Gros Morne controversy hits the Globe

Only a couple of weeks ago the tinfoil hat brigade was crowing because one of their cherished delusions made it to the Globe.

Then the Premier explained there was no problem with the Labrador border.

So then the whole thing became the Globe’s fault for trying to invent controversy.

Now the Premier is back in the Globe again, this time as the supporter of that idea to sling 43 metre high towers through a UNESCO World Heritage site.

This one has turned out to be a big political problem domestically and it will soon turn into an international controversy.

That sort of stuff is always good for raising capital and generally creating the image of place where you’d like to do business.

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Top Bond Papers posts of 2009

If you haven’t had your fill of lists, here’s another one.  This time it’s some of the top posts from Bond Papers for 2009.

Now by top,  we are referring to ones that proved popular with readers, ones that led to much bigger stories, ones that broke some news and -  in the case of whistleblower and breast feeding  - posts that made concrete proposals on issues of significant public importance.   Now these 11 aren’t the only great posts from Bond papers for 2009.  There are plenty every month.  These just happen to be particular favourites.

Regular readers will notice some topics have been conspicuously absent from the series of year-end posts on top stories.  Not to fear, gentle and faithful readers.  There is another post to come.  That one will deal with the 10 biggest unreported or underreported stories of the past year.  Now they aren’t ones that have been ignored in this corner of the universe.  Rather they are ones that the conventional media in the province have consciously chosen to ignore – for reasons only those editors and reporters can possible try and rationalise – or ones where the conventional media have only reported on some aspects of a much bigger, juicier story.

Now just to give you a clue, one of the stories below is tied to a larger issue.  The Rhode Island memorandum story is just one aspect of a much larger  tale.

But more on that later.

For now, here are some of the best stories of the past year here at Ye Olde Scribbler’s Shoppe:

1. Equalization flips, flops and fumbles (January).  This one was topping the traffic counter for weeks in the early part of 2009.  it basically documents the raft of different and often contradictory positions the provincial government has taken on Equalization since 2004.  It’s only when you actually sit down and list things off chronologically you can see the entire convoluted mess.
2. BP’s draft whistleblower law (January).  The provincial Conservatives might not be able to deliver on their 2007 election promise, but your humble e-scribbler helped them out in January.  Here, in its entirety is a workable, draft law that would protect people who reveal dirty secrets in the public interest.
3. Uncommon tourism potential (February).  Really one of a series of posts on the idiotic idea of stringing hydro power lines through Gros Morne park.
4. Enhancing east coast search and rescue (March).  BP’s proposal on improving search and rescue capability offshore without resorting to the knee-jerk townie crap about putting helicopters in St. John’s.
5. Wheeler deal numbers and stuff (April).  How quickly everyone forgot that the provincial government’s energy corporation  can wheel electricity anywhere it can find a market. The April deal was good news when it happened and it is still good news even if the official version tries to pretend the whole thing doesn’t exist. This post puts some hard numbers on the deal.
6. Kremlinology (June).  The first post in what has become a running – and successful – series.  In June, your humble e-scribbler pointed out that something was off with Trevor Taylor.  By September, the old boy had thrown in the towel and left politics. Sometimes big stories grow out of the very smallest of clues.
7. The Wookey Hole Witch (July)  Okay so this one is a bit different.  A post on a search for a new tourism actor in a small English town has turned out to be a popular hit for people searching the Internet.  The witch has replaced Janice Mackey Freyer as the queen of the regular search hits.
8. Rumpole and the Summer of Discontent (August).  Problems in provincial court in Gander and four vacancies on the bench that still haven’t been filled.  
9. RI contradicts Dunderdale (September)  Natural resources minister Kathy Dunderdale told the people of Newfoundland and Labrador a bit of a nose-puller about why a memorandum of understanding on Lower Churchill power went nowhere. Your humble e-scribbler got the straight story from Rhode Island.
10. Unsound financial management (September)  Cabinet minister Paul Oram admits what your humble e-scribbler has been saying for four years:  provincial government spending is unsustainable.  finance minister Tom Marshall and others chime in to agree.
11. 66 at 6 in 2 (October).  A simple idea:  improve public health by having 66% of new mother’s still breast feeding at the end of six months after delivery, and hit that goal within two years.

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Route around park shorter

Contrary to claims by project supporters going around the province’s second UNESCO World Heritage site at Gros Morne would produce a shorter transmission line to bring  Lower Churchill power to St. John’s than going through it.

Since the Premier’s estimated cost of the jog around ($100 million) was pulled out of his ass – by his own admission – then perhaps there is good reason to believe it too is a gross exaggeration of the actual cost of running a power line from Labrador to the townies.

So if the line is both shorter and (as it turns out) cheaper around the park, why the instance on risking the park's UNESCO World Heritage site status?

Maybe it’s because the crowd at NALCO just dusted off their old plan – done before the park existed – and never bothered to think it through.

How encouraging that thought is.

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When small could mean big

As renewNewEngland.com reports, the Maine state legislature recently passed an initiative designed to encourage small, locally-owned green energy generation concepts. The bill was signed into law on June 26.

The new law establishes a six-year pilot program to encourage the development of community-based renewable energy in Maine, defined as a majority locally-owned facility that generates electricity from an eligible renewable resource.  The pilot program has an overall program cap of 50 MW, 10 MW of which is reserved at the outset for projects that have a generating capacity under 100 kW or are located in the service territory of a consumer-owned utility.  To be eligible for the program, renewable energy projects must (1) have a generating capacity of 10 MW or less, (2) secure a resolution of support from their local community (projects with a capacity of less than 100 kW are exempt from this requirement), (3) be connected to the grid, and (4) have an in-service date of September 1, 2009 or later.

This has all the hallmarks of a growing trend south of the border to focus on private sector development of small energy developments.  It’s based on the belief – apparently -  that small is not only less harmful to the environment but that local initiative and local capital can successfully combine to meet a portion of the nation’s energy needs.  The approach is supposed to create jobs and, since it is handled by the private sector and costs are relatively small, stimulate the growth of local businesses.

Compare that to the official philosophy in Newfoundland and Labrador that is touting an energy megaproject that thus far has no customers outside the northeast Avalon peninsula.  Incidentally, even your humble e-scribbler’s sister missed the point that the infeed the provincial government is trying to ram through Gros Morne is designed to bring power to townies, not Yanks. 

There is no plan in public at this point to extend any power lines south of the island of Newfoundland.  There likely won’t be if customers can’t be found for the juice.  Anyone who has read any part of the environmental review documents for the infeed to Soldiers Pond will understand that the thing is justified entirely on a supposed power shortfall on the island within the next decade. 

They plan to meet that supposed need with Lower Churchill power at a cost of $6.0 to $9.0 billion.  As the 2007  energy plan puts it:

This demand is forecast to grow at a fairly steady, moderate pace over the next several years. This would result in a need for new sources of supply on the Island prior to 2015, and later in Labrador.  As a result, we plan to develop the Lower Churchill project, which will include  a transmission link between Labrador and the Island.

Anyone reading the environmental impact documents will also realise that the provincial government’s energy company has effectively ignored the potential for small hydro developments or other small electricity projects to meet local need.  Even when an energy corporation official talks about wind power, it is obvious the corporation is fixated on the export market.  And when they think exports, big is all they seem to see.

There’s been a moratorium on small hydro projects in the province since the late 1990s.  While the provincial government committed two years ago to make a decision on the moratorium this year, odds are the decision won’t be made on time.  Even if it is made, the energy plan links the Lower Churchill and alternative sources for the island in an “either/or” proposition.  If the government proceeds with the Lower Churchill, alternatives are dead issues.  If the Lower Churchill dies, then small generators are the way to go.

