Well, not just the Sir Robert Bond Papers but all bloggers.
Idiots.
- srbp -
The real political division in society is between authoritarians and libertarians.
The provincial government is dropping $11.3 million to string fibre optic cables from Goose Bay to western Labrador.
The federal government will plunk in $3.0 million with $9.7 million from Bell Aliant.
Of the provincial total, Nalcor Energy will cover $8.3 million.
Just do the math, though. The provincial government has 47% of this project. Both the federal and provincial government shares combined cover a majority interest in the project.
If that doesn’t hit you funny, it might be striking you a bit odd that an energy company is suddenly getting involved in telecommunications. Here’s the quote the people who put the news conference together made up for the Nalcor representative:
“This is one of the many benefits that Labrador will see from the Lower Churchill Project,” said Gilbert Bennett, Nalcor’s Vice-President, Lower Churchill Project. “Nalcor is investing in this project to ensure that critical infrastructure required to build and operate the Muskrat Falls development is in place in Labrador.”
“This is one of the many benefits that Labrador will see from the Lower Churchill Project,” said Gilbert Bennett, Nalcor’s Vice-President, Lower Churchill Project. “Nalcor is investing in this project to ensure that critical infrastructure required to build and operate the Muskrat Falls development is in place in Labrador.”
Not that Nalcor is bullshitting the public or anything, but of course, they are bullshitting. Nalcor has been on a heavy marketing campaign for Muskrat Falls for several months now in all sorts of ways. If they gave money to put new public toilets in a town somewhere, the news release would credit the whole thing to Muskrat Falls.
So yeah, on the crudest level, this is just another version of Nalcor’s publicity efforts for Muskrat Falls.
On another level, this is part of a trend the provincial Conservatives have been pushing since 2003. A key part of the whole effort has been to allow Nalcor – a state-owned, politically directed agency – to use public money to assume an increasingly larger role in the provincial economy.
Weird as it might sound for a Conservative government, that’s part of what is going on here. You can understand it better if you look at what the party does as opposed to importing labels or ideologies from other places. Progressive Conservative is just a label. In practice, the political parties in Newfoundland and Labrador aren’t ideologically based at all. That’s why people can jokingly refer to the Danny Williams Tories as the first NDP government the province ever had and not really be making a silly joke at all.
This sort of project is why the province’s ruling Conservatives inserted clauses in the energy corporation legislation in 2007 that allowed an energy company to do anything the cabinet wants it to do. It was a pretty dramatic change from the old law that governed the provincial hydro corporation.
In fact, this clause was so far away from one one would expect for an energy corporation that most people likely blew it off as being just a meaningless oddity. The whole thing stands out, though, because the clause survived through some pretty significant revisions from the first version of the energy corporation laws in 2006 to the ones that currently govern the corporation dating from 2007.
Cabinet obviously meant for the new corporation to take on anything at all. They didn’t need a way of funnelling provincial government money to the private sector. They already have dozens of ways to do that. They also didn’t need to do this for Muskrat Falls. They’ve been running Churchill Falls, for example, since the 1970s with good old copper telephone lines.
Muskrat Falls wouldn’t be the only new industrial venture that could use fibre optic communications. There are some new mining businesses likely to start in Labrador soon that could claim a far bigger interest in these cables than Nalcor.
And for what it’s worth, Muskrat Falls might not even happen.
What’s going on here is a continuation of the policy laid down by the Conservatives early in their mandate. They want to assume greater and greater control over the provincial economy. Today,it’s fibre optic cables. Tomorrow, it might well be another administration of any partisan stripe getting Nalcor into fish processing or marketing.
As your humble e-scribbler put it in 2006:
Williams' new Hydro corporation returns to an older model based on government subsidy and government dependence. Beyond the attractiveness to some businesses of relying on whatever contracts they can secure from the new Hydro corporation, the political and financial muscle of the state-owned company will likely make it considerably more attractive an investment than a private sector venture, since it will always carry with it a government guarantee of its operations and expenditures. The end result will almost inevitably be a weakening of the local private sector.
Weakening the private sector is one result.
