Change and Challenge: Chapter Four - Creating a competitive edge (4)

Government Operations

The public consultation process on the development of the strategic economic plan highlighted people's feelings that they are over governed. The public feels the Province is over-regulated, that Government is too inflexible, rigid and complex, and that there is a definite need for a change in the attitudes and commitments of politicians, bureaucrats and the general population alike. People expressed a great deal of frustration about the number of development agencies and the confusion, duplication and red tape which they create. The public emphasized the need for better co-ordination between both federal and provincial agencies; the need for front-line managers to make decisions; the need for government officials to have more flexibility in making business decisions; the need to streamline the process to speed up decision making; and the need for educational and training initiatives within Government to provide public servants with sound management skills, and which would stress the importance of providing quality service to businesses.

Government itself has recognized these concerns and has already taken action to address them. The Province has made considerable progress toward reducing duplication with the consolidation of its business support activities within Enterprise Newfoundland and Labrador, which has also been mandated to co-ordinate regional activities.

The current challenge to Government is to provide better service in a time of diminishing resources and increasing demands for service. Government is, therefore, now committed to the introduction of a long-term program to improve the quality of service to clients. This "service quality initiative" will be a comprehensive approach intended to transform Government's organization from a process-oriented system to a supportive client-focused, results-oriented system. This will require continuous support and commitment from management and an emphasis on open communication, teamwork, innovation and training.

While the greater decentralization of decision making was a recurrent theme in the public hearings of the Royal Commission on Employment and Unemployment six years ago, the issue did not generate as much interest in the public consultations for this strategic economic plan. This may reflect satisfaction with the decentralization of decision making now in effect in the five ENL regions. Government believes that rather than imposing regional decisions from the top, it is better to let regional organizations emerge as needed from the community level.

During the public consultation process the public did indicate a desire for improved co-ordination among departments, more decision making at the local level, a greater sensitivity by regulatory departments and agencies to economic development issues, and an improved attitude and commitment from the existing political and bureaucratic system. There was also general agreement that Government should not be the operators of businesses but instead should establish a positive economic climate for the private sector.

Strategy Statement. The Province mil take steps to ensure that the structures and processes of government departments, particularly those involved in economic development, are streamlined to provide for greater efficiencies and responsiveness in delivering services to the public. Government mill become more focused on serving the client. Likewise, the public will have to recognize that government funding and programs are not limitless and priorities will have to be established for the provision of services.

Actions. The Province will:

30. Establish, within each Enterprise Newfoundland and Labrador region, a process to allow for the better co-ordination of economic development activities across all applicable provincial government departments and agencies. ENL will take the lead in the process by establishing regional groups composed of the senior official of each of these organizations to:

• share information on respective activities and priorities in the region;
• improve the timing of decision making on economic development activities;
• assist in developing a client-Centre approach to program delivery within all departments and agencies working in the regions, particularly programs relating to administrative and regulatory functions affecting economic development decisions;
• advise departments on the appropriate level of authority that should be delegated to local and regional offices;
• establish guidelines which give priority to processing proposals or applications related to economic development; and
• recommend courses of action to co-ordinate federal and provincial
  activities related to economic development, and to reduce duplication of government services and programs.

31. Avoid providing services where they can be provided by the private sector.

32. Implement a Service Quality Program within the public service. This program will make the public service more client oriented, permit more flexibility and accountability within the system, provide for a more decentralized approach to program decision making and ensure a simplification of rules, policies and procedures.

33. Request the Advisory Council on the Economy to make periodic reports and recommendations to the President of the Executive Council on the need for improving the efficiency and effectiveness of government services delivery.

34. Continue the review and elimination of the various fees and licences which directly affect economic development initiatives.

Tax Initiatives

The Province must ensure that its business tax climate will complement its economic development objectives. Both established and new businesses must be assured that the tax regime is fair and equitable. The tax regime has to be structured to provide a business environment conducive to investment and economic growth, and we must remove disincentives which keep businesses from locating here. Although the overall tax burden on businesses in Newfoundland and Labrador is less than in Canada as a whole, it is currently somewhat higher than in the other Atlantic Provinces.

Responsible tax reform must recognize that the Province has to operate within the constraints of Federal-Provincial tax agreements and has to generate a sufficient revenue base to maintain an acceptable level of public services.

Strategy Statement. To strengthen the Province's ability to attract new investment, Government will intensify its comprehensive examination of the tax system in consultation with the business community and others. The Province will ensure that the tax system encourages economic development, and that the private sector operates under a tax system that allows local businesses to compete equitably with those in other jurisdictions.

Actions. The Province will:

35. Pursue at the earliest opportunity harmonization of the provincial Retail Sales Tax (RST) and the federal Goods and Services Tax (GST) and provide full input tax credits for RST. Harmonizing the two taxes will greatly reduce the tax burden on business, stimulate increased economic activity in many important areas and be essential for international competitiveness in the long term.

36. Adjust taxes where it can be demonstrated that these would have a positive impact on investment and economic growth without compromising the overall fairness and efficiency of the tax system.

The Province will move to reduce the corporate tax rate for small businesses, including small manufacturing and processing businesses, to 5% from the current level of 10%. In addition, the current general manufacturing and processing rate will be reduced to 7.5% from 17.5%, and the general corporation tax will be reduced to 16% from the present rate of 17%.

37. Conclude the review of our mining tax regime and make amendments which will ensure a positive climate for investment in mineral development in the Province.

38. Recommend a standardized common assessment base for municipal business taxes, with particular emphasis on the tax burden on capital and equipment.

39. Investigate the feasibility of using the tax system to encourage an employee equity-investment program.

Innovation and Technology

Our past and future economic circumstances are tied closely to export markets. Economic considerations associated with geography and proximity to markets are, however, decreasing in significance. Instead, technological development and adaptation are becoming important determinants of competitiveness.

The Province's low level of productivity and slow adoption of new technologies have constrained economic growth and development in the past and will continue to do so unless our industries increase their use of new technology. The Province will therefore actively implement its Science and Technology Policy to ensure that industry is technologically equipped, and capable of competing locally, nationally and internationally.

Government will also play a proactive and sustained role in concert with research institutions and the private sector in pursuing new areas of technological development. Although this will inevitably result in some risks and additional costs, it will produce better links between institutions, governments and the private sector. Emphasis will be placed on marine-oriented industries where we already have a comparative advantage, as well as on other industries which demonstrate they can develop competitive advantages.

Strategy Statement. The Province will demonstrate to the private sector that innovation through technology development and adaptation is essential to improved productivity and competitiveness. Programs mil be made available to the private sector to develop competitive advantages through the transfer of technology-Actions. The Province will

40. Implement programs to develop further expertise in our research institutions and business community focusing on marine activities, including communications, the sciences, cold-oceans engineering, food and fish processing, and related manufacturing, as well as cold-oceans technologies related to offshore oil and gas exploration and development, and to promote this expertise internationally.

41. In partnership with the Federal Government, implement programs to commercialize and market new technologies, products and processes, and to encourage quality enhancement, plant modernization and training.

42. Within the bounds of national and international trade agreements, develop a strategic procurement program aimed at research companies who have the potential to become competitive suppliers of goods and services in domestic and external markets.

43. Assist Memorial University and other post-secondary institutions to develop better links and partnerships with the private sector and to market more aggressively the capabilities of local research institutions and organizations.

44. Reallocate human resources within Government to give priority to the implementation of the Science and Technology Policy and to work with industry and the general public to demonstrate the importance of a technologically progressive society.

Environmental Initiatives

The past decade has seen a sharp rise in environmental awareness and concern throughout the world. The Province recognizes the potential economic consequences of such problems as global warming, acid rain and changes in the stratospheric ozone level. While we may not have a large impact on the global situation, we accept our responsibility to help resolve these issues. We will also seek solutions to our own problems, such as waste management, and will continue to participate in efforts to protect and restore the natural environment wherever it is threatened.

Vast areas of Newfoundland and Labrador remain unspoiled and must be protected for future generations. However, our environment is also an important economic asset which must be used wisely. Tourism and recreational fishing, for example, are directly dependent on a clean environment.

All resource developments will be properly managed to ensure they are implemented in accordance with the principles of sustainable development, incorporating the values of multiple use, considering wildlife habitat, watershed management, recreation and tourism potential. Public input into major developments which impact on our environment will play an integral part in the Province's decision-making process.

Strategy Statement. The Province mil undertake measures to ensure that all development takes place within the framework of an overall sustainable development strategy. The Province has already established its own Round Table on the Environment and the Economy to identify, advance, promote and advise on a strategic framework to reconcile economic and environmental needs.

Actions. The Province will:

45. Implement a sustainable development strategy which ensures an adequate balance between industrial and economic development and environmental concerns.