As for private sector capital investment,  you only have to consider that one of the effects of the expropriation bill last December to see the official attitude to the private sector.  While everyone fixated on Abitibi, the expropriation also included seizing control of just exactly the kinds of small hydro that Maine and others are encouraging and hand them over to the provincial government’s energy corporation.  Star Lake  - totally unrelated to the Abitibi mill - was one of the casualties of the expropriation, as was the Exploits River partnership, a joint venture between Abitibi and locally-based Fortis. 

If that doesn’t convince you, consider that in the event small hydro projects go ahead, the energy plans mandates that only the provincial government energy corporation will be involved:

If the Provincial Government lifts the moratorium, it will institute a policy that the Energy Corporation will control and coordinate the development of small hydro projects that meet economic thresholds and are viable for an isolated island system.

And it’s not like the energy corporation has been very efficient at exploring alternatives to its current obsession with megaprojects.  The earliest proposals for wind energy farms on the island turned up over a decade ago. However, it took another six years for a small project to start on an isolated island and another  seven years for a report to examine the issues involved in wind generation and another two years after that before the first larger demonstration project started.

If Newfoundland and Labrador followed the approach of other jurisdictions, the people of the province could reaping the big economic and environmental benefits of innovative, small energy generation.

Unfortunately, the provincial government’s energy plan is fixated on government monopoly and megaprojects. The only things big in that are costs and - of course - project delays.

The Lower Churchill was supposed to start in 2009.  By the latest estimates, the earliest it could start construction is after 2011.

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Phake photos add up to more tourism travails

As you can see at Geoff Meeker’s blog and at labradore, the provincial tourism departments advertising campaigns are marred by what amounts to fake photography.

That is, the company behind the campaign has taken a couple of shots and then through a series of deletions and additions created something that actually doesn’t exist all in aid of getting people to come here to experience something which is, according to one advert, as far from Disneyland as you can get.

Uh huh.

Now that might actually be true since the evidently invented, fanciful and ultimately fake stuff you experience at Disneyland or Disney World actually exists at the theme park.

The stuff in the pictures does not.

So at least in that bit they told the truth, just not in the way most people would take the meaning if they didn’t know the little photoshop of horrors involved.

To give you some sense of the manipulation involved both blog posts include both unedited shots and the doctored outcomes. 

It’s worth taking the time to look at both just to see not only how much doctoring has been done but how much the sights didn’t need the creativity of the Picassos of pixilation.

This is just the latest in a string of problems in the tourism ministry over the past few years.  The province’s energy corporation plans to drive a string of gawdawful high voltage electricity towers right through a UNESCO World heritage site.  Never mind that one of the tourism television ads this year highlights Gros Morne as a destination known for its unspoiled natural beauty, as you’ll see in Meeker’s post.

Nope, seems the geniuses at NALCO think the rest of us just need to be “educated” on why their solution  - 43 metre high towers right along key sight lines - is the only one that’s right. 

Then there was last summer’s little round of bullshit  - as we noted not once, not twice but thrice - with the billboard along the Gardiner Expressway in Toronto.

And all of that comes against the backdrop of an advertising campaign that is costing about double what it did four years ago but which isn’t seeing comparable growth in the actual numbers of  real tourists. 

In fact, the only real growth to speak of has been in locals who stay home in the summer.  They are doing that not because of watching tourism spots on CTV Newsnet every 15 bloody minutes but because it’s cheaper to stay home than travel what with the dollar at less than par.

Now that lack of results is not so much an issue with the advertiser as it is with the department headed up by a minister who is, for the most part, one of those resident visitors to the capital city region his department likes to talk about.

You see, the minister hits the taxpayers with the bills for his visits to the office in St. John’s rather than buy or rent a home here out of his own expenses like the rest of us would have to do.  He’s not alone either; almost half the cabinet nails the taxpayers for the cost of travel back and forth between their offices in St. John’s and their homes in various parts of the province.

To get back to the point:  the problem is that the current administration’s whole master plan for tourism has been to simply throw money into advertising.  That’s their phantasmagorical never-seen-before-in-the-history-of-human-civilization strategy, and despite the evidence that sheer volumes of dollars don’t work, they are determined to carry on with all the ingenuity of Douglas Haig.

When it comes to authentic tourism events, the minister – like his entire cabinet seatmates – don’t seem to know anything beyond trying to get the feds to pony up.  The sorts of people who come to Newfoundland and Labrador  go to places to see something different and real, something that actually is as far from Disneyland as you can imagine.

Too bad our whole tourism promotion is built around fakery.

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Uncommon tourism potential: A vision of hydro towers in a UNESCO World Heritage site

On Friday, the provincial government announced the creation of a new bureaucracy to promote tourism to the province, as if that was the answer to the dwindling return on investment from the current approach.

You can tell a lot about any plan by the way it proposes to measure success.  In this case, the new tourism strategy – Uncommon potential – wants to double the amount of money generated by tourism in the province.  Inflation would pretty much take care of hefty enough chunk of that in the next 11 years so whatever is left can be either explained away when the time comes or simply ignored.

You can tell this is a serious plan:  it has lots of pretty pictures in it, shop-worn jargon by the shovel-full  - “world-class” and “the possibilities are endless”, two great Chuck Fureyisms from his stint as tourism czar - but no indication of how much money it will cost to do all the things listed as the various action items.

One would have to read the release to appreciate, as well, that the strategy doesn’t really get at one of the current problems, namely the fact that more than half the $500 million generated by “tourism” right at the moment doesn’t come from people travelling into the place.  It comes from locals.

Odd, though, that there is no mention in this beautiful looking document of the tourism potential of high voltage direct current hydro-electric transmissions lines.  There’s lots about pristine wilderness, natural beauty, authentic experiences and a raft of other buzzwords but nothing about giant steel girders supporting buzzing electricity cables.

Odd, you see, because that’s exactly what the provincial government’s energy corporation is planning to string from Labrador down to the Avalon peninsula to meet a demand that can be met with other sources of power.

The energy company plans to run the lines, in one part at least, through Gros Morne National Park.  That would be the UNESCO world heritage site. Now there are already lines in the park that were installed long before the park was established in 1987. 

But you’d think that a company owned by the provincial government might be looking at ways of getting out of the park altogether rather than planning on increasing the power lines in a truly beautiful place.

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Doug House's speech

For some reason the abstract of a speech given recently by Doug House has attracted some attention. The speech itself isn't available online, but an abstract - a summary - is to be found at Simon Fraser University's Centre for Coastal Studies.

I say "for some reason" since, on the face of it, this paper did little more than describe the reality of the province currently. It's hard to imagine what is controversial or contentious about saying that "the current government finds itself under enormous pressure to prop up hurting communities, households and individuals through make-work, income support and the further overexploitation of endangered fish stocks. This vies with and threatens to undermine genuine efforts at rural industrial diversification from both government and community-based agencies."

Is this not the case? Is the Williams government not under pressure to provide make-work projects and income support?

Since people might be interested in what Doug has to say about other subjects, check out the rest of the Simon Fraser Centre's studies on oil and gas, coastal societies and similar topics. You'll find that back in 2000, Doug and a number of others with great experience in the local offshore oil sector discussed events in Newfoundland and Labrador over the past 25 years.

In the meantime, here's the abstract of House's latest speech. See if you find anything problematic or controversial in it.

Update: An alert reader noted in an e-mail that the St. John's Census Metropolitan Area accounts for about 35% of the population and holds about 34% of the seats in the House of Assembly.

The knowledgeable correspondent notes that as such "rural" parts of the province don't hold a preponderance of seats in the provincial legislature that is in any ways out of whack with the population and the allotment of seats.

