polling 987 votes.  He topped a field of five candidates.

He ran a campaign with a significant presence in the social media and took to the streets of Corner Brook with his sign in hand, greeting pedestrians and waving to motorists. His effort was often the talk of the city throughout the campaign, and Wednesday evening the results proved its worth.

Expect to hear more about this guy in the future.

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Anyone seen John Hickey?

Our man in Menihek.

The Pavement Putin of the Permafrost.

Currently the Labrador affairs minister and reputedly wannabe Conservative candidate in the next federal election.

Well, he may not be seen anywhere other than the A&W in Goose Bay for breakfast but certainly no one has heard from him on a CBC story that the Department of National Defence isn’t interested in spending any more cash on sustaining the infrastructure at Goose Bay beyond what they need.

Funny that Hickey is so silent.  In 2006, for example he was adamant that the fine people of Goose Bay could count on the promises of his political pals in Ottawa.  Here’s what he said in the House of Assembly in April 2006:

Although there was some fearmongering [sic] going around the community and there were some moments there last week when people were not really sure, I want to commend the new Minister of National Defence, Minster Gordon O’Connor, for coming out publicly on Monday morning and reconfirming the commitment that he made to the people of Happy Valley-Goose Bay, that he made recently to Premier Williams in Ottawa, and the commitment that Prime Minister Harper made to our Province in a letter that he wrote to the Premier during the election. The commitment is there, Mr. Speaker, it is solid, 650 troops on the ground. We are going to see an army base there with  an extra 100 support troops for a UAV squadron. This is fantastic news, Mr. Speaker, for the Town of Happy Valley-Goose Bay and for the
District of Lake Melville.

Fantastic news of the glories to be delivered onto the fine people of the Big Land by John’s Big Friends.

Anything to the contrary was fear-mongering.

Five years later?

Fantastical nothingness.

In fact, the likelihood of the federal Conservatives delivering even the promise to promise something vaguely like they’ve been promising is so remote at this point that some of the local movers and shakers in Labrador are thinking about trying to press the federal Conservatives for the loan guarantee on Muskrat in lieu of the numerous lavish and thus far unfulfilled pledges to bring riches to Goose Bay via National Defence.

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Pushback in New England on hydro lines

Environmental concerns are causing problems for a proposed electricity transmission line that could help carry Labrador electricity into the United States.

The Northern Pass project will carry electricity from Quebec into New Hampshire and on to the rest of New England.

Some local residents in New Hampshire are concerned that the proposed route will damage the state’s tourism industry. 

John Harrington is a retired newspaper publisher.  He told North Country Public Radio:

“What’s being threatened is the only thing we really have left, which is tourism. All for the convenience of people far to the south. And we’re going to wind up with this huge scar right down through the narrowest and most fragile part of New Hampshire.”

Then there’s the question of whether or not big hydro is actually green. Only Vermont currently accepts hydroelectricity from large dams as renewable and green and therefore eligible to count in state-mandated energy calculations.  Most New England states require that a percentage of electricity in the state come from renewable, green energy sources.  Both the American federal and some state governments also give cash incentives to renewable energy projects.

In some states, debate is already raging about the implications of renewable energy policies.  In last fall’s gubernatorial campaign, incumbent Deval Patrick’s Republican challenger included support for big hydro as part of his campaign platform. 

In Connecticut, Northeast utilities senior vice-president James Robb told a conference last November that without big hydro, “ it will be very challenging to meet those goals” of increasing the use of renewable energy sources to 25% of generation by 2025.  Robb said that there are projects but many are uneconomical.

Still, the big hydro projects don’t meet existing guidelines.

The main concern regarding hydro is that the flooding resulting from dams causes leaves and other foliage to decompose, emitting methane, one of the worst greenhouse gases. The Canadian officials [at the November conference]  argued that the water in their provinces is so cold that the leaves don’t decompose.

