22 February 2007

Sanford Limited acknowledges purchase offer

Sanford Limited, the New Zealand fishing enterprise with slightly less than a 15% interest in Fishery Products International Limited confirmed for New Zealand media in late January that it had received unspecified offers for "most of its Canadian business" held through FPIL.

Managing director Eric Barratt is reported to have indicated that while the outcome of the offers was unknown, the offer(s) would not be detrimental to the carrying value of the company's investment.

Sanford recently disposed of its Argentinian assets. Barratt told the Dominion Post that several offers were being considered for FPIL, but that selling out of overseas fisheries was not part of Sanford's international structure.

In May 2006, Bond Papers reported on Sanford's 2005 annual report. At the time, the company directors noted that they were prohibited by Newfoundland and Labrador law from increasing their investment in the company. Increasing their investment would have shown Sanford's confidence in the medium- to long-term viability of FPI under its current ownership and management.

As well, Sanford was compelled to write down the value of its shares, which had been booked at CDN$11.00 per share, due to persistent trading of FPI shares at less than CDN$6.00 per share.

21 February 2007

The Minister for High Dudgeon

Recreation minister Tom Hedderson "takes great offense" at allegations surrounding the selection of Corner Brook as the site for the next Newfoundland and Labrador summer games. He also finds the allegation "contemptible."
"It is very upsetting to me that completely unfounded allegations of political interference by the Opposition may have taken some of the good feelings of pride and expectation that the people of Corner Brook and all of the athletes across Newfoundland and Labrador who will be there in 2008 should be feeling right now," said Minister Hedderson. "I urge all involved in the planning and preparation for these games to ignore the senseless innuendo taking place for crass political gain."
For some reason that is completely unfathomable to normal human beings, politicians in Newfoundland and Labrador seem to feel that their emotional condition qualifies as news.

It doesn't.

Just about every paragraph of this news release is an expression of some form over emotion in reaction to the idea that a member of the opposition might make an allegation that maybe the awarding of the games wasn't kosher, that it might be politically motivated. There are few facts, if any, except that Corner Brook last hosted the games in 1986, while Harbour Grace hosted the games in 1992. The original release was much better in explaining the rationale behind selecting Corner Brook.

What we have here is a highly predictable news release from the Liberal member for the Harbour Grace-Carbonear district. It actually isn't worthy of a response.

If there was a reply, one might expect the minister to merely state the reasons offered in the original release, note the number of strong bids received and wish the bidders better luck the next time around.

What we get instead is more just more of the melodrama that passes for politics in Newfoundland and Labrador. The Premier loves to express his anger, his frustration or his pride in this that or something else. Now his ministers have caught the same political disease.

Now to be fair, not so long ago, the Liberals used to do exactly the same sort of thing. It was silly then. It is even sillier now, especially considering that this administration was elected on the pledge that they were bringing a new approach to government. Some of us thought that the foolishness would go; little did we know that what Danny Williams' team they really meant was that they would raise silliness to a new height.

Harbour Grace-Carbonear didn't get the games. Too bad. Suck it up and move on. The opposition member alleges political interference. Wow: that's original. The minister is irked. Who really gives a sweet you know what.

The risk being run here is that people who are already tuning out political news out of disgust at the House of Assembly debacle will just become convinced that politics in general consists mostly of people being sooky. Forget the important issues the province is facing: let's just yak about what - in the bigger scheme of things - is simply irrelevant.

Given Tom Hedderson's comments today, it would be hard to blame them for changing the channel, or in the case of these two legislators, changing the incumbent next time out.

Arse-lickers of Satan

Another blow for bad ideas

Nova Scotia maintains barriers to inter-provincial free trade in beer.

Beer.

That's positively un-Canadian, for cryin' out loud.

Restrictions on beer?

Another blow is struck for the cause of provincialism.

Protectionism isn't a new thing for Nova Scotia, of course, but one can only wonder why the province insists on repeating the mistakes of the past and others, closer to home, continue to advocate the same counter-productive approaches from the murky past.

Getting rid of $1.32 levy per case would be selling the farm, there, Rodney?

Get a life.

