Celebrating New Brunswick's Place in History

On behalf of Web Talk - Newfoundland and Labrador I would like to take a moment to congratulate the people of New Brunswick on the successful struggle they have just waged, and won, to protect their future and their right to a democratic voice.

It isn’t often in Canada that such a monumental battle is waged over such an extended period of time. It is even less often that a people are willing to put aside their differences, be they religious, political, ethnic or social, in order to band together, as one, for the common good.

As is often the case in situations such as this, it will likely be years, perhaps even generations, before anyone can fully comprehend what this day means, not only for the people of New Brunswick, but for all Atlantic Canadians and perhaps for all of Canada.

The economic and political implications of Quebec dominance over the power markets of Atlantic Canada and the Eastern U.S. may well have been a tipping point, had it come to pass, in the very future of the entire Nation.

Those implications aside, on the New Brunswick home front, the political shock waves this struggle has sent through the provincial government will surely be felt by every future leader in that province.

From this day forward, whenever a government decides to force its will on the people of New Brunswick they cannot help but have at the back of their minds the political implications of such a massive, sustained, dedicated, focused, well organized and surperbly executed public opposition.

Here in Newfoundland and Labrador our people know all too well the implications of rushing into any sort of agreement with Hydro-Quebec. Thankfully the citizens of New Brunswick have learned from our history and the milstone we must carry.

They have overcome, as we hope we shall also overcome one day.

The first page of text from the story of Brinco and Churchill Falls contains a quote which reads:

“All those who have studied the past from the standpoint of economics, and especially those who have studied economic geography, are aware that, from the material point of view, history is primarily the story of the increasing ability of man to reach and control energy.”

Those words were written by the American historian and author, Allan Nivens, and how true they are.

Energy is the backbone and lifeblood of all civilizations and, as the old adage goes, history is written by the victors.

Today, in New Brunswick, it is the people, every man, woman and child who are the victors and it is they who have written a new future for themselves. They have also, in time, written a great historical legacy, not only for themselves, but for all of Atlantic Canada and the entire Nation of Canada.

Danny Williams Defines His Legacy

Although it isn’t capturing as much press as his lowering of the Canadian flag, the 2005 Atlantic Accord dispute, his campaign to unseat Stephen Harper or even his standoff with big oil over the Hebron offshore oil development, Premier Danny Williams is about to make a move that will forever seal Newfoundland and Labrador’s fate and irrevocably define his legacy in the hearts and minds of its people.

What that legacy will be, sinner or saint, only time and the clear lens of history will tell but this week the Williams government introduced two pieces of legislation that have the potential to define, for better or worse, his place in the Newfoundland and Labrador psyche and the future of his people.

Both pieces of legislation deal with the future of Newfoundland and Labrador Hydro, a crown corporation, and how it will be able to operate going forward.

The bills are intended to provide NL Hydro with the tools they need to successfully produce and manage the vast energy assets, both present and future, belonging to the citizens of Newfoundland and Labrador. According Williams they would remove the burden of red tape and endless process that so often tie the hands of government agencies, allowing Hydro to compete more successfully in the energy market. The question is what the outcome of that legislation and the freedom it provides will ultimately mean for the people of Newfoundland and Labrador.

When passed, the first piece of legislation will allow the taxpayer owned corporation to operate outside government freedom of information requirements, including the public scrutiny of the Auditor General. The second would permit NL Hydro to dispense with having to follow the public tendering act, an act designed to ensure that all government agencies provide an even playing field when issuing contracts that require the expenditure of public funds.

Clearly both pieces of legislation should be, by their very nature, of great concern to the citizens of Newfoundland and Labrador. Not that there is anything inherently wrong with their intent, in fact a clear case can be made them, but because of their potential for future misuse, abuse or folly they need to be closely examined.

There is no doubt that a need to enact some form of legislation to make NL Hydro more competitive is required if it is to prosper. Private, or publicly traded, industries do not have their hands bound by the same sort of procedures and guidelines that government agencies do and in order to truly be successful NL Hydro shouldn’t either, but there are concerns.

There is little doubt that with the historic majority the Williams governemnt enjoys in the House of Assembly both bills will become law, that is not the issue. It is not the intent of either bill that is in question. Instead it is how they are written, implemented and could potentially be interpreted that must be carefully managed.

The outcome of this legislation, rather than the legislation itself, is what will ultimately decide the Premier’s legacy and the future prosperity of Newfoundland and Labrador.

In order to achieve the vision of taking Newfoundland and Labrador Hydro from being an electricity generator to becoming a widely diversified energy corporation the ability to act quickly, make timely decisions, without lengthy debate, and respond to market demands must be put in place.

The downside of this is that the movement of billions of dollars, market regulations and the secrecy requirements necessary when brokering deals with publicly traded oil, gas and electrical companies will leave the true owners of the crown corporation no longer able to have any insight, or input, into how or where their money is being spent.

History has left an indelible, and often painful, impression on the hearts and minds of most Newfoundlanders and Labradorians thanks to the actions of the larger than life political figures they’ve elected over the decades.