Another is ensuring that local taxpayers pay the full financial cost and then some. Under the Electrical Power Control Act and the public utilities board legislation, the utilities board must set provincial electricity rates to ensure the financial viability of the provincial energy corporation. The company can never lose.
It’s that same combination of powers, incidentally, that Nalcor is using to finance the Muskrat Falls project. Local taxpayers will be forced – by law – to pay whatever rates Nalcor needs to ensure it recovers its costs, makes a profit and maintains its credit rating.
It was an undisclosed risk in 2006, but then again, that’s what the Lower Churchill is all about. It’s what a 2009 Emera deal was all about. Heck, it’s what the provincial Conservatives have been all about since 2003.
No wonder they dropped it out there a couple of days before Christmas.
- srbp -
“[o]ur spending at the rate that we've been doing over the last eight years — and it has been very necessary for a number of very good reasons to do that — is not sustainable in the long run.” [CBC online story]But when Mark claims that “[u]p to now, Tories (and others) have disagreed with that assessment” he is not exactly right.
Can she and the government say no? Consistently?No.
Q: When is an independent review not independent?
A: When the project proponents control the timetable for completing the report.
Or, as voice of the cabinet minister reports:
The provincial government will not be granting the PUB another extension for its review of the Muskrat Falls project. Last week, Natural Resources Minister Jerome Kennedy moved the deadline from December 31st to March 31st. But Kennedy says he is not even considering the second request by the PUB to extend the deadline to June 30th. He says the report needs to be completed so it can be debated in the House of Assembly.
- srbp -
PIFO = Penetrating Insight into the Fracking Obvious
Turns out that his campaign spending was the third smack troubled Tory cabinet Minister Peter Penashue took.
First, there was the story that Penashue porked out his campaign manager with an appointment to the offshore regulatory board, something for which his campaign manager was spectacularly unqualified for.
Then there was the story that Penashue had personally called federal employees in his riding to assure them their jobs were safe from cuts or relocations.
Now it turns out that, during the federal election, Penashue was the top spender in the province. He shelled out $115,000 compared to only $37,000 spent by his main opponent, Liberal Todd Russell.
Why is this a smack, you ask?
Well, for starters, Penashue is likely to be a source of continuing political controversy, nay even scandal. He won the seat by only 79 votes despite spending $60,000 on advertising alone. That means Penashue is a lot less secure in the seat than he might otherwise seem. People who are insecure tend to do things like his first two smacks that will leave him open to further political scandal. The more he tries to shore himself up, the more likely he is to shag up.
And then there’s the question people will be wondering about, given the way politics tends to go in the Big Land. People will wonder how you spend $60,000 on advertising in Labrador. And for the rest of the cash, people will wonder what else Peter spent his cash on given the way politics goes in the Big Land.
Three stories in such a short space of time?
Count on more.
- srbp -
“The noble title of "dissident" must be earned rather than claimed; it connotes sacrifice and risk rather than mere disagreement.”
- srbp -
Nalcor’s capital works submission to the public utilities board for 2012 included a last-minute addition of an upgrade to the power lines that connect the Avalon peninsula to the rest of the island. The submission is dated September 22.
That’s really important because the Bay d’Espoir/Exploits generating complex has a large surplus of electricity. Nalcor can’t get that electricity to where it’s needed because the existing lines across the Isthmus of Avalon are at capacity.
The problem is actually a bit more complex than that. As Nalcor’s supplementary capital works submission puts it:
The heavy loading on the eastern portion of the system is coupled with the incentive to provide least‐cost power to customers by minimizing Holyrood production and maximizing production from hydroelectric resources located in Bay d’Espoir and west. Constant monitoring of the load on the eastern portion of the system is therefore required. Thermal load limits on the lines must be strictly enforced to avoid unacceptable line sag and/or potential conductor damage. Further loading pressures will be placed upon the Bay d’Espoir East system with the addition of the Vale processing plant at Long Harbour and has already occurred due to the loss of load and net hydroelectric generation increase attributed to the closure of the Abitibi Bowater paper mill in Grand Falls-Windsor. (pp. 1-2)
On top of that consider that the existing power lines are all part of the major island electrification projects completed between 1965 and 1968.