It's surprising that some politicians in Atlantic Canada didn't try to make the East Germans an offer on The Wall. You know, seeing as how they aren't using it any more. What a waste of all that good concrete, not to mention the guard dogs and land mines.

Dipper moves to Libs

The New Democrats are claiming that the provincial Liberals "poached" their candidate in Labrador West.

of course, candidates aren't like fish. You can't poach them if they aren't poachable.

20 February 2007

Ending parliamentary immunity: as easy as pie

Last week, Premier Danny Williams stated his unequivocal support for allowing anyone to sue parliamentarians in Newfoundland and Labrador for comments made in the legislature.

If the Williams administration decided to act on the Premier's comments, it would be remarkably easy to achieve the goal. In this, the first of two articles, Bond Papers will briefly discuss the notion of privileges and immunities and how they apply in the House of Assembly. In the second article, we will examine the implications of removing parliamentary privilege and immunity as it relates to free speech.

It is important to note that Premier Williams made the comments in response to a reporter's question during a scrum:
Let's change it. From my perspective, I think the legislature should have the exact same accountability [ i.e. being sued for defamation]. That's a democratic practice that goes way, way beyond me. But from my perspective, I'd be prepared to be held accountable...those laws get changed [sic]...or anybody else in the House has to be held accountable for what they say. I have no problem with that.
Like all Westminster style parliaments, the House of Assembly and its members enjoy certain privileges and immunities. Privilege exists for several reasons, one of which is the constitutional separation of powers. The notion is embodied in Article 9 of the Bill of Rights, 1689, "that the freedom of speech and debates or proceedings in Parliament ought not to be impeached or questioned in any court or place out of Parliament."

This notion has been reaffirmed by courts in Canada. In New Brunswick Broadcasting v. Nova Scotia (Speaker of the House of Assembly), a case heard on appeal to the Supreme Court of Canada in 1993, the majority held that:
Our democratic government consists of several branches: the Crown, as represented by the Governor General and the provincial counterparts of that office; the legislative body; the executive; and the courts. It is fundamental to the working of government as a whole that all these parts play their proper role. It is equally fundamental that no one of them overstep its bounds, that each show proper deference for the legitimate sphere of activity of the other.
Freedom of speech is also widely held to be an important right of legislators for the wider public interest it serves. Members of the legislature are entitled to make whatever statements they wish in dealing with a public issue. The same privilege extends to those called before the legislature or its committees as witnesses. All may speak freely and openly without fear and without concern that comments out to be proven true before they are made.

As in all Westminster parliaments, the House of Assembly is master of its own privileges and immunities. Term 7 of the Terms of Union revived the Newfoundland constitution as it existed in February 1934. That constitution included several aspects, including the fundamental power of the legislature to decide its own internal business.

The Terms of Union also provide that the Canadian constitution applies to Newfoundland and Labrador except as varied in the Terms. This general provision not only reinforces the inherent privileges and immunities of the legislature but also provides that the provincial legislatures can establish their own procedures free of interference of the courts. This notion is affirmed in New Brunswick Broadcasting (1993).

The House of Assembly established in section 19 of the House of Assembly Act that the legislature and its members enjoy the privileges, immunities and powers of the federal House of Commons.

The privilege - including free speech - is established easily.

It can also be removed as easily.

If the Williams administration wished to remove privilege and immunity related to free speech for the House of Assembly, it need only introduce an amendment to section 19 of the House of Assembly Act. Given that the administration enjoys the support of a majority of members, it is likely the measure would pass and receive Royal Assent. Only a majority of 50% plus one of members in the legislature at the time would be needed for the measure to proceed through each of the three stages a bill goes through.

Privilege may be a part of the constitution, but it is a portion which applies only to the legislature. As such a simple majority of members may remove a constitutional provision dating back at least to the 16th century.

Thank God for snow days

Seems like Simon's posts are better - if that's possible - when he's stuck indoors.

1. A short piece on the growing tendency of elected officials hiding behind appointed officials...likely telling us how "accountable" they are all the while.

2. A longer piece on how Newfoundlanders (and likely less so Labradorians) are joining the ranks of the world's remittance labourers.

