SRBP on Radio: Muskrat Falls

For those who missed it, here’s the audio from your humble e-scribbler’s Labour day call to Open Line.

h/t to Dave Adey who has been relentlessly documenting Muskrat calls to OL among other things.

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Traffic for September 5 – 9, 2011

ya know that something is going on when the traffic at ye olde e-scribbles starts jumping up by 25% from the previous month.

And that’s a real 25%, not an hyper-torqued NDP 25% that is actually just one percent. 

If you want to see more on  the story of the NDP’s deceptive news release on small business taxes, it hit the Number 8 slot on the top 10 Bond posts for last week, as chosen by the readers themselves.

Lots of “D”s in the Top 10 last week, including Danny, Desperation,  Donations,  Duff and Doyle, as in Republic of.  Even without putting the words in the headline lots of people found it and likely had a little chuckle as they went.

The week after Labour Day turned out to be highly charged politically and if the trend holds this will be one of the more interesting fall seasons in recent times.

So in case you missed these posts during the week, settle in and enjoy what caught everyone’s attention here at SRBP last week.

1. RCMP investigating SNC Lavalin officials over corruption allegations
2. And he is known by the company he keeps…
3. Democracy Watch:  Duff’s guff
4. Dateline:  Desperation, Newfoundland
5. The Joy of Political Giving:  punch in the bake edition
6. Danny, Gary and Steve:  old inconsistencies die hard
7. Rideout tags Tories for election pork-fest
8. The Politics of Cynicism;  even worse than thought edition and What you can see at the horse race…
9. The Joy of Political Giving:  Look for the union label
10. The Joy of Political Giving:  If you want to build it, they will give

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Aylward questions Nalcor on choice of consultant

Liberal leader Kevin Aylward has sent a letter to Nalcor boss Ed Martin asking about Nalcor’s use of Navigant as the consultant the company chose for a review of the Muskrat Falls project.

The Liberals posted the letter to the party’s campaign website on Tuesday but apparently didn’t give it wide circulation.

In the letter, Aylward asks;

1. When was Navigant retained to produce a report on the Muskrat Falls power project?
2. What is their investigative mandate?
3. Who, outside of Nalcor direct employees and contractors, will be consulted?
4. When and where will Navigant be conducting public consultations, if any?
5. What is the contract price?
6. When is the report contracted to be received?
7. When will the report be issued to the public?
8. How many other “independent reports” hitherto unknown to the public have been  commissioned or are currently under way?

Aylward criticises Nalcor for keeping the name and mandate of the consultant public until after the release of the joint environmental review panel.

The provincial Tories have used Navigant before on politically-driven projects.

In 2006, then Premier Danny Williams used Navigant to try and audit the books on the Hibernia project as part of his war with the oil companies over the collapse of Hebron talks in April that year.

Two years later, Williams used Navigant in his war against AbitibiBowater that led to the botched expropriation of AbitibiBowater properties in the province. Then natural resources minister Kathy Dunderdale told the House of Assembly in early 2010:

Mr. Speaker, there was in fact approximately $8 million spent on professional services related to the expropriation of Abitibi by my department last year. We paid a substantial amount of that money to CRA, to Navigant Consulting, to Weirfolds, a legal firm, and Enda Searching, to do particular work around the expropriation itself, around land registry consolidation; CRA, particularly with regard to the remediation requirements in Grand Falls. That work informed our budget, Mr. Speaker, where we budgeted over $9 million to deal with the mess left behind by Abitibi in Buchans.

Dunderdale and Williams hid their mistake in expropriating the Grand Falls-Windsor mill and other environmental liabilities until early 2010 when they admitted to the shag up under questioning in the provincial legislature.

Dunderdale told the legislature in 2010 that when the government realised the cock-up they considered introducing legislation to retroactively un-expropriate the properties they’d seized as part of the screw up.

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Dateline: Desperation, Newfoundland

Finance minister Tom Marshall called the province’s major radio talk show on Thursday to promote the Muskrat Falls power project.

He quoted from a book by Wally Read and L.J. Cole.  The quote runs down opponents of the Bay d’Espoir megaproject in the 1960s as ignorant, blind or politically motivated people of dubious character who lacked the foresight to undertake the marvelous project.

You can hear the whole call courtesy of Dave Adey.  Before going any farther, take a second and listen to Tom in all his persuasive majesty.  Then, when you are finished being awestruck, come back to these scribbles.

Fair warning:  if you are awestruck at Tom, you’ll be gobsmacked by the end of this post.

You were warned.

