Vision - A Casualty of Drive by Politics

The most common definitions of “Vision” include:


1. The faculty of sight;
2. Intelligent foresight;
3. The manner in which one sees or conceives of something;
4. A mental image produced by the imagination.

That’s something every Newfoundlander and Labradorian would be within their rights to jot down, seal in an envelope (or place in an email) and send directly to every candidate running in October’s provincial election.

History tells us the world’s most respected leaders aren’t remembered for their ability to win office or hang onto power but for being visionaries and for their ability to engage the public in making their dream a reality.

Where are the visionaries in Newfoundland and Labrador today?

Talk to the average politician and you’ll discover most can’t see past the next poll, next election or next fiscal year. Vision, true vision, extends beyond those false parameters. It reaches far into the future, perhaps to the next generation, the generation after that, or even beyond.

Visionaries recognize the present for what it is, the future for what it can be and are capable of laying the building blocks that inspire others.

As a people why are we so easily accepting of announcements about “slightly lower” unemployment rates or achieving an “average” Canadian wage? Instead we ought to aspire to having the lowest unemployment and the highest wages in the Country.

It goes without saying that we won’t reach such lofty heights overnight, in fact we may never get there, but if we don’t aim for the target we’ll never come close to hitting it.

Take our natural resource, the province, regardless of which party is in power, has always developed those resources in exchange for the direct revenues (royalties / taxes) they produce and for the limited number of jobs extracting them creates. Why?

Why hasn’t government ensured that every ounce of benefit is squeezed from the resources around us and why haven’t our leaders, past and present, been able to understand that those resources are a diverse package of interrelated opportunities rather than a series of independent revenue streams?

Maximizing benefits doesn’t have to involve a heavy handed approach that might scare investment away and the benefits reaped don’t have to flow directly from selling the resource itself.

Legislation forcing industry into a position where profitability is unduly limited or which unfairly places social obligations on them isn’t the answer either. A far better approach is to create an environment where industry itself can see the economic advantages of increasing its presence in the province. This would require a government that understands how the different pieces of the puzzle are interconnected and can be leveraged.

As an example, based on public statements by NALCOR it would seem that rising oil prices will continue to drive up power rates until such time as Muskrat Falls energy is available. At that time rates will stabilize. They won’t fall mind you, but stabilize.

Based on this it appears higher rates charged (due to the cost of oil) will remain in effect even after the oil is no longer needed, ultimately providing additional revenues to NALCOR when Holyrood closes. After all, when those costly oil purchases are no longer necessary the revenue has to go somewhere.

Likely those hundreds of millions of dollars, along with earnings from selling power outside the province, will be used to repay the development costs of the project and provide a healthy return for NALCOR and the province.

This might seem reasonable enough from a traditional business perspective but NALCOR isn’t an independent business and the power they sell is directly linked to the local economy and to every individual and business in the province.

Newfoundland and Labrador, compared with other Canadian jurisdictions, is somewhere in the middle of the pack when it comes to power rates. According to NALCOR our province isn’t the only place rates are rising and after Muskrat is complete, even with the higher rates, we will continue to sit somewhere in the middle of that pack. This makes me wonder, why is that good enough?

Why are we willing to settle for being “average”?

As part of a longer term view, considering the size of the investment - and its associated risks - perhaps a more visionary approach to Churchill power should be considered.

There’s a difference between thinking inside the box and thinking outside it. In fact it’s been said visionaries don’t even recognize a box exists.

Might the province be better served by cutting power rates as much as possible once the expense of Holyrood oil disappears? This is not to say taxpayers should subsidize power rates, that NALCOR shouldn’t make a profit, or that the loans shouldn’t be repaid, the question is how high those profits need to be and what the plan is for paying down the debt.
We may have a unique opportunity here since NALCOR isn’t developing the project as a privately owned company or publicly traded corporation. As such it shouldn’t have the sole goal of maximizing profits. Its owners are the taxpayers of the province. Ultimately any corporation is responsible for achieving the long term objectives of its shareholders, in this case the citizens of Newfoundland and Labrador.

When it comes to the Lower Churchill, perhaps we should ask ourselves if our primary intent, beyond keeping the lights on, is to reduce debt quickly, increase profits for NALCOR and government, grow the economy and related employment or pursue some combination of the above.

Perhaps the answer is to eliminate the debt quickly and then drop power rates as low as possible while ensuring the future viability of the corporation. Perhaps not. Who knows, but if we examine all our options, including the eventual repatriation of the Upper Churchill , might we be able to focus our efforts on one day making Newfoundland and Labrador the lowest cost jurisdiction in Canada, hell why not in all of North America, for access to clean power?

If we could eventually reach that target what might it mean?

Clearly it would be a welcome reprieve for rate payers in the province and would go a long way toward easing the burden of the less fortunate among us, but what about the bigger picture?