The estimated total cost of the new line would be $209 million. The PUB submission anticipates work starting in 2012 with completion in 2017.
As it turned out, Nalcor and the PUB have deferred consideration of the new transmission line. Both the Board and Nalcor are involved in extensive regulatory reviews, including Muskrat Falls. And, as a December 6 Nalcor letter to PUB lawyer Maureen Greene notes, it “is our understanding that the Muskrat Falls Review is of high priority to government.”
There are a few things to note about this:
As for the overall question of priorities, the PUB took pains in its letter acknowledging deferment of the new line that the project will require significant attention including a possible hearing. The line is the most expensive single project Nalcor has brought forward since the company came fully under the PUB’s regulatory authority in 1996. The PUB letter states that – under the circumstances – the board couldn’t guarantee approval in 2012.
You might interpret that as a simple statement of fact. But you might also read it as a reminder to Nalcor that if it needs to get this project done, the company might need to sort through its priorities again.
Don’t be surprised if Nalcor does just that early in the New Year.
- srbp -
“To 'choose' dogma and faith over doubt and experience is to throw out the ripening vintage and to reach greedily for the Kool-Aid.”
That line – from God is not great – would apply equally to politics in Newfoundland and Labrador since 2003.
- srbp -
The Telegram took a very light look on Saturday at the most recent figures on political contributions released by the provincial elections office a couple of months ago.
For some reason, the Telly singled out Aliant for its record of donations even though the telecommunications company is by no means the big story in the 2010 figures or indeed of the recent public record of party donations.
If you want a more detailed analysis, then check these posts from SRBP and labradore:
- srbp -
There are plenty of people out there who pat themselves on the back for telling it like it is, for calling it as they see it.
You know they do it because they relentlessly point it out to you.
They are brave.
They are fearless in delivering their opinions.
They cannot stop telling you that.
You all know them.
Closer examination invariably reveals they are full of shite.
Not so Christopher Hitchens, as Paul Wells makes plain in his obituary for a man so wonderfully described during his lifetime as a public intellectual:
His method was simple:
1. Read everything.
2. Draw your own conclusions.
…
Expanding the range of his inquiry, digging deeper, engaging with the minds he admired most. Hitchens spent much of his life offering everyone his answers on any subject, but they would not have mattered so much if he had not also been such a ravenous asker of questions.
And the world would have been so much duller a place if Hitchens had not told us what he found out in so eloquent a way.
- srbp -
Premier Kathy Dunderdale wants everyone in the province to get involved in the fishery debate. Doesn’t matter who you are. Doesn’t matter what you want. Get in and have your say on the future of the resource we all own.
CBC’s Azzo Rezzori says Kathy is staying out of the way. [Story starts at about 9:00 of this video link]
Others would call it what it is: chickenshit.
In a scrum with reporters on Friday, Dunderdale rattled off all the penetrating insights into the obvious one can find about the fishing industry in the province. The Telegram’s James McLeod has a neat account of it for those who want to catch up.
Yes, Kathy, we all know the problems. And yes, we know the solutions because, yes, they’ve been talked about, discussed, debated and ignored for decades.
Yes, Kathy, we know people are using the fishery to their own ends. Yes, we know lots of people are being manipulated.
What Dunderdale conveniently omits is that the provincial government has a role to play. After all, the law in this province gives the provincial government considerable power to manipulate the fishery and the people who depend on it for their living.
What Dunderdale conveniently forgets is that successive administrations haven’t been shy about doing just that. The one Kathy has been involved with since 2003 has been one of the most interfering and manipulative administrations in a long list of them.
What Kathy deliberately omits to mention is the process – the MOU – that the Tory administration started and then rejected because they were afraid of the political consequences.
The costs don’t frighten them. That was just a bullshit excuse the fisheries minister used. Kathy has more money sitting in the bank - doing nothing - than some of her predecessors got in total from their own means to pay for everything the government does.
Billions of dollars.
So when Kathy Dunderdale clucks about the tragedy of manipulating people and the tired attitudes about the need for everyone people to come together to find a solution, she is being worse than the worst kind of manipulative character she laments.
Kathy has the power to change things.