Now if you don’t know – and your humble e-scribbler didn’t know until he went looking – that book was in fact no book at all.  It was a 28 page pamphlet produced by the Newfoundland and Labrador Power Commission in 1972 to mark the inauguration of their new power plant at Bay d’Espoir. The Commission was the forerunner of Newfoundland and Labrador Hydro.

And if the words Marshall read sounded familiar, if they sounded as though you heard them before, if it struck you that the language used by Read and Cole resonated in a way you may have heard before, if the sentences seemed to come with bow tie and dark-rimmed spectacles, then you would be right.

The visionary Read and Cole were praising, the champion-in-chief of modernity, progress, and the future of His People, the one who stood out among the one or two the authors obliquely referenced in the text was none other than the Only Living Father of Confederation at the time.

Yes, Joe Smallwood.

So right off the bat, you have a fellow who got his current job as part of a crowd who campaigned against foolish megaprojects, gigantic wastes of money and enormous give-aways quoting favourably about the fellow who was chief among their targets.

And the fellows of low character and small minds the two others lambasted were Marshall’s political predecessors in the provincial Conservatives.

And if the full story be told, Tom probably campaigned for some of them and fulminated against Smallwood himself four decades ago.

Now if you are feeling a bit weak in the knees, we can all wait for you to catch your breath.

This is only the beginning.

You see, we are not dealing here with mere irony.

No.

That would be too common a theatrical device for people of such enormous vision and unparalleled ability.

This, my friends, is the stuff of Greek tragedy.

If someone among the current administration plucked out his own eyes after slaughtering his own father, bedding his sister, and marrying his own mother, you could not have anything more fundamentally twisted, demented and frigged in the head than Tories justifying themselves by borrowing words of praise for Joe Smallwood.

The whole thing enters another dimension when you realise that Bay d’Espoir was conceived and built in the 1960s not as a simple project to meet identified need as Tom Marshall would have you believe.

No, sir.

Bay d’Espoir was the centrepiece of yet another scheme by which the ratepayers of Newfoundland would give megawatts of power at bargain basement prices to create not one, not two, not three or even four or five, but something like eight new industries.

A paper mill for the east coast.

A hockey stick factory.

A refinery.

A petrochemical plant.

A phosphorus plant.

And on and on it went.

Joe Smallwood gives the thing a couple of paragraphs at the bottom of page 375 and the top of page 376 in I chose Canada.  After reciting the efforts to get companies to take power for the project, Smallwood writes on page 376:

The killer was the cost of the transmission line, but we agreed to build the line and charge Brinco nothing for it until after the enterprise had begun to make money.

You won’t find the full story of the Bay d’Espoir saga in the Read and Cole monograph of in Smallwood’s memoir.  You’ll get a much better sense of the dubious economics of the whole affair in a paper done in 2007 1974 by Peter Crabb.

Bay d’Espoir was supposed to do magical things.  Many of the same claims of magic Tom Marshall and his friends are using for Muskrat falls are the same ones Smallwood and his associates used for their mega-failures. As it turned out, the only new industry Bay d’Espoir attracted was the phosphorus plant at Long Harbour.  The scheme to attract new industry by providing heavily discounted electricity to industries was a complete bust.

Proponents of megaprojects grossly exaggerate the benefits and grossly underestimate the risks, in case you haven’t heard that one before.

Skip ahead 40 years and you have tom Marshall marvelling at how history is repeating itself.  Indeed it is, except not in the way Marshall supposes.  He and his colleagues are on the wrong side of the story.

Now just so that there is no one with any sense who thinks this is a conspiracy,  Randy Simms did a grave disservice to his audience during the conversation with Marshall when he tried to turn the arguments against Muskrat Falls into something they aren’t.

Undoubtedly, Tom Marshall and Kathy Dunderdale sincerely believe they are doing the right thing.  They have convinced themselves that this is the way to go, just as Smallwood did in the 1960s repeatedly.  Just as Brian Peckford and his crowd did with the cucumber factory. 

Desperation makes politicians – even normally sensible ones like Tom Marshall -  do strange things.

But make no mistake about it:  Muskrat Falls has absolutely nothing to do with a power need on the island just as surely as the Bay d’Espoir project and nothing to do with consumer power needs.  We know this because Nalcor could not produce figures that demonstrate their forecasts of an impending power shortage are real.

We also know it because this project has never, ever been justified on the basis of urgent need.

Tom Marshall and his colleagues pushed the development of the Lower Churchill in the beginning as a way to make money by selling power to people outside the province. 

Go back to January 2005.

Not a single peep about a need for electricity on the island.

The joint review panel found the same thing.

Muskrat Falls is not about need.

It is about want.