46. Establish cooperative arrangements with the Federal Government to harmonize and streamline the federal-provincial environmental assessment process, to avoid unnecessary duplication, expense and delays to potential investors, and to ensure consistency in the application of all legislation. The concept of an Environmental Review Agency, operating at arms length from Government, will be examined.

47. Undertake a program to increase awareness of environmental legislation, the sensitivities of ecosystems, and the requirements for environmental assessment.

48. Introduce a new Waste Management Strategy which addresses such issues as recycling, municipal sewage and solid waste disposal, the disposal of toxic and hazardous waste, and clarifies jurisdictional responsibilities for waste management with federal, provincial and municipal governments.

49. Implement new regulations to address the problems of abandoned vehicle wrecks, littering and the indiscriminate use of All-Terrain Vehicles (ATV) in sensitive ecosystems.

50. Examine current policies with regard to the alienation of Crown lands from resource development to allow multiple use, where appropriate.

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Change and Challenge: Chapter Five - New opportunities for growth

Change and Challenge: Chapter Four - Creating a competitive edge (3)

Income Security Reform

During the past ten to fifteen years the Province's labour force has become strongly dependent on the income security system, particularly unemployment insurance. In many respects the current system is an inappropriate system of income security for a province such as Newfoundland and Labrador. While the Government is committed to ensuring basic income security for all households, our dependence on the present unemployment insurance system must change. As part of its strategic economic plan, the Government is therefore committed to working with the Federal Government to reform the income security system so that it encourages enterprise, education and employment, while continuing to provide basic income support.

It is important to recognize that the dependency on unemployment insurance is a national issue and not just a provincial concern. The Federal Government recently decided that unemployment insurance in Canada would be funded solely from contributions by employers and employees.

Employers and employees in this Province, however, contribute significantly less than the benefits received.

The unemployment insurance system was originally intended to provide temporary income to people seeking alternative employment who had lost their regular jobs in the work force. The system was not designed to provide basic income support, or as supplemental income for short-term, seasonal jobs. The present downturn in the economy has pointed to weaknesses in this system which must be addressed and corrected.

Strategy Statement. The Province will work with the Federal Government to ensure that the inevitable changes to the current income security system are designed so that basic income support is provided to every household, and that weaknesses in the present system are corrected to encourage the economic growth that is needed to reduce dependency on income security itself.

Actions. The Province will direct the Economic Recovery Commission (ERC) to undertake the following action and programs:

18. With support from other provincial agencies and in consultation with community groups, to work with officials from Employment and Immigration Canada to design an alternative income security system that both protects the income needs of Newfoundland and Labrador households and provides strong incentives for work, education and self-employment. The ERC will make recommendations to governments for implementing an alternative to regular
(non-fishermen's) unemployment insurance as a pilot project by 1993.

19. In consultation with other provincial and federal government agencies, the fishermen's union and the private sector, to design and recommend an Industry Stabilization and Insurance Program for Fishermen.

20. In consultation with appropriate federal, provincial and community-based agencies, devise a strategy to ensure that any short-term job creation projects that may be necessary during the interim, until a new system of income security is established, will provide meaningful work to participants and contribute to the long-term economic development of the Province.

21. Establish a Newfoundland and Labrador Conservation Corps which will channel funds into socially useful activities that will both contribute to environmental enhancement and provide valuable work experience and training for its members.

Labour Relations

There is a clear relationship between a positive labour-relations environment and a productive, viable economy. Our society has come to expect and demand certain employment standards to govern the relationship between employer and employee. It is now the challenge of labour, employers and Government to create a workplace and a workforce that is also productive, competitive and responsive to the current economic and social changes and pressures.

The importance of a positive labour-relations climate and the necessary partnership between Government, employers and labour were emphasized during the public consultation process on the development of this strategic economic plan. It was also observed that adversarial labour relations exist in Newfoundland and Labrador and that their existence impedes economic development. Participants in the consultation process suggested that the province can move forward to resolve its economic problems only if Government, employers and labour work cooperatively to address these problems and seek solutions.

Government supports the view that a stable, positive labour-relations climate is essential if we are to attract new investment in the province as well as to ensure a vigorous and competitive environment for existing businesses. A review of recent figures on work disruptions and person days lost because of work stoppages indicates encouraging signs of improvements; the statistics also show that there is no appreciable difference in work stoppages in the public and private sectors.

Because this Province has the highest proportion of unionized workers of all provinces in Canada, the operation of the collective bargaining process is particularly important here. Its flexibility allows it to represent workers' interests better than strict government regulation of the workplace. It also allows for the development of labour contracts appropriate to different workplaces. Too much direct regulation would result in reduced competitiveness and would destroy the appeal of collective bargaining in a system that should be responsive to a variety of needs.

Employers and workers together share the responsibility of creating a viable labour-relations environment; however, there is also an important role for Government. For example, our legislative framework requires government involvement before a strike or lockout can occur. The role of Government in this case is to provide services that can facilitate and encourage better communication between workers and employers. The recent preventive mediation program of Government underscores these important principles, but it is essential that the employers and workers themselves recognize their role and responsibility in the process. Mediation and conciliation may be effective in averting or reducing conflict but cannot help if parties consciously ignore or avoid these services.

A positive commitment by all parties involved is essential to successful labour relations and cannot be legislated or imposed by Government, though it can be encouraged and facilitated. Unions, workers, employers and Government must meet the challenge of continuing to improve labour-relations practices, especially when the economy, the composition of the workforce and the workplace itself are undergoing rapid and fundamental change. Recognition of the need for change provides a unique opportunity for improving the labour-relations climate.

To ensure that we can compete in an ever-expanding global marketplace employees and employers must work together. The challenge is to create a positive labour-relations environment which satisfies the aspirations of workers, minimizes work and family conflict and produces a well-trained and committed work force. Maintaining a balance between competitiveness and employment security must be a shared responsibility of labour, employers and Government. All three must recognize the conflicting pressures of global market forces and a growing demand for fundamental workers' rights and the collective bargaining process.

During the public consultation process, reference was made to the Province's other role as a major employer and the need to review the present policy of having different collective bargaining regimes for public and private sector employees.

Government can make an important contribution to the challenge unions, workers and employers face by increasing services that help the parties work together and by making all employers and employees aware of the importance of their own commitment to improved labour relations. While there is a clear link between a positive labour-relations environment and a productive business environment, it is equally clear that it takes a commitment from all parties to make it work.

Strategy Statement. The Province mil work to develop a stable, positive labour-relations climate to maintain and attract investment to the Province and to ensure a vigorous and competitive environment for economic development. Special emphasis will be placed on the development and use of innovative dispute resolution mechanisms and other workplace practices to minimize disruptions and enhance productivity for the mutual benefit of employers and workers.

Actions. The Province will:

22. Convene, within six months, a joint labour-management consultative committee, with both public- and private-sector representation. This committee will bring labour and management together at the provincial level to develop broad strategies for responding to restructuring and adjustment issues, to investigate and propose appropriate policy and program reforms (including new and innovative methods of dispute resolution), and to review the recommendations of the Background Report on Labour Relations to the Royal
Commission on Employment and Unemployment which are not yet implemented.

23. Appoint a Cabinet committee to address matters involving public-sector labour relations and Government's role as the major employer in the Province.

24. Establish, during the next year, tri-partite committees of employers, employees and Government for each major sector of the economy to develop a better understanding of, and to discuss and advise on, labour matters. These committees will meet regularly with the appropriate Cabinet Ministers to ensure improved communication among the interest groups.

25. In consultation with management and labour, establish a Labour-Relations Education and Research Centre which will develop new skills and strategies for effective collaboration, communication, mediation, arbitration, health and safety planning, grievance procedures, conciliation and collective bargaining. This Centre will be associated with a post-secondary institution which will adopt as its area of specialization the new mandate for labour-relations education.

26. Ensure there is a partnership between business and labour to provide information on the role, importance and mechanisms for positive labour relations at the secondary and post-secondary educational institutions.

27. Allocate additional financial and human resources to the promotion and delivery of the Preventive Mediation Program.

28. Undertake a thorough review of legislation relating to labour relations; consolidating all collective bargaining legislation will be considered.

29. Establish immediately a labour-management cooperation fund to provide cost-shared financial support to projects jointly sponsored by labour and management, such as those related to improved communication, productivity or labour relations.

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Change and Challenge: Chapter 4(4)

Change and Challenge: Chapter Four - Creating a competitive edge (2)

Education and Training

Education is the key to economic development. Studies have shown conclusively that skills, qualifications, innovation and the adaptability of individuals are critical determinants of economic performance and the success of enterprises.

