No room for dissent? No time for silence. #nlpoli

The controversy about The Rooms' recent request for proposals is not about Muskrat Falls.

Maybe someone at The Rooms or within the provincial government thought that was the problem when Des Sullivan raised concerns about it.  After all, Des is well known as a critic of Muskrat Falls.  That might explain why Dean Brinton, The Rooms' chief executive,  issued a very short statement that apologized for using Muskrat Falls as an example when explaining the Crown corporation's policy about conflict of interest for advertising agencies responding to the proposal request.

Let us assume that Brinton made a really superficial mistake because otherwise  his response is insulting and condescending.  Any reasonable personal understood our ought to have understood that Sullivan was concerned about the implication that critics of the provincial government could not bid on government work.

Brinton didn't deal with that at all.

NDP votes for “More of the Same” #nlpoli

Gerry Rogers is smiling again now that Earle McCurdy has agreed to be the NDP Kevin Aylward.

If Earle had decided to stay retired,  Gerry was the substitute leader the key inside factions of the party had tapped to fill-in until after the next election.  Rogers would have had to take one for the team, just like her Liberal namesake did in 2007.

Now that McCurdy is in, the party executive will announce some leadership process that either completely avoids a convention (like the Conservatives in 2010) or puts up a sham competition (as in the NDP 2014 leadership review).

Drew Brown recently likened the next NDP leader to the Liberal’s last-minute substitute in 2011.  Fair enough.  Any possible change for the party will come in the future.

Summer Political Reading List #nlpoli

If you are looking for some political reading over the summer, here are a few books worth checking out.

Tragedy in the Commons by Alison Loat and Michael MacMillan. Here’s the whole Random House blurb: 

In Tragedy in the Commons, Alison Loat and Michael MacMillan, founders of the non-partisan think tank Samara, draw on an astonishing eighty exit interviews with former Members of Parliament from across the political spectrum to unearth surprising observations about the practice of politics in Canada.

Though Canada is at the top of international rankings of democracies, Canadians themselves increasingly don’t see politics as a way to solve society’s problems. Small wonder. In the news, they see grandstanding in the House of Commons and MPs pursuing agendas that don’t always make sense to the people who elected them.

Promises, promises… 2003 contracts and tendering edition #nlpoli

In light of the controversy about Humber Valley Paving, here are some of the Conservative promises made in 2003 about contracts and public tendering, controls on political donations, special committees of the legislature, and disclosure of lobbying activities.

Each of them bears on the HVP tendering controversy in one way or another.  You humble e-scribbler has highlighted some of the sentences in bold because they contrast so starkly with that the Conservatives did once they got into office. 

Note the bit about revising the Public Tender Act.  The Conservatives promised it in 2003.  They gave notice that they planned to introduce a new public tendering law in the spring 2012 session of the legislature.  And then it disappeared.  They promised campaign finance reform and did nothing once in office.

Enjoy!

Weak Questions get Weak Answers #nlpoli

Nalcor’s effort to have local taxpayers subsidize electricity exports to Massachusetts came up in the House of Assembly on Thursday.

Well, sort of came up.

New Democratic Party leader Lorraine Michael asked a couple of lame questions and got – not surprisingly  - a few equally lame answers.

Here they are, in their entirety.

Budget basics: Dealing with the Debt #nlpoli

Public sector pensions in Newfoundland and Labrador are underfunded.  There’s not enough money in the fund account to cover all the likely money they’d have to pay out to people when they retire.

But make no mistake, the province’s public sector pensioners are not in any real danger of losing their pensions as a result.  That’s because the Pension Fund Act guarantees that the provincial government will make up any difference between the money owed to pensioners annually and the money available from the fund.  Unless some provincial government in the years ahead changes the law governing the pensions, people will get the money and benefits they’ve been promised.

The provincial government isn’t going to default on pensions any more than they are likely to take the completely irresponsible advice some might give them to change all the plans immediately - unilaterally if necessary - to make them defined contribution plans instead of defined benefit plans.

It’s important that people remember that because there is a concerted effort going on at the moment to mislead people about public sector spending generally, and pensions in particular.

Non-voters and Influence #nlpoli

There is a new scourge among us.