More specifically, it is about a political want.  Danny Williams wanted to cap off his term by saying he had a deal.  the economics of it had long since vanished.  The project – as originally planned – simply could not fly.  So he cut a deal for something that would look good in theory but that fails when anyone with half a clue looks closely at it.

Williams’ political want for an excuse to cover his exit became the political want of his successor to have something to tide her through an election.

We know this project is not driven by public need because neither Nalcor nor Tom Marshall nor anyone else pushing it ever more frantically down our collective throat has been able to give a simple, consistent and factual set of answers to a simple set of questions. They squirm and they dodge and they toss out red herrings and they attack their critics.

Tom and his associates spent two years with a hand-picked panel of five intelligent, sensible people looking over this Muskrat Falls thing. Those five people told Nalcor that the company had not made its case.

Not once, mind you, but twice.

Those five people on the joint federal-provincial review panel recommended giving the whole thing to someone without a vested interest in the project in order to make sure that all the evidence was there.

That’s as serious an indictment of Nalcor’s poor performance as one could get.

So the people Tom Marshall claims know so much about electricity needs and megaprojects couldn’t knock off a two year review process successfully on the crucial component:  the need for it in the first place to meet local energy demand.

And ultimately we know this project is driven by politics because of Tom Marshall’s obvious desperation that he would praise the Churchill Falls development and Bay d’Espoir as models to follow.

There is obviously no claim so ridiculous and no argument so transparent that Marshall and his colleagues would not toss it out to try and fight off the public worry about Muskrat Falls and what the project will do to electricity rates and the public debt.

Somewhere in the Great Beyond, Joe Smallwood is looking down on this all.  He is sitting with John Shaheen and O.L. Vardy while Valdmanis plays waiter and freshens their drinks every now and then.  They are kicked back enjoying fine cigars and letting the sand scrunch between their toes.

And on that magnificent Panamanian beach beyond all time and care, Joe is shitting himself laughing. 

He is crapping his Bermudas at Tom and Kathy and Danny.

The rest of us could join him in the chuckle too.  We could bust open our pants with a hearty belly laugh. We could do that if only we were not faced with the embarrassing spectacle of Tom Marshall’s desperation.

We could maybe even manage a smile, were it not for the fact that – if the province’s Conservatives and New Democrats get their way -  we will be footing the bill for yet another megaproject give-away to rival the greatest ones of the last century.

And we will have to listen as our children and grandchildren as they ask us over and over again how some people could have become so utterly deluded that they could make the same miserable mistake twice inside a half century and use the first fiasco as proof of the genius in the second.

We could laugh except that some of us cannot explain it.

We only know that we will be paying for their folly.

Again.

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And he is known by the company he keeps…

With the anniversary of 9/11 coming, people seem to have forgotten an invitation that went out to President Barack Obama to come to the province for the anniversary.

As the CBC blog put it in mid-2010:

It might be a long shot for the president of the United States to travel outside his own country for such an important anniversary, but as the saying goes, if you don’t ask, it won’t happen.

True, but when the guy what sent the invite is known to hang out with wankers  big-name Republicans, that might not help either.

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Rideout tags Tories for election pork-fest #nlpoli

Former premier Tom Rideout didn’t mince words about the orgy of pork-barrel spending his former caucus colleagues have been pushing in the run-up.

On a political panel on Tuesday morning, Rideout told the audience for CBC Radio’s West Coast Morning Show that the public mood has changed over the past few decades and that people view these things differently now than the way they used to.

Rideout, who said he liked to think he had an independent mind, said he thought the provincial Conservatives can go too far with their announcements, and re-announcements and announcements of the same spending for the third and fourth time.

Rideout singled out municipal affairs minister Kevin “Fairity” O’Brien, saying that O’Brien had acted “like a buffoon”’ by going around the province “dropping off fire trucks” all over the place.  Rideout said that he could have left it up to the local member of the House of Assembly.

The issue wouldn’t be enough to defeat the government, said  Rideout, but he did feel there could be a backlash in some areas.

Wow.

Rideout basically confirmed what your humble e-scribbler has been picking up for months from all around the province.  Lots of people are miffed for lots of reasons.  The blatant pork-barrelling is just the latest thing.

The fire trucks have become a twisted symbol of the Conservative’s old-fashioned political mentality.

What’s really startling here is that Rideout openly laced into his political colleagues and tagged one minister in particular.

That’s a huge sign that the provincial Tories are not the invincible political behemoth they once were no matter what the townie media would want to read into CRA’s always dubious poll results.

Stable political environment? 

Try not to pee your new back-to-school pants no matter how hard it is to stifle the guffaws.