Low rates would obviously reduce the cost of doing business here. If the costs were low enough that alone would increase the profitability of existing enterprises and improve their ability to expand, hire new employees and even increase wages.

With less focus placed on direct profit from our energy reserves and more on offering the lowest possible rates, major industrial players now content to harvest resources and ship them elsewhere for processing might find themselves able to do that processing here at a lower cost and for increased profit thus creating more employment and provincial tax revenue.

It’s often been said that our remote location and distance from world markets is a barrier to developing a manufacturing based economy. There may be some merit in that but with the Northwest Passage, the most sought after shipping route in the world, beginning to open up could our location at its Eastern gateway actually benefit to us in the future? When it does open up, if the infrastructure necessary to take full advantage of low cost renewable energy were put in place, including for the use of Upper Churchill power, what might it mean to the province 30 years from now?

Secondary processors who use our iron, copper, oil or other valuable resources to produce consumer goods around the world might eventually come to recognize the province as a unique location with abundant resources and cheaper power than they can find elsewhere. How many jobs would that create?

Perhaps stimulating industry and employment in this way would generate provincial revenues far beyond existing levels. This broadening of the provincial tax base might even enable a visionary government to lower personal and business taxes. It might result in us becoming one of the lowest cost places to live in Canada while ensuring we are even more attractive to business, guaranteeing the cycle of growth continues to expand.

In the long run such an approach has the potential to be far more lucrative for the people of the province and for government coffers than the status quo.

Picture a future where Newfoundland and Labrador is recognized as a strategically situated treasure trove of raw materials that has the lowest cost power in North America and perhaps even the lowest tax regime. A place with a diversified economy where well paying jobs are abundant and the provincial treasury is flush with cash.

Of course this might sound like a pipe dream and in reality the entire idea is nothing more than rambling on my part. I wouldn’t pretend to know if such a scenario is viable or not but at least it’s a concept, the germ of a direction, the seeds of a vision that extend beyond the next few months or years or even my own lifetime and certainly beyond the next election. In other words it’s far more than any of the parties are putting forward.

With an election on the way we should all question where the long term vision is for our province. What about the fishery or the forestry sector. Where do we want to see our health care system and our schools a generation or two from now and how do we plan to get there? All of these components are intertwined and need to be part of an overall vision.

We may have a small population in Newfoundland and Labrador but we are also blessed with a vast array of renewable and non-renewable resources and a population that I truly believe is willing to work for a brighter future. In fact I’d argue that any government unable to satisfy the needs of our small population, while surrounded by such vast wealth, doesn’t deserve to hold office.

At this point in our history what we need is a visionary leader bold enough to set aside political expediency and take the reins firmly in hand. Unfortunately the closest thing to vision we’ve seen from any of the political parties are promises likely to expire the morning after the polls close. Hardly inspirational.

Muskrat Falls - Cutting Through the Political Rhetoric

There’s been a lot of political rhetoric around development and distribution of power from Muskrat Falls since the project was announced late in 2010. No doubt that rhetoric, on all sides of the political aisle, will ratchet up as the October provincial election draws closer.

It’s unfortunate that the public, as voters, taxpayers and power consumers don’t yet have a clear picture of whether or not the project is the best approach for Newfoundland and Labrador.

The reason for that lack of clarity falls first and foremost on the shoulders of the communications personnel at NALCOR and within government, but there is plenty of blame for others to share as well.

The various political parties have been using this project as a wedge issue for their own political benefit rather than ensuring that it benefits the province’s people.

Meanwhile, the media has gleefully reported their rhetoric rather than doing the research needed to inform the people of the province, so much for investigative journalism.

It’s also unfortunate that most people are not engaged enough to dig into this on their own. By not doing some basic searches on the web, asking questions of NALCOR and Hydro management and demanding clear answers we also share in the blame for our own ignorance of the situation.

Of course most people simply don’t have the time or inclination to do that sort of leg work and in reality they shouldn’t have to do it. If communication was better at the source they wouldn’t have the need.

As a result we are left to sift through talking points from the most unreliable sources of information out there, politicians.

Like most of you I have a pretty full personal life and a job that keeps me quite busy. Time is precious but I’ve managed to do some limited digging regardless. After all it’s our future that’s at stake and the stakes are high.

A certain level of information is available publicly but it takes a bit of effort to find it and to separate the facts from the myths.

One source of data is the initial backgrounders and announcements issued when the Lower Churchill agreement was first announced. These are available on the provincial web site and at NALCOR online.

Other information is can be gleaned by reading through various regulatory and government submissions and documents, not necessarily related directly to the project, available on the NALCOR and Hydro web sites. Some of those documents predate the project announcement but provide a level of clarification for the reasons why Lower Churchill is on the agenda.

There is also some information on power rates, though understanding most of the numbers requires a Masters degree in accounting.

Regardless, I’ve determined a few things for myself that I’m more than willing to share.