And their government is jiggy with that.

When minds are closed

They miss an interesting study that suggests one way to improve Canada's global competitiveness.

Of course, those same closed minds leap at trivial issues and petty jealousies hold them back from thinking new thoughts.

On the trivial issues front, look around for a long list of who funded the study and who worked on it. Yep. It's a conspiracy to get at our vital bodily fluids.

Petty jealousies? Plenty of those too. How ironic that St. John's Mayor Andy Wells greets the idea of Halifax being a major hub city with the same derision people in Mount Pearl reserve for his pet idea of annexing their city to his own fiefdom.

That's just like shipping government jobs out of a capital city to the hinterland. Wells opposed it when it means moving taxpayers from his city to the various bits of Newfoundland and Labrador devoid of public servants. Wells is in favour of the big waste of money - of course - when the jobs are flowing from Ottawa into his tax base.

Typical.

Wells derides Halifax as an oil centre yet misses the fact that St. John's is rapidly losing its status as an oil and gas centre largely because of the policies he advocates.

Anyway, go against the grain. Keep your mind open. Read the Conference Board of Canada's study on major cities.

You'll be rewarded with sensible observations like this one:
The Balkanization of our Economic Space

Every volume of this report emphasizes the adverse consequences to Canadians of chopping up our national economic space. The non-tariff barriers to interprovincial
trade, mobility and investment are at times so severe that they inhibit the kinds of east–west connections that characterize our deep connections outside Canada. People cannot move easily to work, some industries cannot recruit easily, students face difficulties in transferring credits from one post-secondary institution to another, and supply chains across provincial borders can face obstacles that global supply chains have eliminated. In an age of global mobility, it simply makes no sense to add degrees of difficulty to the movement of people, goods and services from one province to another.

Separated at birth 2

Conrad Black, left [Photo: canada.com], is suing an author for allegedly defaming Black's wife.

Danny Williams, right [Photo: Greg Locke], is threatening to sue people for defamation.

What's the difference?

Well, much like the grumpy-looking visages, there isn't much of a difference actually. At least on this point.

Except, maybe that Black's lawsuit demonstrates both a breathtaking command of obscure words that mean really bad things and an almost fetishistic penchant for hyphens.

Danny Williams likes short sentence. Crisp ones. Half sentences. Fragments really. Sometimes half-thoughts.

The purpose is both cases is the same: people with money, power and a penchant for free speech seek to chill free speech for others through the use of the courts.

Bonus points on this snow storm Tuesday for anyone who could read about Black's law suit and didn't have to look up harridan and slattern.

Government helps cut price on FPI sale

If current speculation is correct, Clearwater Seafoods Income Fund is floating a $43 million debenture issue to purchase some of the assets of Fishery Products International Limited (FPI). There's an option for an additional $6.0 million to be issued.

Something's in the works: fisheries minister Tom Rideout [Right] issued a news release on FPI on Monday.

If it turns out to be true, Clearwater will buy up FPI for about half the value of the income trust proposal, dithered and delayed by the Williams administration until it became useless.

Almost 50 million bucks is less than half the value of FPI's income trust fund proposal.

The impact of government policy is obvious.

Makes one wonder what was the cost per share of Tom Rideout's little dance on the tailgate of a truck in front of FPI's headquarters this time last year and the subsequent decision to prosecute the company for exporting fish.

Curious that exporting undersized fish was one of the ways FPI subsidized it s money-losing groundfish operations. That was very likely something FPI briefed government on in December 2005 when the company let government in on its financial situation and its plans for getting out of the fiscal hole.

That little tidbit did become public until after Rideout's little tailgate party. Odd that, in light of Rideout's very public declarations about the company.

Yes, if Clearwater's debenture issue is intended to finance an FPI purchase, the people of Newfoundland and Labrador should demand a public inquiry into government's (in)action over such a long period. The consequences of what appears to be neglect and bad policy could be dismantling of a company developed with public money with assets sold off for less than their real value. Take a look at a write-down Sanford took last year as a result of the FPI shenanigans.