Kathy Dunderdale did say she thought the poll suggested the polling numbers had stabilised but that was just because the Tories have been in a pretty sharp decline for most of the last year.

But with the Tories having the support of 40% of respondents to a recent poll and the opposition parties at 18% and 16%, it wouldn’t take much to give Kath and Fairity a visit from the Old Hag.

There’s more to it than fire trucks. O’Brien could well be a liability in other parts of the province, too,  becoming the poster-child for perceived political arrogance in the face of some fairly obvious cock-ups over the provincial government’s response to natural disasters.

On the Great Northern Peninsula there are other issues.

On the northeast coast there are others.

Still more on the Burin peninsula and in central Newfoundland.

And then there is the threat of Muskrat Falls.

Look around.

The mood is anything but settled.

Rideout is right:  it might not be enough to bring down the government yet.

But when a prominent Tory takes such a smack at other Tories as Rideout did this past Tuesday morning, it is enough to think things in this province  could get quite a shake in October.

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There’s no greater fraud than a promise not kept … Goose Bay version

While one can argue about frauds and unkept promises, there’s certainly no greater laugh riot than listening to defence minister Pete MacKay try desperately to explain to a gang of reporters in Goose Bay why the promised hundreds of soldiers, UAV squadron and all the other promises about the air base the federal Conservatives have made to win votes in the Big Land just haven’t materialised after all these years.

Apparently, the soldiers didn’t show because of Afghanistan.

Well, that was the reason., but now it turns out that while Afghanistan is over, it isn’t over, so there won’t be anything just yet.

And then there’s Libya.

Oh yes.

And floods.

Fires.

G8

G20.

And honestly darling that’s never happened before. 

Must be something on my mind.

Okay well, that last one didn’t show up at the newser but it was about the only bullshite laden excuse Pete didn’t fling at reporters.

The only thing funnier than that was MacKay attempting to explain why 300 jobs he’d just finished promising might or might not, possibly go to people living in Labrador, depending on things, sort of.

Incidentally, speaking of massive loads of political shite, did anyone see John Hickey at the newser? 

Someone could have finished off the Conservative open mike comedy-fest by asking the soon-to-be-pensioned Pavement Putin of the Permafrost what ever happened to his lawsuit against Roger Grimes for something Danny Williams said.

Hickey might have patted his suit jacket and mumbled something about leaving it in his other jacket next to the signed contract for road paving money from his Conservative buddies in Ottawa.

That would have brought the house down.

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Danny, Gary and Steve: old inconsistencies die hard

Apparently your humble e-scribbler isn’t the only one who found it amusing that an anti-Harper former premier is campaigning in pro-Harper country for a Conservative who doesn’t share the Old Man’s animosity toward the prime minister.

Well amusing here, but out there apparently it struck one Tory leadership candidate as politically stunned-arsed:

PC party leadership candidate Ted Morton says his friendship with Prime Minister Stephen Harper will soothe the relationship between Ottawa and Alberta, while saying rival Gary Mar’s political alliance with outspoken former Newfoundland and Labrador premier Danny Williams won’t do the province any good.

“I don’t think what Gary’s done in the last couple of days of palling around with Danny Williams is the right step,” Morton told the Herald’s editorial board on Tuesday.

As for Williams, this is the same guy who tried to secretly interest Hydro-Quebec in buying an ownership stake in the Lower Churchill, putting redress for the Upper Churchill to one side, while at the same time publicly lashing their collective perfidious Franco-hides.

Of course, two years after Kathy Dunderdale pissed Danny and his crowd off by letting the secret slip, the local media have still not reported on the five years of secret talks with Hydro-Quebec.

Two years later.

Not a peep.

Apparently the facts don’t fit the official narrative.

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The Joy of Political Giving: Look for the Union label

The single biggest political donation, bar none in 2010 did not come from any private sector business.

It came from the United Steelworkers of America (Toronto, On).

$20,000.

That’s from the most recent figures released by the chief electoral office for the province. They gave the same amount in 2009 while in 2008, the United Food and Commercial Workers, of Washington DC gave the provincial NDP $10,000.

If you barred corporate and union donations to political parties in Newfoundland and labrador and forced the parties to raise money from individuals, the entire political party system would collapse.

At least then we could rebuild it an an infinitely more democratic basis than the one that sits there today.

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The Joy of Political Giving: if you want to build it, they will give

Construction, design and engineering companies gave the provincial Conservatives $239,725 in political donations in 2010, according to figures from the province’s chief electoral office.

Companies in the design, engineering and construction field gave a mere $3, 950 to the Liberal Party and none to the New Democrats.