Maybe the issue for House isn't with the preponderance of seats but rather that the demands for various government supports works against other efforts at economic development and diversification. That's the last sentence of the abstract in slightly different words.

----------------------------

Oil, Fish and Social Change in Newfoundland and Labrador:
Lessons for British Columbia

Wednesday January 11, 2006

4:00 PM, Halpern Centre, Simon Fraser University

Abstract

During the past 20 years, the economy and society of Newfoundland and Labrador have been undergoing significant change. Oil, which has earlier been conceptualized as a "strong staple," has been in the ascendancy; while fish, a "weak staple," has been in decline. The places where the production of these two staples is centred have also changed significantly. Although exploration and production take place hundreds of kilometres offshore, oil company operations, most service and supply activities, research and development, education and training, and the public sector management and administration of this new industry occur almost exclusively within St. John'’s and the surrounding north east Avalon region of the province. The oil industry has also been a major catalyst for the growth of a marine technology cluster in St. John'’s, which also benefits from having Memorial University, the College of the North Atlantic, significant physical infrastructure, an airport, a harbour and the seat of government all located within a few square kilometres. Wealth, employment and population are becoming ever-more concentrated in this region.

At the same time, the decline in groundfish stocks, concern about shellfish stocks, and cut-backs to Employment Insurance payments for plant workers (but not fishers) have undermined the economic base of many fishing communities, the traditional outports of coastal Newfoundland and Labrador. People are leaving the outports, not just for mainland Canada but also for St. John'’s and the larger regional resource and service towns. Newfoundland and Labrador is rapidly becoming urbanized. Even the province'’s vibrant cultural industries - —music, drama, literature, film - —although drawing on a somewhat romanticized rural past are, with some notable exceptions, based in and contribute to the further growth of the city. More tourists flock to George Street than to Gros Morne or Twillingate.

What does all this mean for government decision-making and policy? Given the preponderance of rural seats in the legislature, the rhetoric continues to favour rural development. Although committed in principle to "real" economic growth in rural areas through better management of the fisheries and longterm industrial diversification, the current government finds itself under enormous pressure to prop up hurting communities, households and individuals through make-work, income support and the further overexploitation of endangered fish stocks. This vies with and threatens to undermine genuine efforts at rural industrial diversification from both government and community-based agencies.

More problems for NALCO power line

Objections are now coming about the proposed power line that would skirt Gros Morne Park.

Hikers and outfitters are concerned the power line will affect caribou and spoil hiking trails in the area.

"We've been working for the past four years in the Portland Creek and Parson's Pond watersheds, and we're hoping that Nalcor will be able to compromise and find a more suitable route further east and north than the proposed route," said Paul Wylezol, chairman of the International Appalachian Trail of Newfoundland and Labrador.

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Political Boundary Issues #nlpoli

Some people thought that the electoral boundaries commission wouldn’t get its job done within 120 days.

On Friday, those people found out that was a pretty silly hope on their part.  That’s the day the commission released its preliminary maps of the new 36 districts on the island.  The district maps appeared on the Internet around 11:00 AM and by noon the truly hard-core political nerds had looked at the maps and sized them up.

Here are some quick observations on the boundaries and initial reactions to them.

Williams miffed Hydro Quebec rejecting ownership stake in Lower Churchill

Far from going it alone on the Lower Churchill or seriously pursuing a transmission route around Quebec,  the Williams administration has been working fervently to get Hydro Quebec on board as a co-owner  of the Labrador project. 

Those efforts have been in vain, according to natural resources minister Kathy Dunderdale.

Dunderdale  told VOCM Open Line show host Randy Simms on Friday morning that over the past five years, the Williams administration “got a path beaten to their [Hydro Quebec’s] door” in an attempt to have HQ become what Dunderdale described as an “equity partner” in the Lower Churchill.

Dunderdale described the Lower Churchill “piece” as a “win-win” for Hydro Quebec.  She said that despite efforts by the Government of Newfoundland and Labrador there was “no take up [from Hydro Quebec] on the proposal.”

The new version of events offered by Dunderdale is at odds with media reports this week of Premier Danny Williams’  speech to the Canadian Energy Forum meeting in St. John’s last Wednesday.  Williams reportedly accused Hydro Quebec of protecting its own interests and of blocking efforts to develop the Lower Churchill. 

However, Dunderdale’s comments fit with a more careful reading of  Williams’ remarks at the energy forum.

On Wednesday, Williams accused  Hydro Quebec of blocking the Lower Churchill project by not being interested in it at all.  Instead, the Quebec Crown corporation was pursuing other projects – like La Romaine – which Williams said was inferior to the Lower Churchill:  Williams is quoted by the Telegram in a Friday story [not online] as saying “La Romaine is not as good a project as the Lower Churchill.” 

Hydro Quebec is pursuing several projects within Quebec, including alternative sources of energy to hydro, all of which are aimed at boosting Hydro Quebec’s portfolio of capacity by more than 4500 megawatts. 

That was known at the time Williams made the decision in 2006 to “go it alone” on the Lower Churchill.  He also Williams attacked the other projects in 2006.  At that time, he claimed that those projects would get to market before the Lower Churchill and hence would beat out his pet project.  In 2006, Williams vowed to continue in spite of competition.

Friday marked the first time, however, that there was public acknowledgement the provincial government was actually trying to lure Hydro Quebec into an ownership position.

This week also marked the first time Williams linked a possible Hydro Quebec financial stake in the Lower Churchill to the 1969 Churchill falls contract.   Williams told the forum that as a result of Hydro Quebec’s exorbitant profits from Churchill Falls, “the very least I would expect Hydro-Quebec to co-operate with us to the fullest on getting the Lower Churchill through.” 

Previously,  Williams has consistently tied any negotiations with Hydro Quebec over the Lower Churchill with “redress” for the 1969 contract.  That’s inconsistent with offering Hydro Quebec an ownership stake in the new project.

Williams also said that Hydro Quebec had filed procedural applications in an effort to stall a hearing by the Quebec energy regulator - Regie de l’energie – into an objection filed by NALCOR/Newfoundland and Labrador Hydro over a regulatory issue. 

That’s a bizarre way to describe things, though.  Newfoundland and Labrador Hydro is one of several interveners in a decision on transmission rates for 2009.  NL Hydro filed its notice seeking intervener status at the last minute.  But since the rate hearings affect more companies than NL Hydro and NL Hydro is one of a dozen interveners, it’s hard to see how a routine regulatory process is part of a plot to frustrate the Lower Churchill.

What’s more, Williams’ claim flies in the face of successful efforts by NL Hydro to wheel power through Quebec.  Hydro started the process in 2006.   In early 2009, Hydro announced successful completion of a deal  with Hydro Quebec’s transmission arm to wheel power through Quebec to markets in the United States.  

Efforts to cut a deal with Hydro-Quebec while claiming something else are only the latest in a series of erratic moves and claims by the provincial government since 2003.

In 2006, Williams rejected out of hand a proposal from Hydro Quebec and Ontario’s Energy Financing Company to finance the Lower Churchill.  The proposal came in response to a called for expressions of interest issued by the Williams administration.  Under the proposal, Ontario and Quebec would buy the power and cover the costs of upgrading transmission facilities within the provinces and across the provincial boundaries.  The proposal also included flexible options on financing the construction of the two generating dams at Gull Island and Muskrat Falls.

Williams tossed that proposal and several others aside in favour of what he characterised at the time as going it alone.

In 2006, Williams said publicly that investors should look to the Lower Churchill instead of projects Quebec because Quebec is politically unstable.  Williams later apologised because people found the comment offensive but he did not retract his comments about Quebec’s political climate.