“I’m struggling here in New England with how New England is going to meet its renewable requirements. Without Quebec and Newfoundland & Labrador, you will struggle to hit that,” said Ed Martin, president and CEO of Nalcor Energy, which is based in the hydro- and wind-rich Newfoundland & Labrador. “Hydro is part of the mix that has to happen if you are going to meet the goals in New England.”

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Operation Ridiculous

Usually when one is in a hole, it is a good idea to stop digging.

There may be exceptions to this rule,  but for most occasions,  when you can no longer see over the edge of the hole even on your tippee toes, best thing to do is lay the shovel down and start figuring out how to get out of the self-inflicted predicament.

If your friends are in a hole, then you can offer them a hand up out of the hole.  Under no circumstances, though, should you start shovelling dirt in on top of them.  Jumping in with them may be noble but it is never sensible and if you are in the hole, it is never wise to start pulling the shite back in around your own feet.

Evidently, someone forgot to explain this subtle bit of mystical political knowledge to Premier Kathy Dunderdale.

Instead,  Premier (pro tempore) Dunderdale got hold of the Danny and Liz playbook, a portion of which Liz decided to continue this week in her ongoing campaign to destroy whatever shreds of her own dignity she might have left.

Remember that claim about not knowing about the appointment?  Well, kiss that nose-puller goodbye when the evidence is unveiled.  Elizabeth Matthews told the Telegram that in fact she had a copy of the order in council the Liberals released on Tuesday.

The she tried to turn the whole thing into a process story:

The job of vice-chair of the CNLOPB requires approval from the federal government and Matthews said she was not “informed in any official capacity” that she had been named to the board.

So she knew, but not officially and therefore she didn’t know.

Or did she?

Liz Matthews may well turn out to be the political progeny not of Danny Williams but of Tom “TimeLord” Rideout.  Liz knew but didn’t know.  Back in 2007, Tom wanted to explain that the Green report recommendations on allowances would come into effect tomorrow but in his world, tomorrow meant six months in the future, not the day after this one.

How in the name of heavens can anyone not wilfully and pathologically blinded by Danny-envy be surprised that the Gang That Couldn’t Shoot Straight, the crowd that brought you a low rent version of Doctor Who  - Rideout, Hedderson and Marshall editions - and the Abitibi expropriation blunder couldn’t even handle a simple appointment to a board whether out of unfettered lust for patronage or a secret John-Turnerish promise to Danny?

Seriously.

Who is shocked by this?

Didn’t think so.

Unable to hide from the media any longer, the person who actually made the Elizabeth Matthews nomination made a few comments today.  The result was, well, let’s just say that when she frigs up Kathy Dunderdale does not settle for half measures. She laid her shovel down alrightee and then dragged in a backhoe just to really bury herself.

Before going any further, let us remember that the core point Dunderdale could have used was simple:  appointment’s not done yet.  We’ll let you know when and if it is made. That is the same line Matthews could have used and it is the one Shawn Skinner could have tried. 

There might have been a bit of a stink about patronage or potential pork-barrelling but it wouldn’t have been half as bad as day after day of the appointee and a senior minister saying things that they both ought to have known were bullshit and that could be shown to be bullshit fairly easily.

Think of it this way:  they did not impeach Clinton for a quickie in the closet with a young woman a fraction of his age.  They got him for insisting that he had not had sex with that woman and then engaging in some amateur lawyer bullshit about the definition of “is” in order to perpetuate the patently ridiculous denials.

So take a gander at the raw footage of Dunderdale talking to reporters. 

Making it up as she goes along 

Dunderdale claims there is a regulation requiring first a board appointment and then the second stage of a vice-chair nomination.  She then claims that a letter conveys the official appointment.

Dunderdale knows or ought to know this is preposterous.  There is no regulation governing the appointment.  The Atlantic Accord implementation acts simply state that the nominee for vice chair needs the support of both the federal and provincial governments.  If both governments agree on the nomination, a board appointment can follow in due course.  Both governments can even agree whether it will be a federal, provincial or joint appointment.