First of all, based on official submissions by Hydro – pre Lower Churchill – it’s clear that the island portion of the province is approaching a wall when it comes to available power. By 2015 we will essentially reach our limit and by 2019 have a shortage of power to meet demand.

This is the reality that manifested itself in NALCOR examining various options for ensuring a stable energy supply, both to meet requirements in the near term and allow for future growth.

The two primary avenues examined in recent years were the interconnectivity of the Lower Churchill at Muskrat Falls and the ongoing use of Holyrood, in conjunction with development of a number of smaller island projects.

According to the documents, the latter alternative brings with it several concerns, which is likely why Muskrat Falls eventually became the preferred option.

On its own Holyrood will not have the capacity necessary to meet the needs of the island in a few short years and having been commissioned in the 1970’s it’s now nearing the end of its lifecycle.

If the Holyrood option were chosen NALCOR/Hydro would be required to install scrubbers to reduce toxic emissions, undertake major upgrades to the installation and to develop several smaller generation facilities (a combination of multiple hydro, thermal and wind stations) simply to meet user needs. Each of these requirements would take several years to complete.

Even with those steps taken the corporation would be leaving itself open to the whims of fluctuating fuel prices. The Holyrood plant currently burns approximately 18,000 barrels of oil per day during peak generation.

The corporation might also be subjected to additional costs if carbon emission limits are put in place by Ottawa.

Even thought the installation of new scrubbers would remove many toxins from the air they do not stop CO2 from being emitted. Holyrood emits more than 600,000 tons of CO2 each year, making it less than environmentally friendly.

If Ottawa were to setup a cap and trade system, as has been widely talked about (essentially putting a price on carbon emissions), the cost of purchasing carbon offsets for Holyrood would lead to additional expenses well beyond the refurbishment and the rising cost of oil. All of which would be a factor in future power rates for consumers.

These additional costs, which would be subject to the whims of the market are in addition to the cost of development for the other smaller projects necessary to meet island demand. With all of that taken into account, the documents I’ve read indicate that the “status quo” approach would only meet demand until about 2029, leave little room for growth and require even further development projects going forward.

These and other issues are likely a big part of the reason why the Muskrat Falls option was the direction decided upon.

The current government has publicly stated that the project will stabilize power rates and that it’s the lowest cost option available. Meanwhile the province’s opposition parties say it will more than double consumer rates and that other options should be examined, though they don’t specify what those other options might be.

As I’ve said before, it’s difficult to separate the facts from the fiction when it comes to this project.

I don’t have the answers but I hope what I’ve provided will at least spur others into digging a little deeper themselves, perhaps even finding information that supports or refutes what I’ve gathered myself.

If nothing else hopefully the information put forward, beyond the rhetoric, will convince the public not to place too much stock in the political positions being staked out by any of the parties heading to the polls in October.

In an effort to provide as much information as I can, below are some diagrams I’ve found on the NALCOR and Hydro sites identifying the current power rates in the province, projections for the cost to consumers under both the Muskrat and Holyrood options and a graph showing the rising cost of fuel at Holyrood over the past few years.

I hope it helps.

The first chart identifies the current island interconnected rate per kilowatt hour - 9.584 cents.

The second chart identifies NALCOR's comparative analysis of revenue requirements for Muskrat Falls vs. the Holyrood option. Note that this chart is depicted in Megawatts rather than Kilowatts but what it shows, according to NALCOR, is that in the 2016 - 2019 time frame both options will cost about the same but in the following years Muskrat Falls (the blue line) is a much less expensive option. Precisely what the rate per kilowatt hour will be to consumers is not identified but it's clear that this would also be affected going forward.

This final chart idenfies the cost per barrel of oil used at Holyrood over the past 10 years. This indicates a doubling in those costs over the period. No projections of oil costs going forward were available, nor were any assumptions about the cost of carbon emissions should regulations be put in place.

Canada considering international bases - Peter MacKay

According to recent comments from Defense Minister, Peter MacKay, Canada is reviewing possible sites for setting up bases around the world in an effort to better position the military to respond to international missions.

The Canadian Forces does "prudent planning," MacKay told reporters recently, taking into account its ability to participate in international missions.

"As we look out into the future what we obviously try to do is anticipate where and when we will be needed, but it's difficult with any certainty, to make those plans, without talking to other countries, without doing internal examinations," Mackay said.

I’m sure Mr. MacKay is correct when he says it’s difficult to say with certainty where the Canadian Forces will be needed but one place they are guaranteed to be needed going forward is right here at home. That’s not something that’s in question.

According to the Montreal newspaper Le Devoir the Canadian Forces is in the process of negotiating to set up bases under a program known as the Operational Support Hubs Network. They've reportedly already completed negotiations with Germany and Jamaica, and are in talks with Kuwait, Senegal, Kenya or Tanzania, Singapore and South Korea.