Don't forget too that, as Bond Papers noted last may, changes to the FPI legislation were intended to make it easier to sell off the company in bits and pieces. Some others have only figured that out now.

But that easy sell-off wouldn't necessarily extend to Clearwater, a company from outside Newfoundland and Labrador and therefore - by definition - one of the foreign demons Danny Williams' administration likes to fight against.

That's where the whole thing gets a bit murky.

The provincial government wants to acquire - completely free of charge - FPI's quotas. If Clearwater wants the whole company or the bits with quota, expect the provincial government to veto the deal or try and squeeze its advantage.

But if Clearwater wants any other part of FPI at all, like say the valuable overseas marketing arm, the whole FPI saga could be over in a matter of a few weeks.

It only took three years to break up a once-proud company, with the help of the provincial government.

19 February 2007

Changing the channel

In politics, they call it changing the channel.

That's when an incumbent is taking a few smacks in the skull without let up. So he starts talking about something else entirely.

It's especially important when the provincial pollster is in the field.

Like right now.

After all, this Premier does nothing if he doesn't try to goose polls to demonstrate how much support he has. He needs those numbers to dazzle people, like say a columnist for the Globe.

The provincial government issued 55 news releases last week in an effort to change channels from the by-election loss and the ongoing spending scandal in the House of Assembly. That's the latest aspect of the spending scandal, which of course is different from the previous scandal, as Danny Williams will tell you.

It is different of course since this aspect of it happened since he became Premier and despite earlier assurances that all inappropriate spending was stopped on 22 October 2003.

But I digress.

Let's put that 55 releases in a week in some kind of perspective.

Since the government started it's online news archive in 1996, last week was the seventh heaviest week of releases.

Those 55 releases are the second highest number for Danny Williams' administration. Only Budget 2005 beat it out, but only but two releases.

The typical number of news releases for February over the past two years is around 34. During the same week in 2004, the provincial government issued on 19 releases.

Yessirreee Bob, that's a serious effort at changing the channel.

Manitoba, Ontario move closer on electricity

Manitoba has the electricity Ontario needs.

Manitoba will develop new supplies of electricity to feed demand both in Manitoba and in Ontario.

Ontario gets the power.

Manitoba gets Ontario's cash.

Everybody is happy.

Everybody, that is, except a few people who see plots and schemes in everything designed to rob Newfoundlanders and Labradorians of their precious bodily fluids.

The concern in this province should be that the Lower Churchill will not be built simply because everyone else will get power to market before we do. No one should worry about some secret plans on the mainland to rob us blind; that's just another fantasy devoid of any basis in fact.

In the meantime, some people will continue to advocate that Newfoundland and Labrador follow the successful example of Enver Hoxha's Albania: no export of anything to anyone for any reason. Everything was developed, if it was developed at all, on a go-it-alone basis.

The approach was so successful the country was propped up by hand-outs from outsiders.

Enjoy the story from the weekend Winnipeg Free Press.

Equalization made easy

For those who can't quite figure out this Equalization thing, a short piece from the Edmonton Journal.

If you can't figure out, you aren't alone. There are about five people who actually understand how it works.

Neither of the five currently work for any provincial government in Canada.

Rectifying history

The past is whatever the Party chooses to make it....
If the facts say otherwise then the facts must be altered.
George Orwell, 1984

Apparently someone at Confederation Building read 1984 - or more likely saw the movie - and didn't get the point.

One of the major activities of The Party's Ministry of Truth was the constant rewriting of history to conform to whatever mythology The Party was spreading at the moment, especially about Big Brother.

Witness the latest Newspeak utterance from the Premier's propaganda department announcing the by-election for Labrador West.
"It is a pleasure to announce that residents of Labrador West will have the opportunity to go to the polls and vote for new representation on March 13," said Premier Williams. "The legislation was amended in 2004 to ensure a district does not go without representation for a prolonged period of time."
Seems that some Winston fouled up. He or she was supposed to go back and amend all the previous amendments to the amendments to conform to the current distortion. The factual material would then be dropped down the memory hole whence it could not escape.