Williams has also sought financial support from others despite the “go-it-alone” claim. In successive federal elections, Williams has raised the idea of federal loan guarantees with federal party leaders.  He has also tied federal financial support for the Lower Churchill as some apparent form of compensation for having to run transmission lines around Gros Morne national park.

The erratic public positions don’t stop there. 

In 2008, natural resources minister Kathy Dunderdale indicated the provincial government was considering a law suit against the federal government over the 1969 contract.  Later in the day, the provincial government backtracked.

In early 2009, an official with NL Hydro hinted that the provincial government was considering financing options other than the “go-it-alone” version.  Little did the people of Newfoundland and Labrador know what the other options were.

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Kremlinology 10: Ah to be a Tory in Gander in October, when the dogs are fit to wag

When the political going gets tough, what better way to handle it than to launch a phoney jihad against a completely imaginary enemy over a completely imaginary dispute:

The Premier is gearing up for another fight on the national stage. Danny Williams says Hydro Quebec continues to try and block this province from developing the Lower Churchill, now refusing to sign onto a water management agreement for the Churchill River in Labrador.

For starters, Danny Williams is only pissed at Hydro-Quebec because they aren’t willing to take the ownership of the Lower Churchill he offered then. It’s not that they are so interested in the LC and Danny that they are blocking him, it’s really bothering him that Hydro-Quebec just isn’t interested at all.

And that’s after five years of desperately trying:

[Natural resources minister Kathy] Dunderdale told VOCM Open Line show host Randy Simms on Friday morning that over the past five years, the Williams administration “got a path beaten to their [Hydro Quebec’s] door” in an attempt to have HQ become what Dunderdale described as an “equity partner” in the Lower Churchill.

Dunderdale described the Lower Churchill “piece” as a “win-win” for Hydro Quebec. She said that despite efforts by the Government of Newfoundland and Labrador there was “no take up [from Hydro Quebec] on the proposal.”

But the biggest thing you have to consider on this water rights agreement thingy is that if the two parties – NALCO and Churchill Falls-Labrador Company – can’t reach and agreement on their own, the whole thing will be settled legally and finally by the public utilities board.

No big public, hair-mussing fuss required.

Danny Williams knows this because that’s what he amended the law to say in preparation for just such an event.

Well, okay first the provincial government tried to screw with the contract – as someone else tried in the 1980 water rights case - but they got caught red-handed in that little bit of tomfoolery.

While Williams and his ministers tried to downplay it at the time, they were caught so far in the wrong they even had to call an extremely rare emergency session of the legislature to deal with the mess created by someone’s childish legalistic game.

Anyway, that’s another story.

CFLCO not interested in the deal on water rights Williams wants?

Well that’s no problemo.

The whole thing just falls along according to amendments made to the Electrical Power Control Act in 2007 by none other than Danny Williams’ own administration.

The public utilities board – headed by Williams’ new buddy Andy Wells – just imposes a deal on the two sides:

5.5 (1) Where 2 or more persons to whom subsection 5.4(1) applies fail to enter into an agreement within a reasonable time, one or more of them may apply to the public utilities board to establish the terms of an agreement between them.

(2) Where an application is made to the public utilities board under subsection (1), the board shall establish the terms of an agreement for the purpose of achieving the policy objective set out in subparagraph 3(b)(i).

(3) An agreement established by the public utilities board under subsection (2) is binding on the persons named in the agreement.

Poof.

Job done.

Pas de sweat.

And lookit, the company involved here isn’t Hydro-Quebec, it’s the Churchill Falls-Labrador Corporation. That’s the company in which the provincial government’s energy company – NALCOR - owns a 65% stake.

And if you are still not convinced this is all yet another case of Tory dog-wagging, just consider that this evil foreign demonio Hydro-Quebec hates Williams so much and is working so hard to block the Lower Churchill they were will to sign a deal allowing energy from Labrador wheel across their province.

Wheel power and they make millions off the wheeling charges. Gee, that’s really putting obstacles in the way of the Lower Churchill. Yep, what better way to block the Glorious Lower Churchill project than demonstrating that Danny Williams can wheel power through Quebec to some other market than Quebec without any obstacles.

So what is all Danny Williams’ puffed chest really about?

Not even Ed Martin - the head of the provincial government’s energy company - seems to know.

But if one Ed doesn’t, maybe your humble e-scribbler can offer some easy suggestions on what issues are causing the provincial Conservatives to go hunting for a distraction:

- The by-election in the Straits is really not going well at all for the Tories. Then there’s Terra Nova to fight where the Tories haven’t even got a candidate yet and the Liberals wound up having two to pick from. Eight cabinet ministers in one day and four trips by the premier Hisself don’t seem to be working on the voters, at least not the way it is supposed to work.

Very frustrating when the old tricks don’t work any more.

- It’s really, really, really painful to make one decision and then be forced to make another. Think Danny Williams and the whole lab and x-ray thing. Jerome Kennedy confessed just this past week to what some of us have known all along: the decision to chop service was made by the entire cabinet.

That’s why they all stuck so hard to the line about “improvements.

That’s why they resisted changing their minds right up until the point they had no choice.

That’s why they tried desperately for weeks to try and blame someone else for the shag up rather than the people who actually shagged up.

It really bruises the ego to lose.

- And that’s on top of a string of “losses” including the Gros Morne one. Again, as much as they tried to downplay it, the whole emergency session of the legislature must have deeply embarrassed cabinet.

- There’s also the ongoing embarrassment of Paul Oram coupled with his decision to up and run when the going got tough. A cabinet minister resigns hot on the heels of another, thereby creating a mini-crisis in the government? Not a way to make the leader feel cheery. Paul Oram took himself off a raft of Tory Christmas card lists with his poorly executed exit.

- Unflattering comparisons to Roger Grimes? Lighten up a bit, people. It’s a joke.

- Let’s not forget the admission that the provincial Conservatives haven’t been doing such a fine old job of managing the public purse as they’d claimed. The word Oram used was “unsustainable.” Finance minister Tom Marshall said much the same thing.

- Then there’s the revelation that the government’s satisfaction rate ain’t what it was purported to be by the government’s own pollster. Between the opposition and local media, three recent CRA polls – never released publicly before – show that the people of Newfoundland and Labrador told CRA one thing but CRA told the public something else. The truth is sometimes painful but it does come out.

- Then there is the ongoing frustration of the Lower Churchill. As a story in the Telegram noted [not available online], NALCO has to go back and answer a whole bunch of questions for the environmental review on the Lower Churchill and that is now behind schedule. That’s on top of the lack of partners (see above), lack of markets - think Rhode Island - and the huge embarrassment to the government of being forced to abandon their original plan of slinging power lines through a UNESCO World Heritage Site.

On the whole it has been a very rough patch for the ruling Conservatives, at least from their perspective over the last six weeks and a bit more.

And what better place for provincial Conservatives to engage in some traditional Tory dog-wagging than the annual convention in Gander.

After all, that’s where ABC was born, at a time – as the House spending scandal broke in 2006, among other things – when things didn’t look all that rosy for provincial Tories in the short term.

Come to think of it, Loyola Sullivan packed it in not long after that, as did Paul Shelley and a few others.

Hmmm.

-srbp-

A "showcase" of public spending

Some curious extracts from the House of Assembly Question Period, November 23, 2006. This section of QP is worth quoting in it's entirety so that we can see exactly the questions put and the answers. Bond Papers has highlighted some of the passages that really stand out, as well as the names of the speakers.

MR. [Gerry] REID: Thank you, Mr. Speaker.

My questions are for the Premier, and again they concern giving gifts to his friends.

