The Origins of Rentierism in Newfoundland and Labrador #nlpoli

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Over the next four days, SRBP will offer an interpretation of the political underpinnings of the current financial crisis.  This series goes beyond the immediate to place recent events in both historical and comparative, international perspective. 

The first two instalments briefly describe some characteristics of the political system and Newfoundland political history before 1934 and from 1949 to about 1990.  The third post will look at the concept of the rentier state and the relationship between dependence on primary resource extraction and politics at the subnational level (states and provinces).  The fourth post will place recent developments in Newfoundland and Labrador in the larger context. 

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Before 1949, the Newfoundland government’s main source of income was taxation of imports and exports.  The Amulree Commission reported, for example, that the government brought in around $8.0 million dollars in the fiscal year ending in 1933.  Of that, 71%  - $5.7 million  - came from customs and excise duties.  The next largest amount was $700,000 (about 9% of total) that came from income tax while the third largest source of income was postal and telegraph charges totalling slightly more than $587,000.

Newfoundland also had almost no experience of local government before the Commission Government in 1934.  St. John’s was the only incorporated municipality and the city council was quasi-independent of the national government. 

Beyond the capital city, the national government “managed a highly centralized system through the stipendiary magistrates stationed in each electoral district, “in the words of historian James Hiller in his recent note on the Trinity Bay controverted election trial in 1895(FN 1).  The central government also appointed the members of some local  boards to manage education and roads.  The money for all of it came from accounts controlled by St. John’s.

The members of the House of Assembly had enormous control over government and that public money.

Hobson’s Choice #nlpoli

The provincial Conservatives love to spend public money. 

That doesn’t sound very conservative and it isn’t.  Politically, the provincial Conservatives in Newfoundland and Labrador are more like Republicans than the Progressive Conservatives who used to run the province in the 1980s. American Republicans like to cut federal taxes and jack up federal spending and then blame the resulting financial meltdown on the Democrats.

Around these parts, the Reform-based Conservative Party, as the Old Man used to call them, blames everything on the Liberals.  That is the Liberals who, in case you missed it,  haven’t been in power in a decade.

After ever after

-srbp-

Not so funny now, is it, Peter? #nlpoli

-srbp-

The Wrong Tool #nlpoli

About two thirds of the people in the province who file tax returns earn less than $35,000 a year before taxes.

It’s the kind of detail that you cannot banish from your mind when you read about the politically popular economist Wade Locke.  The guy who directly and indirectly helped the provincial government create the current financial mess is on a leave from his university job to help with the new budget.

As the Telegram reported on Wednesday, Locke’s “contract with the government stipulates that he'll be paid $250 per hour for his consulting work to a maximum of $75,000.”  That would be on top of the 80% or more of his university salary that he is entitled to for being on what the faculty contract calls a “sabbatical” leave.

The Telegram also reported that Locke said he would only bill taxpayers one dollar at the end of his contract.  Let’s take him at his word.

Still, you have to wonder why he would sign a contract in the first place for more than twice what most people in the province make in a year.  Don’t misunderstand.  A consultant should get what he can earn and if Locke can get someone to pay $250 an hour for his services, then more power to him.  Given the context, though,  the contract is still rather distasteful.

Locke’s supporters will defend any amount of money because they value his advice. And that’s really where we can peel back the cover on this little can and see what is inside.

Land of Confusion meets World of Hurt #nlpoli

From Tuesday’s Hansard comes this chilling reminder that even the Premier has no idea what is going on with the province’s finances.

Mr. Speaker, I again have to implore the members opposite to stop pretending that you do not understand the fiscal structure of the Province. The $600 million that was earmarked in the Department of Natural Resources was not contained in the current budget, Mr. Speaker. That was contained in investment. There is a difference between a capital budget, the investment budget, and the current budget. 

Muskrat Falls has nothing to do with the deficit we are experiencing this year…

Let’s break it down.

The Ongoing Net Debt Fallacy #nlpoli

In a post that starts out about Muskrat Falls, the Telegram’s James McLeod does a fine job of laying out some basic information about debt, deficit, current account, capital account and other bits of the provincial budget.

Read it.  Unless you have been living this sort of stuff up close for years, you will learn something.  If nothing else, you’ll get some insight into how some local politicians have been buggering up this sort of stuff because frankly it is complicated and they don’t understand it.

Regular readers of these scribbles will know that SRBP includes Kathy Dunderdale and Tom Marshall among the people who get confused.  You can add others from all parties.

The Arse that Laid the Golden Turd #nlpoli

The provincial cabinet has been burning the midnight oil the past couple of nights. 

Literally. 

Late night sessions that ended God-knows-when, night after night.

Apparently, they are trying to figure out what to do in order to get out of the massive financial and political hole they have dug for themselves over the past decade.

As bizarre as that might seem to some people,  the politicians who created the mess have no idea yet what they are going to do.  All that Premier Kathy Dunderdale and finance minister Jerome Kennedy have been able to offer lately are lots of vague comments about when the budget might be or how many lay-offs there might be. Dunderdale put a number of 500 lay-offs out there a few days ago but frankly, that’s about as reliable as her forecasts from last year. 

And when Jerome told David Cochrane that they were still working out the Sustainability Plan, he was not bullshitting.  He meant it, even though he claimed they had already started implementing the plan last year.

If you are familiar with government budgets and how these things normally get sorted, then odds are you are reading this now that someone has been able to revive your unconscious form.  

Are you ready for this again? #nlpoli

It seems like only yesterday that the young man from the Pearl was the mayor of the cozy city.

-srbp-

Tories below 30 #nlpoli

By now you’d be living in a cave if you hadn’t heard any news of the latest Corporate Research Associates poll.

The NDP are slightly ahead of the Tories and both are about 10 percentage points ahead of the Liberals.  More people want Lorraine Michael as Premier than want Kathy Dunderdale.  And a majority are unsatisfied with the government.

Now this is an historic set of poll results as Don Martin tweeted to tease people about the release on Monday morning.  The release doesn’t make any reference to that, preferring instead just reporting the results blandly.  By contrast, Mills hyped the living crap out of poll results a few years ago that hit historic highs. 

More and Less #nlpoli

Finance minister Jerome Kennedy is supposed to know about the economy and stuff.

During an interview with CBC provincial affairs reporter David Cochrane for On Point, Kennedy said that in the 1990s the government was the main employer in the province.  The implication was that the public sector wasn’t what it used to be.  People laid off from the public service could find work much more easily in the private sector as a result.

Well…

Err…..

No.

Muskrat Falls weakness: the North Spur #nlpoli

The north side of the site of the future Muskrat Falls dam has a problem.  The soil is made up of clay that has a tendency to sheer away in landslides when it gets too wet. The North Spur, as it is known, is a key part of the reservoir.

Cabot Martin has documented the whole thing in a slide presentation based on documents released during the environmental reviews of the project.

According to Martin, Nalcor won’t have a potential solution to the problem or know the cost until sometime this year.

No adult supervision #nlpoli

Not even 24 hours after the Premier insisted that the daily layoffs would continue until finance minister Jerome Kennedy delivered his budget speech,  Jerome issued a news release  - at 1:30 PM - announcing that they would be holding off on further layoff announcements until he delivered the budget speech.

As it turned out, NTV’s Mike Connors had tweeted around noon that the “Premier says government has decided to stop the trickle of layoffs until budget day.”  CBC’s David Cochrane tweeted the same thing.

Cochrane and Connors also noted that -  as Cochrane put it -  “Premier says more than 500 jobs will be cut in budget. Not all layoffs. There is retirement incentive. No more cuts until budget.”

Meanwhile, 17 employees in a raft of departments got word today that they were headed for the door. 

Apparently, those are the last ones until the budget speech.