Meanwhile a fully capable and existing Canadian airbase in Labrador, 5-Wing Goose Bay, has been lying practically dormant for years. In spite of repeated promises over the past several election cycles to staff the base with a 650 person rapid response battalion and other services the airfield remains largely an unused appendage of DND.

Prior to the last election MacKay said that the Harper government is still behind its now 5 year old promise but with so much attention focused on Afghanistan he could not commit to when it would happen.

Mr. MacKay would have voters believe that with so much of government’s current focus directed at external military interventions in recent times little thought has been given to the need for the Defense Department to actually defend Canada itself, a position that rings hollow in Newfoundland & Labrador.

The refusal to provide military capacity at the base has left
a gaping hole in the nation’s defenses along the Eastern seaboard and at the Northern approaches.

As things now stand, any unidentified aircraft entering Canadian airspace from over the North Atlantic must be intercepted and investigated by aircraft scrambled from CFB Bagotville in Quebec. The additional flying time and distance required to perform that duty means Canadian jets must first touchdown at the idled Labrador base to refuel before they can complete their mission. An inefficient activity results in a loss of valuable response time to any potential threat.

Even with the less than stellar location of Bagotville, when it comes to coastal defense, in the summer of 2007, just over a year after Harper’s commitment to station 650 personnel at Goose Bay, then Minister of Defense, Gordon O’Connor announced 550 new personnel and spending of an additional $300 million dollars at the Bagotville base.

In his presentation O’Connor said, “Today’s announcement once again demonstrates this government’s commitment to further strengthening Canadian Forces units in Quebec, to make up for the previous government’s years of neglect.”

Nothing was announced for Goose Bay and it hasn’t been since then.

For years the people of Newfoundland & Labrador have been lobbying successive federal governments to make use of the valuable airbase with nothing to show for their efforts.

With the election of the Harper Conservatives in 2006 and in light of the PM’s public position on Arctic sovereignty it was hoped that the base would once again provide the sort of service its location allows. This has not been the case.

In successive elections the Conservative government has promised to ensure an integral role for Goose Bay only to back away from those promises once elected.
In the months preceding the most recent federal election one of Mr. Harper’s Ministers went so far as to tell the people of Newfoundland & Labrador that he was not aware of the province’s concerns for the status of the base. How that could even be possible he did not say although the question was asked.

While the people of Newfoundland & Labrador have pushed hard on the issue for longer than most care to remember it’s not clear where most Canadians stand on the status of the Labrador military base. After years of inaction at the site most probably don’t even know the asset exists, but they should.

If Prime Minister Harper is truly as concerned with Arctic sovereignty as he is telling Canadians then the public should be asking why he would continue to leave a perfectly serviceable airbase, at the gateway to the Eastern Arctic, mothballed for so long.

Most Canadians fully support our Armed forces and many can even get behind the actions the Canadian government has taken in foreign lands recently but perhaps it’s time for the government of Canada to realize that our armed forces are managed by the Department of Defense, not the Department of Offense.

Newfoundland and Labrador Commits $1million for Haiti Relief

Premier Danny Williams, of Newfoundland and Labrador, today expressed heartfelt sadness upon receiving news of the devastating earthquake that plagued the country of Haiti on Tuesday.

“On behalf of the people of Newfoundland and Labrador, I express our sincerest condolences and compassion to the people of Haiti, especially to the families of the bereaved and those injured in the earthquake and its aftershocks,” said Premier Williams. “Our thoughts and prayers are with the individuals and families who have been impacted and I encourage individuals in Newfoundland and Labrador to contribute to the relief efforts to the best of their ability. I have also placed a call to Governor General Michaëlle Jean to express to her my deepest empathy for the people of her native country and the many friends and family who remain there during this terrible time.”

Premier Williams announced the Government of Newfoundland and Labrador will contribute $1 million towards the urgent relief effort now underway in Haiti.

“People all around the world, including those in Newfoundland and Labrador, are united as we come together and assist the people of Haiti in the aftermath of this devastating earthquake,” said Premier Williams. “Our thoughts and prayers are also with those who have embarked on the rescue and relief mission. We hope their strength, courage and compassion brings solace to the human suffering and loss in Haiti.”

Feds urged to probe N.B. - Quebec power deal

The following appeared today in the Halifax Chronicle Herald.

Power play worries Tory senator
By STEPHEN MAHER Ottawa Bureau
Tue. Dec 15 - 4:45 AM

Sen. Lowell Murray is calling for the federal government to get involved in the proposed sale of NB Power to Hydro-Quebec.

Speaking in the Senate chamber Monday, the Progressive Conservative said Ottawa cannot afford to stay out of the discussion on the proposed sale of NB Power because of the implications for interprovincial and international trade, and also because New Brunswick would be, in effect, ceding legislative power to Quebec, a "broad constitutional issue."

Mr. Murray, who was born in New Waterford and was minister of federal-provincial relations under former prime minister Brian Mulroney, warned that neighbouring provinces have reason to worry if Hydro-Quebec takes over NB Power’s transmission lines.