An evil that causes “problems”.

Russell Wangersky found them and wrote about them this past weekend.

They are the people who do not vote.

Who is lobbying whom these days? #nlpoli

When it needed a lobbyist in Ottawa to monitor the federal environmental review process for its Kami project, Alderon Iron Ore turned to Summa Strategies and a well-connected fellow named Tim Powers.

You can find out information like this thanks to the federal registry of lobbyists.  Powers’ registration number for the Alderon gig is 777504-308605.  It’s a matter of public record.

For those who may not know, Powers is also a registered lobbyist (777504-14002) for Nalcor Energy in its dealings with the federal government.  Again, it’s a matter of public record. 

But what about Alderon’s dealings with the provincial government and its agency, Nalcor Energy?  Did they have anyone interceding on their behalf? 

Good question. 

Unfortunately, there’s no easy answer.

Inertia #nlpoli

In a letter last May to his federal counterpart, economic development minister Keith Hutchings described minimum processing requirements as the “only policy instrument within provincial jurisdiction that ensures fisheries resources adjacent to the province result in processing jobs in Newfoundland and Labrador.”

For those who do not know what they are,  minimum processing requirements are a condition that the provincial government sets on the licenses it gives to companies that process fish in the province.  The name says it all:  the companies have to process a certain amount of the fish in order to create jobs in fish plants around Newfoundland and Labrador.

There’s been a fairly steady row about processing rules over the past decade as the companies struggle to stay financially viable.  There are way too many plants for the amount of fish available and there are way too many people in the province drawing pathetically small wages slicing up the fish that comes ashore.  Companies can’t process fish profitably here and yet the provincial government insists they keep at bit.

The provincial politicians and bureaucrats know perfectly well that they need to change their ways. The politicians knew about it when they set about to destroy the only truly globally competitive fish company in the province.  They’ve known about it as the fought over exactly the same issue with the company the government’s policy favoured over exactly the same issue.

And yet the politicians persist with their bankrupt idea.

Skinner and the useless provincial lobby law #nlpoli

Shawn Skinner used to be a provincial cabinet minister.

Now he works for a construction company trying to get a major contract at Muskrat Falls. Skinner is the senior director of business development with Aecon.

Presumably that job involves him meeting with or arranging meetings with people at Nalcor and the provincial government in an effort to land the Big Contract.

So why isn’t Shawn  - or anyone else connected to his company – registered as a lobbyist as required by the lobbyist registration law Shawn and his Conservative colleagues introduced in 2004?

Good question.

Radio Free Nalcor #nlpoli

Talk about putting on the full court press to try and squeeze out every favourable bit of commentary for a project that remains mired in controversy and doubt.

Nalcor is running a couple of days of media trips – free of charge – to the falls itself where Nalcor has already started working on a project it claims they haven’t got approval to start work on yet.

And if that wasn’t enough, and surely purely by total coincidence Conservative strategist Tim Powers is a co-host on VOCM’s Back Talk.  The station is owned by Steele Communications, incidentally, whose boss sits  - by complete happenstance - on the board of directors of Nalcor’s oil and gas corporation.

Ya wanna know what stupid is? #nlpoli #cdnpoli

According to information supplied to the news media – and widely reported already – the helicopter from 444 Squadron used for a training flight than ended with a bit of fishing for the crew six weeks ago was available for search and rescue missions.

And if that re-tasking wouldn’t have been enough, the squadron had another aircraft on stand-by anyway to meet any call for civilian search and rescue service, which, by the way, is not the squadron’s primary job.

None of that stopped CBC from turning a photo of the trip into a scandal.  But to complain about that though would be to complain about dogs barking:  that’s the shit they do especially when it comes to a potential ratings driver like a controversy spun entirely out of the imaginations of people in a newsroom. 

Townies and Baymen #nlpoli #nlvotes

Some people were surprised the other night when Danny Dumaresque told the very small audience at a Board of Trade economic forum that:

I would have to say to the mayor of this great city that there are a hell of a lot more priorities outside the overpass that need to be addressed before we start forking more money over to the City of St. John's.

Some people thought his remarks were stupid.

Danny is anything but.

