Say NO to sale of NB Power

New Brunswick citizens have been promised that they will save $1,400 over 5 yrs/household - that amounts to $1400/60 months = $23/month. NB industries (ie: Irving / McCain) on the other hand will get an immediate 30 percent reduction in power rates, but new industries will have pay market rates, reducing their ability to compete against existing industries and those in Quebec.

The Conservation Council of New Brunswick is which is reponsible for the enactment of the the Clean Water Act to guarantee safe drinking water, legal requirement for NB Power to supply 10% of its electricity from renewable sources, and creation of New Brunswick's energy efficiency agency agrees NB Power should not be sold.

This is one public corporation buying out another, so why doesnt the agreement allow New Brunswickers to pay the same rate, for the same electricity, as Quebec clients will. Instead New Brunswick rates will be frozen at 60 per cent higher for the next 5 years and then continue to increase.

The 2006 New Brunswick Liberal platform stated that NB Power will remain in public hands, but the Liberals are arguing they must break their promise because they couldn't foresee the debt situation at NB Power. They should admit they didn't perform due diligence before releasing the Charter for Change. NB Power's debt was known to be a problem in 2006.

Hydro Quebec has signed only a memorandum of understanding with NB Power. It is necessary that it passed by the House and the contract must be signed before March 31, 2010.

New Brunswickers need to contact their local MLA and everyone who is against this terrible situation needs to voice their opinion to their Federal Member of Parliament as soon as possible.

Contact informtion for Members of Parliament can be found in the links section at the left side of this web page.

NL Legislature Determined to Protect Public Interest

Today I’d like to offer the entire Newfoundland and Labrador legislature, both government and opposition members, my heart felt congratulations for their combined efforts this week.

By working together to quickly enact legislation intended to secure the people’s water and timber rights from Abitibi-Bowater, each of the Province’s elected members have shown that they can indeed work together in a non-partisan way for the betterment of the Province, when the situation calls for it.

Perhaps their federal counterparts in Ottawa would do well to learn from this fine example.

On Tuesday the Williams government presented the Abitibi expropriation bill to the opposition members, met with them to discuss its contents and all parties worked together to move the bill through 3 readings, the committee stage and royal ascent. All of this was accomplished in under 5 hours.

That process spoke volumes about the ability of all the parties to put aside their partisan differences and work together for the greater good of the people they represent and for that they deserve a pat on the back.

The bill, which will see the Province expropriate all water & timber rights as well as any power generating facilities held by Abitibi once that company closes its last remaining mill, is something that had to be introduced to ensure that the company could not simply walk away from the Province and continue to retain control of valuable provincial resources.

Unfortunately the logic and importance of the effort put out by the Newfoundland and Labrador legislature is something that appears to have been lost on some Central Canadian quasi-news agencies and corporate mouthpieces.

Apparently some of these highly paid shills think the Province should have simply allowed Abitibi-Bowater to close its mill operations, throw a thousand people out of work yet sell or even retain the valuable natural resources of the Province so nobody else could have access to them.

Globe and Mail journalist (and I use the term journalist very loosely) Konrad Yakabuski even decided that the time was right to break out the “Danny Chavez” rhetoric once again and to slam the province for ensuring that its resources are not sold off to the highest bidder so Abitibi could continue to profit from the Province even after it has closed its doors.

In his commentary Mr. Yakabuski, who comes across as being very upset that Abitibi will not be able to sell those assets to pay down debt, attacked the Williams government for “Bludgeoning” the company.

He went on to say that this legislation will, “sour any sensible business person with an eye to investing in the province…”.

The position taken by Mr. Yakabuski leads this writer to wonder where his pay cheque comes from or if he is truly that obtuse.

In a feeble attempt to justify his attack Mr. Yakabuski wrote in the Globe that while, “It is true Abitibi has been so stingy with new capital that the mill might have been doomed by its obsolescence. But the hydro assets are still valuable. Abitibi had been counting on them to ease its own financial difficulties.”

Go figure.

Personally I can only say that it’s about time the Globe took another shot at Newfoundland and Labrador.

The Ontario based paper hasn’t taken a good shot at Williams or the Province for weeks now and this fact alone had almost convinced me that the Premier had slipped into the same sort of complacent “giveaway” mentality that has plagued the Province’s leaders since entering Confederation.

I guess my worries were unfounded.

Now that Canada’s national rag is on the attack again (as long as “national” means Central Canada) I’m more convinced than ever that the provincial government (all parties) must be doing the right thing on this file.