Body Count #nlpoli

“We've now confirmed 98 layoffs across government today,” tweeted CBC provincial affairs reporter David Cochrane on Thursday afternoon.  “Working on departmental breakdown…” 

Cochrane broadcast the casualty figures for each department later:

Breakdown by department: 10 Advanced education/skills. 6 CYFS. 13 Environment. 4 Finance. 6 Fisheries. 23 Health. …7 Exec Council. 2 IBRT. 10 Justice. 9 Natural Res. 2 Tourism. 6 Transportation. 62 of 98 jobs cut were union jobs.

That’s the way it has been for the province’s political reporters since the end of February. Cochrane, NTV’s Mike Connors, and the Telegram’s James McLeod tweet on how many layoffs happened on that day, the number in each department,  how many belonged to which union and how many were non-unionised.

No planning and priorities: Conservative cabinet committees - 2013 #nlpoli

There’s one little gem in James McLeod’s pile of censored orders in council that isn’t censored.

It dates from January 2013 and gives the current list of cabinet committees.

There’s the economic policy committee:

There’s the social policy committee:


There’s the treasury board:

And there’s the routine matters committee:

Charlene Johnson and Tom Hedderson also sit on that routine committee.

There’s a curious omission in this list and it doesn’t appear to be a case where the committee make-up didn’t change after the cabinet shuffle with Jerome Kennedy and Tom Marshall.

There’s no planning and priorities committee, apparently. That’s odd because P and P is usually the key cabinet committee chaired by the Premier and responsible for the strategic direction of government. Kathy used to have one in her cabinet.  Every cabinet in Canada uses a planning and priorities committee.  Most have had one for the past three decades or more.

At some point, the Newfoundland and Labrador one seems to have vanished without an effective replacement.

That would explain a great deal.

It would explain, for example, why the Premier often seems to be unaware of what is going on inside her government.  She wouldn’t know because she doesn’t appear to have anything to do with the running of cabinet.  And that, more than anything else, is what the Premier is supposed to be doing. 

Rather than being the boss, Kathy Dunderdale often appears to be nothing more than the government’s official spokesperson, the dead parrot as it were.

In the absence of a P and P committee,  cabinet would have to hope that the key committee chairs could sort out among themselves what to do.  They would be:

• Joan Shea, chair of economic policy,
• Susan Sullivan, chair of social policy, and,
• Jerome Kennedy, president of treasury board.

Whatever the government is doing, these three would know about it and approve of it. 
In December 2010, cabinet had a P and P committee.  It’s members were:

-srbp-

The New Secret Nation #nlpoli

On the front page of Wednesday’s Telegram was another instalment in James McLeod’s blockbuster on the provincial government’s policy of censoring public documents.

This one focused on the claim by a spokesperson for the public engagement office that orders in council were not covered by a section of the province’s access to information law that prohibits disclosure of cabinet decisions even though the orders are essentially cabinet decisions.

At the same time, the spokesperson said the orders were subject to other sections of the act that allowed government officials to censor them selectively.

Yes, that is exactly as screwed-up as it sounds.

Exploits on the Exploits #nlpoli

In Nova Scotia, the provincial government has to beat prospective woods companies with a stick to keep them in line in the rush to take control of lands from the former Bowater mill in that province.

Seven groups want to get some part of the 220,000 hectares, a power plant, a mill site and all the timber that used to go into the paper plant.

Pennies and Pounds #nlpoli

In May 2011, the provincial public works department issued a call for proposals to replace the lift bridge in Placentia.

In August 2011, the department scrapped the project and went back for a re-think.  They got only one proposal for $43.25 million, which upset them given that they had figured it would only cost $24 million.

In March 2013, they accepted a tender for $40.6 million to replace the bridge. The release noted that the new tender was $2.5 million less than the one they’d cancelled.

Nice thought, that, but it actually isn’t a true reflection of the situation, is it?

Budgeting Control and Resources #nlpoli

Shortly after the 2003 general election, the newly elected Conservative politicians accepted a proposal to cut down the number of health boards and education boards across the province.

Save money, they said.

Save money, the politicians repeated.

And so it happened.

As it turned out, the consolidation didn’t save any money.  It certainly didn’t reduce the public service payroll, a goal the Conservatives set out in their election platform.

Where once they stood… #nlpoli

Labour federation boss Lana Payne made an interesting comment on Twitter over the weekend:  “there is never a time for austerity.”

Never.

Ever.

You can hear all those Newfoundland politicians from the 1920s applauding her from the grave.  Those were the same politicians who spent the government into bankruptcy in about a decade.

-srbp-

Just when we needed new ideas… #nlpoli

There’s no small laugh to be had listening to Wade Locke, the government’s favourite economist.

He was all over the media on Monday talking about fiscal responsibility, cutting spending and all that sort of stuff.  You can find a tidy summary from the Telegram.

A couple of decades ago, Locke was advising the public sector unions.  Back then he was all in favour of borrowing and spending and spending and borrowing despite the crushing public debt and the most severe economic downturn since the Great Depression. Fast forward and Wade’s singing a different tune.

The laughs Locke can generate get much bigger when you look at the rest of what he had to say to reporters.

Kent to preside at envelope opening #nlpoli

As we approach the umpteenth anniversary of the internationally-accessible Internet, a website is about as far from news as anyone can get.

That’s why it was so laughable last week to see the junior fart-catcher apprenticed to the province’s minister of secrecy and obfuscation issuing a news release and holding a news conference to herald a completely trivial event like the launch of a new front page (!) to a website..

The only thing left for Steve Kent to do is invite the representatives of the province’s news media to gather ‘round as he opens an envelope. Even the Voice of the Cabinet Minister might not attend that sort of snore-fest or the subsequent events in the series: Kent to check e-mail and Kent posts Twitter message.

Censoring Public Documents… or not #nlpoli

Not only does the provincial government now censor public documents called orders in council, they can’t get their own scheme right.

Public engagement minister Keith Hutchings published a letter to the editor claiming that government had always censored orders in council.  The Telegram dutifully went back and asked for some of the same documents they’d received before with censored sections blacked out.

A front-page story in this Saturday’s edition (March 2) lays out the details.

Party Spending on Polls #nlpoli

Over the past decade, the provincial Conservatives have consistently outspent the other parties in the province on polling and similar research in both election and off years, according to figures filed with the province’s elections office.

The table below shows the amounts each party reported as spending on research and polling. In general election years, the figures are the reported figures for the general election periods.  Parties also may have spent money outside the election period. That isn’t included here.

General Election Cost Per Vote - Updated #nlpoli

Last fall, we looked at cost per vote for provincial general elections.  At the time, Election NL hadn’t released the 2011 general election figures but with those numbers now available, it’s time to update the earlier comparison.

Two things to note:

• first, these comparisons are only for election period spending by each of the three parties.  Last fall we looked at total spending by the parties throughout the year.
• second, the chart is a bar instead of a line graph.  This is a better visual presentation since the individual yearly comparisons are still there without implying any connection from one year to the next.

Some evidence #nlpoli

A few years ago, some people believed that comments left on news stories and in online discussion groups could influence public opinion.

As it turns out, no one took any advice about anything from some person called newfiesexgod27.

Who knew?

Influence and Manipulation #nlpoli

Public opinion changes.

Individuals don’t hold exactly the same attitudes about things throughout their entire lives.

That’s true of how the typical man or woman feels about clothing styles, cars, movies, books, politics, or just about anything else.

Not surprisingly in a society like ours, there are people who want to try and change opinions and attitudes.  They want to persuade people to buy a product, support a political decision or stop doing something like smoking.

Also not surprisingly, we have some basic ideas about how people should do that.

Copper-fastened #nlpoli

According to the Telegram editorialist argued last week, this fuss over renovations was nothing at all.

At any rate, renovations planned long in advance — to keep the legislature from falling apart — are hardly a fair target for criticism.
It’s fair to say if the Opposition’s roof was leaking, they’d be singing a different tune.

This conclusions assume one thing not actually disclosed in media reports on the need to relocate three floors of the Confederation Building tower and another thing that’s actually preposterous.

Some Free Advice for Paul Lane #nlpoli

Paul Lane.