What Danny Dumaresque said won’t hurt him one bit in the Isles of Notre Dame and Danny knows it.

What’s more, what Danny said is true, at least for the people who currently dominate the Liberal Party.  About 12 years ago, they started shifting the party focus away from the province as a whole to one that idealises an imaginary one.

Ruralism started to bloom in the brief period Beaton Tulk served as Premier.  It’s not surprising that Kevin Aylward brought Tulk back to play a key role in the current campaign.

Ruralists believe – as the Liberals’ centrepiece policy for the current campaign states – that:

The fishery is our province’s defining narrative…Our fishery has been our past and the Liberal Party believes it will be our future.

It is not just the fishery, though.  Ruralism, for all its romantic, reactionary beliefs, holds the fishery as the foundation of an entire culture with social and economic components.

The Ruralists flourished after 2003 and their philosophy was firmly entrenched after 2007.  Despite Kevin Aylward’s fervent efforts to pretend otherwise during the debate Wednesday night,  the party he now leads has written off anything east of Goobies.

To be fair, the Liberals aren’t alone in their Ruralist beliefs.  The provincial Conservatives carried on with the Liberals’ Ruralist agenda.  They kept the Rural Secretariat and married its assumptions with Danny Williams’ peculiar version of nationalism.

Again, not surprisingly,  Kevin Aylward proudly declared himself a staunch nationalist shortly after he took over as Liberal leader.  

At its miserable heart, though, Ruralism is really nothing more than old fashioned paternalism and patronage.  Grit or Tory, all the Ruralists really want to do is use public money to keep people in some parts of the province dependent on political hand-outs and therefore firmly under political control.  It’s a miserable, cynical ploy.

To make it clear that patronage isn’t just a favourite ploy for one party, consider that Conservative candidate Keith Russell made it plain enough on Thursday when he said to voters in central Labrador (via the Telegram) that

we have to be on government’s side to access government coffers…

Conservative leader Kathy Dunderdale repeated basically the same line while campaigning on the south eastern coast of Labrador on Thursday.  CBC’s Chris O’Neill-Yates tweeted it:

Abandoning the Avalon Peninsula doesn’t mean the Liberals are doomed as a political party.  They can still win plenty of seats and could well pick up a few this time around.  They’ll likely stay as the Official Opposition. What they can’t do, of course if form a government.  The Liberal strategy is as short-sighted in that respect as it is simplistic. 

Its narrow focus means the Ruralist Party, as it should now be named,  has had way more trouble than an opposition party normally would getting candidates in the last three elections.  In 2011, they’ve had to turn, once again, to dragooning political staffers to fill out the last remaining slots in the candidate roster.  The only thing Beaton Tulk didn’t do in his mad search for names for the ballots on the Avalon was hold a séance.

The Ruralist Party’s focus doesn’t mean they haven’t turned up some good candidates in the process.  George Joyce in St. John’s West is the best of the three candidates running in St. John’s West by a long way. 

In St. John’s Centre, newcomer Carly Bigelow has been kicking Shawn Skinner around. 

During an appearance on Out of the Fog, she popped Skinner’s eyes a bit when she reminded him that Tory policy is to keep public service pensioners on fixed incomes with no increases and then double their electricity rates.  He flipped but that pretty much sums up Skinner’s position. The truth really does hurt, as it turns out.

George and Carly could be easy choices St. John’s voters.  After all, a vindictive, patronage-addled Conservative administration can hardly shag the district for funds in retribution for voting the “wrong way”.  They don’t push pork into townie districts anyway, at least not like the do outside the capital city, so Sin Jawns voters have the opportunity to pick candidates on merit, rather than by party colour.

The Liberal Ruralists aren’t the only ones with problems in Capital City.

In St. John’s North, both the Conservative and New Democrat candidates  are running headlong into the problems with their platforms. 

An NTV profile of the district on Thursday evening’s news noted that the district has a very large percentage of people on fixed and low incomes.  Plenty of public service pensioners live there so incumbent Bob Ridgley must be having a hard time explaining Tom Marshall’s cavalier dismissal of their demands for a modest increase in pension payments now that the government has $4.0 billion in cash laying about.