Mr. Speaker, in the late 1980s, the Mayor of Calgary at the time indicated that he did not care if Eastern Canadians froze to death in the dark. That mayor later went on to become Premier and, as we all know, Ralph Klein is about to retire later this year. This summer, at a Premiers' Conference held here in this Province, our Premier gave Ralph Klein and his wife sealskin fur coats valued at $8,000 as a retirement gift, I might add, Mr. Speaker.

Can the Premier tell us today what Ralph Klein or his wife did for this Province that would allow us or make us believe that we had to give $8,000 of taxpayers' money as a retirement gift?

MR. SPEAKER [Harvey Hodder]: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER [Danny] WILLIAMS: Mr. Speaker, I cannot do enough or spend enough money here to help the sealing industry in this Province.

SOME HON. MEMBERS: Hear, hear!

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

PREMIER WILLIAMS: What this is, it is an opportunity to have the senior statesman in this country, a man who has been Premier of the wealthiest province in the country for thirteen years, whose wife was a champion against addictions in crystal meth and brought in the initiative, the crystal meth initiative that has gone right across the country, has also been part of the OxyContin initiatives, these two people are leaders in the country, and for us, as Newfoundlanders and Labradorians, to give them an opportunity to proudly wear seal coats from the sealing industry in this Province is money well spent, and I would spend it again.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The hon. the Leader of the Opposition.

MR. REID: Thank you, Mr. Speaker.

I have heard a lot of answers and non-answers in this House, but those are the lamest ones I have ever heard in sitting here in eleven years.

Mr. Speaker, we have hospital pharmacists looking for wage increases, we have out-migration at an alarming rate, we have schools that are full of mould, yet the Premier can spend our precious tax dollars so freely.

Can the Premier justify why he believed it to be acceptable to give $105,000 worth of gifts to the Premiers and their guests during this conference, including $35,000 worth of sweaters?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER WILLIAMS: Mr. Speaker, if I may just expound, first of all, on the last question.

We have a sealing industry that is under siege and we have to do absolutely everything we can, nationally and internationally, to help that industry. It is an important industry to rural Newfoundland and Labrador and that is why I championed it on Larry King Live and took on the McCartneys on live international television, and we made a lot of ground there.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

PREMIER WILLIAMS: Mr. Speaker, in answer to the question as to why we gave these gifts to heads of provinces, heads of states in this country, whose support we need and we have for the Atlantic Accord, whose support we needed and we have for fallow field legislation, we were giving them rural Newfoundland and Labrador arts and crafts, sweaters knitted by Newfoundlanders for Newfoundlanders and Labradorians. [Emphasis added. The Premier refers to his colleagues as heads of state. That in itself is worthy of about an hour of careful consideration. Then he links giving of gifts with political support on certain initiatives. I doubt very much the Premier meant to suggest he was bribing other political leaders or that he was in some other fashion rewarding them for their support. Surely, their support for the initiatives mentioned were based on merit, not on the receipt of warm woolies.

And while we are at it, did the gifts come from Nonia, the province's oldest craft organization and a not-for-profit to boot? The Premier mentioned the arts council, which suggests the elite of the local arts community. Nonia is a crafts' store. It's merchandise is hand-made by women across the province. Bit of a difference between a sweater made like thousands of other for its practical value and one made as a purely creative endeavour.]

SOME HON. MEMBERS: Hear, hear!

PREMIER WILLIAMS: Those gifts all came from various members of the arts council. We spent a significant amount of money in the arts council. We had a fundraiser the other night, we brought in the cultural and the arts community. We have invested heavily in the arts community and this is about promoting rural Newfoundland and Labrador. If you do not like that, I make no apologies.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Opposition.

MR. REID: Thank you, Mr. Speaker.

Let me get it straight, you gave Ralph the fur coats to support the sealing industry, you gave the sweaters to support the agriculture industry. Let's talk about some of the other ones, the entertainment - how about the entertainment expenses? During this three day conference the taxpayers of this Province spent $132,000 keeping thirteen Premiers entertained with music and comedy.

I ask the Premier: Do you consider this a priority in the Province, a priority that includes a $75,000 fee for a one-hour musical performance by one band? [Emphasis added.]

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER WILLIAMS: Mr. Speaker, I find it very acceptable. I find it to be money well spent. I take my greatest pride, as Premier of our Province, in showcasing every single bit of talent and music and culture that we have in this Province. If I have an opportunity to showcase that culture and that music, not only to the Premiers and their spouses and their staffs, but to international media, national and international media, and we take a group like Great Big Sea, recognized internationally all over the world, and this government has invested in them, we take someone like Rick Mercer, who is a tremendous talent, who has a national audience, one of the biggest national audiences on television, and we invest in him, then we take a whole showcase of our talent at The Rooms and we pay for them to perform, by God, that is money well spent. [BP note: Evidentally, I do need to raise my consulting fees. $75K for a one hour gig, even allowing for set-up etc etc? Wow. Even lawyers don't make that kinda dough.]

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The hon. the Leader of the Opposition.

MR. SULLIVAN: Sit down, boy.

MR. REID: I am not going to sit down, I say to the Minister of Finance.

He talks about how proud he is to spend this kind of money, when we have youth in this Province who cannot afford diabetic pumps because this government will not compensate them for it.

Mr. Speaker, it appears that the Premiers also had a very good time being wined and dined by the taxpayers of this Province. We have the agriculture and the sealing industry covered. Maybe we are going to cover off the wine industry and the alcohol industry next, are we?

Mr. Speaker, does the Premier believe that $100,000 is an acceptable expenditure on sightseeing tours that provided beverages of various sorts to the Premiers and their guests?

MR. SPEAKER: The hon. the Premier.

PREMIER WILLIAMS: Mr. Speaker, there was a budget of about $1.25 million, basically, for this entire conference. You can rest assured that the cost to Alberta had to be significantly more than that. Albertans told us after it was over that we beat them to the punch. We basically put on a better performance for our Province than they did.

We took them - I am sorry, the Member for the Bay of Island obviously has a problem with the fact that we took the Premiers and their staff to the West Coast, so that we could showcase the Bay of Islands and Humber Valley and Corner Brook and Gros Morne and show off our tourism establishments. That is what we did. We took them there and then we took them back to the East Coast and we showcased the East Coast.

We showcased our talent, our music, we showcased our crafts and our manufacturing ability in rural Newfoundland, we showcased our land and we showcased our people because we gave them a good time and they talked about it all over this country.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The Chair recognizes the hon. the Leader of the Opposition.

MR. REID: Thank you, Mr. Speaker.

Just imagine, what the Premier just said. He said: We beat Alberta in the show that we put off. The richest province in the country being out done by spending money by the poorest one in the country.

__________________________________________________

This issue is obviously a touchy one.

The Premier's Office issued a news release later that day suggesting the total cost of the conference was about $500,000. The figure given above is accurate, not the one from the news release. The total budget, but the tab was picked up by the provincial government, corporate sponsorships sought by the provincial government and some contribution by the conference secretariat.

The budget for the conference came in at about $1.5 million, which is - as BP understands it - about a half million more expensive than the Alberta show. No wonder the Albertans thought we outspent them. We did.

How do we know the figure? It was already made public in August in a story about the corporate gifts that government received to underwrite the cost of the show. Companies like INCO gave the government upwards of $500,000 in sponsorships.

INCO alone gave $75, 000. As the story linked above notes, Premier Williams had previously banned INCO from making corporate gifts to the Tory party because of concerns over conflict of interest. Here's what Bond wrote in August on the whole thing.