Paulie.

Pepsi-man.

Snook-ums.

You are embarrassed.

Someone ratted you out and made you look like bad.

You hid out for four days.

Not the smartest strategy ever, but hey.

You got pissy with people on Twitter and your performance on Here and Now was…well…vintage Paul Lane
.
Just remember:

Politicians have survived far worse scandals than a leak of a few text messages that show you and all your colleagues treat totally irrelevant online polls like they actually mattered.

Politicians have survived acting like far bigger jerks than you could ever be in your wildest dreams.  They have made it through sex scandals, assorted other personal indiscretions, financial shenanigans, electoral irregularities, and a raft of other things infinitely worse than what has happened to you in your very short political career.

But…

once the public starts laughing at you … in public … to your face … well…

you are screwed.

Totally.

Just sayin’.

-srbp-

A Record of Manipulation #nlpoli

With a tip of the hat to Gerry Rogers and Andrew Parsons, here are some posts from the SRBP archive that all bear on the current political mess in which the provincial Conservatives find themselves.

“Playing the Numbers”  (August 2006) One element of the program involves aggressively pushing out their own message, especially when their pollster is in the field.   The first of the original three-part series that described the Conservative media strategy.  There’s a lot more to it than just online polls. Follow the links for the other two.

Freedom from Information  (Various)  Bill 29 was just the latest in a long string of efforts by the Conservatives to restrict what the public knows.  Controlling information is another key element of the government program.

“Mark Griffin:  traitor”  (February 2009)  A third element of the program involved efforts to suppress dissent.  Mark Griffin was an especially glaring example. There have been lots of others, reported and presumably unreported.  Write a letter? Get a call. 

“Everything else is advertising”  (December 2009) News is everything they want to keep you from seeing.  There’s no story here.

“Deep Throat” (February 2010) Someone inside the provincial Conservative crew leaked the messages about poll goosing. Earlier, someone (else?) dropped a quarter and ratted Danny’s secret heart surgery out to NTV.

“The Screaming of the Banshees”  (February 2010)  NTV broke the story.  The Conservatives mount an organized attack on CBC.  Some people still think that the who horde of people saying exactly the same thing arose spontaneously.  Sure it did.

“Planted Calls and Personal Threats Against Talk Show Host Revealed”  (August 2010)  Randy Simms, interviewed by Geoff Meeker, included a text-book definition of a planted caller.

“Enough of the Political Day-Care” (March 2012) As soon as you read it, you will remember the episode.  What might leap out more for someone of you now than before is the idea that calling Open Line was a threat that struck fear into Tory hearts.

-srbp-

Live from the Orchestra Pit #nlpoli

Newfoundlanders and Labradorians got a vivid example on Thursday of the Orchestra Pit Theory of Political reporting.

For those who don’t know the story, the Orchestra Pit theory goes like this:  two politicians are on the stage.  One announces a cure for cancer.  The other falls into the orchestra pit.  The media will cover the guy in the pit.

Well, the guy in the pit on Thursday was Brad Cabana.

She’s Got Marty Feldman Eyes #nlpoli

If you want to see a politician under significant stress, take a look at Kathy Dunderdale talking to reporters about her party’s heavily organized effort to goose unscientific, online polls.

Her voice is high pitched.

She’s moving around.

And she’s got Marty Feldman Eyes.

So why did they lie? #nlpoli

CBC’s David Cochrane contacted the public works department*  Premier’s Office and asked about rumours he’d heard of renovations to the Premier’s Office.

As Cochrane reported on Twitter, the public works department Premier’s Office told him that there were no renovations currently happening.

Not exactly true, as it turned out.

“Doom and gloom” #nlpoli

Seems that finance minister Jerome Kennedy isn’t the only fellow out there conducting the annual budget “consultation” farce this year.

According to the Southern Gazette, justice minister Darin King “acknowledged, as part of a small cabinet committee appointed by Premier Kathy Dunderdale to bring budget recommendations back to government, he was asked to split the pre-budget consultations with Mr. Kennedy.”

Apparently, the idea is to have a bunch of ministers fan out across the province so they can come back with ideas on how to get through a “couple of years” when oil production will be down and things will be tough.

A couple of years.

Only two years?

That’s an interesting way to put it.

What’s more interesting is the way the Southern Gazette led into their story on the Marystown session:

It was largely more ‘doom and gloom’ from Justice Minister Darin King, as he conducted a provincial pre-budget consultation in Marystown Friday afternoon.

Yuck.

King had company at his session.  Education minister Clyde Jackman tagged along.

And that small group King mentioned?  It includes Nick McGrath, the province’s government services minister. 

-srbp-

High-Priced Cow Pats #nlpoli

The Atlantic Provinces Economic Council thinks the provincial government should do something about its spending, what with declining revenues.

Well, you know.

Sort of.

Maybe.

Who farted? #nlpoli

Finance minister Jerome Kennedy took his budget “consultation” roadshow to Corner Brook the other day.  Former finance minister Tom Marshall showed up to help.  Tom has run more than a few of these farces so he could lend a hand if things got tough.

Well, all that was one thing.

The other thing is the way the video freezes in the online CBC story on the “consultation” in Corner Brook. 

A Commitment to Secrecy #nlpoli

The justice department is the lead department enforcing the provincial access to public information law.

As such, it’s a pretty serious indictment of the government’s commitment to public access when the justice department violates the access law.

From the access commissioner’s summary of his report into the latest complaint against the justice department:

The Applicant submitted two access to information requests to the Department of Justice dated June 15, 2012. … The Applicant received no response to his request for information regarding psychiatric services until November 9, 2012, when the Department responded to both this Office and the Applicant as a result of his Request for Review submitted to this Office in October. This four and half month delay occurred despite the fact that the majority of information was in the custody or control of the Department and required little redaction. The request with respect to payment information was responded to on August 24, 2012, when the Department notified the Applicant that no records existed. There was no communication with the Applicant to explain the reasons for the delay in either case. The Commissioner found that in both cases there was a breach of both sections 9 and 11 of the ATIPPA. …

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Who knows the mind of a squid? #nlpoli

[Almost Immediate Update at the bottom]

Why do they do it?

People keep asking why the provincial Conservatives spend so much time and tons of public money goosing the VOCM question of the day in the way that supports whatever the Tories are supporting at the moment.

It is a mystery, gentle readers.

It is inscrutable.

Like the ways of the Lord, it passeth all understanding by those of us who have not touched the hem of Hisself’s garment or who don’t hang around churches chowing down on breakfast, lunch or dinner, like current poll goosing ring-master Paul Lane apparently does.

Muskrat Falls: delayed dividends, more equity needed #nlpoli

The provincial “mid-year” financial update included a familiar claim about the Muskrat Falls project:

We estimate that the province will see revenues in excess of $20 billion over 50 years beginning in 2017, with average annual revenues of $450 million over this period.

But a new analysis of the project cash flows by JM shows that it will be 2031 before the provincial government will realise any genuine dividends from the project.  What’s more,  it will be sometime around 2048 before the dividends would reach as much as $200 million.

That’s not all.  The provincial government will have to inject upwards of $100 million over and above any amounts described to date in order to maintain the debt-service coverage ratio (DSCR) of 1.4 during the first five years of the project as required by the federal loan guarantee.

When you consider the equity repayment, the required debt service ratio, and include the potential upside from power exports, Muskrat Falls will be in operation for nearly two decades before the net returns to the Government of Newfoundland will match that presently provided by the Upper Churchill. This statement is one which is not fully understood by even the most buoyant supporters or sharpest critics of the Muskrat Falls project. [page 2]

If the next two years are bad… #nlpoli

[Stick to your Lane Update:  See bottom]

No surprise that on the day after natural resources minister Jerome Kennedy talked about looming deficits of pre-1934 proportions that the ruling Conservatives did two things.

First, backbencher Paul Lane reinterpreted Kennedy’s comments on VOCM Open Line with Randy Simms.  There will only be big deficits, says Lane, if we don’t do anything about it. 