Kathy has the power to set things right.
Kathy refuses to get involved.
That’s not just chickenshit.
That’s immoral.
- srbp -
Muppets, lawyers and politicians.
Problems in the fishery, bad grammar and blatant political patronage.
Just another week in the live action edition of the National Midnight Star, otherwise known as politics in Newfoundland and Labrador.
Last week’s top 10 most read posts at SRBP:
- srbp -
Liberal leader Dwight Ball’s remarks on taking on the leadership:
The Liberal Party has a rich history in Newfoundland and Labrador and I’m proud to be a part of it.
That being said, we have much work ahead. I consider myself a team builder, and I believe teambuilding is what we need right now.
We need to reach out to Newfoundlanders and Labradorians and listen to their hopes and dreams.
I plan on spending a lot of time on the road engaging with the grassroots of our party and encouraging new interest in what we have to offer.
Additionally, we need a debt reduction plan to help rebuild the party As a businessmen, I know the burden that debt can have on an organization and my first priority as Liberal leader will be to get our debt to a manageable level.
I like to call it the common sense approach – reach out, listen and manage debt.
These will be my priorities as I assume the Liberal leadership and help create a credible alternative to the current government.
There will be challenges ahead, no doubt. But it is through these challenges that we will realize a better, brighter future for the next generation of Newfoundlanders and Labradorians
- srbp -
“I’m optimistic the project is going to succeed,” Nalcor Energy chief executive Ed Martin told the Chronicle-Herald recently.
The delay in finishing the negotiations means that, as the CH put it, “the details under negotiation are being tapered to fit with the announced terms [sheet].”
Tapered to fit.
Great image.
The article just relates some information most SRBP readers would already know. It also contains one comment that would make you wince. The comment reflects the level of inaccurate or misleading information out there about who will pay what for Muskrat Falls power.
The cost of Lower Churchill power to Nova Scotia has never been defined.
Nalcor projects it will cost 16.4 cents per kilowatt hour for consumers in Newfoundland and Labrador. That’s up from the current rate of 11 cents but lower than the projected costs if the province were to stick with its oil-fired plants.
That first sentence isn’t true. The term sheet signed last fall makes it clear:
As such, Nova Scotians could actually see no change in their domestic electricity rates at all.
The second paragraph compares apples and oranges. The 16.4 cents figure is what Kathy Dunderdale cited in 2010 as the upper range of the wholesale cost of making electricity at Muskrat Falls. The lower end of the range was about 14 cents and that’s the figure the government has cited consistently.
But remember: it’s a wholesale price and – more importantly – it’s an estimate. If Muskrat Falls goes the way of every other government project since 2003 it will be over budget by more than 50%.
The 11 cents figure is the current retail price to consumers. it includes Nalcor’s blended cost from existing generation, most of which was paid off years ago or, in the most recent examples, for free as a result of government’s expropriation of private sector generating facilities. That figure also includes money for the electricity distributor and a tidy profit for both Nalcor and the Fortis-owned distributor.
In the future, consumers in this province will pay all of that plus they’ll have to cover the full cost of Muskrat Falls. That conclusion is based on repeated statements by Nalcor officials. That’s why Nova Scotians are getting free electricity up front and why they can buy extra power at a sweet discount. People in Newfoundland and Labrador will already have paid for it.
In addition to that, Newfoundland and Labrador consumers will now also have to pay a chunk to Emera plus a profit since Emera will now operate a portion of the provincial distribution system. Not bad, eh?
Well, unless you are a consumer in Newfoundland and Labrador.
And while Nalcor estimates all of this will cost less than the alternatives, the simple truths are these:
- srbp -
The first sign of substantive and positive change in quite a while: Dwight Ball takes the job of leading the Liberal Party of Newfoundland and Labrador.
The fact he is also interested in leading the party beyond the next leadership convention is also a good sign.
- srbp -
Just when you thought they could not get any more loopy, the fried folks at Fox manage to turn a Muppet movie into a tool of “class warfare to brainwash our kids”.
You.
cannot.
make.
this.
stuff.
up.
- srbp -
Poor Peter Penashue.