Add to that the Tory plan to use the cash to double electricity rates instead and you have a very tough pill to shove down voters throats.  If you are a Tory that is.,

Meanwhile, Sin Jawns New Dem Dale Kirby is having an equally hard time.  His party backs the Dunderdale plan to force the people of St. John’s North to pay to ship discount electricity to Nova Scotians.

And then there’s the public sector pensions.

Not a peep in the NDP platform about it at all.

Kirby must be having a devil of a time explaining how the NDP party president and his colleagues didn’t think those pensions might be an issue. Talk about treating seniors with the respect they deserve.

Pensioners can take some cold comfort with the knowledge they weren’t the only thing Kirby and his colleagues didn’t know about.  They missed entirely the contracts that prevent them from introducing their new crude oil tax that was supposed to pay for some other campaign promises.

And if that wasn’t enough, there was another glaring Dipper gaffe in St. John’s.

Liberal Drew Brown is running an uphill fight in Signal Hill-Quidi Vidi  against  an entrenched NDP campaign that knows which way every blade of grass votes in the district. He’s another candidate who’d be far better than the incumbent.

But facing all that didn’t stop Brown from picking up on a glaring oversight in the NDP policy book: the party of supposed social responsibility has no platform plank on replacing the Dickensian-era HMP that happens to sit in Lorraine Michaels’ district:

“The existing infrastructure at Her Majesty’s Penitentiary is still abysmal, despite the findings of the 2008 ‘Decades of Darkness’ report on the state of the provincial corrections system,” Brown explained. “I find it really surprising that no one is talking about it in this election, especially considering the federal Conservatives’ forthcoming crime legislation is likely going to result in an increased number of prisoners going through the system.”

The Liberals plan to begin work on replacing the prison – and aggressively lobbying the federal government to cost-share the project – within weeks of forming the government.

“Without safe and effective prisons, our system of justice here in Newfoundland and Labrador is seriously weakened. Better conditions for the prisoners aside, the facility workers themselves deserve a safer workplace than the one they currently have,” Brown added. “It’s a government facility – the working conditions for employees at Her Majesty’s Penitentiary should be held to the same standard as any other government institution.”

Wowsers.

So at about the half-way point in the general election, one party  - the Liberals – have voluntarily surrendered  a huge chunk of the voting population to the other parties.  They’ve left some very good candidates to fend for themselves.

Another party has just missed the boat entirely on core issues in the one region of the province where they are supposed to have such amazing support and affinity.

this is not a townie versus bayman thing, as much as some people might like to paint it that way.

It’s really about political parties that operate with limited political vision.

- srbp -

@cbcnl using Nalcor lobbyist as election commentator #nlpoli #cdnpoli

 

CBC Newfoundland and Labrador will be using registered Nalcor lobbyist Tim Powers as an election commentator but Powers will apparently be commenting as part of a group of journalists and a political scientist, not as an identified partisan or lobbyist.

CBC’s David Cochrane will host the new TV program  - On Point – that will air Sunday afternoons at 1:00 PM on the island during the provincial election. Cochrane described the show in an interview with St. John’s Morning Show host Anthony Germain on Tuesday. 

Cochrane included Powers as part of a group comprising political scientist Amanda Bittner, Telegram editor Russell Wangersky and  Germain. The show will also feature a partisan panel, made up of representatives of the three provincial political parties. Each Sunday show will also have a feature interview.

Great concept, great panel - including Powers  - except for one enormous problem:  Powers is in a blatant and undeniable conflict of interest.  He’s a paid lobbyist for Nalcor.  Work for Nalcor, you work – in effect for the provincial government.   That means that the object of Powers’ lobbying work will play a central role in this campaign.

Blind people could see the ethical problems the CBC has created journalistically by including Powers on a panel discussing the provincial election.  

Powers has been a registered lobbyist for Nalcor on the Lower Churchill project since at least 2007.  According to the lobbyist commissioner’s office, Powers’ registration with the federal lobbyist registry expired in March 2011.  He reactivated the registration in June 2011.

Powers has an impressive resume.  A former political aide to John Crosbie, Powers holds degrees from four universities including the London School of Economics and Harvard University.  He is well known as a media commentator on political issues.