Second, Jerome Kennedy didn’t tell the people at his first pre-budget “consultation” anything of what he planned to do over the next few years. 

Time to Break the Cycle #nlpoli

Jerome Kennedy told reporters on Wednesday that  he and his officials are forecasting that the provincial government will rack up almost $4.0 billion in deficits over the next three years.

That consists of about $725 million this year, followed by two years in which the government will spend $1.6 billion each year than it will take in.

None of that should come as a surprise to any regular SRBP readers.  This corner has been warning about the current administration’s spending practices since 2006. 

So now what?

Water, water, everywhere…#nlpoli

Before they took office in 2003 – an election year -  the province’s Conservatives pounded the incumbent Liberals for the poor quality of drinking water across the province.

Danny Williams thought the whole thing was such a big problem that he promised to make drinking water a key part of the Conservative agenda after the 2003 election.

Once in office, the Conservatives did nothing about drinking water at all.

Newfoundland Act, 1949 (Terms of Union)

Newfoundland Act

12 & 13 Geo. VI, c. 22 (U.K.)

An Act to confirm and give effect to Terms of Union agreed between Canada and Newfoundland.

[23rd March 1949.]

Whereas by means of a referendum the people of Newfoundland have by a majority signified their wish to enter into confederation with Canada;

And whereas the Agreement containing Terms of Union between Canada and Newfoundland set out in the Schedule to this Act has been duly approved by the Parliament of Canada and by the Government of Newfoundland;

And whereas Canada has requested, and consented to, the enactment of an Act of the Parliament of the United Kingdom to confirm and give effect to the said Agreement, and the Senate and House of Commons of Canada in Parliament assembled have submitted an address to His Majesty praying that His Majesty may graciously be pleased to cause a Bill to be laid before the Parliament of the United Kingdom for that purpose;

Be it therefore enacted by the King's Most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:--

1. The Agreement containing Terms of Union between Canada and Newfoundland set out in the Schedule to this Act is hereby confirmed and shall have the force of law notwithstanding anything in the Constitution Acts, 1867 to 1940.

2. In accordance with the preceding section the provisions of the Newfoundland Act, 1933, other than section three thereof (which relates to guarantee of certain securities of Newfoundland) shall be repealed as from the coming into force of the said Terms of Union.

3.This Act may be cited as the Newfoundland Act.

Letters Patent (1934)

Letters Patent

Passed under the Great Seal of the United Kingdom, constituting the Office of Governor and Commander-in-Chief of the Island of Newfoundland and its Dependencies.

[Dated January 30th, 1934]

GEORGE THE FIFTH, by the Grace of God of Great Britain, Ireland, and the British Dominions beyond the Seas, King, Defender of the Faith, Emperor of India: To all to whom these Presents shall come, Greeting:

WHEREAS, by certain Letters Patent under the Great Seal bearing date at Westminster the Twenty-eight day of March, 1876, Her Majesty Queen Victoria did constitute the Office of Governor and Commander-in-Chief in and over Our Island of Newfoundland and its Dependencies;

And Whereas, by further Letters Patent bearing date at Westminster the Seventeenth day of July, 1905, His Late Majesty King Edward the Seventh did amend the aforesaid Letters Patent;

And Whereas We have received an Address from the Legislative Council and House of Assembly of the said Island praying that We may be graciously pleased to suspend the aforesaid Letters Patent and to issue new Letters Patent which would provide for the administration of the said Island, until such time as it may become self-supporting again, on the basis of the recommendations which are contained in the Report of the Royal Commission appointed by Us on the Seventeenth day of February, 1933, and of which a summary is set out in the annex to the said Address;

And Whereas by an Act of the Parliament of Our United Kingdom of Great Britain and Northern Ireland entitled the Newfoundland Act, 1933, it was provided that it should be lawful for Us by any Letters Patent under the Great Seal to make provision for the suspension of the operation of the aforesaid Letters Patent of the Twenty-eight March, 1876, and the Seventeenth July, 1905, and to make provision for the administration of Newfoundland during the period whilst the operation of the aforesaid Letters Patent is suspended;

Now know ye that We do hereby declare Our will and pleasure to be that as from the coming into effect of these Our Letters Patent, the operation of the aforesaid Letters Patent of the Twenty-eight March, 1876,, and the Seventeenth July, 1905, shall be suspended pending the further declaration of Our pleasure, without prejudice to anything lawfully done thereunder: and We do further ordain that during the period whilst the operation of the aforesaid Letters Patent is suspended, the following provisions shall be made for the administration of Our Island of Newfoundland and its Dependencies:--

I. We do by these presents order and declare that there shall be a Governor and Commander in Chief (hereinafter called Our said Governor) in and over Our Island of Newfoundland; and the Islands adjacent; and all the Coast of Labrador from a line drawn due North from the eastern boundary of the bay or harbour of Anse Sablon on the said Coast to the Fifty-second Degree of North Latitude, and from thence westward along that parallel until it reaches the Romaine River and then northward along the left or east bank of that river and its headwaters to their source and from thence due north to the crest of the watershed or height of land there and from thence westward and northward along the crest of the watershed of the rivers flowing into the Atlantic Ocean until it reaches Cape Chidley; and all the islands adjacent to that said part of the Coast of Labrador; and also of all Forts and Garrisons erected and established, or which shall be erected or established; within or on the Islands and Coast aforesaid (which said Islands and Coast, together with the Island of Newfoundland, are hereinafter referred to as Our said Island), and that the person who shall fill the said Office of Governor shall be, from time to time, appointed by Commission under Our Sign Manual and Signet. And We do hereby authorise and command Our said Governor to do and execute in due manner all things that shall belong to his said Command, and to the trust We have reposed in him, according to the several Powers and Authorities granted or appointed by virtue of these Present Letters Patent, or any Letters Patent amending the same, and of such Commission as may be or may have been issued to him under Our Sign Manual and Signet, and according to such Instructions as may from time to time be given to him under Our Sign Manual and Signet, or by Us through one of Our Principal Secretaries of State, and according to such Laws and Ordinances as are or shall hereafter be in force in Our Said Island.

II. And We do hereby declare Our pleasure to be that there shall be a Commission of Government for Our said Island (hereinafter called the said Commission) and that the said Commission shall consist of six persons ordinarily resident in Our said Island and three shall be persons ordinarily resident without Our said Island. Every such person shall hold his place in the Commission during Our pleasure.

III. Whenever any Member of the said Commission shall by writing under his hand resign his place in the said Commission or shall die or be suspended from the exercise of his functions as a Member of the said Commission or be absent from Our said Island or be declared by the Governor to be incapable of exercising his functions as a Member of the said Commission, the Governor may, by an Instrument under the Public Seal, appoint some person to be provisionally a Member of the said Commission, in the place of the Member so resigning or dying or being suspended or being absent or declared incapable. Such person shall forthwith cease to be a Member of the said Commission if his appointment if disallowed by Us or if the Member in whose place he was appointed shall be release from suspension or, as the case may be, shall return to Our said Island or shall be declared by the Governor capable of again discharging his functions in the said Commission. The Governor shall without delay report to Us, for Our confirmation or disallowance, through one of Our Principal Secretaries of State, every provisional appointment of any person as a Member of the said Commission during Our pleasure and the Governor may, by an Instrument under the Public Seal, revoke any such appointment.

IV. And We do hereby direct and enjoin that the said Commission of Government shall not proceed to the despatch of business unless duly summoned by authority of Our said Governor, and unless three Members at the least (exclusive of himself or the Member presiding) be present and assisting throughout the whole of the meetings at which any such business shall be despatched.

V. And We do further direct and enjoin that Our said Governor do attend and preside at the meetings of the said Commission of Government, unless when prevented by some necessary or reasonable cause; and that in his absence such Member as may be elected to be Vice-Chairman by the said Commission from among the Members of the said Commission who are persons ordinarily resident in Our said Island shall preside at all such meetings.