The one sided Upper Churchill contract, the Sprung greenhouse fiasco that cost of millions, the building of the Come by Chance oil refinery, which ended up as the largest bankruptcy in Canadian history before being turned around, all speak of the folly of conveying too much blind trust in a single individual. These and many other examples play an integral part in making most Newfoundlanders and Labradorians understandably nervous when it comes to the actions of any government that enjoys unfettered power in the legislature.

There are very few people, even his adversaries, who doubt the good intentions of Premier Williams or the reason for this legislation but even the best of intentions can lead down a road to destruction and despair. We’ve all seen it before.

I seriously doubt any of the former Premiers involved in the sort of projects identified above ever harbored ill will toward the people of Newfoundland and Labrador. In fact I’m certain they had nothing but the best of intentions, just as I'm sure Premier Williams does. Unfortunately that didn’t alter the outcome of their actions.

There is no doubt that to compete, survive and prosper, as everyone in Newfoundland and Labrador hopes it will, NL Hydro must be given the freedom and ability to act without one hand tied behind its proverbial back. What must be questioned, discussed, debated, parsed, scrutinized, studied and dissected is the precise wording and function of the legislation being tabled.

The people of Newfoundland and Labrador will ultimately reap the benefits or pay the price for this legislation.

It is the people of Newfoundland and Labrador who, rightly or wrongly, placed the current government in the strong position it enjoys and as such it the responsibility of each person in the province to ensure that the mistakes of the past are not permitted to be visited on the present.

The opposition parties, the media and the public at large, whether they support the current government or not, must all ensure that at the end of the day the legislation put in place does what it is intended to do and is the right thing for Newfoundland and Labrador.

It is only through open discussion and debate that the public can ensure the hands of future governments are not inadvertently tied by the same process that intended to free those of the energy corporation. It is also the responsibility of everyone to ensure that the corporation’s success is a success for everyone in Newfoundland and Labrador.

It is often said that in politics a day is like a week and a week like a year. That the public quickly forgets the wrongs of the past as soon as something new comes along. This has never been the case in Newfoundland and Labrador politics. Let’s hope it isn't true when it comes to planning for the future.

Joey Smallwood, the man who led Newfoundland and Labrador kicking and screaming into Confederation with Canada, began his days in politics as a savior to many but ended them reviled by most for actions that led to several of the highest profile giveaways Newfoundland and Labrador has ever suffered.

Not since Smallwood has a Premier enjoyed the level of public support and unbridled power that has been entrusted to Danny Williams. To date the Premier has, more often than not, earned that support by standing up and fighting for his people. There comes a time however when trust must be tempered with caution.

The Premier would be well served to take a deep breath and look back on the history of the place he so publicly professes to love. At this point in his life and in Newfoundland and Labrador’s history he, and everyone else, has the responsibility to ensure that this legislation is truly something that will serve the best interests of the people well into the future.

Danny Williams’ legacy depends upon it but most importantly so does the financial future and well being of everyone in Newfoundland and Labrador.

Is Newfoundland and Labrador Being Sold Down The River on Lower Churchill?

CBC News is reporting today that they’ve uncovered a report, completed in 2005, at the request of the provincial government. The document states that while Newfoundland and Labrador has massive wind energy potential it does not have the capacity in its electrical infrastructure (grid) to handle that potential.

According to CBC, the government report says the grid will limit the size of potential projects despite having a “world-class wind resource”
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While the inability of the provincial grid to handle large scale wind power presents a serious problem it also points to an even bigger issue for Newfoundland and Labrador, both developmentally and politically.

Since taking office Premier Danny Williams and Newfoundland and Labrador Hydro CEO, Ed Martin, have been adament that they are seriously considering bypassing Quebec and using a maritime route to bring lower Churchill power to markets in Canada and the U.S. The question now becomes whether they are actually considering this option or if they’ve been misleading the public with politically motivated blather for months?

Everyone in the province knows that a maritime route will require the laying of an undersea cable from Labrador to the island of Newfoundland. The power would then need to travel down the Northern Peninsula and to another cable from the island to New Brunswick. While the public expected that additional costs would be associated with the undersea links, there now appears to be a major roadblock with transporting the power across the island itself.

If the existing grid can’t handle an additional few hundred megawatts of wind power what are the odds it can handle more than 2000 megawatts from the Lower Churchill?

Of course the public will have to wait for the release of the provincial energy plan, expected sometime this month, to find out if the province has plans to upgrade the provincial grid, but for now it looks like talk of a maritime route has been nothing more than rhetoric and politics at play.

I’ve always been a proponent of using as much lower Churchill power as possible inside the province, especially as a means to facilitate industrial expansion in Labrador. If the power can’t be used locally then at the very least our province needs to ensure that a repeat of the ransom demands Quebec presented on the upper Churchill are not repeated.

With the contents of this 2005 report now in the public domain, and with no major industrial giants lined up by the Williams government to use the power at home, it would seem the only options left are to once again go through Quebec, on its terms, or forget the project all together.

If that’s the case, I’ll take the latter option thank-you very much. I suspect most of the voters in the province will make the same choice.