But that doesn’t trump his obvious conflict of interest.  The guy can’t even pretend to offer unbiased commentary in an election in which his client and his client’s sole shareholder are directly involved.

For some reason, Powers’ role lobbying on behalf of Nalcor in Ottawa is seldom mentioned publicly in his commentaries even when he speaks about his client’s business. 

In the past, Powers has written about and commented on Nalcor issues on his blog at the Globe and Mail yet neither he nor the Globe  disclosed his status as a registered lobbyist for the provincial Crown corporation in connection with the pieces.

Some people touted Powers as a potential successor to Danny Williams, but that was before the provincial Conservative Party sorted out its backroom deal for Kathy Dunderdale.  He’s also commented about provincial politics, generally.  In June 2011, Powers commented on the role of political myth in Newfoundland and Labrador.

- srbp -

No US market for Lower Churchill power: NL deputy premier

A VOCM news story running this weekend contains the following comments attributed to the province’s deputy premier, Kathy Dunderdale:

Dunderdale says the power Nova Scotia is buying from Newfoundland will be used domestically and nowhere else.

Dunderdale says the price that Nova Scotia is paying for the power is higher than market prices in the United States. She says there is no market for Nova Scotia to take our power and sell it elsewhere.

Dunderdale says the power will be used in Nova Scotia to replace coal-fire generation and to meet their energy targets.

Of course, if there is no market for Nova Scotia’s Emera to sell Muskrat Falls power in the United States, there’d be no market for this province to do it either.

That’s pretty much what your humble e-scribbler’s been saying about the Lower Churchill as well.

Meanwhile, from a PostMedia News story on last week’s Muskrat Falls announcement, comes an assessment by energy analyst Tom Adams:

However , Tom Adams , a Toronto-based energy consultant, says the once-rich markets of the Northeastern U.S. are now awash in cheap natural gas and demand there is also depressed by U.S. economic woes -- making it difficult, if not impossible, to sell much of the power from the Lower Churchill at feasible prices.

As a result, Adams says the economics of shipping electricity from the remote reaches of Labrador south by sub-sea cable simply won't work. He says Thursday's announcement wasn't a firm deal at all, but merely a "lobbying campaign" by Newfoundland and Nova Scotia for a "federal handout."

"There is a lot less here than meets the eye," he says.

Turns out Newfoundland and Labrador’s provincial government had the same thought.

- srbp -

Unpublish update:  Good thing the copy is here because VOCM disappeared that story from its website. See the comments section for more.

Pass the word

In Kingston, a new mess at Canadian Forces Base Kingston carries the name of a man who survived internment in a Japanese prisoner of war camp.  His actions while a prisoner saved the lives of many of his fellow prisoners.  he resisted all attempts to break him.

Two retired army colonels waged a private lobbying campaign to name the mess after Major Ron Routledge, DCM.

Colonel Peter Sutton put it aptly:

"Everybody should be conscious of what's gone before, and do everything you possibly can -- as Ron (Routledge) did with me -- to pass on the word."

Routledge set up a communication network between the Sham Shui Po prisoner of war Camp and British intelligence at Waichow through Chinese ration truck drivers. Without hesitation and fully aware of the dangers involved, Sergeant Routledge [his rank at the time] joined the ration party as the contact for the passage of messages to Chungking agents under the eyes of the Japanese guards.

The channel Routledge set up saved many lives through the supply of much needed medicine and  valuable information. The Japanese discovered the system.  They beat, starved and tortured Routledge mercilessly yet he refused to divulge any information that would jeopardize his comrades. A Japanese court martial sentenced Routledge to 15 years in a Hong Kong prison for espionage, a sentence that ended in 1945. Awarded the Distinguished Conduct Medal for his actions, the citation for that bravery decoration reads, in part, “The resolute courage of this [non-commissioned officer] NCO in spite of indescribable suffering and his devotion to duty provide an example of the highest tradition in the service.”

- srbp -

Lower Churchill: US and NL taxpayers might help subsidize costly big hydro project

Premier Danny Williams is promising a Lower Churchill deal before the end of the year and one way he could finance the project is by offloading the cost onto American and Canadian taxpayers.