VI. And We do further direct and enjoin that a full and exact Journal or Minutes be kept of all the deliberations, acts, proceedings, votes and resolutions of the said Commission and that at each meeting of the said Commission the Minutes of the last meeting be read over, confirmed, or amended, as the case may require, before proceeding to the despatch of any other business. And We do further direct that twice in each year a full transcript of all the Minutes of the said Commission for the preceding half year be transmitted to Us through one of Our Principal Secretaries of State.

VII. And We do further authorize and empower Our said Governor, with the advice and consent of the said Commission, to make laws for the peace, welfare and good government of Our said Island, and any such Law may amend, add to, alter or repeal any law passed by the Legislature heretofore subsisting in Our said Island.

VIII. And We do further direct and enjoin that the style of such laws shall be by "the Governor, by and with the advice of the Commission of Government" and no other.

IX. And We do further direct and enjoin that no Bill. Vote, Resolution or Address for the appropriation of any part of the public revenue or for imposing any tax or impost shall be passed or adopted by the said Commission unless such Bill, Vote, Resolution or Address have first been recommended by Our said Governor.

X. And We do further direct and enjoin that all laws shall be enacted and all other matters coming before the said Commission shall be decided by unanimity or, if on any matter there be not unanimity, by a majority of the votes given, and in the latter event Our said Governor and each Member of the Commission actually present shall each exercise one vote.

XI. And We do further direct and enjoin that no law made by Our said Governor with the advice and consent of the said Commission shall take effect until Our said Governor shall have assented thereto in Our name and shall have signed the same in token of such assent.

XII. It shall be lawful for Us, Our heirs and successors, by Order of Our or Their Privy Council laws to disallow any law within one year from the date of the Governor's assent thereto and such disallowance, on being made known by the Governor by Proclamation in the Gazette, shall annul the law from the day when the disallowance is so made known.

XIII. And We do further authorize and empower Our said Governor to keep and use the Public Seal of Our said Island for sealing all things whatsoever that shall pass the said Public Seal.

XIV. And We do further authorize and empower Our said Governor, in Our name and on Our behalf, to make and execute, under the said Seal, grants and dispositions of any lands which may be lawfully granted or disposed of by Us within Our said Island.

XV. And We do further authorize and empower Our said Governor to constitute and appoint all such Judges, Justices of the Peace, and other necessary Officers in Our said Island as may be lawfully constituted or appointed by Us.

XVI. And We do further authorize and empower Our said Governor, as he shall see occasion in Our name and on Our behalf, when any crime has been committed within Our said Island, or for which the offender may be tried therein, to grant a pardon to any accomplice, not being the actual perpetrator of such crime, who shall give such information and evidence as shall lead to the apprehension and conviction of the principal offender; and further, to grant to any offender convicted of any crime in any Court, or before any Judge, Justice, or Magistrate, within Our said Island, a pardon, either free or subject to lawful conditions, or any respite of the execution of the sentence of any such offender, for such period as to Our said Governor may seem fit, and to remit any fines, penalties, or forfeitures, which may become due and payable to Us. Provided always that Our said Governor shall in no case make it a condition of any pardon or remission of sentence that the offender shall be banished from, or absent himself from Our said Island.

XVII. And We do further authorize and empower Our said Governor, so far as We lawfully may, to remove from his office, or to suspend from the exercise of the same, any person exercising any such office of place within Our said Island, under or by virtue of any Commission or Warrant granted, or which may be granted, by Us in Our name, or under Our authority.

XVIII. If the Governor shall be unable to administer the Government of Our said Island by reason of any of the following causes, namely, death, incapacity, removal or departure from the Island, Our Lieutenant-Governor or if there shall be no such Officer in Our said Island or if such Officer shall be unable to administer the Government of the Island by reason of any of the causes aforesaid, then such person or persons as We may appoint, under Our Sign Manual and Signet, shall, during Our pleasure, administer the Government of the Island, with all the powers and authorities vested in Our said Governor by these Our Letters Patent according to the tenour of these Our Letters Patent and according to Our Instructions as aforesaid and the laws of Our said Island.

XIX. In the event of Our said Governor having occasion to be temporarily absent for a short period from the seat of Government, or from Our said Island for the purpose of visiting Our Dominion of Canada on public business, he may in every such case by an Instrument under the Public Seal of Our said Island, constitute and appoint Our Lieutenant-Governor, or if there be no such Officer, or if such Officer be absent or unable to act, then any other person, to be his Deputy during such temporary absence, and in that capacity to exercise, perform, and execute for and on his behalf during such absence, but no longer, all such powers and authorities vested in Our said Governor, by these Our Letters Patent, as shall in and by such Instrument be specified and limited, but no others.

Every such Deputy shall conform to and observe all such instructions as Our said Governor shall from time to time address to him for his guidance.

Provided, nevertheless, that by the appointment of a Deputy as aforesaid, the power and authority of Our said Governor shall not be abridged, altered, or in any way affected, otherwise than We may at any time hereafter think proper to direct.

Provided further that if any such Deputy shall have been duly appointed it shall not be necessary during the continuance in office of such Deputy for any person to assume the Government of Our said Island as Administrator thereof.

XX. And We do hereby require and command all Our Officers, Civil and Military, and all other inhabitants of Our said Island, to be obedient, aiding, and assisting unto Our said Governor, or in the event of his death, incapacity, or absence, to such person or persons as may from time to time, under the provisions of these Our Letters Patent, administer the Government of Our said Island.

XXI. In the construction of these Our Letters Patent the term "Governor" shall, unless inconsistent with the context, include every person for the time being administering the Government of Our said Island.

XXII. And We do hereby reserve to Ourselves, Our heirs and successors, full power and authority from time to time to revoke, alter, or amend these Our Letters Patent as to Us or Them shall seem meet.

XXIII. And We do further direct and enjoin that these Our Letters Patent shall be read and proclaimed at such place or places as Our said Governor shall think fit within Our said Island of Newfoundland, and shall come into operation on a day fixed by Our said Governor by Proclamation in the Official Gazette.

In Witness whereof We have caused these Our Letters to be made Patent. Witness Ourself at Westminster, the Thirtieth day of January in the Twenty-fourth year of Our Reign.

By Warrant under the King's Sign Manual.

SCHUSTER.

-srbp-

The road not taken #nlpoli

Word that the Town of Badger is having problems with flooding – again – is a reminder of a couple of small hydro projects at Badger Chute and Red Indian Falls that would have helped relieve the flooding threat.

 

-srbp-

The Latest Candidate Who Never Was #nlpoli

CBC news reported last week that Scott Simms won;t be pursuing the provincial Liberal leadership.

That’s no surprise because the federal member of parliament was never really thinking about becoming a candidate.

If you look at the story in late January and now you cans ee something else.

Score Two for the Telly #nlpoli

James McLeod’s Telegram front-pager – above the masthead no less – on John Noseworthy’s $150,000 contract with the provincial government got all the facts right.

He nailed it all, in detail.

Plus he provided the complete explanation offered by Joan Shea, the minister of the department that gave Noseworthy the contract.

That was one.

Muskrat Mania #nlpoli

• Nova Scotia “energy consultants pan Muskrat Falls project”.
• “Let’s wait for URB verdict”:  former NS NDP leader
• Ekuanitshit Innu suing over Muskrat Falls. (French)
• Nalcor excluded the George River herd from Muskrat falls impact study according to  Ekuanitshit commentary on MF environmental review:

Effects on the George River herd

Generally speaking, the proponent’s optimism with respect to the effects of the project on caribou cannot be justified merely by its very selective description of the effects on certain herds.