Take a look at the order in council.  It is clear that Matthews is appointed with effect from January 1 and that – in addition – cabinet put Matthews forward as a nominee for vice-chair subject to federal agreement.  There’s even a reference to negotiating the salary for the vice chair’s job.

Simply put, Dunderdale is wrong.  You have to be on the board if you are vice chair but you don’t have to be on the board before becoming vice chair.

Let’s go one step beyond.  If, as Dunderdale claims, she never intended Matthews to sit on the board in any capacity other than as vice-chair, the order in council would have been written to say that.  More likely, it would have followed the agreement and approved the appointment and salary as already agreed.

Dunderdale defends her nomination of Matthews because she believes the former Williams communications aide is a “strategic thinker” who is articulate.  Clearly the events of the past couple of days speak to the contrary impression.  Articulate strategic thinkers don’t usually default to easily disprovable crap as the first thought.

Dunderdale claims that the process is not secret, that it has to be straightforward and done in public.  The events as they unfolded and Dunderdale’s own account of how things were supposed to happen make her claims about welcoming debate patently false.

Had things unfolded as Dunderdale intended, no one would have learned of the appointment until after it was copper-fastened, to use a hideous Dunderism.  Michael Connors of NTV (or so it sounded like) made the point in a question that an appointment to the board announced in December would have sparked controversy.  Indeed, it would have.

As for welcoming the chance to defend Matthews, it is almost laughable that both Matthews and Dunderdale talked about their willingness to defend the appointment only after Matthews quit the process and therefore made such a defence unnecessary. 

People who genuinely believe they can win don’t quit.  It’s that simple.  Everything else is nonsense.

As for what really happened, the full story may never emerge.  It is possible, for example, that Dunderdale – like her patron and water rights – got caught in a rather amateurish effort to engineer something for Matthews.  Heck, maybe the same legal geniuses behind that fiasco and the expropriation cooked up this scheme with their less-than-perfect knowledge of the law and procedure.

Faced with a federal twin vice-chair who might well have wound up as the official replacement for Ruelokke, any other schemes about changing the board using Matthews may well have been scuttled.

Then again, the simple fact that Matthews blew her own feet off with her patently false claims on Friday, coupled with industry and political pushback made the appointment too stinky to survive the very debate Dunderdale supposedly welcomed. Dunderdale and Matthews can talk all the brave talk they want:  fact is they lost.

The whole Matthews mess is almost too embarrassingly ridiculous to believe. Had it not unfolded in front of our eyes, anyone could reasonably reject it as too incredible to be true.

[But the fact is] you just cannot make this stuff up.

All we can do is wait to see what Dunderdale does next.

[Updated:  corrected typos;  subhead clarified;  words added in square brackets to clarify sentence.]

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Related:

• “Introducing Premier Kathy Dunderdale”
• “Introducing Premier Dunderdale:  Patronage and the Public Tender Act”
• “Introducing Premier Dunderdale:  delusions”
• “A primer on the new Premier”
• And for those who missed it, this post carries on the tradition of “Chaos in Control”:  “Get Smart!  “Operation Ridiculous”,  Season 3 

Head-scratching and nose-pulling over latest twist in Matthews appointment debacle

A few of the people steadfastly supporting the provincial government’s pork-barrel attempt to get Elizabeth Matthews on the offshore regulatory board were left scratching their heads Tuesday evening. [changed verb tense]

Some are so perplexed trying to reconcile their stories with the facts that they are even calling for a public inquiry

The reason is simple.  Yet another aspect of the story they have been spreading is blowing away in the face of facts. 

The specific bit now boiling off faster than a Japanese reactors’ cooling water is the claim that Elizabeth Matthews didn’t know about her board appointment or that her appointment included a seat on the board, depending on how you interpret the comments. 