A quick check of the 2004 changes to the Elections Act shows that the time to call a by-election was reduced from 90 days to 60 days. The original version was introduced by the Wells administration in 1992. Prior to that the government could wait pretty much as long as it pleased to call a by-election. That's what happened in 1987 when Clyde Wells was elected leader of the Liberal Party. The Tories decided to delay the by-election in Windsor-Buchans as long as they could. So, as premier, Wells introduced changes to the Act to prevent that kind of abuse.

Danny didn't have to wait that long to get his seat in the House.

The Williams change was a cosmetic change at worst. At best, the changes brought in by Danny Williams were inconsequential, tiny, insignificant even, at least when it comes to ensuring that the people of any part of Newfoundland and Labrador were properly represented in the House of Assembly in a timely way once a vacancy had occurred.

Only The Ministry would view it otherwise.

By the looks of it though, someone will be sent off for re-education.

Of course, he/she and his/her error will be erased as if they never existed.

Oil and Gas Week 2007

What a difference a year makes.

For Oil and Gas Week 2006, there was no news release from the provincial government praising the future potential of the industry.

Nope.

There was an announcement that consultations were starting on an energy plan due later in the spring or summer.

Hebron negotiations were moving ahead on a deal for the fourth offshore field.

The oil industry knew that the Hibernia partners would be looking to develop the 300 million barrels at Hibernia South.

Now it's 2007.

No Hebron.

No Hibernia South.

No energy plan. It's only been under development for 10 years.

Natural resources minister Kathy Dunderdale issues a news release talking about all the undiscovered potential offshore Newfoundland and Labrador. Not a peep about the contribution the oil industry already makes to the provincial economy and to the government's treasury.

Then she adds this thought:
We are continuing our efforts to establish a competitive and efficient offshore and onshore regulatory regime that encourages exploration and the timely development of discoveries, while also ensuring a fair return to the people of the province and industry...
The competitive regulatory regime for the offshore already exists and what needs to be adjusted is being adjusted - by the offshore regulatory board. Dunderdale's recent rejection of Hibernia South - based apparently on a series of flimsy excuses - hasn't done a thing to creative a competitive environment for the local offshore sector. Rather it just adds to a very difficult environment in which government demands remain incalculable.

The folly of that can be found in a number of documents, including - oddly enough - a paper written almost a decade ago by former Peckford advisor Cabot Martin. He noted at the time that the oil industry makes its capital decisions on the basis of long-term calculations measured in decades. How true.

Leaping ahead a few years, its easy to see that decisions to investigate Hebron and try to bring it onstream were taken almost a decade ago based in no small measure on the competitive offshore royalty regime the province had at the time. Likewise, the decision to shelve the project means that it will be a while before the proponents come back to the negotiating table.

By comparison, note that Newfoundland and Labrador has never accepted zero royalties, as the Americans did to jump-start exploration and development in the Gulf of Mexico. The local royalty regime also provides significantly better royalties to the provincial government than the American federal regime would provide if the recent Congressional decision is implemented.

There's been nothing done in the past three years to encourage exploration. To the contrary, exploration continues to putter along at an incredibly slow rate due in no small measure to the climate created by Hebron, Hibernia South and the foot-dragging on the gas royalty regime and the energy plan.

Any change in the current freeze offshore will depend on what sits in that energy plan. If it turns out to be a plan modelled on such paragons of sensible economic development as Algeria or Venezuela, we can expect the oil industry to invest its billions somewhere else. Danny Williams' prediction of a better tomorrow a decade from now will have to turn into a longer timescale.

With little or no action in the province's offshore, it seems words now have to serve as a poor substitute.

Our Place in Canada: More in than out

A recent study released by Statistics Canada shows that Newfoundland and Labrador generated $4,741 per capita in federal government revenues in Fiscal Year 2004 but received $9,356 per capita in federal transfers.

A widely-criticized series of articles by The Independent claimed that Newfoundland and Labrador contributed more to Canada than it received in return. It also claimed that a great deal of information wasn't available despite the fact that Statistics Canada generates both raw data and analyses of all aspects of economic activity in Canada, including federal-provincial transfers.