The George River herd was arbitrarily excluded from the impact study:

“More recently, the GRH has wintered west of the northern end of the Study Area in Central and Southeastern Labrador. Since the Study Area receives inconsistent seasonal use by this herd, any use of the area is likely to be by individuals or small groups rather than thousands of caribou. Due to the limited nature of any likely Project interaction with the GRH, it has not been carried forward in this assessment.” (EIS, p. 12-102)

It is arbitrary to exclude the herd since in its EIS, Nalcor recognized that the herd had recently been present in the study area chosen by the proponent:

“Migratory caribou are typically tundra dwelling and are characterized by their extensive seasonal migrations between winter and calving grounds (Bergerud et al. 2008). Currently, the 15 province recognizes the George River Herd (GRH) as the migratory ecotype. This herd has recently wintered in the vicinity of the Study Area in Labrador (such as observed by the Study Team in the winter of 2009 to 2010).” EIS, p. 10-93

In its addendum to the EIS however, Nalcor makes no mention of the George River herd.

Yet according to the results of an aerial survey conducted jointly by the Quebec Department of Natural Resources and Wildlife (MRNF) and Newfoundland Department of Environment and Conservation, together with the Institut pour la recherche et la surveillance environnementale (of which the Council of the Innu of Ekuanitshit is a member) and the Torngat Wildlife, Plants and Fisheries Secretariat, the George River herd population declined from 74,000 in October 2010 to 27,600 in July 2012.[1]

The Joint Review Panel, which studied Nalcor’s proposed hydroelectric generating facilities at Gull Island and Muskrat Falls, had recommended (7.10) that the proponent “monitor interactions of the George River caribou herd with Project activities and facilities and identify any impacts”: Joint Review Panel Report, p. 31.

It is surprising, to say the least, that given the urgent situation of the George River herd, the proponent could deliberately exclude the potential effects of the transmission lines from the environmental assessment. Nalcor has indicated no intention of monitoring “interactions of the herd” with this phase of the project.

---

[1] http://www.mrn.gouv.qc.ca/presse/communiques-detail.jsp?id=9880

-srbp-

A Celebration of Excellence #nlpoli

For the second day in a row, CBC Radio’s On the Go had a go at Frank Fagan, the newly appointed Lieutenant Governor of Newfoundland and Labrador.  Or as host Ted Blades described him on Tuesday, another old, white guy.

In Wednesday Blades decided to interview NDP leader Lorraine Michael.  Blades started out by asking if he had been right to bring “gender” into the discussion.

Michael responded by referring back to the Premier’s recent Ovations event.

There are at least a couple of things you can take out of the interview and the mini-flap that has erupted the Fagan appointment.

An Unwavering Commitment to Inaction, Indecision, and Extra Pork #nlpoli

In 2010, the provincial government appointed Captain Mark Turner to look at the “province’s offshore oil spill prevention and response capabilities.”

He produced the 273 page report and the provincial government dutifully released it along with a lovely news release.

Then-natural resources minister Shawn Skinner committed that the provincial government  would “study the report, and consult with the responsible stakeholders to ensure all recommendations are considered.”

Stranger than fiction: gaseous emissions #nlpoli

According to Voice of the Cabinet Minister, Newfoundland and Labrador Hydro is looking for back-up electricity generation in case another one of the oil-fired generators at Holyrood goes down.

Among the alternative fuels under consideration:  natural gas.

Here’s the online story, since it will soon be disappeared:

Newfoundland Hydro is exploring generation supply options should it lose another generating unit like the one at the Holyrood plant that was damaged in last month's storm. The manager of system operations and integration support, Rob Henderson, says they're looking at a number of gas, diesel, and combustion mobile generating units that can be used where needed if something catastrophic should happen.

-srbp-

The Importance of Framing #nlpoli

What you see depends on what people show you.

Take a news story that ran on Monday trumpeting the fact that 30% of motor vehicle accidents involving deaths investigated by the RCMP in the province were caused by drunk driving.

30%.

Holy crap.

What should we do about it, the Ceeb asked.

They interviewed someone from Mother’s Against Drunk Driving who talked about putting breath analysing devices on cars to stop drunks from driving.  She talked about copying British Columbia where the government impounds cars for people who blow point zero five on the breathalyser.

Tough stuff. 

Gerry, Scott, and a Player to Be Named Later #nlpoli

If you believe what you hear on the news, federal members of parliament Gerry Byrne and Scott Simms are both thinking about running to be leader of the provincial Liberal Party.

Byrne’s named had been kicked around before.  In fact, in an earlier version of it, Gerry planned to announce his intentions by the end of January.  Now he has put off his decision until March.

Simms was a new entrant to the speculation race, largely because he hasn’t been in Ottawa very long and is pretty tight with Justin Trudeau and his leadership team.  If Trudeau takes the top federal party job, Simms would stand to play a more important role there than he currently has.

Tories at 30% #nlpoli

Local pollster MQO released some previously confidential polling data on Thursday that showed the ruling Conservatives were getting about 25% of public support in July and August and only slightly better than that until November.

The Tories got a bump up in December to about 35%, likely from the Muskrat Falls announcement.

But that vanished the next month.  Current Tory support is around 30% of all respondents. 

Demographics in pictures #nlpoli

If you look at nothing else this week, take a look at a comment by  Matthew Kerby called “’Representative’ by population in Newfoundland and Labrador”. 

Before Kerby was a political scientist at the University of Ottawa, he practiced the craft at Memorial University.  He still takes an interest in the goings-on down this way and the population growth strategy caught his attention.

He’s got a good handle on the problem, noting the financial implications for the provincial government.  To illustrate the population trends, Kerby took the provincial government’s own forecasts and produced a set of animated graphics that show changes in the population over time.

The pictures show the population in five year age groups.  Males are on the left and females are on the right of the centre line.  The length of the bar horizontally shows how many men or women are in each age group.  Watch any one of the charts over time and you can see all those dimensions change simultaneously.

As Kerby notes, the changing demographics will have impacts on everything from government revenues from taxes to the demands for spending.

Go to Kerby’s commentary and you can find all the regions.  Just to illustrate what he’s done here, let’s take a look at the one for Grand Falls-Windsor, Baie Verte and Harbour Breton.

[Original disappeared from the provincial government website]

The numbers start in 1986.  Notice that the population is shrinking as it gets older.  Note that this trend starts right from the beginning. 

Not last week. 

27 years ago.

Now Ross Reid has to come up with some brilliant ideas to cope with this trend.

We should wish him good luck.

He’s gonna need it.

-srbp-

Pigs and Cows The Facts are Straight #nlpoli

-srbp-

Denine to challenge Simms for mayor’s job #nlpoli

If the word from the west holds true, Randy Simms won’t have too much time to worry about caribou and on-air meltdowns. 

The talk show host is going to be locked in a fight for his seat as Mayor of Mount Pearl from former Conservative cabinet minister Dave Denine in this fall’s municipal election. 

Apparently, Denine can’t find something better to do with himself and his hefty pension(s) than go after the part-time job he left when he got into provincial politics.a decade ago.  According to word coming from the Pearl, Denine is about to start raising cash and getting set for the municipal election in the fall.

Despite claims from Conservative circles in December 2010 that Tory incumbents would all run again, Denine was one of the crowd elected on Danny Williams’ coat-tails who cashed in his chips before the 2011 general election.

Denine held a bunch of posts during his time in cabinet.  After a couple of controversies in municipal affairs over disaster response and fire service, Williams stuffed Denine into a few inconsequential portfolios.  He racked up his pensionable time quietly after that.  Williams could always count on Denine to nod on cue.

-srbp-

Rinse. Repeat. #nlpoli

Not one, not two, but three provincial cabinet ministers announced a five year ban on hunting George River caribou on Monday.

This is a very serious situation, they said.

It must be serious.  They had very glum faces.

If people don’t stop killing caribou, then bad things will happen, they said.

Justice minister @King_Darin said law enforcement officials were around and well…you know what that could mean.

Uh huh.

The New Sexism #nlpoli #cdnpoli

As the story goes, the crowd currently running this place were all set to issue a news release that the first woman premier in the province’s history was announcing the appointment of the first woman clerk of the House of Assembly.