During the public consultation process on the development of this strategic economic plan, the general public indicated that the status quo is no longer acceptable. The public felt that our economic circumstances cannot be improved without a fundamental change of attitude on the part of Government and the people. The public generally perceived education to be the single most important element in facilitating a change in attitude, but indicated that they had serious reservations about the ability of the education system, as it is currently structured, to meet the challenges.

There is also a general belief that the education curriculum should be more focused, more relevant and more challenging; that there is a tremendous need for better guidance and career counseling; and that there should be better links between the school system, the post-secondary system and the private sector. People want to see increased efficiencies in the system and they want to see the savings realized from increased efficiencies reallocated within the education system to address its most urgent needs, such as improved facilities and equipment, laboratories, libraries, computers, books and other learning materials. People also realize that education must become a life-long process. In pursuing its strategic objectives, Government will draw extensively on its public consultation process and on the recommendations of the recent Royal Commission of Inquiry into the Delivery of Programs and Services in Primary, Elementary, Secondary Education.

Strategy Statement. The Province will undertake initiatives to ensure that the education and training system is more responsive to changing labour market demands for a highly skilled, innovative and adaptable workforce. Special initiatives will be pursued which allow governments, business and labour to work together to improve the level and quality of education, training and re-training.

Actions. The Province will:

11. Review and update course curricula at all levels and conduct evaluations of curriculum implementation to ensure that courses continue to be relevant to the changing needs of society and the economy by:

• introducing new programs at the intermediate and secondary levels which focus on the sciences, enterprise, cooperative education and technology based education;
• expanding the provision and use of computers and computer-based technologies within the school system and developing a comprehensive information technology plan for the Department of Education and the school system; and
• expanding the current post-secondary cooperative education program by including additional designated occupations and exploring the application of work/study concepts to the pre-apprenticeship programs;

12.  Develop a dynamic post-secondary education system which is capable of  meeting the education and training needs of all citizens, which can identify and address areas of weakness in our human resource requirements and which can respond quickly to changing requirements of the workplace and the economy.

Specifically the Province will:

• design and implement a provincial common studies program for colleges, establish a council for academic credit transfer, and, where feasible, revise provincial post-secondary programs to a credit-based system;
• establish high school graduation or its equivalent as the minimum admission requirement to all provincial post-secondary programs, and mandate colleges to offer preparatory programs so that adults can upgrade to meet the new requirements;
• give high priority to developing student support services in the provincial post-secondary system, including better guidance and career counseling;
• support Memorial University's efforts to increase program emphasis  related to the Province's marine focus;
• change the provincial teacher certification process to strengthen the province's educational workforce and recommend that Memorial University raise the entrance standards for the Teacher Education Program at Memorial University; and
• establish a Centre of Expertise for training teachers for rural and
  small schools.

13.  Form new partnerships between the public and private sectors based
on common interests and mutual interdependence. Specifically the Province will mobilize business, labour and the education community through:

• implementing a provincial "Adopt a School Program";
• supporting expansion of the Junior Achievement Program;
• expanding cooperative education programs;
• recruiting high-profile community individuals to be "Partnership Champions";
• promoting community education by establishing a province-wide system of community-based "Partnership Action Teams";
• developing and implementing a process for evaluating education and training programs;
• establishing measurable objectives against which to evaluate the strategy's success and prepare an annual report card to track the progress being  made towards achieving the Province's educational goals; and
• strengthening the links between the education system and private industry by initiating a formal exchange program whereby individuals from  industry would work in the Department of  Education and departmental employees in private industry;

14. Establish a Kindergarten-Grade 12 education system that is student-and classroom-oriented, and capable of responding to the changing requirements of society and the economy.  Specifically the Province will:

• establish standards of performance in the core areas of literacy, numeracy and science. This will assist school districts and schools to improve their assessment of students in the classrooms and ensure that all workers have the foundation they need to pursue the retraining required to meet changing economic conditions;
• in consultation with the appropriate agencies, implement a professional development program for teachers which requires that they participate in in-service training as a condition of continued certification, and which ensures the matching of teacher training with the actual needs in the education system and the workforce;
• expand the distance education program to small schools and offer additional courses;
• implement revised graduation requirements commencing in the 1992 school year to place more emphasis on mathematics, the sciences and economic education; and
• implement better career guidance and counseling services to provide relevant and current advice to students entering post-secondary institutions and the private sector.

15.  Substantially increase initiatives which address adult illiteracy and provide basic skills upgrading. These initiatives will be extended beyond traditional adult basic education programming in the school and college system and will be linked with federal and provincial training programs. Among the initiatives to be undertaken is a workplace literacy program to provide employees with the basic
academic foundation necessary to undertake retraining for alternative  employment opportunities.

16.  Streamline the present school system to make it more efficient, cost effective and responsive; the money generated through such changes will be reinvested in education resources that are of most benefit to students.

17. Develop and implement, in conjunction with the Federal Government, human resource development initiatives focusing on skills improvement to adjust and adapt to the current economic environment.

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Change and Challenge - Chapter 4(3)

Change and Challenge: Chapter Four - Creating a competitive edge (1)

Creating a competitive edge is essential to improving our standard of living. Indeed, as the global economy changes, improved competitiveness will be necessary simply to maintain our present standard of living. To meet the legitimate expectations of our citizens about income, employment and public services, we must sell high value-added, competitively priced, quality goods and services that meet the needs of customers in local, national and international markets. Consequently, we must add value in our existing resource industries, consolidate them, develop new resource opportunities such as offshore oil and gas, and aggressively pursue high value-added opportunities in manufacturing and the services sector.

Government recognizes that it has a responsibility to work with other orders of government, business, labour and academia to create an environment which supports enterprise and economic development. Consequently, support policies will focus on developing the Province's entrepreneurial base; educating and training our labour force; creating a positive labour-relations climate; reforming the income-security system; encouraging product and process innovation; introducing new tax incentives and marketing programs; and providing a quality of government service which attracts investment and welcomes businesses.

Developing the Entrepreneurial Base

Government realizes that to generate wealth, the creativity, imagination and entrepreneurial drive of our people must be nurtured and harnessed. The entrepreneurial base of the Province requires both a balance of domestic and non-resident capital and expertise, and a mixture of small, medium and large enterprises selling goods and services in local, national and international markets.

It must be recognized, however, that we do not yet have an adequate entrepreneurial base. While Newfoundlanders and Labradorians have always been resourceful, our history of trading unprocessed commodities and our protectionist philosophy have restrained the development of the entrepreneurial spirit which is so necessary in these economic times. Because of our focus on selling primary resources, we have only limited expertise in marketing value-added goods and services, particularly in export markets. Consequently, we lack a marketing orientation. Recognition of Newfoundland and Labrador products in national and international markets is, for the most part, non-existent. Further, recent surveys indicate there is very little recognition of Newfoundland and Labrador products even within the Province.

The lack of a dynamic and thriving entrepreneurial base also contributes to the perception that Newfoundland and Labrador does not offer attractive investment opportunities, and this makes it difficult to leverage external investment. The Government is determined that these circumstances and the negative attitudes associated with them can and will be changed.

Provincial policy for rural and regional development will be directed towards stimulating the self-reliance and enterprise that have historically characterized social and economic life in rural areas. In addition to emphasising large, technology-based export industries, Government is committed to creating an environment that nurtures and supports all enterprise, including small-scale and home-based initiatives that turn the traditional strengths of the rural and household economies into commercial businesses.

Although the value of household, home-based activities is not included in formal economic measurements, it is significant and these activities will continue to play a vital role in developing a stronger enterprise culture in the market economy, particularly in rural Newfoundland and Labrador. In this regard, Government also recognizes the important role credit unions and producer/worker cooperatives play in fostering social and economic development in rural areas.

For economic development to succeed, we must provide our entrepreneurs with the opportunity to develop their managerial, technical, financial and marketing skills, help them turn good ideas into viable businesses, and promote our Province as a place which welcomes and supports outside investment. We will also recognize and promote our successful firms and entrepreneurs, both within the Province and outside, as part of an overall strategy to enhance the image of the Province. We will introduce our young people to the benefits of entrepreneurship through enterprise education in our secondary and post-secondary systems and we will provide adequate training to aspiring entrepreneurs. Through more co-ordinated Government efforts, we will encourage and support enterprises to seek out and penetrate national and international markets. We will aggressively pursue new investment to ensure that our core resource industries are maintained, especially investment in value-added activities, that new resource opportunities such as oil and gas are developed, that new manufacturing opportunities are pursued - especially those which are marine-related - and that services-sector opportunities, notably in tourism and professional services for export, are developed.