On Friday, Matthews responded to a Liberal opposition news release that noted she was appointed to the offshore board on December 21 with effect from January 1, 2011. CBC provincial affairs reporter David Cochrane tweeted a series of comments on this, including comments about Matthews:

(March 11)  “Where are you getting this from?  Feds tell me her appt isn’t finalized at all…I spoke to Matthews directly.  She says she is not on the board….EM says she has never been told of any appointment.  Do Libs have draft letter never sent?…Skinner says they nominated EM in January…”.

Cochrane put Matthews’ comments to Shawn Skinner in a scrum on Monday.  Skinner agreed that Matthews hadn’t been notified and that’s the story CBC ran with on Tuesday.  Skinner also mentioned that the appointment needed an order in council but insisted that Matthews didn’t know about the appointment.

Well, the order in council clinches it:

If you look on the left-hand side of the document, you will see the list of people to whom officials of the cabinet secretariat distributed the order.  “P” is the Premier.  The Natural Resources and Public Service Secretariat deputy ministers got copies, as did the Attorney General, the Deputy Clerk of the Executive Council and the file.

And so did someone named E. Matthews.

Just so that everyone understands just how crucial this document is, understand that the order in council is one of the basic legal instruments of our system of government.  You can find a handy definition of what an order in council is over at the Privy Council Office website along with a searchable database of these public documents.

To paraphrase, an order in council is a legal instrument made by the cabinet, called the Lieutenant Governor in Council, by powers given by a law or, less frequently, the royal prerogative.  In most provinces, orders in council are made on the recommendation of the responsible minister and take legal effect only when signed by the Lieutenant Governor.

They don’t get back-dated.  And they damn well don’t get left sitting idly around somewhere unattended.  The people who handle these things are nothing if not diligent to the point of anal retentivism about making sure everything is done just so. That’s not a knock on them; to the contrary, the people in the Executive Council office are among the most trustworthy and responsible people anywhere on the planet.

They don’t shag up, as a rule.

And in this case, they’d have extra incentive not to make a mistake.  As Shawn Skinner pointed out on Monday, these appointments belong entirely to the Premier.  Kathy Dunderdale gets to make them just like her predecessor Danny Williams did. That isn’t what happened before 2003, by the way.

If Kathy picked Liz, then there’d be hell to pay if Liz did not know that she could start earning cash come the New Year.

Nor is it really plausible that Kathy Dunderdale, Shawn Skinner or any of their senior staff might have buggered up and not mentioned to Liz she had a seat on the board.

Nor is it likely that they thought one didn’t happen without the other.  Shawn Skinner’s been pretty clear since Monday that they considered it a two-stage process, but stage one happened in December. 

The order in council makes the appointment to the board first.  Then it puts Matthews forward as a vice-chair, subject to federal approval.  That’s what Skinner told reporters on Monday.  As it turned out, the feds made a counter-offer to accept Matthews contingent on the province accepting a second vice-chair by federal appointment.

Nor is it likely David Cochrane either misunderstood what Matthews told him or made a fairly consistent mistake in conveying it via Twitter or anywhere else. Matthews relayed what he got and consistently put the comments to Skinner.

Now Liz may have misunderstood what was going on, but that’s a different – and entirely possible – thing. 

For something like this, Matthews would have been entitled to attend any board meetings after January 1, 2011 and participate like any other member.  The only thing that hadn’t been settled up to the time she bailed on the whole thing was the second part of the order.  That is, the federal government had not agreed to her appointment to the vice-chair’s job.

But her board appointment on behalf of the province?

Full legal effect on December 21.

With Matthews’ decision to bail on the appointment, the whole vice-chair position at the board is up in the air.  The idea of two vice-chairs appears to have been nothing more than an effort to have a federal appointee to offset Matthews. 

With her appointment now dead, there’s an opportunity for both St. John’s and Ottawa to agree on an open competition to be followed by an appointment based on qualifications and merit.