Some American politicians are trying to redefine state environmental subsidies that currently don’t include hydro megaprojects like the Lower Churchill.  In Massachusetts, Republican gubernatorial candidate Charles Baker not only advocated for big hydro as part of the state’s energy future, he also favoured giving big hydro projects the “renewable” status that would make them eligible for state subsidies. 

According to the Boston Globe, the subsidies in Massachusetts alone could be worth as much as six cents a kilowatt hour.

Incumbent Democratic governor Deval Patrick  - who won re-election last week - opposed the idea:

“It does not make sense to give renewable energy incentives to a foreign-owned enterprise for something that needs no subsidy,’’ Patrick said in a statement to the [Boston] Globe. “It would amount to a windfall of hundreds of millions of dollars for Canadian ratepayers at the expense of Massachusetts customers.’’

That doesn’t mean the idea is dead in Massachusetts, though.  Energy giant Hydro-Quebec is lobbying hard for the “renewable” status for its own projects. Earlier this year, the company won a battle in Vermont to make hydro eligible for subsidies. That’s all part of HQ’s push to take its share of the New England energy market from 8.5% to upwards of 12%.

Lowering the cost of Lower Churchill power by six cents a kilowatt hour could make Muskrat Falls financially viable, especially if NALCOR left the American marketing to a private sector partner and let that company keep the subsidies.  NALCOR already sells power at the Quebec-New York border to Emera.  Under a deal announced in 2009, the Newfoundland and Labrador company apparently gets about the same rate per kilowatt hour it got from a similar deal with Quebec that expired in 2009.  Any other financial details, like profits from seasonal price fluctuations, seem to flow to the private sector.  It’s hard to know for sure since details of the 2009 detail are confidential. 

And while Danny Williams claimed last week he’d lay any development deal for the very expensive Muskrat Falls version of the project in front of the public, he hasn’t lived up to similar promises yet on other projects.  Many of the key details of the 2007 Hebron deal remain shrouded in secrecy.  Amendments to the province’s open records laws in 2008 shield the publicly owned NALCOR from disclosure of its financial dealings even though it receives public funds to run the company and its subsidiaries.

Foreign tax credits aren’t the only way NALCOR could subsidise the cost of building Muskrat Falls.

Under the most recent version of the Lower Churchill described recently by Premier Danny Williams, 40% of the power from Muskrat Falls would come to eastern Newfoundland. NALCOR’s environmental submissions on the project make it clear, however, that the island portion of the province doesn’t need the power now or in the foreseeable future. The company also plans to keep its diesel generators at Holyrood running even after it builds any new lines to the island from Labrador.

Shipping power to a part of the province that doesn’t need it would give the public utilities board the legal basis to offset any losses from sales to Nova Scotia or into Quebec by offloading them on local ratepayers.  That’s because provincial laws require that the public utilities board to set rates that protect NALCOR’s financial position from its entire operations.  But that rate-setting power only applies to domestic rates. PUB doesn’t regulate export prices.  By using Lower Churchill power in the province – even when it isn’t needed - NALCOR could use local ratepayers to subsidise power exports. 

Taxpayers could get hit another way on the deal as well.  Any NALCOR debt for the project – likely to be at least $6.0 billion – will wind up on the balance sheet of the provincial government, one of the most indebted provincial governments in Canada on a per capita basis. 

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Crisis at Tammany

Well, not really.

It’s really just a couple of councillors who have opted for hysterics over reason given the decision by Fortis to withdraw its proposed 15 storey high rise development in a heritage zone that had a four story height restriction.

Read that again, just to make sure you are clear.

A proposal that already violated the city building restrictions died before it got to a vote.

And some councillors are a wee bit miffed.

Like At Large councillor Tom Hann and mayor Doc O’Keefe (via CBC):

"Some of us were labelled gutless wonders, and spineless. So in the present atmosphere, why would anyone want to come here and be part of the city," said Hann.

"We slammed the door, your worship. We slammed the door in their face."

A disappointed Mayor Dennis O'Keefe agreed, saying the company had voiced similar concerns to him.

"They felt that they weren't getting a fair shake," said O'Keefe. "What they heard the loudest was the naysaying and the branding of being arrogant."