Strategy Statement. The Province will undertake measures to introduce students to the benefits of entrepreneurship; will provide appropriate training to aspiring entrepreneurs; will recognize and promote the success of local enterprises; will promote and assist local enterprises to develop and market their products in national and international markets; and will promote the Province's attractive investment opportunities, supportive investment climate and unsurpassed quality of life.

Actions. To implement this strategy, the Province will:

1. Support entrepreneurship by:

• instituting a Province-wide promotional campaign in support of entrepreneurship and developing an enterprise culture;
• expanding enterprise education throughout the school system;
• encouraging Memorial University, through the Faculty of Business Administration, and the Community Colleges to expand business skills training to entrepreneurs in the Province;
• supporting changes to the income security system, in cooperation with the Federal Government, that will strengthen entrepreneurship; and
• encouraging and supporting the growth of home-based businesses,
  producers' and workers' cooperatives, credit unions and commun­
  ity-based development corporations.

2. Work closely with other orders of government to remove barriers to entrepreneurship, such as changing land-use regulations and the tax system; and implement changes to programs, policies and regulations under its control in order to promote and attract investment for small, medium and large-scale enterprises.

3. Develop and maintain comprehensive data bases on product requirements in various key markets (Canada, U.S., Europe, Asia) and make such data more easily available to the private sector.

4. Develop and deliver, in close cooperation with the private sector, a campaign which establishes the Province nationally and internationally as a supplier of top-quality goods and services, especially its broad range of marine-related and derived products.

5. Establish a Trade Development Council to improve private and public sector capability in international trade and marketing, and to provide advice to Government on trade-related issues.

6. Immediately institute a program to upgrade Government employee skills and knowledge of trade development to facilitate a significant new thrust in trade development services; where possible, Government will use secondments and exchanges to supplement in-house capabilities.

7. Assess its full range of financial support instruments for business to determine if they are inappropriately sustaining industries or enterprises which are not economically viable, and to redirect their use to support the priorities of this strategic plan. Where appropriate, efforts will be made to direct financial assistance programs away from loan guarantees and grants, and toward equity investments which give businesses a better opportunity to succeed.

8. Use its financial assistance programs to ensure that businesses receiving assistance have the necessary management and marketing skills to operate successfully, that quality assurance and control are integral aspects of production, and that productivity through training and upgrading of workers is emphasized.

9. Accelerate programs and activities which facilitate joint ventures, technology licensing, co-manufacturing and other forms of industrial cooperation and investment.

10. Undertake a long-term promotional campaign to educate Canadians about the positive attributes of our Province's economy, work ethic, culture, lifestyle and geography, and to promote the Province's business opportunities in key investment markets in Canada and throughout the world. Government will also improve awareness of Newfoundland and Labrador in key Canadian foreign posts and enlist their pro-active participation in our investment promotion activities.

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Change and Challenge: Chapter 4(2)

Controversy and the Order of Canada

Retiring Conservative member of parliament Norm Doyle thinks Henry Morgentaler should lose the Order of Canada because Morgentaler has been controversial and that Morgentaler has "divided" the country.

“Dr. Morgentaler, his contribution has been his fight to legalize abortion which has really divided the country, so I don’t think it’s appropriate at all that he be given his order,” Doyle said Wednesday.

Doyle's logic is a little hard to follow here since opinion on abortion is divided in the country.  Morgentaler didn't produce the differences in views or cause them. 

But if you look at a wider implication for Doyle's comments, you'd think he'd be concerned about giving the Order of Canada to anyone who was now or had ever been controversial. 

Controversy divides or is a sign of division, isn't it?

So if we follow the Norm Doyle logic, then which current Order of Canada recipients would have to could up their snowflake?

Maybe this guy?  He's pretty much the poster child for political divisions.

Or if you take a different view of the same issues that first guy tackled, maybe this guy would be on your anti-controversy hit list?

Or how about this guy who got himself into a bit of a controversy over his research work?

And this woman had the effrontery to promote birth control thereby causing controversy and, in Doyle's logic "dividing" the country:

From 1932 until 1966, Dr. Bagshaw spent Friday afternoons as the medical director of Canada's first and illegal birth control clinic. Information was given out, and pessaries, jellies and condoms were dispensed there. Early in her practice she would never have spoken of birth control, but after the Depression that was no longer the case. "There was no welfare and no unemployment payments, and these people were just about half-starved because there was no work, and for them to go on having children was a detriment to the country. They couldn't afford children if they couldn't afford to eat. So the families came to the clinic and we gave them information." She did this courageously despite opposition from medical colleagues and local clergy. She would see any woman who had need of contraception information.The clinic became legal in 1969 and has been supported by government grants.

We can all be thankful that Doyle and his antediluvian thinking are headed to a double-pensioned retirement.

Not a moment too soon, sez some.

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No community spirit

or the human face of outmigration.

You decide.

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Exposing the political scientology of "the normal transparent process" of road paving

Road paving in NewfoundlandLabrador allocated on a political basis?

Heavens to Murgatroid, say it ain't so.

But then things get worse when the guy with a blog also has a transcript of the interview.

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Sheena Goodyear casts a critical eye on MUN's new chancellor

[Editor's note:  Editors of the Memorial University student newspaper - The Muse - usually distinguish themselves, if not during their time editing copy then later in life. 

Sheena Goodyear is no exception. She's already worked at the Muse for five years including a stint as editor-in-chief.  She's currently freelancing for the Telegram and the Scope and in August she'll take up job of national bureau chief for Canadian University Press. Sheena will likely have a bright future whether she continues in journalism or switches to another career at some point.

In retooling Bond Papers for a fall makeover, I contacted Sheen and asked her to contribute periodically, as the mood or topic struck her.  The goal for the retooled Bond will be the same as it currently is:  provide an alternative view of issues affecting the province. 

Sheena didn't wait until September. With the appointment of Rick Hillier as chancellor of Memorial - effective July 2 -  Sheena penned the following commentary.]

The praise for Rick Hillier in the media since his appointment as Memorial University’s chancellor has been at best flattering, and at worst downright gushing.

People are commending his heroics, his leadership skills, and his outspokenness. But really they are commending him for being a Newfoundlander who has gained national and international recognition.

He’s the province’s golden boy, and nothing negative dare be uttered against him.

This complete lack of critical analysis, especially from the media, is dangerous, though not uncommon in this province (see: Danny Williams).

The media has failed to remind us that the last chancellor, John Crosbie, was appointed to an apolitical government gig not long after he publicly opposed the government’s plans to grant autonomy to MUN’s Corner Brook campus.

Student reaction in the news has been unsurprisingly minimal. The only person who has come close to questioning Hillier’s appointment is the editor-in-chief of the Muse, Memorial’s student-run newspaper. Even the MUN Students’ Union – who are members of the St. John’s Coalition Against the War – has extended Hillier an open hand.

The soon-to-be former head of the Canadian Forces, and the leader of an incredibly contentious military invasion, is the new symbolic head of the province’s only university, as well as a member of both its decision-making powers, the senate and board of regents. And nobody is batting an eyelash?

People say his reputation will make him a good fundraiser for the university. They say he’s got connections. But nobody is questioning whether or not he’s connected to the types of organizations that we want associated with Memorial University.

This casts a conservative shadow over the university’s public image in a way that hasn’t happened since Inco CEO Scott Hand was awarded an honorary degree. It also distracts the public from the fact that MUN still doesn’t have a president – a far more important position than chancellor.

The mission in Afghanistan is possibly the most controversial issue facing this country right now, and Canadians are both divided and confused by it.

The latest Angus Reid polls show that 62 per cent of Canadians don’t believe the government has effectively explained why our soldiers are there; 54 per cent say the mission should not extend past 2011; and 54 per cent consider it a war, not a peace effort.

Now let’s narrow the lens. The Canadian Forces attracts more recruits from Atlantic Canada than anywhere else in the country. They often launch their recruitment campaigns here for that reason.

It would be completely ignorant not to assume that this is at least partly due to the lack of financial opportunities available to young people on this side of the country. So, the army essentially preys on our disadvantages to fill its ranks.

Meanwhile, young Newfoundlanders (and there aren’t many of those left) are coming home in body bags for a war that two-thirds of the country doesn’t even understand.

All this under the leadership of Rick Hillier. But hey, at least he’ll have those convocations running like clockwork, right?

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Michael Temelini...

clearly knows nothing about local politics, as painfully evident from his stint with David Cochrane this morning.

We all know Tom Rideout's resignation is a story, Michael.  You don't need to spend the first couple of minutes of a short interview trying to convince us it is important to talk about it, even if it's just for a couple of days.

Then after some more useless comments, Cochrane had to throw Temelini a softball, a life ring, a "gimme" with his John Efford clue.