If nothing else, it’s got to beat the hell out of yet another complete disaster  - remember Andy Wells? - that its proponents have been forced to defend with what amount to claims of their own bungling and incompetence.

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Where is the Hebron development application?

Last January, the Hebron partners said they’d be submitting their development plan for Hebron to the offshore board by the end of the year.

That would have been December 2010.

Now it’s March 2011 and there’s still no sign of it.

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No more give-aways indeed: Big Oil’s L’il Buddy considering cash breaks for major oil companies

According to the cover story in the latest issue of Natural Resources magazine, the provincial government and representatives of the major oil companies are reviewing ways to increase exploration offshore.

Operators are presenting the government with a “suite” of proposals, according to [industry representative Paul] Barnes — many of them involving fiscal incentives, such as tax credits or royalty relief, that could spur increased exploration. 

Barnes is quoted as saying that the talks are “high-level” likely meaning they involve the Premier and other senior cabinet ministers. The 2007 energy plan included a recommendation to establish a working group involving industry and the provincial government to develop “regulatory and fiscal measures” to promote exploration as well as what the document refers to as “other industry needs.”

One idea reportedly under consideration is a royalty break for dry exploration wells.

For example, companies already producing in the area may favour some type of incentive that’s royalty based. If they drill a well and come up dry, they could get royalty relief on current production. “If there’s some risk offset, that may encourage some additional exploration activity,” Barnes noted. He said there are similar royalty-relief holidays for deepwater exploration in the Gulf of Mexico, to help mitigate the cost of unsuccessful wells.

That’s a significant switch from earlier Conservative positions but it is consistent with what the Conservatives have done since they took office.

For example, before 2003, when oil prices were below US$30 a barrel, Danny Williams attacked any suggestion that the Hebron partners might need a flat one percent oil royalty in the early years of any Hebron project.  Once in office, when oil prices tripled, he agreed to just just a windfall for the oil companies. The provincial government will lose hundreds of millions of dollars as a result, if oil prices remain above US$35 a barrel. 

Other issues for the industry include continued uncertainty about the province’s oil royalty regime.  The 2007 energy plan committed to scrap the existing one and replace it with a new approach.  Four years later there’s no sign of work being done, let alone any progress.

In natural gas, the provincial government still doesn’t have a royalty regime.  That’s despite the fact work on the rules started in 1997 and the 2007 energy plan outlined a draft royalty policy.

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Matthews bails on board position

Elizabeth Matthews is bailing out of her controversial nomination to serve as vice-chair of the Canada-Newfoundland and Labrador Offshore petroleum Board.

It isn’t clear if she is also leaving her appointment to the board itself.

As CBC reports, Matthews is blaming the Opposition Liberals for politicising the entire matter.  Matthews served as a communications director for the Liberal administration of Roger Grimes before she left quickly to work for Danny Williams in the Opposition office where he was infamous for slinging wild, political accusations.  In another ironic twist, Matthews former boss said he got into politics because he was sick of all the patronage and corruption.

The big twist in the story appears to have come on Friday when the Liberals revealed a December 21 letter from natural resources minister Shawn Skinner to his federal counterpart appointing Matthews to the offshore with effect from 01 January 2011.

And then things went horribly wronger Update:

The Telegram has the full text of Matthews’ statement.  For starters, try and find the clear statement where she says she is quitting her appointment. Then check and see if she has actually launched any defamation action given her references to defamation.  This sounds suspiciously like John Hickey suing Roger Grimes for stuff Danny Williams said:  a huge pile of smoke to cover the catastrophe everyone else sees.

If that wasn’t enough, note, among other things, the change in her title in the Premier’s Office from the bio sketch in the letter on the appointment – “Senior Policy Advisor”  - to “a senior advisor”.  There’s a huge difference in the two.  That’s just the tip of that iceberg.

- srbp -