But here's an interesting thing: given that the "showcase" cost about $1.5 million to produce and, as we gather from the lame release, the economic benefit was calculated at $1.4 million, that leaves some fairly obvious implications:

- The whole thing was a wash, with the potential profit eaten up by added costs (like all the showcases); or,

- The "economic benefit" is actually just provincial government money being spent in the province, which really provides no substantive economic benefit at all. doesn'tt bring new money in; it merely recirculates the old.

Either way, that sort of funky fiscal figuring, coming from the Premier's Office makes one wonder about the fibre deal all over again.

Change and Challenge: Chapter Five - New opportunities for growth

The Province's fisheries, forestry and mining industries cannot be expected to provide much, if any, net increase in employment during the years ahead. In fact, employment in these resource industries has been declining steadily over the last decade, as shown in Chart 5. In the forest industry, person years of employment declined from 5,300 in 1981 to 3,600 in 1991, and in the fishing industry employment declined from 21,700 to 19,200 during the same period. The decline in the mining industry was similar, falling from 5,600 in 1981 to 3,200 in 1991.

To provide the new jobs needed to reduce our high unemployment rate and to provide employment opportunities for our young people as they enter the labour market, new growth opportunities must be identified. While our economy is more diversified than is generally recognized, further diversification is no longer merely desirable - it is essential.

Advances in telecommunications, the globalization of trade, the environmental movement and the growth of knowledge-based industries have changed economic prospects internationally, nationally and locally, and Newfoundland and Labrador enjoys many potential competitive advantages which it can use to benefit from these changes. It has a strategic location dose to Europe which could allow it to act as a gateway to and from North America, a relatively unspoiled natural environment with magnificent scenery and untouched wilderness areas, and many well-educated and well-trained people, including a core of professional expertise in marine-related engineering and electronics.

The challenge is to recognize these new opportunities and for the private sector to take advantage of them, with Government's support. Traditionally we have thought of ourselves as producers of raw materials, but several companies in the Province have already become sophisticated traders of knowledge-based, value-added goods and services in local, national and international markets. It is through the creation of new wealth in new industries that the Province's problems of over-dependency and under-employment will ultimately be addressed.


In its strategic economic plan, the Province has identified three main areas of growth. These are:

• manufacturing and technical industries
• tourism and culture
• energy.

Manufacturing and technical industries will build on existing engineering and technical strengths, especially in marine-related activities. Tourism and cultural industries will grow by taking greater advantage of the province's natural environment, our unique culture, our quality of life and our human skills. Energy industries will grow through developing our significant growth potential in oil and gas, hydroelectricity, alternative energies (such as peat, wood biomass and cogeneration) and by a demand for greater energy efficiency. These three established industry groups offer significant potential for new wealth generation and increased employment during the next decade, and government's economic development thrust will be targeted on these industries.

Manufacturing and Technical Industries


In this strategic economic plan, manufacturing and technical industries include

• non-resource-based manufacturing
• innovative technologies
• information industries
• professional services
• environmental industries.

Non-resource based manufacturing (in Newfoundland and Labrador, virtually all manufacturing other than fish processing and pulp and paper making) declined after Confederation in 1949 because the elimination of customs duties made it impossible for many local firms to compete with cheaper "imports" from mainland Canada. But, more recently, and very gradually, non-resource-based manufacturing has become more important, so that now there are about 400 such firms operating in the Province, accounting for 4.1% of our GDP in 1990. This makes it more significant than some of our traditional resource industries.

Although Newfoundland and Labrador manufacturers produce mainly for the provincial market, some firms, selling such products as paint, footwear and ice cream, compete successfully in mainland Canada. There is also a small, but growing number of innovative technology companies (those using proprietary intellectual property and advanced scientific or technical know-how to provide new goods or services) that export sophisticated, knowledge-based electronic and telecommunications products to the global marketplace. This industry developed rapidly during the 1980s, so that by 1990 there were 55 such firms and organizations employing an estimated 1,200 people and with total annual revenues approaching $100 million.

Information industries are the fastest growing part of the economy, both nationally and internationally. Because of the way national statistics are collected, it is difficult to specify the actual number of firms and people employed in this industry in the Province, but it is estimated that Canada's information technology industry grew by 5% in 1991 despite the current recession, and had revenues of more than $16 billion.

Although it is not possible to identify the Province's share of this industry, we do know that Newfoundland and Labrador already has considerable strengths in the application of telecommunications technology. Altogether, it is estimated that more than 100 private- and public-sector organizations are now active in the province's information industry and employ dose to 2,600 people. To achieve more rapid growth, these private firms need better access to provincial government markets which are now served mainly by Newfoundland and Labrador Computer Services. This Crown agency has recently been given a direction to cooperate and collaborate on efforts to promote the commercial development of this industry.

The services sector now accounts for nearly 30% of global trade, and Canadian trade and consulting services have seen exponential growth, rising from $42 million in revenues in 1969 to $987 million in 1985. Although the Province's business service industry now has some 250 professional consulting firms employing more than 3,000 people with expertise in such services as business consulting, construction management and economic analysis, the export of this expertise to bring new money into the province has been small to date. This industry is relatively undeveloped and has much potential for growth.

Environmental firms are also enjoying rapid growth internationally as jurisdictions everywhere become more concerned about, and introduce new legislation to protect, the environment. During the past 10 years, approximately 25 Newfoundland-based companies have developed expertise in such activities as environmental consulting, oil spill clean-up, waste management, recycling, environmental assessment and information, geomatics and environmental technology development. This is still a small industry in Newfoundland and Labrador, but it has significant potential for growth.

The Government will place greater emphasis on these manufacturing and technical industries in the future, and will work with private firms to help them realize their, growth potential in both local and export markets. New initiatives will be introduced to encourage supplier development so that local products and services can gain better access to large private and public organizations that operate in the province, including government itself; and new programs will be introduced to help local firms gain access to, or become more competitive in, export markets.

To achieve these goals, the Department of Development will be re-focused and re-organized for the new challenges of the 1990s. The Tourism Branch will be incorporated into a new Department of Tourism and Culture (described in the following section) and responsibility for the development of resource industries will rest more with their respective departments. A new Department of Industry, Trade and Technology will be given a mandate to encourage and promote the growth of manufacturing and technical industries and will be affirmed as the provincial agency with the main responsibility for trade and industrial promotions, for attracting investment and for technology development. It will also provide a centralized business analysis service for other departments.

The new department will focus specifically on stimulating the growth of non-resource-based manufacturing, innovative technologies, information industries, professional services and environmental industries. The department will also be responsible for strengthening the Province's construction industry, which is a major employer, contributes significantly to GDP and affects the competitiveness of other sectors. It will also undertake initiatives to make Newfoundland and Labrador firms more competitive, both at home and abroad. These initiatives will include supplier development, technology transfer, trade development, business analysis, business policy, promotions and investment. The department will also take a targeted, proactive approach to attract outside firms to the province.

Consistent with a major theme of this strategic economic plan, the Department of Industry, Trade and Technology will focus attention on our marine environment. Special initiatives will be undertaken to assist marine-related industries, with particular emphasis on the development and commercialization of advanced marine technologies.

Strategy Statement. The Province mill stimulate growth in sectors of the economy where there are new opportunities, especially in non-resource-based manufacturing, innovative technologies, information industries, professional consulting services and environmental industries.


Actions. The Province will

51. Re-focus and re-organize the Department of Development into a new Department of Industry, Trade and Technology which will concentrate on stimulating the growth of the manufacturing and technical industries in local and export markets, improving the competitiveness of local firms, and actively targeting outside firms in the new growth industries to locate in the Province.

52. Establish a supplier development program which will provide the private sector with the knowledge and opportunity to capture a more significant portion of the public- and private-sector procurement markets, such as major capital projects and defense contracts.