Then someone quietly pointed out that another Premier had already done that.

In the 1970s.

Her name was Elizabeth Duff.

Too amazing to believe #nlpoli

Every day in Newfoundland and Labrador, the news is like some kind of perpetual, live edition of Ripley’s Believe it or Not. 

Here’s a sample of what your humble e-scribbler learned on a sick day:

Why would a member of parliament visit his own riding?  Only in Newfoundland.  Or in this case Labrador.

A mayor wants people with money to come to his city and invest it!  The truth is really stranger than fiction.

Politics in Newfoundland and Labrador involves lots of patronage.  Freaky, man, even if the CBC online story doesn’t actually give any kind of back story to it.

-srbp-

Communications and Management Problems #nlpoli

The Auditor General’s annual report on departments, agencies and Crown corporations doesn’t have any one bit that would kill any provincial administration.

What the report does contain is a collection of examples of fundamental rot within the administration.  From the hiring problems at College of the North Atlantic, to lax inspections for liquor licenses and pesticides, to the string of problems in municipal affairs you get a picture of a government that simply doesn’t have any sense of purpose or direction. 

One Newsroom. Two Stories. @nlpoli

For the English crowed in Newfoundland and Labrador, @cbcnl gave its audience one story from the Auditor General’s report.

They focused on horrendous salary increases in one government agency.

From the Radio Canada desk in the same newsroom comes a completely different story that fits exactly with the Big Story that has been dominating headlines since the Premier warned of layoffs and spending cuts late last year.  The Radio Canada headline translates roughly to “Alarming increase in public spending in NL”.

The Annual Mixed-Message Season #nlpoli

Right after Ross Reid’s new job, Jerome Kennedy’s trip back to the finance ministry was the second most overblown story of the past week or so.

Most seem to think Kennedy is headed back to finance in order to tackle the public sector unions as part of the upcoming budget. That gives a bit too much credit to the individual in all this.  The budget isn’t handled by one person: it is the productive of collective action by a committee of ministers called the treasury board and ultimately by cabinet.

As the recent Telegram editorial on Kennedy’s appointment noted, the budget is all but finished at this point.  They are absolutely right.  What has normally happened in January since 2003 is essentially about the government delivering some kind of message or other.  In January 2008, part of the message was about a pile of new spending right after the 2007 election. And then right on the heels of that  - in the same year - was finance minister Tom Marshall and his debt clock warning about impending financial doom.

Sound familiar?

Verbiage Growth Strategy #nlpoli

Right on cue in the controversy over the population growth “strategy”,  a provincial cabinet minister issued a news release late on Monday and assured us that everything will be all right.

There is lots of bureaucratic jargon, like the trendy use of the word “inform”:

The Provincial Government has developed strategies focusing on youth, immigration, seniors and others. These efforts will help inform the development of the Population Growth Strategy.”

Aside from that, there’s very little of consequence in Joan Shea’s release. 

Populations #nlpoli

Ross Reid has a new job. 

He used to be federal fisheries minister. 

Since 2003 or so, Ross has been a deputy minister in the provincial government.

Lots of people got excited last week when Premier Kathy Dunderdale announced that Reid would be deputy minister responsible for the provincial government’s population growth strategy.

Yeah, well, maybe people need to take a closer look before they get their knickers in a bunch.

General Ignorance #nlpoli

CBC’s Heather Barrett had a solid commentary this weekend on the recent revelations about how much young people in the province’s university don’t know about stuff.

Lack of inquisitiveness.

Well, young people aren’t the only ones who don’t know basic stuff.

Remember this cabinet minister?  As we told you in 2009,

According to Oram, the cod moratorium took place in the “early to mid-1980s”.

If you think that was a slip of the tongue consider that according to Oram, once the moratorium started,  we then turned to diversifying the economy with mining for things like iron ore and uranium.  Iron ore mining dates back to the 1890s, not the 1980s and as for uranium, there isn’t a functioning uranium in the province at the moment.  There never has been one. There are prospects but no actual mine.

The Lower Churchill will start up within the coming year (i.e. 2009) according to Oram, even though the thing had not even started the environmental review process when he did the interview.  It won’t complete the process until 2010-2011.

Oram wasn’t the only politician at the time who suffered from this problem, nor has it gone away.  Plenty of politicians today are afflicted with general ignorance.

Fortunately lack of information is a correctable problem. It just might not be correctable before the pols do massive damage.

-srbp-

Dunderdale hits churn record for 2012! #nlpoli

A retroactive appointment announcement issued Thursday secured Premier Kathy Dunderdale’s record for the most changes in the senior ranks of the public sector in recent history.

On December 11, Dunderdale announced an appointment that brought her total of appointments to 47.  On January 16, though, she announced that Ross Reid had taken up a new job, effective December 16.

That brings her total of actual appointments in 2012 to 48.

SRBP forecast in October 2012 that the Premier was on track to hit a record 49 changes in the provincial public service.  She passed the previous record – 39 – in October.

But wait.  An announcement on November 01 included two implicit future changes.  If we followed the accrual method of accounting for this stuff, then you would add those two to Dunderdale’s total for the year.  Bingo:  51 changes in the senior public service that, according to the Telegram, comprises 85 positions.

-srbp-

The vanished Labrador fibre optic plan? #nlpoli

A bit more digging has turned up a CBC story from December 2010 that first reported Nalcor’s plan to include fibre optic cabling with the Labrador-Island Link for Muskrat Falls.

CBC reported that “Nalcor will use some of this [fibre optic] capacity. The rest will be for sale to companies like Bell Aliant.” 

For some reason, though, that option has vanished from any public discussion.  The only reference to fibre optics in the submission to the public utilities board was to a system that would do nothing more than allow for Nalcor’s control of the transmission system. That doesn’t appear to take up all the fibre optic capacity that is planned or that could be included in the LIL.

The sale of fibre optic capacity to private sector companies could deliver high speed Internet service to some parts of Labrador more cheaply than current arrangements. It could also be a source of new revenue to both Nalcor and to Emera. The Nova Scotia company has a minority interest in the LIL project separate from its interest in the Maritime Link.

Curiously enough, in 2010,  the provincial government cancelled a request for proposals issued in 2007 for management of a high speed internet system in the province.  In January 2010,  cabinet cancelled the tender, citing escalating costs.

A report by the province’s auditor general in January 2011 included this comment from the province’s innovation department:

Feasibility and Status of Line to Labrador

The department views network connections to Labrador as a priority and an essential part of advancing broadband infrastructure in the province. INTRD remains committed to finding a feasible way to achieve this goal. In this regard, discussions have been ongoing between INTRD and Nalcor Energy on ways to achieve Labrador-related GBI objectives.

-srbp-

Nexans to build Muskrat Falls underwater cable #nlpoli

Nalcor has awarded a contract valued at more than $106 million to Nexans Norway AS to construct the underwater cable for the Muskrat Falls project, according to a news release issued on Tuesday by Nexans.

Neither Nalcor nor Emera apparently issued any new releases on the tender.  The only reference to the contract award on Nalcor’s website is a tiny mention buried away on the project benefits and tendering page.

The news release from the successful company included a passing reference to a fibre optic cable of unspecified capacity to be included with the high voltage direct current electricity lines.

The expressions of interest document from Nalcor issued when the competition started in 2011 included reference to fibre optics “for temperature sensing and potential telecommunications”.

According to the Nexans news release:

The HVDC cables will be manufactured at NVC, Nexans’ factory in Tokyo, Japan.  Nexans will supply: three lengths of mass impregnated submarine power cables rated at 350 kilovolt (kV), with an integrated fibre optic element; three underground cables that will be used for the land connections at either side of the strait; accessories comprising of joints, spares, and terminations.

According to Nalcor’s submission to the public utilities board review in 2011-2012, the Labrador Island Link will include fibre optic cable along its entire length on the island in order  “fulfill the communication requirements between the converter stations.”