"The disappearance of the New Brunswick system operator sends an ominous signal," he said. "I will say as objectively as I can that Nova Scotia and Newfoundland and Labrador have every reason to be concerned."

The federal government has stayed out of debate on the proposed deal, under which New Brunswick, in exchange for $4.8 billion, would hand over its power generation facilities and transmission lines to Hydro-Quebec and alter its regulatory legislation to comply with Quebec’s.

Premiers Darrell Dexter of Nova Scotia and Danny Williams of Newfoundland and Labrador have asked New Brunswick to sign a letter promising they will have the right to build their own transmission lines through New Brunswick.

New Brunswick Premier Shawn Graham has refused, pointing out that American regulators would guarantee that other provinces have the right to export power through New Brunswick.

The federal government should not allow that American intrusion into interprovincial trade, Mr. Murray argued.

"A policy of continued silence would be an implicit delegation of the federal government’s jurisdiction in this area of interprovincial and international trade to the USA Federal Energy Regulatory Commission and the Government of Quebec," he said.

"Nova Scotia and Newfoundland and Labrador would then be in the odd position of depending on the U.S. to protect their interests in Canadian interprovincial trade. If these interests are imperilled, it is surely the role of the federal government to protect them."

Newfoundland says Hydro-Quebec has already made it difficult to export electricity from Labrador to markets in New England, and it would be even harder if the Quebec utility controlled New Brunswick’s transmission lines.

Peter MacKay, Nova Scotia’s representative in cabinet, expressed concern last month in an interview with the Telegraph-Journal in Saint John, N.B.

The deal "hasn’t given fair evaluation to what other alternatives may be out there — which would include Nova Scotia, Newfoundland and Labrador and Prince Edward Island," he said.

"What are the alternatives to what has been presented by Hydro-Quebec? We don’t want to see any Atlantic Canadian provinces left out or left behind."

Winning an Un-Winnable Battle

How do you win an un-winnable battle?

It’s a question that's been on my mind since learning that the Harper government, in spite of Parliament's rejection of new NAFO amendments that could see foreign vessels patrolling Canadian waters, has decided to go ahead and adopt those amendments anyway.

After such an incident there are those who question whether democracy is utterly and truly dead in Canada and whether our sovereignty itself has been bartered away. There are those as well who will see this as the final nail in the Atlantic fishery with NAFO nations freely able to rape the ocean clean once and for all. Already, in some circles, talk has turned to the need for independence and separation from this “undemocratic” Canadian federation.

All I can say to those good folks is that they might want to consider choosing their battles wisely and perhaps, in this instance anyway, the right way to counter Ottawa’s actions is to simply accept them as our new reality while seeking ways to address the underlying concerns on a more local level.

Let’s think outside the box on this one.

Beating our collective heads against an immovable object (the PMO, DFO, take your choice) isn’t going to solve the problem at hand and make no mistake this is indeed a problem.

The Harper government has shown in the past that it has no love for Newfoundland and Labrador and certainly isn’t going to backtrack on a very public decision simply to make Atlantic Canadians happy.

On the other hand, if we could find a way to mitigate the damage, and perhaps even enhance our power position in the fishery, over time, wouldn’t that be a victory in itself?

With that premise in mind, perhaps we should consider working within this new system rather than futilely fighting it without any real hope of victory.

A great example of just such a "novel" approach already exists in the province so there isn't even a need to re-invent the wheel.

A few years ago the provincial government and some local groups felt that the Feds weren’t doing enough to protect our rivers and salmon populations. They argued and fought with DFO for a while until finally deciding the best approach was to simply do something about the problem.

As a result a number of provincially funded wardens were hired and sent forth into the Newfoundland and Labrador wildneress. A public awareness campaign about poaching was started and this campaign led to citizens groups forming their own civilian river watches.

Thanks to these efforts and others salmon poaching in Newfoundland and Labrador is way down from where it was in the past, stocks are generally improving and Newfoundland and Labrador now has far more say in the protection of its rivers than it has had for decades.

Could a similar approach work with ocean stocks? Could this be the answer to so many of the concerns people have expressed about foreign influences on the offshore?

Let’s explore the possibilities for moment.

Instead of battling Ottawa over a decision they aren’t likely to undo we might be better off lobbying the provincial government and our own people to take the bull by the horns (or the fish by the tail) when it comes to fisheries conservation.

If we can find the collective will to act we might see a far different fishery a few years from now.

Every day Cougar Helicopter flights pass back and forth between St. John’s and our oil platforms at the edges of our 200 mile limit. Provincial Airlines planes travel over our Grand Banks on a regular basis every day. The Province’s newly purchased water bombers, when not fighting major fires, will be sitting idle. No doubt these bombers require test flights from time to time to help ensure they’re in good working order. Couldn’t those “test flights” skim over the Flemish Cap just to see what’s going on out there.