First, the federal Conservative intergovernmental affairs minister gets hammered for stupidly appointing his campaign manager to a position on the offshore regulatory board even though the guy isn’t qualified for the job. The SRBP post spawned a raft of comments in all sorts of places across the province about Penashue’s shameless decision to pork-up his buddy.
Then, on Wednesday, Liberal member of parliament Scott Simms outs Penashue for personally calling federal employees in Penashue’s riding to assure them they are safe from job cuts or transfers. Penashue apparently didn’t call any other federal employees in the province.
You know Penashue got caught doing something wrong. As CBC reported:
Penashue walked past reporters after question period Wednesday and did not comment.
Since bad news comes in threes sometimes, it all makes you wonder what little rocket Penashue will get up his derriere next.
- srbp -
Pay attention to some of the comments about the fishery the past couple of weeks and you’ll here talk about how we need to change the model.
For example, labour federation boss Lana Payne has talked about the failure of what she called the “corporate model”. When OCI boss Martin Sullivan says the fishery is broken, he’s basically talking about the “model”, too.
What they both are referring to is how the government deals with the fishery. The current “model” is not corporate as Payne claims so much as it is corporatist: heavy state control irrespective of economic rationality or public morality.
What frightens Payne and McCurdy more than anything else is that the change they and their predecessors have fought against relentlessly is finally here. What they have been able to rely on for so long is the threat of political catastrophe for any politician who dared to think about cutting the number of fish plants and fish plant workers down to a level where the workers could make a decent wage from their hard work alone.
Don’t believe it?
In a stint Wednesday on the province’s morning radio call-in show, McCurdy stated flatly that given his druthers he’d rather see people in Marystown and Port Union squeeze out enough work to qualify for employment insurance rather than have the plants close. He tossed in full-time work for the plant in Fortune knowing that it isn’t really possible to do the two things together.
But just look at the front end of that. It’s the essence of McCurdy’s position: keep everything the way it is, even if - as everyone including McCurdy knows – that idea isn’t really viable any more. Keeping a few hundred people stamped up, collecting employment insurance for most of the year and bringing home poverty wages is better than any realistic alternative.
McCurdy wants to keep a system that promoted the overfishing that decimated the industry in the first place.
The people McCurdy expects to pick up the tab for his little scam are the taxpayers of Newfoundland and Labrador.
One can hardly imagine a more morally bankrupt position.
Thankfully, it seems like some politicians are finally getting the message. Sure you have guys like noob Liberal member of the House of Assembly Jim Bennett who is pushing another pile of outmoded, outdated ideas. Bennett needs to stop hanging out with Jim Morgan and his buddies.
But another gang of politicians is finally standing up to the union shakedown and the bullshit conspiracy theories from people like Gus Etchegary.
Give the guy his full due: fisheries minister Darin King maybe be looking stressed but he is sounding tough. Maybe he is heartened by the people in Fortune who turned up on the news Wednesday night attacking McCurdy for undermining their chance at full-time work. Chainsaw Earle is apparently discovering that chainsaws buck when they hit a knot.
A couple of weeks ago, Ocean Choice International decided to close two fish plants. They change the company started is long overdue. The union and the provincial government have had plenty of time to come up with a workable plan to deal with fisheries reform. They failed.
Expect the change that OCI has started to sweep the province. This could wind up being the most significant political transformation in the province’s history. The fishery, after all, is tied inextricably to the political and social fabric of the province.
The only real losers in the changes that are coming will be the people who profited from the old order. You can tell because they are fighting so savagely against change.
- srbp -
From the Globe’s blog and a post about American comedian Jimmy Kimmel:
Late-night host Jimmy Kimmel recently asked parents to give their kids lousy presents a couple weeks before Christmas….
There’s a little word missing there.
“of”
As in “a couple of” something.
You will hear that sort of construction all the time, especially from Americans, and increasingly you will see it in print as well.
But it is grammatically wrong.
And no, it is not concerning to your humble e-scribbler.
It is of concern to him, as in the abuse of the language pisses him off, just as it might be of concern that the Globe has fired its editors or hired people who do not know about proper English.
Here endeth the rant.
- srbp -