-srbp-

We can get there from here #nlpoli

People across the province are astounded that some students at Memorial University cannot correctly identify countries, continents, and oceans on a map of the world.

Geographic illiteracy shocks people.  Well, it should, just like they should be appalled that 44% of the people over 15 years of age in this province read below the minimum level needed to function in modern society.  And they should be left speechless at the idea that 66% of the people in Newfoundland and Labrador over 15 years of age lack the numeracy skills for modern society.

Happy Talk #nlpoli

Cuts.

Layoffs.

A couple of tight years.

Hard times.

Premier Kathy Dunderdale, finance minister Tom Marshall, and natural resources minister Jerome Kennedy have been preaching that since before Christmas.

Apparently, a couple of Conservative politicians didn’t get the memo.

No obligation to take electricity: Emera CEO #nlpoli

From the Chronicle Herald:

Emera CEO Chris Huskilson says there are several options available to Nova Scotians to meet future energy needs, but he insists the arrangement with Newfoundland and Labrador represents the best opportunity.

“It is not something (Nova Scotians) must do because Emera is bringing it forward, it is something they can consider and decide,” Huskilson said in an interview Tuesday.

“We have not signed anything that would obligate Nova Scotia customers to take this energy. All we’ve done was sign something that creates that opportunity.”

-srbp-

The cost of not doing the math #nlpoli

Natural resources minister Jerome Kennedy admitted over the weekend that he had not done the calculation to figure out if the equity stake in Hebron was worth the cost compared to just a change in the royalty regime.

CBC’s David Cochrane put the question to Kennedy after seven minutes or so of Kennedy’s recitation of talking point after talking point about the Hebron project and the impact of the massive increase  in costs.  In response to Cochrane’s relentless, detailed questioning, Kennedy tried every folksy analogy in his arsenal of banalities.  He talked about putting away money for your children’s education.  He tried the bland admonishment that the government would look after the future, not just do what was immediately popular. 

Kennedy even tried to suggest questions about public finance  - and the impact of spending billions on resource projects – should go to Tom Marshall.  Since the provincial government struck a deal with the Hebron partners in 2007, the estimated cost of the project has tripled.  Cochrane noted the cash commitments.

And finally with his acknowledgement he hadn’t done the math himself, Kennedy blinked on a basic element of the provincial government’s strategic plan.

Putting selective “facts” on the splitting table #nlpoli

Premier Kathy Dunderdale wants to have a  “conversation” about the provincial government’s financial mess and the ways we might fix it. That’s what she told CBC’s David Cochrane in her year-end interview. 

One of the things Kathy wants to talk about is taxes, specifically the number of people not paying the bulk of the taxes the provincial government collects.

Kathy doesn’t really want to have a conversation, of course.  Kathy likes jargon.  She uses jargon a lot.  She thinks it makes her sound smart.  It never has.  Kathy uses jargon so much that It just makes her sound like someone trying to sound smart.

Snow Day Entertainment

 

The world is full of some really dumb, really lucky people.

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High-Value Delivery #nlpoli

Two cabinet ministers trekked up the Southern Shore on Wednesday to hand over a cheque for some government cash to a local group of seniors.

Of course, they dragged their political staff with them.

The value of the cheque was $2,000.

Beyond the “clutches of Quebec” #nlpoli

Another perspective on Muskrat Falls, via the Ottawa Citizen, and a previous attempt to run electrical power from Labrador through Nova Scotia:

Pickersgill took the matter to the R.B. Bryce, the cautious deputy minister of finance, who identified several problems in a memo to his minister. First, the federal government could only provide a loan at per cent as Ottawa had done for transmission lines between Nova Scotia and New Brunswick, amortized over 40 years. Second, the federal government had to avoid the impression that Ottawa was conspiring with Smallwood to outflank Quebec.

When Smallwood discussed the matter with Pearson and finance minister Walter Gordon in Ottawa in February 1965, they offered no help and advised him to work and resolve his differences with Lesage. Ottawa’s decision narrowed Newfoundland’s choice to a single option: negotiate with Quebec or leave Churchill Falls undeveloped.

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A Manufactured. Right. Here Mess #nlpoli

The Premier, the finance minister, and their favourite economist are talking about tax increases, layoffs, and spending cuts.

They are talking about cuts and layoffs at a time when the provincial government has more money coming into its accounts than any government in the history of Newfoundland and Labrador before 2003.

The provincial government finances are in a mess.

$#*! da Premier says: Freudian slip edition #nlpoli

Premier Kathy Dunderdale, quoted in the Globe and Mail in a story on sanctioning of the Hebron project:

Our goal has been to ensure that Newfoundlanders and Labradorians are the main benefactors with respect to our natural resources,

Benefactor.

A benefactor is someone who delivers a benefit to someone else.

She is a bit like Dubya sometimes.

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The Hebron Complications #nlpoli

The partners in the Hebron project sanctioned the development on New Year’s Eve and announced the decision on Friday.

The new cost estimate to build the gravity base and bring the oil field into production is $14 million.  As CBC noted on Friday, the capital cost estimate for the project increased from $8.3 billion to $14 billion over the past 18 months.  That’s a 69% increase for those doing the math.

“But much of the increase of billions relates to increased construction and drilling costs,”  CBC reported on Friday, “ plus current market and foreign exchange rates.”  The partners expect to produce first oil from the field in 2017.

Tom Johnson is Redundant #nlpoli

Pity Tom Johnson.

The St. John’s lawyer landed a steady source of billable hours when the provincial Conservatives made him the consumer advocate at the public utilities board.

Tom has been doing a fine job of advocating for consumers, even if his version puts an interesting twist on what he is advocating for consumers to do.

Take last year, for example.  Johnson advocated during the Muskrat Falls hearings.  He advocated  for the Muskrat Falls project.  That means, in effect, that consumers will be forced to pay for the entire Muskrat Falls project in their electricity bills, plus profit for the companies involved. 

Well done, Tom.  Consumers will be thanking you in the future.

In the meantime, though, Tom is not resting on his laurels.  This time, Tom is hard at it advocating during an application by Newfoundland Power for its return on equity. 

Bond Year Eight #nlpoli

On SRBP’s eighth anniversary, a sampler of some January commentaries:

• A year of Bonding (January 2006)
• Whistleblower Protection Legislation (January 2009)
• Pater Knows Best  (January 2011)
• Undisclosed Risk:  financing the Lower Churchill (January 2011)

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Bravery and Democracy #nlpoli

“It is easy to be an armchair critic, tweeted natural resources minister Jerome Kennedy before Christmas, “but It takes real courage to stand for election.”

In another context, John Steele offered this opinion about your humble e-scribbler.:

“One thing that I respect about Ed is, he’s got balls enough to put his name to stuff. He’s not anonymous, so I respect that.”

The word “democracy” derives from the Greek words for people and power.  Democracy is a form of government in which everyone may participate equally and fully in making decisions that will affect them.
 

Some books for the New Year #nlpoli

Shannon Ryan’s A history of Newfoundland in the North Atlantic to 1818 is an engaging, accessible account of the English in Newfoundland from the earliest arrival through to the end of the Revolutionary and Napoleonic wars.

The publisher’s blurb:

The waters off Newfoundland, in the North Atlantic, held the world’s most abundant supply of codfish, which, when discovered, was in great demand. Unlike the fur trade—the other major early commercial activity in what is now mainland Canada—the production of codfish did not require year-round residence. It did, however, require numerous men, young and old, for the fishing season, which ran from spring to early fall.

This successful English-Newfoundland migratory fishery evolved into an exclusively shore-based, but still migratory, fishery that led to the formation of a formal colony by 1818. Shannon Ryan offers this general history as an introduction to early Newfoundland. The economy and social, military, and political issues are dealt with in a straightforward narrative that will appeal to general readers as well as students of Newfoundland and Labrador history.

And if that whets your appetite, you can also hunt down a copy of Jerry Bannister’s The rule of the Admirals:  law, custom, and naval government in Newfoundland, 1699-1832.

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