With enough eyes in the air reporting back on every fishing boat, row boat or rubber duck near our waters, in a very public manner, nobody at DFO will be able to claim they don’t know what’s happening or deny that anything illegal is going on at all.

The cost of these measures is essentially zero. All it takes is the will to co-operate.

But let’s take it a step further.

What about the countess cargo vessels and oil tankers that ply our waters every day? Couldn’t they be asked, as a courtesy, to help spot questionable fishing boats and report whatever they see? It’s just a quick radio call after all.

What about fishermen themselves?

Since the fishery has always been a major contributor to the province’s economy isn’t it time for Newfoundland and Labrador to invest a few dollars into helping the ground fish stocks recover? It doesn’t have to cost a lot and the return on investment might be surprising.

Most fishermen already know the tricks of the trade. They know where the most important fishing and breeding grounds are. They know where illegal fishing is happening and they know who is involved (both foreign and Canadian). Perhaps it’s time to get them directly involved in the conservation effort on a more formal level.

If Ottawa won’t adequately protect the fish stocks then the province should set aside 2 or 3 million dollars a year (a pittance in the grand scheme of things) to pay for provincial fisheries patrols.

Why not?

Once most fishing captains have caught their quota for the season many of them simply take their boats out of the water and sign up for EI. Why not put yearly contracts out to tender seeking local captains to help patrol our waters once they’re finished fishing?

Of course these “civilian” patrols wouldn’t have any legal authority to stop rogue fishing boats or arrest anyone involved but they could certainly take a page from the same environmental activists who so often branded them as “barbarians” over the seal hunt. They could video tape the offending vessels, request official intervention from on site, provide very public evidence against violators and generally make offender's lives a living hell on the high seas.

Who knows, Ottawa might one day even help defray a small part of the cost should such a plan prove itself effective. After all, if off season fishers are gainfully employed in conservation efforts rather than collecting EI it would not only help remove the “stamp fishery” stigma attached to the industry but the effort could actually lead to savings in the EI system itself.

With enough Newfoundland and Labrador eyes on the water and in the air it might finally become a losing gamble for anyone bent on illegal fishing and I’m willing to bet it won't take long before the risks begin to outweigh the benefits for these culprits and we begin to get things under control.

As for addressing Ottawa’s new found fondness for allowing foreign patrol boats into Canadian waters, well, with countless eyes already on the water what possible excuse could they come up with for asking foreign nations to “invade” our 200 mile limit?

I began my little rant by asking how you win an un-winnable battle. I’ll close by saying that sometimes winning can take on different forms depending on your perspective.

The question we need to ask ourselves is this: Are we trying to win a battle with Ottawa for the sake of winning or are we truly trying to protect fisheries habitat regardless of Federal meddling and mishandling?

A few years ago when inland salmon stocks were in trouble DFO wasn’t stepping up to the plate. Today, thanks to local efforts those stocks are improving and Ottawa has practically abandoned its inland efforts, preferring instead to leave much of it up to the province and the public (not officially of course but the result is the same). In this case the dynamic has shifted and Newfoundland and Labrador has grown in strength.

Perhaps there’s a lesson in this for the future of the offshore as well.

NL Should Simply Accept Upper Churchill Contract

Having been born, raised and now living in the province of Newfoundland and Labrador I make this suggestion only after careful consideration of what it might mean for my continued physical well being, especially if taken out of context. I also make it with the best of intentions and the best interests of the province in mind.

Earlier this week the government of Newfoundland and Labrador through CFLco, the operator of the Churchill Falls generating station, issued a request to Hydro Quebec asking them to consider renegotiation of the lopsided Churchill Falls contract. That request came after receiving a number of legal opinions, from what Premier Danny Williams referred to as, “some of the best legal minds in Quebec”. Fair enough, but I wonder if the people of the province should just learn to accept the existing contract as a part of the past and instead focus on the future. I wonder as well if the time, money and resources now used to fight the original 1969 contract might also be better spent looking forward instead of back.

Quebec’s quick and clear response to the province’s request was not an unexpected one by anybody in Newfoundland and Labrador, or at least it shouldn’t have been. Not in light of a study undertaken by the Economic Council of Montreal that shows 75%of Hydro Quebec’s profits are directly due to cheap power from Churchill Falls Labrador. The response was a simple and unequivocal no.

The question now becomes, “What should Newfoundland and Labrador do about that denial?”

This isn’t the first time the province has tried to re-open the original contract. In fact they’ve tried several times over the years through political avenues and with legal challenges in the Supreme Court of Canada. All attempts have been unsuccessful so far. That isn’t to say this latest effort, should it ever actually proceed to the Quebec courts, might not end differently. It may have merit or it may not, that remains to be seen. Regardless of any of that, I wonder if renegotiation of the original contract should even be the target of this or any future attempts at seeing justice done.