The Province will organize supplier seminars and make supplier development a major part of the provincial industrial benefits policy.

53. Pay specific attention to the information technology industry; a standing-offer list of approved suppliers of products and services will be developed for use by all government departments and agencies.

54. Expand financial assistance programs to firms involved in manufacturing and technical industries. Assistance will be provided for research and development, commercialization of new technology, company development, export marketing and working capital financing.

55. Create within the Department of Industry, Trade and Technology the funding flexibility needed to attract public- and private-sector research organizations to establish in the Province.

56. Aggressively pursue multinational manufacturing and technical firms to locate here, particularly those firms which would fit established niches in marine industries and electronics applications.

57. Continue to work for the establishment of foreign trade zones as an economic development initiative.

58. Establish a Provincial Communications Agency, which will include representation from the public, private and educational sectors, for expanding data communications, for co-ordinating data networking initiatives within the Province, and for developing common standards for the industry. The Communications Division (currently located in the Department of Municipal and Provincial Affairs) will be transferred to the Department of Industry, Trade and Technology so that it can assume a leading role in this area.

59. Encourage the development of an education-related information industry to create products for the Province's education system and for export; develop enhanced instructional capacity in software design and development in our community colleges and university.

60. Support the private sector through the development and implementation of a program aimed at exporting the Province's business and professional consulting services. This program will match local companies with foreign contracts administered by such agencies as CIDA and the World Bank.

Tourism and Culture


The Province's unique history, environment, culture and lifestyle offer some of the greatest opportunities for economic growth in the 1990s and beyond. The combination of its scenic beauty, its long and colourful history, its pristine areas, its rich culture and the renowned talents of its people constitute a resource that is still underdeveloped and underestimated. These resources are not only renewable, but can continue to be expanded and enhanced.

Tourism and culture can also employ, both full time and part time, more people than any other resource or industry. Crafts production, for example, although a long-standing and growing contributor to the provincial economy, can become more business-like and professional and find new opportunities for growth. While our crafts have been successful in this province and in other parts of Canada, there are also significant opportunities in the international marketplace.

As business and daily living become more complex and globally competitive, alternative lifestyle and cultural values will increase in importance when businesses decide where to locate, to meet and to hold conventions, and when people plan vacations. With proper development and promotion of our traditional, indigenous qualities and advantages -especially our unique marine environment - Newfoundland and Labrador can create a niche as a major holiday destination and cultural region in North America.

All the necessary natural and human resource components to achieve these objectives have existed for a long time. What has been lacking is a concerted, co-ordinated strategic program to blend them into one major economic entity.

In the tourism and cultural industries of the future, our relative remoteness from highly industrialized areas, our sparse population in a large landmass, and our relaxed pace of life will be seen as major advantages.

We have much to offer, including

• the oldest and richest history in Canada, with two world heritage sites;
• a marine environment which offers opportunities for cruises, yachting, whale-watching, seabird sanctuaries, wind-surfing, sea-kayaking, ocean sports fishing and other marine-related activities;
• outstanding scenery and ecological diversity;
• world-class hunting and recreational fishing;
• excellent multi-season recreational facilities;
• the wilderness experience at affordable rates;
• a vibrant cultural community, with a rich folklore preserved through five centuries of continuous settlement;
• artists, musicians, actors, writers, sculptors, dancers, and craft artisans - both professional and amateur - in numbers that are disproportionate to our population, and many of whom have achieved national and international stature; and
• a quiet, peaceful, civilized life-style and a reputation for hospitality.

It has been proven in the past that Newfoundland and Labrador is a desirable destination for business and personal travel. We have to build on this reputation by improving facilities and services, and by developing the potential of adventure tourism, events-related visits, conventions, conferences, seminars and executive retreats, and emphasising the attractions for students, writers and researchers, naturalists, artists, artisans, performers and others engaged in both professional and amateur cultural activities.

The achievement of this objective will require a concerted, aggressive effort by both Government and the private sector. Tourism and culture are complex industries, involving the mandates of various government departments both provincially and federally, and further development will require active partnerships between industry associations and individuals, government agencies and departments, communities and municipalities.
At the present time, the essential components of a vibrant tourism and culture industry are spread through the departments of Development, Municipal and Provincial Affairs, Environment and Lands, and Enterprise Newfoundland and Labrador. Consolidation and co-ordination of government activities is necessary.

Strategy Statement. The Province mil implement programs to ensure that Newfoundland and Labrador is developed into an internationally known destination of choice in the vacation and business travel industry by promoting our natural advantages, expanding and improving facilities and services, and enhancing and promoting our cultural resources.



Actions. The Province will

61. Establish a new Department of Tourism and Culture. This new department will include the Tourism Branch of the Department of Development, the Cultural Affairs and Historic Resources divisions of the Department of Municipal and Provincial Affairs, the Parks and Wildlife divisions of the Department of Environment and Lands, and the Crafts Industry activities of Enterprise Newfoundland and Labrador.

62. Through the new Department, immediately initiate a consultation process with representatives of the tourism, cultural, environmental, and recreational sectors to develop and implement a comprehensive Tourism and Culture Economic Strategy. This joint task force would build on the extensive research and consultation of the Economic Recovery Commission, the O'Flaherty Report and other sources as required.

63. Give priority to the development of special year-round events of national and international interest within the Province, such as unique festivals, cultural activities, tournaments, historical observances and celebrations.

64. Assist the John Cabot (1997) 500th Anniversary Corporation to maximize the economic benefits to be realized from the international activities associated with the 500th Anniversary of John Cabot's landfall.

65. Initiate private-sector and other partnerships to develop further primary destination areas, especially those which offer multi-season potential.

66. Give priority to the development of winter recreation attractions, particularly further development of the Marble Mountain area as a major skiing destination area; and the development of cross country skiing, snowmobiling and dog-sledding events.

67. Expand the national and international conventions and meetings trade through promotional contact with societies, organizations and corporations, and encourage the development of facilities and services for business meetings and executive retreats; where possible, meetings and conventions should be coordinated with special events and observances. The success of these efforts will  likely create a demand for additional facilities to be provided by the private sector.

68. Recognize the western region of Newfoundland and Labrador as a specific cultural destination to maximize the economic benefits from its unique attractions, such as the two UNESCO World Heritage Sites (L'Anse aux Meadows and Gros Morne) located within a few hours' drive from each other, the 4,000-year-old Maritime Archaic Indian burial ground at Port au Choix, the Basque whaling station at Red Bay, the historic Grenfell Mission headquarters in St. Anthony, the Stephenville Festival of the Arts, French heritage festivals in the St. George's-Port au Port region, and other events and attractions of cultural importance.

69. Further develop the fine arts school at Sir Wilfred Grenfell College in Corner Brook as an Atlantic Fine Arts Centre of Learning, for the development of drama, music, folklore, visual arts, writing and associated disciplines.

70. Seek a Cooperation Agreement in Cultural Industries with the Federal Government.

71. Transfer administration and control of Arts and Culture Centres to appropriate regional or community organizations.

72. Implement programs to facilitate the development of adventure tourism. Research and other initiatives will be undertaken in the areas of marketing, training and upgrading standards of quality and performance. Legislation, regulations and policies will be reviewed to remove constraints which restrict further development of this activity.

73. Give priority to the revitalization of recreational fishing on the salmon rivers of the Province - an activity which can become one of the major contributors to the tourism industry if developed fully. Management of these rivers will ensure that maximum economic benefits accrue to the adjacent communities. The new Department of Tourism and Culture will play a leading role in the development of all recreational fisheries.

74. Eliminate unnecessary and unfair regulations which limit opportunities to develop and promote attractions and services; and improve regulations which enhance the quality of tourism and those which protect the public, the environment and the wilderness resource.