It was done professionally which is credit both to Cochrane's political savvy and his skills as an on air host. 

Well done, David.

But then - almost immediately -  Cochrane had to correct Temelini by noting that the reaction within the Liberal Party to the prospect of John Efford making a political comeback was decidedly "mixed". 

Ok.

If "mixed" is a euphemism for "no way", but that's another issue.

The point here is that Temelini was clearly still clueless when he took the Efford thing and morphed that into a general criticism of the "Liberals" for "seriously thinking" about bringing Efford back.

Efford is thinking of bringing Efford back.  Well, Efford and a few friends and supporters.

Not some monolithic entity called the Liberal Party.

Surely to heavens there is someone out there who CBC can use to comment on local politics other than Michael Temelini.

One prerequisite for commentary and analysis  - other than on Open Line - is that you actually know what is going on.

That's pretty much the most basic one.  If you don't know what's going on, then you really can't do much else if you've been called on to talk about what's going on and why.

In this case, it was appalling to have the host/interviewer clearly better informed about the subject on an order of magnitude that staggers the imagination. 

Think funny, f'rinstance.

Then think Rick Mercer versus your aunt's latest boyfriend with a few beers in him.

And in between jokes he just sits on the couch singing old Culture Club.

Badly.

And playing air drums on his thighs.

That kinda gap.

It's painful, man.

But surely to all that is merciful in the universe, CBC can find someone who can offer some decent comment on local politics.

We'll even take up a collection to buy the beer.

And for those who got through that rant looking for some political clues, here they are:

1. Rideout looking at taking on Scott Simms in the next federal run.  (Mike, boy, the road spat was never the real issue in the Danny/Tommy racket.)
2. John Efford is looking at running in Baie Verte, but then again you knew that already. 

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Warm evening update:  Now that the early morning rant has passed away, let's take a more dispassionate look at the sayings of Professor Temelini, as reported by CBC News online.

Specifically let's take a look at this bit:

"People who don't like Danny Williams or his government are going to say, 'here's proof positive of this trend we're seeing that the premier is difficult to work with.'

"On the other hand, if Rideout did try to squeeze out more money, outside of the normal transparent process, maybe this is a victory for those who are opposed to pork-barrel politics."

Outside the normal transparent process.

Aside from the straw man Temelini builds here,  his second statement begins with an assumption that the process which existed  had Mr. Rideout played by the rules is not only the normal one but that this normal or usual process is "transparent."

He further qualifies his description of "transparent" by implying in the second half of the sentence that whatever Rideout did was "pork-barrel politics" and therefore worthy of scorn."

Now at this point we have to leave aside another rather huge problem with this entire presentation by Professor Temelini, namely that he has swallowed whole the position advanced by one of the parties in the situation without even a hint of inquiry, analysis, scepticism or thought.

And we can leave aside even that 800 pounds gorilla of problem to focus on the transparent process.

A transparent process, as the term implies, is one which can be seen not only by the people involved in it, but also by those on the outside looking in.  A transparent process usually has clearly defined rules which anyone can see and understand.  We might reasonably expect that a transparent process, especially one involving the expenditure of public funds in an area usually given to pork-barreling and other forms of patronage, would use a set of objective, technical criteria to establish merit. 

In other words, when it came time to hand out the road work, the individual cases would be assessed based on the condition of the roads.  The assessments would be done by experts, as opposed to politicians.  And, there'd be no extraneous considerations like what electoral district the road work was done in let alone what political party the member for that district belonged to.

Well, right off the bat Temelini's entire construction falls flat on its face.  In a transparent system, Rideout would not have been able to engage in the bullying he was accused of using.  He could not have employed any pressure.  He could not have coaxed, cajoled or demanded a penny.

A genuinely transparent system would not allow it.

If Rideout tried it, the whole thing would have been seen not just by the few people in the Premier's Office involved in making the decision but by reporters and everyone else.  Until Rideout resigned, no one outside a very small number of people likely could have told you how road work was decided let alone that there had been some fuss with Rideout over the allocation for his district.

So before we even get beyond the start, the whole thing falls apart based on nothing other than the generally agreed upon facts as presented by the Premier and by Mr. Rideout.

You can figure out that the position taken by both of them was a crock merely by examining simple facts and ignoring entirely ones emotional reaction to The Leader. Had Temelini done anything even vaguely approaching that, listening to him early in the morning might have seemed a lot less like an undergraduate lecture by the holder of the Mugabe Chair of Political Science at Harare U.

Some July 1st reading suggestions, and a twist

1.  "Proud to be Canadian".  From 2007, this post pretty much says it.

2.  "Commemoration Day 2006".  A wee bit of history. 

3.  "Newfoundland and the Great War: the beginnings".  A summary of a paper your humble e-scribbler has had in the works for the better part of two decades that covers the origins of Newfoundland's entry into the First World War. There's an article in the latest Newfoundland and Labrador Studies on the same subject, but frankly, having read it, it seems as though the fellow missed pretty much the entire story and fell back on the generally accepted - and wrong - accounts found in the secondary sources. 

4.  This is the 60th anniversary of the great exercise in democracy by which Newfoundland and Labrador threw in its lot with Canada. Don't expect to hear a single mention of this at any time this month, although we'll hear plenty about the 400th anniversary of Quebec City.  There's room in our history for two great national events. The second referendum, in which the ordinary men and women of Newfoundland and Labrador opted for responsible government as part of Canada, took place on July 22, 1948.

5.  As a last twist, and for all the stereotyped crud that you can find about Beaumont Hamel on July 1st, take with you as you leave a couple of songs popular among soldiers of the British Army during the Great War for Civilisation. 

It is almost trite to say that the Great War changed the countries that took part in it. 

For Newfoundland, it was the first national effort that was not sectarian in its organization or management.  It may have started out that way with the rush of volunteers from the paramilitary church brigades, and the townie establishment may have tried to corrupt it into another piece of sectarian trash, but the men who went to the trenches, who flew the stringbags and who sailed on all manner of ships crushed their efforts.

When they returned from the war, the country built them monuments at home and overseas, but the one which stands out is Memorial University.  The legacy of the men and women who served and those who died is in every person who has attended and graduated from that non-sectarian institution of thought and learning.  This would be a very different place had those men not chosen to establish the university as the memorial.

In the meantime, too, forget the stuff about heroics and all that.

Listen to the songs.  Like many, they take a well known church tune and claim ownership of it for the faceless Tommys. 

This version of the first song - Onward Joe Soap's Army -  contains one phrase that pops up in several popular songs during the war:  "the men who really did the job are dead and in their graves."

Simple words tell simple truths.

The second, Fred Karno's Army, is no less jarring.  Karno was a popular music hall comedian of the time and the song reflects the amateurism of the soldiers, at least at the start of their service. This version, from the 1967 film Oh! What a lovely war puts the soldiers' version against the original song in an appropriately unsettling arrangement.

 

Change and Challenge: Chapter Three - Charting the Course

To address the challenges our Province is facing and to prioritize and co-ordinate government policies so that they will increase the level of wealth in the economy, the Government is committed to implementing a strategic economic plan for Newfoundland and Labrador. This plan articulates a new vision for the future, outlines the guiding principles for economic development, and provides a policy framework to support our strategic industries.

A Vision for the Future

The Province of Newfoundland and Labrador is at a turning point in its economic history. To improve our prospects for the future, fundamental changes in attitudes, industrial structure and government policy are required, changes which must be part of a new vision for the Province's economy.

Our economic vision for Newfoundland and Labrador is that of an enterprising, educated, distinctive and prosperous people working together to create a competitive economy based on innovation, creativity, productivity and quality.

A primary role of government in such a society will be to create a positive economic and social climate so that the private sector can respond to opportunities in the global marketplace. To improve our competitiveness, the ideals of productivity, quality, profitability and a passion for excellence must be adopted by government, business, labour and other groups.

Guiding Principles for Economic Development

To achieve our vision, the strategic economic plan is founded on a set of guiding principles for economic development in Newfoundland and Labrador:

1. The Province must focus on strategic industries. With increasing competition in world markets and limits to growth in primary- resource industries, the Province must target high-value-added activities in which we have, or can develop, a competitive advantage.
2. Our education and training system must adapt to the changing labour market demands for a highly skilled, innovative and adaptable workforce. In an increasingly knowledge-based economy, it is critical that governments, business and labour work together to improve the level and quality of education, training and re-training.
3. Newfoundland and Labrador must be competitive both at home and in world markets. To improve our prospects for economic growth and  development, and to maintain and expand local and export markets, the province must diversify its economic base by producing goods and services that are internationally competitive in price, quality and service.
4. The private sector must be the engine of growth. While it is the role of government to create an economic and social environment that promotes competitiveness, it is the enterprising spirit of the private sector that will stimulate lasting economic growth.
5. Industry must be innovative and technologically progressive to enhance productivity and competitiveness. A competitive advantage can be created by integrating advanced technologies in the workplace with the innovation, skills and creativity of our people.
6. To achieve economic prosperity, there must be a consensus about the need for change and a commitment from governments, business, labour, academia and others to work together in building a competitive economy.
7. Government policies and actions must have a developmental focus where the client comes first. The structure of government must be streamlined, efficient and responsive to public needs and to changes in the economy.
8. The principle of sustainable economic development must be maintained. Our natural resources and environment must be managed to ensure that development can be sustained over the long term.