Among the provinces, Newfoundland and Labrador is the largest recipient of transfers to individuals on a per capita basis, at $3,468. The Government of Newfoundland and Labrador is the second largest per capita recipient of government transfers, at slightly more than $2,800.

18 February 2007

For the record: Danny Williams on ending parliamentary free speech

Let's change it. From my perspective, I think the legislature should have the exact same accountability [ i.e. being sued for defamation]. That's a democratic practice that goes way, way beyond me. But from my perspective, I'd be prepared to be held accountable...those laws get changed [sic]...or anybody else in the House has to be held accountable for what they say. I have no problem with that.
That's what Danny Williams told reporters on Tuesday in answer to a question about the right of members of the legislature to speak freely, immune from legal proceedings in a court. The words don't flow well simple because the Premier was speaking off the top of his head, but there's no mistaking what he meant: let's change the rules so legislators can be sued for anything they say, anywhere, anytime. A right that dates back to the 16th century needs to go, not just by the boards, but over them with a hip check.

NTV wins the brownie points this week for being the only media outlet to report the Premier's unquestionable - dare we say enthusiastic - support for ending the centuries-old right of free speech accorded to members of the legislature.

While comments made about four individuals, including your humble e-scribbler garnered considerable public and news media attention, the comments quoted above have far more ominous implications.

There'll be more to say about the idea of ending parliamentary free speech, but for now let's just let Danny Williams speak for himself.

17 February 2007

The legacy of Sir Sam

Canada has had its fair share of blow-hard and/or incompetent defence ministers.

The ones that do the most damage are the former military officers who never made it to the top while in uniform but manage to circumvent the eminent good judgment of the professional promotion system and get there through the political route.

Witness one Gordo, the current MND, but formerly a brigadier general who spent his career bouncing around inside a tank.

O'Connor seems determined to follow in the fine tradition of politicians who, as national defence minister, presume to know considerably more than they do.

Gordo, as many across the country have known for far too long, is trying to impose his vision for the Canadian Forces on a professional and highly-competent officer corps that knows their business far better than the retired zipperhead. His ideas do not stand up on their merit. Instead, O'Connor persists in advancing his ludicrous notions - like relocating JTF 2 to Trenton or creating whole new battalions of currently non-existent troops for deployment across Canada - merely because he is the political boss.

In the meantime, the far more competent Chief of Defence Staff, General Rick Hillier, faces the challenge of reconciling the demands of the men and women in the field doing the hard work of defending the country with a budget that cannot support them and Gordo's foolishness.

To give an indication of how obvious was the problem with Gordo, consider that Bond Papers pointed it out fully one year ago, shortly after the retired tank driver was appointed to the job at 101 Colonel By.

Also noted at the time was the misery being inflicted on the people of Goose Bay who have been taken in by O'Connor's promises of troops, troops and more troops. They have their hopes pinned on O'Connor's commitments.

If they are lucky, Gordo will be fired - the sooner the better - and the community can start finding a new direction for the town's major employer.

If they are unlucky, the current federal administration will leave the decidedly wrong man defence minister, waste millions of taxpayers dollars fulfilling Gordo's pledges and in the process hook the people of Goose Bay to a form of economic crack cocaine: political patronage and pork.

It will fall to a future administration, gifted with more reasonable leadership to cope with the results of the mistake inherent in putting retired military men or women in charge of national defence.

It's not like we haven't been down this road before, far, far, far too many times.

16 February 2007

The truth hurts, part deux

The Offal News take on Tom Rideout's concerns about supposed "irregularities" in the Humber Valley by-election.

To paraphrase Lono at Offal News, Rideout's irregularity seeems to be that his candidate - correction - the Premier's candidate lost.

Hey, Denis: The truth hurts.

The period of cuts to the Canadian Forces ushered in by Jean Chretien was a dark period for not just the men and women in uniform.

It was a dark period for the whole country.

Simple thing, there, Denis Coderre, is the truth hurts.

Suck it up.

Memo to Stephane: Punt this guy into the cheap seats. He embarrasses the country.

Either that or hire him some better advisors. I can make some suggestions.

You know how to reach me.