If Hann would stop with the foolishness for a moment, he’d realise that there are plenty of places in St. John’s, including in the downtown area, where a developer like Fortis can build high rise towers.

So if a developer like Fortis decides to submit a proposal for development that violates the area height restrictions, then it’s their own fault if the thing fails.

There was nothing stopping Fortis from submitting a proposal that fit within the rules and that incorporated a redevelopment of their existing 12 story property.  That one would have been grandfathered through anyway.

But there isn’t a single developer who will refuse to come build in the city of St. john’s because  - to use his own words - some people think councillors like Hann are “gutless wonders” and “spineless”.

Developers likely don’t care that much about Hann’s feelings.

As for Fortis, they did a pretty slick job early on of lobbying people like Hann and O’Keefe and putting them in the bag long before the residents of St. John’s even heard about the proposal. That’s the sort of old-fashioned crony politics that has left this city in a development mess there is. That’s the one where no one knows what the rules are.  They don’t know what the rules are because there are a few councillors who can be persuaded to toss the rules out the window if the mood strikes them.

Ultimately Fortis lost this round because of a pretty effective lobby.  Those opposed to the development just put the squeeze on the notoriously fickle councillors.

That’s the way things go in politics.

And if Hann wants to fix things  - if he wants to show he has a spine - well he can start by bringing about some changes that open up city hall to greater public scrutiny. That way people wouldn’t be worried that developers can get their way around the rules.

Who knows?  If the rules were suddenly clear and fairly and consistently applied there might be more people willing to invest.

-srbp-

Dunderdale blunders again: did NALCOR lobbyists give wrong funding figures to fed’s watchdog?

Information provided on the federal lobbyist registry about lobbyists hired by the provincial energy corporation is wrong to the tune of hundreds of millions of dollars.

Plus it is also for something other than what the lobbyists are registered to lobby about.

That’s according to Kathy Dunderdale, the province’s natural resources minister.  Presumably, the information was supplied to the federal registry by the lobbyists when they registered.

The province’s natural resources minister claims that the figure $960,000 listed on a federal lobbyist registry entry as cash received by the client for government funds isn’t for fees paid to the lobbyists. 

Dunderdale issued a news release today to refute opposition claims that the provincial energy corporation was dropping almost a million bucks a year on lobbyists while at the same time the provincial government was dropping another bundle to pay for Our Man in a Blue Line Cab who is supposed to be the province’s point man for all things in Ottawa.

Dunderdale says the figure on the federal lobbyist registry was:

…funding received by Nalcor from the Government of Newfoundland and Labrador for three specific projects related to the Northern Strategic Plan, a rate subsidy for isolated and remote communities powered by diesel, and energy-related studies for the Department of Natural Resources – all unrelated to Summa. The fact that this was not a payment to Summa was evident from the website of the Office of Commissioner of Lobbying, but was misreported by the Opposition.

Okay. 

So that’s exactly what your humble e-scribbler did.

Right off, here’s one entry for the lobbying firm and here’s a picture of the section of the website where the figures are presented.

The same information is the same as the entry for another lobbyist from the same firm currently working the same file.  Here’s the bottom of the second lobbyist entry which -  incidentally -  is identical to the first:

The information on that financial line is supposed to be government funding received by the client, in this case NALCOR Energy.  You can confirm that by checking the guide provided by the lobbyist registry:

• Source and amount of any government funding provided to the client, as well as information indicating if the client is expecting to receive public funding; and…

Now if Kathy Dunderdale is right, that figure of $960,000 is related to something other than the Lower Churchill and it also isn’t related to the lobbying firm, Summa Strategies.

So why is it there?

Really good question.

Unfortunately, Dunderdale didn’t answer it in her news release.

If that wasn’t bad enough,  the lobbyist entry is about the Lower Churchill and the client is identified as NALCOR Energy, the holding company that includes all the provincial government’s energy holdings.

Under those circumstances, the entry should include  - at the very least - the hundreds of millions paid in the past two years by the provincial government to purchase oil stakes and other money transferred from the provincial government to fatten NALCOR up financially.

Dunderdale didn’t offer any explanation of that in her news release either.