A Focus on Strategic Opportunities

Opportunities for growth in the resource, manufacturing and services sectors, combined with a supportive government policy framework, can produce the level of economic activity required to reduce economic disparities between this Province and the rest of Canada. To realize our development potential in spite of limited financial resources, we must concentrate our economic development efforts on business opportunities in areas where we have, or can develop, a competitive advantage.

If we build on our strengths, a logical economic focus is our marine environment - our 10,000 kilometres of coastline and all the resources of nearly 1,000,000 square kilometres of continental shelf. By heritage and by aptitude, our people are knowledgeable, hard-working, and enterprising in marine-related industries. In fish harvesting and processing, in marine communications, in cold ocean research and technology, in offshore oil and gas, in marine-related education and training and in marine-related tourism, we have unique advantages that enhance the competitiveness of our economy.

Another major strength is the Province's environment, culture and quality of life. Such factors are becoming more important in determining where entrepreneurs decide to locate, and these attributes need to be promoted to attract new investment, especially in tourism development.

The initiative, inherent skills, resourcefulness and determination of our people, who have survived and progressed here for five centuries, are also important strengths which need to be developed for the benefit of the Province. These attributes can provide the basis for maximizing our competitive advantages as we adapt to the changing global economy and pursue new opportunities for growth. Action is therefore required to implement human resource development initiatives which build on these personal qualities in order to ensure that we are equipped with the necessary knowledge and skills to develop all opportunities which can contribute to economic growth.

To capitalize on these strengths, Government must assume a leadership role in creating an economic and social environment in which the private sector can stimulate real economic growth. To create the right economic climate, Government must ensure that Newfoundland and Labrador industry is equipped with a well-trained, highly motivated and productive workforce which is technologically progressive. Specific initiatives in the areas of education, technology transfer, competitiveness, trade and marketing, and business development are keys to future economic expansion.

Economic Zones and Regions

In addition to implementing the general support policies for economic development identified above, it will also be the role of Government to ensure that each region of the Province is able to participate in and respond to the opportunities which arise. To help ensure this, the Province's five major administrative regions will be sub-divided into 17 economic planning zones (see following map).

This division will provide for better coordination and integration of economic planning and development activities, including the provision of the infrastructure and services that are needed. More specifically, the creation of these economic zones will facilitate or allow:

• the development of economic plans by the people in each zone;
• communities within each economic zone to undertake joint initiatives which will benefit the whole zone;
• Government to strengthen the major centres in each zone to ensure that they have the necessary infrastructure and services to attract new investment and build a strong economic base;
• the economic zones to work more efficiently and effectively with the five regional offices of Enterprise Newfoundland and Labrador (ENL) to ensure that each zone's economic plan is considered in the policy and program directions being pursued by ENL and other government agencies;
• the Province to promote more effectively the economic opportunities and strengths of each zone and region; and
• more regionalization of Government administration.

In addition to these advantages, the concept of economic zones will allow the unique characteristics of each region of Newfoundland and Labrador to be identified and better understood by both residents and non-residents. This is especially true for the Labrador region of our Province. While the vision, guiding principles, and general actions outlined in this document apply also to the Labrador region, it is recognized that the uniqueness of Labrador's geography, demography and ethnic diversity means that the region requires specific attention. Throughout this strategic economic plan there are actions which apply specifically to Labrador.

The Province is committed to a co-ordinated effort to develop fully the strengths of the Labrador region in order to improve employment and income prospects through the pursuit of sustainable economic activities based on viable and realistic opportunities. To accelerate this process, the Province will direct the Labrador regional office of Enterprise Newfoundland and Labrador to facilitate the integration of economic plans for the five economic zones into a regional economic plan for Labrador.

Underlying these economic plans will be the Province's strong commitment to complete the Trans-Labrador Highway through a cooperative effort with the Federal Government, as well as completing appropriate secondary roads and winter trails; to continue to support and facilitate the expansion of Labrador's resource industries, including hydro developments, and of the low-level military-training activities which are so vital to Happy Valley-Goose Bay; to work with aboriginal peoples in Labrador to ensure their input into Government policy decisions that particularly affect them; to support aboriginal peoples in formulating their own economic development strategies; and to continue to work with aboriginal peoples and the Federal Government to accelerate the settlement of land claims and the establishment of agreed levels of self-government.

A Cooperative Approach

The people of Newfoundland and Labrador have indicated that they believe all orders of government have a responsibility to contribute to economic development and that partnership among the federal, provincial and municipal governments is essential to future economic growth. It is counterproductive for one order of government to address economic problems in isolation from the others. There has to be a full, cooperative effort involving all orders of government, as well as the private sector and others with particular interests.

The public recognizes that governments do not have unlimited financial resources and that closer harmonization of programs and policies is thus required to avoid duplication and overlap.

The Government of Newfoundland and Labrador views this strategic economic plan as a foundation on which all orders of government can actively cooperate to build an economy which is productive and competitive and to restore the confidence which is so necessary to allow Newfoundland and Labrador to contribute positively to the economy of our nation.

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Chapter Four (1)

Rideout quits

Tom Rideout has decided to pull pin on a political career that spanned three decades and two political parties.

Remember that you read it here first:  John Efford is working on getting the Liberal nod in an effort to win Baie Verte -Springdale.

Meanwhile, in the Tower, hypocrisy reigns.

Note that this release contains that name of a different "press secretary" for the Premier's Office than the one issued just an hour and a bit before.

And for all that, it still lists a "communications director" for the Premier's Office as a media contact as well.

Two media contacts for one office.

Dubya doesn't need that many.

Gord has a first rate news page which, as you may notice doesn't append the names of all the media handlers to each utterance, either.

[Secret bonus:  notice the "jargon buster" link with lots of jammy background information.   Backgrounders, you see, aren't there just so that the yokels outside the Centre of the Universe can have some nice stuff to cover.]

Even Steve doesn't have a laundry list tacked on the end of  missives from his office. 

Note here, though, that his web page sucks.  There really isn't another word for it.  It just sucks.  Well there is another phrase for it involving a fully grown ursus arctos horribilus and the opposite of suck but this has become a family space so we'll refrain from being quite that blunt.

Steve's web presence is just smelly.

The Canadian PM's site went from looking like the web page of a world leader to the web page  for the guy who runs the discount car dealership on the concession road just outside ButtCrackville Corner, Ontario, with the programming done by his second cousin twice removed on his father's side using a Commodore 64.

I mean - seriously - what leader of a country needs to have his name and title across the web page for his office. 

Is he that insecure?

Anyway, back to the story.

Rideout's gone. 

Again.

Efford's trying to come back.

Again.

Politics in Newfoundland and Labrador these days is like NTV in the summer time:  endless reruns of stuff we watched 30 and 40 years ago.

 

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Commemoration Day 2008: "Harvard Man tells of War"

CAMBRIDGE, Mass., Feb. 20. -- Alonzo John Gallishaw will resume his studies tomorrow at Harvard after five exciting months as a member of the British Army in its unsuccessful attempt to force the Turkish defenses on the Gallipoli Peninsula during the Dardanelles campaign.

John Gallishaw volunteered to serve in the Newfoundland Regiment during the Great War. Sent to Gallipoli with the regiment in Septemeber 1915 he was severely wounded and released from military service.

Gallishaw returned to Harvard University. He resumed his studies and subsequently became a noted author and screenwriter.

He subsequently wrote a war memoir, Trenching at Gallipoli, which was published in October 1916.

Gallishaw also co-authored a small "how to" book aimed at the American Expeditionary Force sent to Europe in 1917.  The man in the ranks was a compendium of useful tips on everything sucha s the proper attitude to military courtesy to advice on tooth cleaning;  Gallishaw recommended using tooth powder in a  tin since with a tube, there was always the likelihood a buddy would sit on your haversack and squirt the toothpaste over your clothing and equipment.

The excerpt above is from a New York Times article on Gallishaw, dated in 1916 after he had been wounded and medically released.

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The value of public relations

Two events, considerably far apart in both space and substance, have given rise to a public discussion across the world about the value of public relations.

