Budgets, Smelters and Power Lines - A Weekend Hodgepodge
UPDATE: February 3, 10:28 AM - Finance officials confirmed for the grits yesterday that Newfoundland will lose $1 billion over three years. Liberal finance critic John McCallum says the province has been unfairly penalized, unlike Nova Scotia and Manitoba where Ottawa has agreed to cushion the blow from the equalization changes.
For anyone who refused to believe it in the past it seems the message for Newfoundland and Labrador is clear today: The Province is not treated the same as other provinces in Canada. There is no equality when it comes to Newfoundland and Labrador.
UPDATE: February 2, 5:45pm - Liberal MP Todd Russell has decided to toe the party line and vote in favor of the federal budget even though it will cost his Province nearly $1.6 Billion Dollars.
Russell says he won't be breaking party ranks and voting against the budget. He says while he doesn't want to see the province adversely affected by the budget, there's strong points to be made for solidarity under the party's new leader, Michael Ignatieff.
It seems another elected MP from Newfoundland and Labrador has decided that his standing in his party is more important that his constituents or his Province.
It’s been a pretty hectic week on the political and business both in Newfoundland and Labrador and in Ottawa.
After tabling a so called economic “stimulus” budget that actually will result in the Canada’s newest province, which incidentally has the highest unemployment in the Country, being penalized to the tune of $1.5 Billion dollars.
The reaction of anger exhibited by both the Province’s Premier and the general population in Newfoundland and Labrador, though frowned upon by the Central Canadian media, was no less than should have been expected under the circumstances.
As Premier Williams noted, taking this offshore oil offset money away from Newfoundland and Labrador is the equivalent of the budget taking $22 Billion a year away from Ontario.
The day after the impact of the budget was made public it was uncovered by a reporter in Nova Scotia that the Prime Minister, knowing full well that the budget would impact both Nova Scotia and NL, quietly arranged an agreement with Premier Rodney Macdonald to ensure that his Province would not suffer any losses.
Later in the week Premier Williams held conversations with all six Liberal MPs from the Province as well as with the Liberal leader, Premier Rodney Macdonald , Premier Ghiz of PEI and Quebec Premier Charest, who is not pleased with a new cap on equalization (a separate issue but one also introduced in the latest budget).
As a result, at time of writing, Williams has said he has the support of the Premiers he’s spoken with. Three of the six Liberal MPs from the Province have said they will vote against the budget if changes are not made to rectify the situation, even if it means expulsion from the party.
The Liberal leader has yet to publicly state his position or any actions he plans to take on the budget issue or with his NL caucus members.
Currently three NL MPs have not stated their position on the issue. Those MPs are Sibon Coady, Gerry Byrne and Todd Russell.
Neither of these MPs have been available for media interviews over the past day or so. They appear to have gone underground.
This might lead one to believe, based on their current silence, that they have decided to toss their lot it with their party rather than support their province.
Considering that Ms. Coady was recently been named by the Hill Times as "an up and comer" and both Russell and Byrne were recently named to the Liberal shadow cabinet the possibility is not that far from a possibility.
In addition, both Russell and Byrne represent ridings that are considered Liberal strong holds that are safe and secure.
Depending on their decision over the next few days and the direction taken by their party these MPs may find that in Newfoundland and Labrador there is no safe seat.
UPDATE: 4:00PM - MP Coady has decided to back her Province and publicly stated she will not support the budget if the issue is not rectified.
The two MPs who have not voiced their position can be contacted at the following email addresses:
Gerry Byrne: Byrne.G@parl.gc.ca
Todd Russell: Russell.T@parl.gc.ca
On a brighter note, Vale Inco has entered into an agreement with the Newfoundland and Labrador government to begin construction of its new smelter in Long Harbor. Concerns were raised earlier this week when an documents that were supposed to be completed by the company at the end of December were not filed even after the company was given an extension until January 22 of this year. At that time shipments of ore to smelters in other parts of Canada were halted and rumors were beginning to surface that the project might not move forward.
On Thursday the Premier announced what he is calling an “enhanced” agreement and said the delay was a result of completing that agreement.
According to the government the new development will take 14 months longer to complete but the final smelter will be larger than first anticipated and will create more employment and local benefits that the original contract.
On another high note, the Province’s energy corporation has begun moving forward with plans for an undersea cable that will allow power from the Lower Churchill to be used on the island.
The corporation is about to begin the environmental process in preparation for development of the line.
This line is expected to permit the province to mothball the oil powered generating plant and become a greener energy province. The line would also serve as the first link in exporting power through the maritime route to Nova Scotia or New Brunswick should the province choose that option rather than relying on the ability to freely access markets through the Province of Quebec