75. Participate in industry's implementation of an accommodations grading system and a human resource development program focused on improving the quality of our hospitality services. Emphasis will be placed on training, enforcing occupational standards and certification through licensing and assistance programs.

76. Ensure that funding assistance for new tourism activity will not be detrimental to present operations.


77. Extend the operating season of selected provincial parks and historic sites in response to tourist demand, and request the Federal Government to take similar action for facilities falling within their jurisdiction.

78. Seek Federal Government participation in the establishment of a National Wilderness Park in Labrador.

79. Pursue improvements in the quality of the Gulf ferry service operated for the Federal Government by Marine Atlantic and seek a reduction in fares.

80. Implement a new highway signs policy to address current industry concerns and provide dear direction and information for travelers.

81. Increase production and enhance the quality of crafts through expanded community college programs and additional field instruction.

82. Through adequate research and development of products, effective promotion, provision of operating capital for producers, and the establishment of marketing agencies (retail and wholesale) within and outside the province, ensure that craft production and marketing are integral components of the tourism and culture industry.

Energy


Energy represents a large and growing component of the provincial economy. It is a critical part of virtually every production process, and its price, availability and reliability are of the utmost importance to economic progress. Factors affecting energy thus influence our productivity and competitiveness, especially the heavy industrial users of electricity. Its price and availability also affect the standard of living of the Province's citizens.

Total energy demand in 1990 was equivalent to about 20 million barrels of oil. Increases in the residential and transportation sectors were offset by a substantial decrease in the industrial sector, attributable to a decrease in mining and manufacturing activity. Overall, refined petroleum products accounted for 65% of energy consumption, electricity 27% and wood fuel 8%. Transportation is the largest energy-consuming group (42%), followed by industries (29%), residential use (20%) and commercial establishments (9%). It is estimated that the direct contribution of the energy industry to the Province's Gross Domestic Product (GDP) in 1990 was in the order of $571 million, or 7%.

Strategy Statement. Government mil work to ensure that efficient energy resource management is used to strengthen the contribution of energy to overall economic development objectives.


Action. The Province will

83. Undertake a thorough review of existing energy policy to ensure that it is consistent with changing local, national and international economic conditions. An important aspect of this work will be to consolidate the many components into a comprehensive and integrated energy policy document.

Electricity Generation


Under current demand forecasts, there will be a need for an additional supply of electricity to the island portion of the province as early as 1996. Given the anticipated demand estimates and the lead times necessary to bring a new supply on line, Newfoundland and Labrador Hydro recently called for proposals for the supply of 50 MW of capacity from small hydro sites for that time frame. Decisions about these additional sources will have to be made within a year or two.

One option for meeting the shortfall beyond the year 2000 is the development of the Lower Churchill River hydro sites, including a transmission link from Labrador to the Island. The National Energy Board shows the Lower Churchill River development as ranking number one in economic priority among 45 identified energy projects in North America. This option would provide an assured long-term supply of electricity to the Island for the 21st century and would accommodate any feasible industrial activity in Labrador but is dependent on an agreement between Newfoundland and Labrador Hydro and Hydro Quebec.

Because of uncertainty associated with the Lower Churchill development, it is necessary to consider a strategy to meet the anticipated supply shortfall in case that development is delayed or does not proceed. In either case, to meet its requirements the Province would have to rely more extensively on other alternatives, such as other hydro developments, alternative energy developments and/or expansion of the existing Holyrood oil-fired plant. In addition, the Province will have to pursue improvements in energy efficiency and cogeneration, primarily as a means to improve the competitiveness of local industry.

Strategy Statement. The Province's objective is to ensure the development, generation and distribution of electricity in the most economical and efficient manner, to ensure that the balance of supply and demand is maintained and to maximize economic benefits to the Province from energy projects.


Actions. The Province will

84. Continue to pursue development of the Lower Churchill River so as to maximize economic benefits to the Province and provide residents with a long-term supply of electricity at a stable price.

85. Through the Department of Mines and Energy and Newfoundland and Labrador Hydro, prepare a plan for energy efficiency and the development of various energy sources to ensure the future balance of energy supply and demand for the Province.

86. Amend the Electric Power Control Act to broaden the mandate of the Public Utilities Board, including giving the PUB the authority to review agreements such as that envisaged for the Lower Churchill River Development.

87. Put in place policies to maximize electricity generated from small hydro developments as a means of increasing economic development and reducing dependence on imported oil.

Petroleum


The current policy of the Province with respect to onshore and offshore petroleum resources is to encourage and promote development in a manner which maximizes economic benefits to the Province. Presently, however, prospects for offshore oil and gas are uncertain because of such factors as the withdrawal of Gulf Canada from the Hibernia development, low prices resulting in low cash flow to industry, and competing projects elsewhere in the world.

For Hibernia, the best scenario is that the remaining owners will find a new partner and that the project will be finished with a production start in 1997. The worst is that the current difficulties experienced with Hibernia will not be overcome. In other offshore projects, the Province should see the start of development on at least one and possibly other fields, such as Terra Nova, Whiterose and Hebron, by the year 2000 or shortly thereafter.
Though the present level of exploration is low, the geological potential of the Grand Banks area is significant and future drilling is expected to find additional commercial-size fields. The offshore and onshore areas of the Province's west coast also offer some promise, as evidenced by the interest in land sales and seismic surveys in the past two years.

Strategy Statement. The Province will encourage both onshore and offshore exploration and development opportunities through all measures available to it, including the continuing development of a regulatory framework sensitive to changing economic conditions and global competition for investment.


Actions. The Province will

88. Develop and implement competitive generic royalty regimes for both onshore and offshore petroleum production.



89. Work with the Federal Government towards identifying and eliminating constraints in the current land tenure system for the offshore area.

90. Actively monitor and provide advice and direction, as required, to the Canada-Newfoundland Offshore Petroleum Board to maximize the use of goods and services provided from within the Province.

91. Insist on having appropriate input into employment and industrial benefits plans as a prerequisite to the start of individual oil exploration programs and new oilfield developments.

92. Aggressively pursue supplier development initiatives and ensure that full and fair opportunity to bid is provided for contracts related to petroleum exploration, development and production.

93. Develop a program to ensure that onshore and offshore petroleum resources are promoted in an effective manner.

94. Ensure that the employment and industrial benefits from the Hibernia project production phase are maximized.

Energy Efficiency and Alternative Energy


Energy efficiency and alternative energy can play an important role in the state of the Province's energy supply in the 1990s. The Department of Mines and Energy, in consultation with representatives from the private sector, has prepared a ten-year Strategic Plan for Energy Efficiency and Alternative Energy. This plan will improve the efficiency of energy use in Newfoundland and Labrador through new technologies and better operating practices for vehicles, equipment and buildings. The plan also encourages the development of local alternative energy resources, such as waste wood, peat and small hydro developments.

Strategy Statement. The Province will develop its alternative energy resources and promote energy efficiency as a means of contributing to its overall energy requirements, to lessen its reliance on imported petroleum products and to create new business opportunities.


Actions. The Province will

95. Implement the recommendations of the Strategic Plan for Energy Efficiency and Alternative Energy. Some of the key actions of this plan are

• to establish a diverse program of measures, ranging from information dissemination to legislative changes, to reduce costs through energy efficiency improvements and the use of alternative energy sources, with the aim of improving the competitiveness of local business and industry;
• to continue to promote, through support for energy research and development, alternative energy technologies and engineering studies, and economic development of the province's vast peat resources; and
• amend regulations to facilitate the development of hydroelectric and other potential energy sources by independent power producers.

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Change and Challenge: Chapter Six - Enhancing our resource industries