Former White House Press Secretary Scott McClellan's recently published memoir and the admission he lied about certain events prompted a scathing commentary by CBS legal analyst Andrew Cohen.

Closer to home, the Cameron Inquiry has shown to all the inner workings of government and one of its major agencies.  Good will come of the examination from the inquiry, however, in the short term, some of the information disclosed during testimony has permitted local commentators - the Telegram's Bob Wakeham is one example - to do nothing more than trot out their old prejudices against public relations.  Wakeham's column is not archived on the Telly website unfortunately.

As far as the local opinions go, we shouldn't lose sight of the fact that the critical views of public relations offered by reporters often are aimed at people who once earned their crust of bread sitting in the same newsroom as the people who now slag them off. 

Back in March, Geoff Meeker started what has become a series of posts on the phenomenon of reporters crossing the street to communications jobs. It's worth considering that point in the larger issue of public relations, ethics and the value of PR.

To put it simply, Cohen's comments are about as cogent and insightful as the simplistic view of lawyers as hacks and ambulance chasers.  His observations don't really deserve much more attention than that.

They got rich attention though, in a blog post by no less a figure than Harold Burson.  Burson is the founder of Burson-Marsteller, one of the leading American public relations firms. He's a senior practitioner by any measure and, as an aside, people should note that, as evident from his blog, he is as current as they come in his thoughts and approach to the craft.

As Burson writes:

Increasingly, news media are in the business of interpretation and commentary, areas once confined to the editorial page. Many if not most newsmen forget that we in public relations are not surrogates of journalists or media. Rather, we are the paid advocates of clients who have a point of view that may be questioned by affected parties. Our interpretation in serving our clients may differ from how a reporter reacts to the same set of facts. But this is nothing new in the world of journalism; editorial writers frequently have differing points of view than those expressed in a publication’s news columns.

Heather Yaxley uses the CBS commentary and some other similar issues to make some observations about the value of PR to society and on whether that value can be measured. She raises questions and does not attempt to answer them, but the questions and their implications are worth pondering whether you are public relations practitioner or somebody else.

We may come back to this issue in a future post, but for the time being there is the start of a discussion if anyone wants to have it.

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Budget 2008: Surplus? What Surplus?

No doubt, you remember the debt clock.

That was the little theatrical device finance minister Tom Marshall used during his trip around the province in what was euphemistically called a pre-budget "consultation".  Of course, it was pretty funny to call it a consultation considering that, as the Premier later admitted, budget decisions were already made or were being made as the finance minister attended the meetings.

The debt clock garnered so much attention it became the media story of the entire affair.  And that, as  Bond Papers noted, was the point of the exercise in the first place.

One would expect that consultations are supposed to be an exercise in soliciting opinions and ideas.  They are supposed to be about receiving messages.

In government practice  not just in this province but across the country, "consultations" have become more about government delivering a message to the people who show up for them and the reporters who get assigned to cover them rather than ministers collecting information.

It's fairly advanced doublespeak.

Kind of  like delivering a speech and then referring to the oration as an exercise in hearing:   "Joe Smallwood," the history professor noted, "was a masterful listener.  He sometimes listened to an audience for over two hours describing the economic accomplishments of Smallwood's government."

"Smallwood once said that he would single out the dimmest pair of eyes in a crowd.  He would then focus his listening until he saw that the brain behind those eyes understood what Smallwood was listening.  At that point, Smallwood could be sure the whole audience understood what Smallwood was hearing."

In any event, if we took the debt clock and the government pronouncements at face value, dealing with the public debt would be a major feature of government policy.

Take a closer look at the 2008 budget estimates, though, and you'll see a different story.

Right off the bat, the Estimates show a projected increase in total public sector debt in Fiscal Year 2008.

That's right.

An increase.

Not a decrease, which is what you would expect given the peril of public debt supposedly demonstrated by the debt clock.

In fact, that would be the third such increase since 2004.  Take a look at the table below and you can see exactly what the debt load has been and is. The figures come from Appendix III on page 243 of the Estimates link above.



Debt, in this case, is exactly what most of us think about when we speak of debt:  borrowings.

The phrase "total public sector debt" refers to the accumulated borrowings of the provincial government and its agencies.  The whole thing is laid out pretty clearly each year in the Estimates.  It was also discussed in a report from the province's auditor general just before the finance minister introduced the budget in the legislature.

At this point, minds are boggling.  Now if you are so confused at this point you are drooling like a spliffed-out Lab, in the words of Steve Macdonald, just grab your Bond Papers mug and hold it under your chin.

We're not done yet.

There's this idea of a surplus.  Now most of us think of a surplus as being money left over after all the bills are paid.

We've been told that that the surplus in 2007  was over $1.0 billion last year.  This year, the province's finance minister forecast a surplus of over  half a billion this year.

Find those figures in the Estimates.

Go on.

Be brave.

Take a look.

You'll find the answer in Statement I, which is on page iv of the Estimates if you've got a printed copy or page seven of the pdf link.

The real picture of government’s surplus or deficit is found in the estimates in a table called the summary of borrowing requirements.

You can find it usually in the first two or three pages of every budget. That table brings together all government revenue estimates and the spending plans and adds in the debt-related spending to give a total picture of how much money will be left over at the end of the year – a surplus – or how much has to be borrowed – a deficit.

If you go back and take that same statement from each set of Estimates, you'd wind up with a chart like this one:

Now there is a surplus on current and capital account of a slightly more than $1.0 billion for 2007.  Then there's an interesting adjustment. You have to subtract the $305 million in money from the 2005 offshore deal because it was already received.  That money shows up in another spot as revenue, but that's just for the accounting of the cash on the province's books. In order to get the accurate picture of revenues, you have to take that amount away.

Then you are left with about the true picture of  $737 million, which is still a tidy sum.  The only problem is all the financial transactions for the year aren't done. After repaying Equalization overpayments and a federal loan, retiring a bit of debt, putting some cash against the pension liabilities and contributing to sinking funds (to help pay off loans when they come due), the provincial treasury came up $88 million short.

Not a surplus.

A deficit of $88 million.

And if you take your eyes from the right hand side of that page and switch it to the left hand you'll see the estimated financial state for 2008.

Current and capital account will be in deficit by $54 million.  After you take away the advance cash from 2005, the Estimates project a deficit of $414 million.

Not a surplus.

A deficit.

Carry on with all those other projected financial transactions and the provincial budget shows anticipated borrowings of almost $800 million in FY 2008 in order to balance the books.

In order to produce a surplus of the size predicted  - but predicted only in political statements - oil prices would have to continue at double the figure of  $87 a barrel used to come up with the budget.  So far, it looks pretty good for oil to be somewhere over $130 on through the end of this year, but you never know what will happen with oil prices, especially after the American elections in November and the new president is sworn in late in January 2009.

The provincial government might wind up being right. The US Energy Information Agency predicted in early April this year that West Texas Intermediate will average US$101 a barrel in 2008 and about $10 lower in 2009.

If that forecast holds true, the provincial government won’t have to borrow quite as much as projected or it might not have to borrow very much at all.

Now as you finish wiping your chin or reach for another belt of coffee to calm your nevers, don't fret.  The provincial treasury isn't about to run dry next month.

Nor is there anything unusual about a government presenting its finances in the best possible light;  "best" being defined as fitting its own political interests or outlook.  Governments of all political stripes here and elsewhere in Canada have been doing it for decades to one degree or another and in one way or another.   Criticizing them for it is like slagging a dog for barking.

The full picture is usually there in the budget documents.

You just have to look to find it.

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Change and Challenge: Chapter Two - The Challenges

The economy of Newfoundland and Labrador is underdeveloped and economic disparities between our province and other provinces in Canada persist. In addition to these long-standing problems, the Province now faces new challenges as the result of global economic change. Thus, in the 1990s, the need to diversify the economy and to improve productivity and competitiveness has become critical.

A Changing Global Economy

The world economy is constantly changing, driven by profound changes in trade patterns, investment flows and technology. More specifically,

• the liberalization of world trade has contributed to rapid growth in export opportunities for manufactured goods and commercial services and, as a result, to increased international competition;
• the emergence of major multinational trading blocs within the world trading system has resulted in an increase in joint ventures, technology sharing and mergers between firms from different countries;
• in order to promote competitiveness within acceptable international trading guidelines, there has been a shift in national and provincial economic policy from direct government subsidies to government support in the areas of business development services, tax incentives, education and training, technological innovation and diffusion, and the provision of economic infrastructure;
• the technological advances made in transportation and communications have reduced the effective distance between producers and consumers. This wider market for our goods and services is also creating opportunities for the development of new products and services, but it means, of course, that we also face more international competition;
• employment opportunities continue to concentrate in urban centres even though traditional impediments to development, such as domestic market size and distance from export markets are playing a lesser role in determining where firms choose to locate;
• the gradual shift from labour-intensive to knowledge-intensive industries, particularly in developed countries where labour costs are higher, has required firms to invest in both new technologies and human resources to improve their competitiveness; and
• environmental considerations are becoming increasingly integrated into the decision-making processes of governments, industries and individuals.