Mr. Jakabusi’s editorial attack makes me wonder what the Globe’s reaction will be should the Ontario government decide to take similar steps with Abitibi. Already the legislature in that province is expressing deep concern about the company’s plans to sell off similar assets there and are meeting with mill workers to gather their input.

It would be interesting to see the Globe’s spin on something like that.

“Sour any sensible business person with an eye to investing…” indeed.

As one letter I received from a reader just this morning so eloquently pointed out:

“Someone should remind the Globe that when it comes to attracting business the Ontario elite have no room to talk."

"What was it Jim Flaherty said about Ontario, "It is the last place anyone would want to invest."

"Meanwhile Newfoundland and Labrador is now a "Have" province while Ontario is a "Have Not."

"Newfoundland and Labrador has a (1.3 billion dollar) surplus, Ontario is running a deficit."

"Newfoundland and Labrador has record car and home sales, Ontario's sales are in the toilet."

"Oil, gas and other companies are investing in new activity in Newfoundland and Labrador all the time including during this economic downturn."

"It seems to me that the folks at this Ontario based rag have very little right to tell Newfoundland and Labrador how to deal with corporate interests."

Well said, well said indeed.

Where Once They Stood We (should) Stand

The pending closure of the Abitibi-Bowater mill in Grand Falls-Windsor is the talk of the Province these days. Hundreds of direct and countless indirect jobs will be lost once the mill closes and the future of Abitibi’s timber and water rights in the Province are in question.

This is another clear example of the kind of industrial rape Newfoundlanders and Labradorians have experienced for decades and it speaks volumes about the attitude of big business toward this place.

We’ve seen it before in the destruction of the Atlantic fishery.

We’ve seen it in places like Stephenville and Bell Island.

Now we’re seeing it in Grand Falls-Windsor.

Yes the economy is bad but that reality is not the reason the mill is being closed.

The mill is closing because Abitibi-Bowater ran it into the ground through a lack of upgrade or investment over the years and because their board of directors believe they can walk away from the town while still making millions of dollars in profits for decades to come.

It’s up to the government of the Province, and the people who live here, to see to it that not another penny of profit is sucked out of our resources by this company once the locks go on the doors.

Representatives of the Provincial government say they are in the process of determining what can be done to recover Abitibi’s timber and water rights. That’s all well and good. I hope they can successfully regain them, but barring that, there are other options that will ensure the pillaging of our province, at least by this one company, is stopped dead in its tracks.

While the mill is active and the people working, excess power generated by Abitibi on the Exploits river is being sold into the Provincial grid and purchased by Newfoundland and Labrador Hydro. Once that mill is closed, Abitibi management intends to sell all the power to Newfoundland and Labrador Hydro and reap millions in profits each year. This cannot be allowed to happen.

The right to generate electricity on the Exploits river was granted to the company so it could power the mill. They cannot be allowed to benefit from this resource once the mill is closed.

No mill, no power.

If the government finds it has no legal means to regain those water rights it must direct Newfoundland and Labrador Hydro, a crown corporation, to take a lesson from the Upper Churchill debacle and a page out of the Quebec playbook.

Newfoundland and Labrador Hydro must refuse to purchase a single kilowatt of power generated by Abitibi.

With no market for the power the company’s board of directors won’t be long figuring out that the generating station and water rights are completely worthless to them.

As for the timber rights, if government discovers it has no recourse for reclaiming those, it may well fall to the people of the Province to take a stand.

Weeks, months or even years of blockades and picket lines preventing wood laden trucks from rolling down the road and ships from hauling away this valuable resource may be needed.

The process will likely long, calling for great sacrifice on the part of many, including the possiblity of facing minor legal issues during the process, but in time the incessant delays, additional costs and resulting damage to its public image will force Abitibi to understand that leaving the Province means leaving the Province, not continuing to rape it.

No longer should Newfoundlanders and Labradorians sit idly by and be dictated to by greedy corporations.

No longer should the people continue to watch as their resources are stripped away for the benefit of companies and governments elsewhere.

If the people of Newfoundland and Labrador don’t make a stand with Abitibi-Bowater when will they make a stand and will there come a time when there is nothing left worth standing up for?

UPDATE: Premier Williams has announced that his government will introduce emergency legislation this afternoon in order to expropriate all timber rights, water rights and electrical generating facilities belonging to Abitibi-Bowater on the island of Newfoundland.

The Premier has stated that Abitibi-Bowater may receive compensation for damns, generating stations or other physical assets however no compensation will be paid for the timber or water rights.

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.