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RCMP investigating SNC Lavalin officials over corruption allegations

The Royal Canadian Mounted Police investigating officials of the engineering firm SNC Lavalin, according to media reports on possible corruption charges related to a $1.2 billion bridge project funded by the World Bank in Bangladesh.

A spokesperson for the Royal Canadian Mounted Police confirmed for Reuters that the police had executed several search warrants as part of the investigation.

The Canadian Press reported some of those warrants were for offices in Toronto.  CP also reported that:

The search was conducted following a request from the World Bank, which is investigating allegations of corruption in the bidding processes for the Padma Bridge Project.

The agency signed a deal in April to lend $1.2 billion to Bangladesh to build the bridge over the Padma river but said the money won’t be doled out until the investigation is complete.

Shares of the Montreal-based company dropped 4.3% in Tuesday trading on the Toronto Stock Exchange.

In March 2005, SNC Lavalin joined with the Ontario provincial government and Hydro-Quebec for a proposal to develop the Lower Churchill. 

While the Newfoundland and Labrador government rejected outright  that proposal and all others it received, the province’s energy corporation subsequently awarded SNC Lavalin the engineering, procurement and construction management work for construction of the Muskrat Falls dam and the link from labrador to the island of Newfoundland.

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The Joy of Political Giving: punch in the bake edition

It’s always interesting to see who gives to political parties. 

The province’s chief electoral office quietly released the 2010 summary of political donations by individuals and corporations.

Interesting to see that the production company for Republic of Doyle – doing business as Republic Season II Inc. – coughed up $250 for the provincial Conservatives.

And zip for everyone else.

The provincial government – currently managed by the Conservatives – coughed up much better for Jake and Malachy.  The province’s tourism department has dropped $7.5 million into the series since it started.

 

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What you can see at the horse race…

Horse race polls are the heights of political journalism* in some circles despite the fact they tell very little about what is happening in voters’ heads.

But since this is all there is, let’s look at the latest Corporate Research Associates poll and see what it tells us.

The provincial Conservatives are at 40% of respondents down from 44% in May.  The New Democrats are at 18%, up from 15% and the Liberals remain at 16%.  Undecideds are up to 26% from 23% in May.

The Liberals and NDP have swapped places but all of the changes are well within the polls horrendous margin of error of plus or minus 4.9%.

For those unfamiliar with the numbers, what you just got was the CRA numbers adjusted as a percentage of poll respondents, not as the very misleading percentage of decideds that CRA uses.

Let’s try some observations:

• All that Tory poll goosing – unprecedented in volume and timed to match CRA’s polling exactly – was a complete waste of time.
• You can also put the jack boots to any suggestion that the NDP had a Jack Boost and are on their way to replacing the Liberals as the official opposition. The Dipper torque machine will be in hyper drive but this is really nothing to write home about…yet.  The local NDP still have not produced the kinds of polling numbers you’d need to see in order to confirm any switching to the Orange as the leading opposition party.
• The Liberals experienced no change despite having a new leader for the entire polling period and attracting consistent news coverage for a week or so beforehand.  This poll should be a massive wake-up call for them. The only question at this point is whether or not they will hit the snooze button.

Now let’s try something a bit more complicated.

Even if you accept CRA polls, we know that there’s been a fairly steady slide away from the Tories for most of past 18 months.  Since Danny left, the slide stopped, reversed course and carried on downward again. 

We also know that CRA polling seems to pick up about 15 to 20 percentage points for the Tories that doesn’t show up at the polls.  Their Liberal and NDP numbers seem to be spot on or close enough for government work.

So here’s where the fun can start.  Shave 15 to 20 points off the stated Conservative number in the adjusted CRA poll results and you start to see Tory support down around 25% in May and 20% in August.

You can tell the Conservatives are edgy because of the orgy of politicking with public money they’ve all been doing.  Kathy Dunderdale has been campaigning already in areas where the Tories are perceived as being weak, namely the Burin Peninsula and central Newfoundland.  The Tories don’t have a lock on things in several places in the province and they know it.

So just for the heck of it, let’s imagine what might happen if the CRA results we see in August are pretty much what turns out in October.

Here’s one scenario run through an amazing, colossal supercomputing vote-a-tron machine kept hidden at a secret location, and offered here purely for entertainment purposes.

Using these most recent, corrected CRA results, you could still have the Tories forming a comfortable majority of more than 34 seats and as many as 37.  The Liberals would pick up seven or eight and the NDP could win as many as three or four.