These world-wide economic changes will intensify over the next decade as new technologies and increasing competition force existing industries to restructure and new industries to develop. These changes mean that Newfoundland and Labrador will have to strengthen and build on existing comparative advantages in our resource industries and also target strategic opportunities in new growth industries. If we ignore the realities of a changing global environment, local firms will inevitably find themselves unable to compete at home or abroad.

The Province's Economic Structure and Performance

There are significant differences in economic structure and performance between Newfoundland and Labrador and the rest of Canada, though during the last two decades, our economy has generally mirrored the direction - but not the magnitude - of Canada's economic growth.

Newfoundland and Labrador's economy is very "open", which means that it is strongly influenced by the level of economic activity elsewhere, largely because of our reliance on resource-based exports. As shown in Chart 1, the goods-producing sector (including the resource industries) accounted for 29% of the Province's gross domestic product (GDP) in 1990, while the services sector accounted for 71% of GDP.

Because Newfoundland and Labrador's goods production is concentrated largely in primary-resource industries, the Province's economy has pronounced seasonality in output and employment, low value-added production and a narrow export base from which to generate new economic wealth. These weaknesses produce persistently high unemployment and low per capita incomes (Chart 2). 

The amount of personal income available is a major determinant of economic activity and of the Province's living standards. The amount of tax revenue which is available to Government for expenditure on areas such as education, health and transportation infrastructure, for example, is also influenced by both the level and distribution of personal income. It is therefore important to understand the relative importance of the components of personal income, specifically labour, business and investment income, unemployment insurance (UI) benefits and other types of transfer income (Chart 3). 

Transfer payments to individuals, such as UI benefits, social assistance, family allowances, pensions and old age security payments, represent the second largest component of personal income in the Province. Some elements of transfer income, such as family allowances and old age security payments, are based on demographic and social factors, while others, such as UI payments, are related to employment (and especially part-year or seasonal employment) and the general level of economic activity in the Province. However, this over-dependence on government transfers is no longer acceptable to most people nor can it be sustained by governments.

The challenge now facing governments, business, labour and other groups is to make sure that this dependence is replaced by productive employment and more appropriate social programs. For the Provincial Government, in particular, this means using its financial resources more efficiently and effectively.

Chart 4 shows that for the fiscal year 1992-93, total gross capital and current account expenditures are expected to reach $3.5 billion. At present, only 8.7% of that amount, approximately $300 million, is directly targeted for the resource or economic sector. On the other hand, the social sector is expected to consume 65.4% of the budget - about $2.3 billion. Because some traditional social-sector areas, such as education, are directly linked to economic performance, the challenge the Provincial Government faces, now and in the future, is to ensure that economic development considerations influence expenditure decisions.

While there are many opportunities which can contribute to economic growth, they must be pursued within a framework which is realistic and attainable. Too often, when setting goals for economic growth in the Province, achieving the Canadian average has been adopted as a medium-term target.

This, however, is probably unrealistic: over the medium term (5-10 years) - depending on the Canadian rate of growth -the Provincial GDP would have to grow between 4.4% and 12.3% a year to reach the Canadian average (Table 1).

A more realistic target may be for the Province to attain equality with the Maritime Provinces. The levels of economic growth necessary to reach the Maritime average are shown in Table 2. 

The Importance of Productivity and Competitiveness

In the expanding global economy, international competitiveness has become the most important single factor affecting economic growth or decline. Many of the Province's prospects for economic development, therefore, hinge on our willingness, determination and commitment to work together to build a more productive, diversified and efficient economy. One of the greatest challenges is to become more competitive while simultaneously improving the living standards, employment opportunities and real incomes of our people.

Newfoundland and Labrador's productivity performance, in particular, will be a key determinant of our ability to compete, but between 1975 and 1989, the Province experienced one of the lowest productivity growth rates in Canada. As a result, the difference in productivity between this province and the rest of Canada has increased and our economic problems have been compounded. The factors contributing to this disparity include differences in industrial structure, increasing seasonality in the employment of labour and capital, a small, widely dispersed population, lower levels of educational attainment, inadequate investment in capital for technological change, and a lack of cooperation among governments, business and labour. If this trend in productivity is not reversed it will have profound negative implications for our competitiveness, our economic growth and our overall standard of living.

To change this pattern, both old and new businesses in the Province will have to use modern production methods, invest in new technologies, provide adequate training and re-training, and produce higher value-added goods and services. We will all have to be adaptable to a changing work environment and be committed to life-long learning. And governments will have to become more efficient in providing quality public services and ensuring that their policies, programs and actions create an environment that supports real economic growth and diversification.

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Chapter Three - Charting the Course

Professor of Creative Writing

labradore suitably skewers Patrick O'Flaherty's latest column which - for reasons known only to O'Flaherty  - tries to cast the democratic referendum  on responsible government in 1948 in entirely ethic and sectarian terms.

O'Flaherty is a fiction writer, it should be noted, not a historian so some of his comments in the column  -  like the stuff about resources - can be put to an inherent tendency to make things up.

For those who can't figure it out, labradore's  title for the post translates as "money and the ethnic vote."

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Refinery economics not subprime crisis affected NLRC plans

NLRC's plans to build a 300,000 barrel per day refinery in Placentia Bay to serve the North American and European markets ran into financial difficulties apparently due to changing refinery economics, not the shortage of capital or other reasons originally offered by NLRC's director Brian Dalton.

In an interview on June 18, NLRC director Brian Dalton spoke to The Independent.

For some reason, the Indy held the interview with Dalton until this week, even though they had it before press time last week. The interview, on page seven of the June 27 issue gives a completely different perspective on NLRC's problems although the Indy story doesn't reflect the importance of what they had. The NLRC story is inside the paper; a front page story quotes the Premier on his recent efforts in Qatar to save the NLRC project and to promote other local energy projects. The front page focuses on trivial issues rather than on the more serious economic ones.

Neither story is available on line, as of June 27.

"Most refiners in North America have not made money in six months," Dalton says, [in The Independent]...

And that would be about right.

In a Canadian Press story that appeared across Canada the same day Dalton gave that interview, MJ Ervin analyst Cathy Hay said that in May 2008, North American refiners were seeing margins of around 10 cents per litre, compared with 28 cents per litre in May 2007. That's also about five to 10 cents below the margins expected during the peak summer months.

A company would "have to take a hard look at the numbers and figure what's going to happen next year. Is this a trend? If it is, your economics may no longer work," said one industry observer who asked to remain anonymous.

Late last week, some media reports were attributing NLRC's financial problems to the subprime crunch in the United States. According to CBC News, Dalton said the refinery project ran into troubles "due to the deterioration of global capital markets."

In March, Dalton gave similar reasons to Bloomberg:

"Effectively, the debt markets are closed at the moment,'' Dalton said. "It's not a pricing issue, it's just a general availability issue.'' The start of construction "depends very much on when the markets open. We're not going to start it unless we know we can finish it, that's for sure."

None of that matches Dalton's comments on tight refining margins, although tight margins would give investors pause before embarking on a $5.0 billion greenfield project aimed at the North American and European markets.

North American markets are likely shrinking owing to changing American consumer demand, even if only in the short term according to the Canadian Press story.

New refining capacity plus the increased use of alternative fuels like ethanol may also narrow global refining margins according to one Wood Mackenzie analyst. Allan Gelder told Bloomberg in April 2008 that he expects tighter margins through 2012.

European refineries are also experiencing tighter margins. That situation isn't likely to change in the short term.

While demand may be continuing in Asia and other parts of the globe, it's difficult to see the logic behind approaching Middle Eastern and Asian investors for the capital to build a refinery on the opposite side of the world from where the refined oil products would be marketed.

ARAMCO is continuing with its plans to invest in new refineries but those are not planned for Europe or North America. One project, in the Red Sea, would be strategically positioned to supply portions of Europe as well as growing markets in the Middle East, Africa and Asia. Another project, cracking Saudi heavy crude, would refine 400,000 barrels per day. It is planned for Saudi Arabia.

Other companies are investing in expansions to existing refineries in Europe, such as one at Wilton, UK.

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Update: The Indy front page story is now online but the story with real information in it - the one with Brian Dalton held - for some bizarre reason from the week before - is only in the print edition.