This wouldn’t be the first time Kathy Dunderdale blundered badly on a matter within her portfolio.

In 2006 Dunderdale  was embroiled in controversy over a patronage appointee who violated the province’s public tender act. Dunderdale made repeated statements about the issue some of which contradicted other statements.  in the end, the government was forced to close the legislature early to avoid further embarrassment.

In 2008, Dunderdale said the provincial government was considering a law suit against Quebec and Ottawa over the 1969 Churchill Falls contract.  She later claimed she “misspoke”, a line she maintains to this date despite evidence the government has been considering some form of legal ploy on the contract for some time.

In September, 2009, Dunderdale gave wrong information about the failure of talks with Rhode Island on a potential sale of Lower Churchill power. She said “that they did not have the capacity to negotiate a long-term power purchase agreement with Nalcor on behalf of the Province. Nor were they able, in their Legislature, to do the regulatory changes that were required in order to wheel electricity into the state.”

According to the Rhode Island governor’s office:

As far as we can determine, there is no legislative hold up here in Rhode Island, it is more of a question of cost.  While the power generation is inexpensive, the cost of transmission adds to the final price. The possibility of purchasing power is still alive….

The salvation for Dunderdale in this case is that she scored a minor victory on what the cash was really about.

Unfortunately Dunderdale put the government’s lobbyists in an even deeper spot over the amount they apparently did report to the federal lobbyist registry.

Ouch!

-srbp-

Big Oil’s New L’il Buddies and helicopter safety

While the offshore helicopter safety inquiry has given some people a platform for their false statements about search and rescue again, let’s try a scenario that is based on facts and reasonable suppositions. 

Let’s suppose, for example, that after the whole thing is over, former Supreme Court Judge Robert Wells makes some recommendations that – in the opinion of the offshore oil companies – would adversely affect the projects. 

Let’s take the Hebron project as a typical one.

Adverse affect might be cost in this case. 

For example, let’s suppose that Wells decides that – despite the very best and most intense lobbying by everyone from Jack Harris to lawyer Randall Earle – the cost burden for providing search and rescue for the offshore in St. John’s should still be borne by the oil companies.

Let’s suppose that Big Oil’s L’il Buddies fail miserably in their efforts to shift the cost to taxpayers.  Let’s imagine that – contrary to the campaign being waged -  Wells requires that the companies continue to provide SAR support for their own employees and their own helicopters. 

And let’s imagine Wells decides to up the ante arguing that they should do it 24/7.

All of that is either established fact (there is such a campaign underway, even if it is hodge-podge and disorganized) or is a likely outcome of the inquiry.

And further, let’s suppose the oil companies find that – for a whole bunch of arguable reasons – that cost is just too much to bear. 

Maybe oil prices have dropped down again to levels far below the current US$80 a barrel.  And hey, it’s not like oil prices will go up and up and up forever.

So there’s our scenario.

What does the provincial government do?

Well, the provincial cabinet would likely find themselves bound by section 5.1 of the Hebron financial agreements:

The Province shall, on the request of the Proponents…support the efforts of the Proponents in responding to any future legislative and regulatory changes that may be proposed by Canada or a municipal government in the Province that might adversely affect any Development Project, provided such action does not negatively impact the Province or require the Province to take any legislative or regulatory action respecting municipalities.

And before you start arguing that opposing the SAR regulation “negatively impact the Province”, you are really not reading carefully enough.  When the word “province” is written with a capital “P” it means the Government of the place.

So since the provincial government as such would not be negatively affected, they wouldn’t have the one and only ground that applies on which they could slip out from under their legally binding obligation to back Big Oil.

Of course, the provincial government is also really an oil company these days.  Therefore it would liable for the cost of providing those helicopters for SAR.  It  would be in the provincial government’s interest to work with the other oil companies against the Wells safety recommendation anyway. 

If money is really tight - after all  - and these extra costs threaten the Lower Churchill project too, there might be lots of reasons for the provincial government/oil company to fight such a recommendation.

This inquiry might turn out to be very interesting after all. 

Oh.

And we can expect the lobbying effort that benefits Big Oil – Jack Harris is a witness in the schedule, for example – to intensify over the next few weeks.

-srbp-