There is one aspect of the Churchill Falls dynamic that has never been tested in any court, either provincially or federally, yet it begs for just such a challenge. I’m not referring to the original contract itself, which is set to expire in 2016, about the same time any legal case would likely take to wind its way though the court system. I’m speaking instead of the automatic 25 year renewal clause that will kick in when that original contract expires.

Perhaps it’s truly time to accept the original Upper Churchill contract for what it is and focus on the 6 years it is still in force to challenge the upcoming contract renewal before that agreement is actually implemented.

Based on the legal opinions presented this week by CFLco, a challenge to the renewal contract might stand a far better chance of success and the salient aspects of Quebec civil law now being spoken of are only the tip of the iceberg.

There are those who question whether the Quebec civil law touted by Newfoundland and Labrador as the basis of its latest attempts would even apply retroactively to a 1960’s contract since that law itself was only implemented in the mid-nineties. The renewal on the other hand is set to come into effect years after that law was first put on the books providing Newfoundland and Labrador with additional support for action on that front.

The renewal is considered to be automatic however in essence it is still a new contract, one that includes an even lower power purchase price for Hydro Quebec than existed under the original contract. Challenging that renewal, before it is implemented, would allow the province to follow an entirely new avenue of action, one where Quebec civil code references to “good faith” and “equity”, might still be valuable as supporting arguments but need not form the main thrust of the province’s case.

In 2005 Professor James Feehan and Historian Melvin Baker, of Memorial University, presented a research paper entitled, “The Origins of a Coming Crisis – Renewal of the Churchill Falls Contract”. Their investigation into the events surrounding the renewal aspect of the agreement was later published in the Dalhousie Law Journal.

Feehan and Baker’s effort uncovered evidence of conflict of interest and the use of inside information by Hydro Quebec during the negotiation process. They supported those findings with newly uncovered documents and meeting minutes from the period that were not previously known to exist.

In the end the researchers came to the conclusion that this was a situation where Hydro Quebec used information about the financial position of CFLco it should never have been privy to in a bid to force the last minute inclusion of the renewal clause into the original contract. According to the researchers Hydro Quebec used this information to demand CFLco either “take it or leave it” eventually leading the company “take it”, a decision that made no sense in a business context except, as Feehan and Baker put it, they were acting under “duress”.

In the words of the researchers, the events raise questions of “…conflict of interest, economic duress…business ethics” and “law”.

Personally I’d love nothing more than to the true owners of Churchill Falls gain some kind of redress after decades of living with the one sided Churchill Falls contract but in reality that contract will effectively end in just 6 years and after decades what’s a few more years. Any legal challenge would likely take at least that long. Wouldn’t the time be better spent challenging the 25 year renewal contract which, as my dear Father has been known to say, “…is an entirely different kettle of fish”.

Fisheries Minister Rocks Boat

I never thought it would come to this but it has. Here I was enjoying a nice summer hiatus and today I find myself suddenly back in front of the keyboard writing in defense of actions taken by the Federal government of Canada in Newfoundland and Labrador.

That’s right folks, your’s truly has not only broken his summer respite but I’ve also been reduced to defending the actions of the Department of Fisheries and Oceans (DFO), a federal agency that has all but destroyed the outport way of life and ruined Newfoundland and Labrador’s economy with their utter mismanagement of the North Atlantic fishery.

It’s not something I enjoy doing but when the situation calls for it what options do I have?

The reason for my inability to sit idly by (which I was doing quite happily) comes after the recent announcement of this year’s commercial cod quota by Federal Fisheries Minister, Gail Shea.

It seems the Minister (who is well known for a number of politically motivated and underhanded decisions since taking office) has left this year’s northern cod quota largely unchanged from the previous year. According to the Fish, Food and Allied Workers Union (FFAW), “…quota increases are almost non-existent” and this, so it would seem, has fishermen across the Province very, very angry.

According to the FFAW’s David Decker, Minister Shea and her officials “either have no idea about their own science data, or are choosing to ignore it. (this is) another crippling blow" for the industry.

Clearly the words of someone who is angry with the current situation, but for what its worth, I’ll tell you what makes me angry and, at least in this case, it certainly isn’t the Fisheries Minister or DFO.

What gets under my skin, and the reason I find myself sitting at my keyboard today is the absolute unmitigated gall of the fishermen and the FFAW leadership who are once again screaming for an increased cod quota when they know full well that the cod stocks are in such poor shape.

Yes, the science shows that inshore stocks are showing signs of an increase, in fact rather encouraging signs. That said, the hope now is that as inshore stocks continue to grow they will help repopulate the offshore which where the species is still teetering on the brink of extinction, even 17 years into a moratorium.

Yes, the offshore fleets that are illegally fishing need to be stopped and Canada is not doing enough to fix that problem.

Yes, foreign ships skirting international waters on the nose and tail of the Grand Banks or Flemish Cap need to be stopped (blown out of the water would be my approach) and again the fed is doing nothing to fix the problem.