Bay of Islands, Humber Valley, Isles of Notre Dame and Torngat Mountains would swing Liberal in that scenario.  The NDP could pick up Burin-Placentia West and Labrador West.

There could be close races in Grand Falls/Windsor-Buchans, Lake Melville, Placentia and St. Mary’s, St. Barbe and St. John’s East.

There’s still a long way to go before polling day and lots can change between now and then.  Voters appear to be ripe for a significant change.  Too bad none of the parties are offering one.

Just remember:  in the scenario we just walked through, the number of people staying home rather than voting would be at a historic high level.  No political party in Newfoundland and Labrador could crow about that.

Horse race polls - as they are normally used -  are no fun.

But if you look beyond the normal, all sorts of amusing things suddenly appear.

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Ya gotta chuckle update: CBC’s lede is classic:

The governing Tories are holding a strong lead heading into October's election, while the NDP is challenging the Liberals for second place, a new poll shows.

Gal-o-war is way out in front and Townie Pride is nose and nose with Western Boy for second.

Total crap, of course.

Like this line later on that adds more turds to the total crap offered up front:

The fact that the NDP, not the Liberals, are in second place appears to set the stage for a competition for the Opposition.

That would be true if it wasn’t for the fact that it is false.  The only way such a proposition floats is if having the second biggest number of decided respondents to a CRA poll question actually translates into seats.

It doesn’t, but that obviously isn’t important.  Twenty-four is bigger than 22 so the NDP must be in second and challenging for official opposition status.

To make matters much worse, CBC misrepresents CRA’s quarterly advertising poll as a tracking poll.  It isn’t. Tracking polls are repeated much more frequently than once every three months.  They are averaged over time to give a moving picture of trends.  As that 1998 link to a CNN piece notes, a daily tracker will show fluctuations for specific events on a daily basis.  A weekly tracking poll will wipe out some of those daily blips to show longer trending.

CRA’s poll once every three months, with only three questions and with a margin of error that borders on the laughable tells you very little worthwhile. In 2007, CRA missed the vote result for the Conservatives by more than 20 percentage points.

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We can always sell it…

You can tell the gang pushing Muskrat falls are having trouble meeting the arguments against their scheme to jack up power rates and the public debt.

They are now talking about selling it off.

Yes, you got that right.

Selling it off.

Someone named T.E. Bursey wrote an opinion piece for the Telegram that appeared last Saturday.  He wrote:

Others have complained our portion of the $6.2 billion cost will add significantly to our public debt, which is true, but what is not mentioned is the financial community consider hydro assets to have a long-term resalable value in addition to revenue generation.

Now for starters, T.E. Bursey talks about “our portion” of the debt.  The taxpayers of the province are on the hook for the whole shooting match, give or take. Given the likelihood of massive cost over-runs, $6.2 billion would be the very smallest amount taxpayers of the province will owe.

But look at that bit at the end.

Long-term resalable value.

T.E. Bursey thinks Muskrat Falls is a wonderful idea, so wonderful in fact that if it turns out to be a gigantic bust we can hock it.

After all that’s the only reason you’d consider selling it again.

Or, in the way T.E. Bursey is talking about it here, if the provincial government and Nalcor couldn’t keep up the payments on the Great White Retirement Elephant, the creditors could hock it and get their cash back.

Oh yeah.

Selling it off in the event we went bankrupt.

There’s a thought to warm your heart.

Sounds familiar though.

Someone very famous talked about fattening up Nalcor and then selling off the assets for cash.  He said it April 2008 in the House of Assembly but the local media didn’t report that for the rest of the world to know:

…This particular government wants to strengthen Hydro, wants to make it a very valuable corporation: a corporation that will ultimately pay significant dividends back to the people of this Province; a corporation that perhaps some day may have enough value in its assets overall as a result of the Hebron deal and the White Rose deal, possible Hibernia deal, possible deals on gas, possible deals on oil refineries and other exploration projects, where hopefully we might be able to sell it some day and pay off all the debt of this Province, and that would be a good thing.

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Election 2011 and the Resource Curse

During the current provincial election you are going to hear a lot about natural resources and the need to spend the money that comes from it on all sorts of things.

The province’s New Democrats wasted no time in bitching that oil money isn’t being poured into rural Newfoundland and Labrador:

"We have to have a plan in rural Newfoundland to make sure that our fishery is maintained as the backbone of rural communities," she said.

The Dippers are also hopped up on spending the cash on education, mostly likely to help Nova Scotians get a cheaper education.

Of course, the province’s Conservatives have been on a spending spree these past couple of years.  They’ve dropping dropping money on everything anything from road paving to hockey rinks.

The provincial Liberals are on much the same sort of kick, especially for the fishery. All three parties want to take over federal responsibilities like the dozen or so jobs at a coast guard marine rescue call centre.  The local pols want to buy the jobs just to keep them in Newfoundland and Labrador.

In fact, if you look at most major issues in the province, the only disagreement among the three parties is how much is enough to spend.  On any given issue and any given day, the incumbent Tories will announce cash for something.  The other two parties will scream:  “not enough!”

Democracy Watch: Duff’s guff #nlpoli

Let’s get it simply stated up front:  Democracy Watch is the most inappropriately named organization on the planet, bar none.

They don’t watch for one thing.

And on the specific issue of fixed election dates in some provinces, they are bitching about something, for some unexplained reason but it evidently has frig all to do with democracy.

Here’s the quote you’ll find in a CBC story on the Prince Edward island election.  it’s Duff Conacher, the guy who founded Democracy Watch:

"There's no good reason to have it so early in the fall. It also gives an advantage to the ruling party because it allows the ruling party to, sort of, come off a summer when people aren't really paying attention and get right into a campaign and have it over before people really have a chance to determine whether they want to question the ruling party's ongoing governing."

The Canadian Press story elaborates a bit:

The group says the elections should be set back to the last Monday in October or even early November.

It says parents busy getting children settled in school in September have little time to participate in election campaigns or even pay them much attention.

University students are also tied up in September and may have difficulty establishing residency at their school location until later in October, which keeps them from voting.

Voter turn-out and people getting involved in campaigns has been a problem for years.  Long before fixed election dates.

And the idea that Mom can’t think about anything as important  as an election in October because the kids are back in school the first week of September is just laughably silly.

Establishing residency ain’t a problem either.  Elections offices in the country have had rules in place for decades to handle the thousands of people who move in between elections, fixed date or moveable feast.

If Duff Conacher has a problem with fixed election dates, he needs to go back to the drawing board and figure out what the real problem is.

One of the real problems he might consider is that Duff doesn’t actually talk about problems with democracy across Canada.  Take a look at the Democracy Watch website.  Search for “newfoundland and labrador” or any combination of the words.  Duff’s taken a few e-mails about the shenanigans going on in these quarters over the past decade so he ought to know what’s been going on.

Not a peep from D-watch.

You can hear the crickets chirping and there are no crickets in Newfoundland and Labrador, at least on the island.

No Duff Conacher either.

Not a peep about the ludicrous changes to the provincial election laws in 2004 that created, among other things, a situation where people can vote when there is no election and where independent candidates are disenfranchised.

Not even a whisper when the premier of the province muses aloud about the need to wipe out free speech in the province’s legislatures.

Nothing that Duff Conacher moaned about to the media this weekend is an issue caused by or made worse by having a fixed election in October.

Duff’s out there about fixed election dates, but basically all he is saying is pure guff.

And maybe if he spoke up about real problems affecting democracy across the country, people might take this more seriously.

- srbp -

The Politics of Cynicism: even worse than thought edition #nlpoli

If they accidentally accumulate enough credits to a form a government after the next election, the provincial New Democrats will keep taxing small business income at 14%.

What the provincial party announced last week was a very small reduction in the rate that applies only on the first $500,000 of business income.

So what was dishonestly torqued as a 25% reduction (a one percentage point reduction from four percent to three percent)  solely to make the policy appear to be much more significant that it was is actually even worse for what the release did not include.

Just to add to the crass manipulation the New Democrats engaged in last week, consider New Democrat candidate Gerry Rogers’ words at  the news conference announcing the NDP’s small business policy. 

Here’s the version from the Telegram:

“Absolutely, it’s important for the NDP to be seen as pro-business,” Rogers said.

“I think the NDP is clearly pro-business, pro-development, but only in as much as it’s good for all the people of the country.”

Yes, important “to be seen as”.

But not as important to actually be, it seems.

People wonder how the New Democrats would pay for the cut.  truth is they wouldn’t have to.  If the local economy grows at the optimistic rates forecast by some people – and business income grows along with it -  small business will fork over as much or more when they pay 14% on amounts over $500,000.

So what would a real small business policy look like?

Well, if tax cuts are your thing, you could increase the amount of income covered by the lowest rate.  Apply the four percent rate to the first $750,000 or even first million of small business income.

That would be a real tax cut, not the charade the Dippers offered last week.

Reduce red tape.  Don’t just engage in the charade the Tories did over the past seven years.  Seriously reduce the weight of unnecessary regulation.  The fishery is probably one of the finest examples of an industry almost breaking down under the weight of completely useless paperwork and restrictions.

The current system reduces thousands of people in the province to little better than wage slavery and perpetual dependence on government hand-outs to make a very meagre living.  Your humble e-scribbler highlighted that idea, among others,  a few months ago:

The third idea is for the provincial government to abolish processing licenses with the elaborate red tape restrictions that go with it.  The current system helps to keep too many people and too many plants working in an industry featuring low wages, limited capital for investment and with no prospect that new workers will enter the industry to keep it going.

The Dippers couldn’t do that, of course, since it would seriously shag up the fisheries union on which the NDP depends for so much support.  Since the provincial NDP is basically the political arm of the province’s unions, with a few other people along for the ride, there’s no way they could make a meaningful change to help everyday  people every day, whether they are workers or small business owners.

But the NDP will issue news releases that make it seem like they would to something.

Because, after all, it is important for politicians to be seen to be [insert the phony value of the moment here].

- srbp -

BNL and BBT at ComiCon 2010

The Big Bang Theory Labour Day marathon is about to start!

- srbp -

Looking beyond normal

labradore wasted no time in converting the numbers from Friday’s editorial in the Telegram into a chart to show the number of money announcements issued by the provincial government in each week in August for the past four years.

The Telegram editorial uses these numbers to refute Premier Kathy Dunderdale’s claim that:

“There’s nothing going on here now that hasn’t gone on every year since we’ve brought down a budget, no matter who formed the government,..”

She made the comment.  They counted the news releases.  Way more, finds the Telegram, so therefore “liar, liar pants on fire.”

Or words to that effect.

In defence of Kathy Dunderdale, there is nothing that her provincial Conservatives did in August 2011 that is different in kind from anything the provincial Conservatives did in any other one of the four polling months each year since 2004..

The fact that there are more money announcements in 2011 is really much ado about nothing.  Sure the whole thing is so outrageous in August 2011 that the local media couldn’t ignore it any more, but other than that this is just another Tory poll-goosing month.

And the fact this is an election year doesn’t really make the Dunderdale version stand out.  Scroll back through the archives list of these e-scribblers for the summer of 2007.

Summer of Love.  On August 18, your humble e-scribbler note that the Tories seemed to be inventing excuses to issue happy-news releases.  25 additional campsites at a provincial park, for example.

Toward the end of July 2007, you’ll find a post about the spate of announcements comparing July to previous Julys:

Note, however, that cash announcement in the 25 days of July 2007 already done are already at the same level of 2004 and they are double those of 2005 and almost quadruple those of 2006.

The post starts off with a quote from Danny Williams that will look awfully familiar:

Flanked by two Progressive Conservative candidates in Bay Roberts, Premier Danny Williams told reporters on Wednesday that what government has been doing over the past couple of weeks is just government "carrying on business."

What really stands out in the Telegram figures is the big jump in 2010 and the larger jump in 2011. Poll goosing and the pre-election impetus – the Telegram’s point – are just penetrating insights into the stunningly obvious. Something else is going on.

It’s the trending that shows up when you look beyond the polls as most people misinterpret them. In May this year, your humble e-scribbler pointed out that the Tory polling numbers have been slipping pretty significantly.

This chart shows CRA polling as a percentage of actual respondents not of “decideds”.  That second hard point from the right shows the results of last August’s jump in cash announcements.  And the reason for it is the slide the quarter before.

But then look what happened over the next three months before Danny Williams left abruptly.

Big slide.

And in the months since then, the Tories have continued to slide downward.

They were at a point in May where losing a raft of seats in October looked like a very real possibility.  As noted around these parts last May, if the trends continued the Tories would be even weaker in August.  The leader numbers could also continue their downward trend to the point where all three party leaders shared the same distinct lack of interest from voters.

So if you were the incumbent party headed into an election with public support apparently weakening,  you’d pretty much be guaranteed to do the only political thing you know how to do:  take as many spending announcements as you can type up and e-mail them out to try desperately to stop the spiral in the polls.

As far as Kathy Dunderdale and her crowd are concerned this is normal.  For the rest of us, though, you have to look a little beyond the obvious to figure out why their “normal”  is even more “normal” than usual.

- srbp -

Traffic Flow: August 29 – September 2, 2011

1. Robots in dead heat (poll goosing)
2. NL ratepayers to carry full load for Muskrat falls plus more
3. The Politics of Cynicism, NDP style
4. Uniting the Left:  a reminder
5. Nalcor royalties:  yet more information
6. Muskrat Falls:  lost opportunity
7. Court docket now online
8. Paving the way (political donations by paving companies)
9. Political Reporting 2011
10. About SRBP

 

- srbp -