Yes, Canadian quotas for offshore fleets (of any species) need to be better controlled, bottom dragging needs to be done away with and so much more needs to happen, none of which is on Ottawa’s radar.

In short there are many things Ottawa can be blamed for when it comes to the fishery, including allowing the stocks to collapse in the first place, but when it comes being conservative when issuing quotas for rebounding inshore stocks the only blame I see in all this rests squarely with the fishermen and the union, not with Ottawa.

We all know it’s been a hard year in the fishery but is that an excuse to increase quotas and make a quick cash grab at the expense of the future viability of the fishery itself?

The FFAW is often the first to complain about fisheries mismanagement but they’re also the first to scream to high heaven when quotas are managed with the future of the stocks in mind.

Grab a buck today and to hell with tomorrow should be the motto in the fishery these days.

That’s an attitude that boils my blood.

Between endless federal governments and provincial governments, the fishermen and their union and the plant operators as well the fishery has devolved into a mess of monumental proportions. It’s a quagmire of muck and slime so twisted and convoluted that it would take a nuclear bomb dropped into the middle of it to disassemble it and untangle the individual components so they could be rearranged into anything even resembling a viable industry.

Fishermen consider themselves “independent business owners” yet they have no product (the fish is a public resource), they have union representation and they collect EI for more than half the year. What kind of independent business owners do any of us know who fit that description?

The fisheries union (FFAW) represents both the suppliers (the fishermen) and the plant workers. This means that in practice the FFAW is supposed to fight for the best per pound price for the fishermen when dealing with plan owners, and also fight for the best wages for plant workers, wages that can only come from the plant owners if they get a lower price from the fishermen. Add to this the fact that the FFAW itself has its own fish quota and operates a handful of fishing boats and the level of conflict becomes staggering.

Ottawa has always put political expediency ahead of fisheries protection or management (perhaps with the exclusion of this current quota which is why I’m really ticked at the FFAW). DFO has been negligent and corrupt in their management practices for decades and the state of the stocks is all the evidence of this anyone needs to see.

Consider as well that countless political leaders in Newfoundland and Labrador have made a career out of parlaying fish plants for rural areas into election wins and the blame for the overall mess in the industry casts wide net over everyone involved.

Believe me, if the verbal diarrhea flowing from the FFAW’s David Decker hadn’t raised my hackles today I’d be out enjoying a great summer day (thanks again by the way) but there comes a time in each person’s life when there is only so much B.S. you can put up with and this my friends is one of those times.

For (pick your divinity) sake, the cod fishery was decimated nearly 20 years ago and in all likelihood the crab, lobster and many other commercial species are headed in the same direction. It’s time for all the stakeholders to do what needs to be done. Let the chips fall where they may.

For starters quotas should only ever be set based on the most conservative science, as was apparently the case this week, never ever for political reasons, which is usually what’s done.

Yes there is no doubt fish caught in off of Newfoundland and Labrador’s shore should be processed in the Province but plant owners need to be given the freedom, with that parameter, to run their business as they see fit. If they want to close down most of their plants so the remaining ones will provide meaningful and full time work and so they can make a real profit for the investors they should be able to do so. In other words fish plants need to become an actual place of business that produce fish products not EI stamps.

Fishermen need to make a decision. Either they want to be employees of a fish producer or they want to run independent business enterprises. They can’t be both. If they are independent business owners then they should have their EI access cut off and lose their unionized status. If they want to be employees of the plants then the plants can buy their boats and licenses and give them a decent wage for fishing.

Yes, this will all mean great hardship in many places across the Province but at least it will finally bring some order to the chaos. What kind of life is it for people who spend year after year watching the industry decline all the while realizing their only real goal is to get enough stamps to make it to your next season of EI?

It’s time for some leadership and backbone, something clearly lacking among all the generally recognized stakeholders in this industry, with the exception of the one forgotten stakeholder.

Far too often forgotten with all the flapping mouths are the silent stakeholders, the public, you and me.

The fish stocks, if they belong to anyone belong to all citizens, not just the fishermen.
The seemingly endless tax dollars thrown at the industry (usually into a large empty and bottomless money pit) comes from the pockets of John’ and Judy Public. This means we all have a right to intercede in what’s happening. In fact we have more than a right, we have an obligation. Perhaps its time the silent stakeholders took a stand.

Well, this taxpayer has reached the end of his rope and is willing to say loud and clear for everyone to hear, “Enough is enough. Either fix it or shut it down completely”.

Meanwhile, back to my reason for writing today, Minister Shea and the quota she set this year (sorry for going off on a tangent but anything to do with fisheries issues tends to cause mass confusion), all I can say is, “good job” Ms. Minister. If you only performed as efficiently, properly and non-politically with regard to the numerous other aspects of your portfolio we might finally get somewhere with this mess.

Patronage Plumbs Peddled for PM's Purposes

This morning I stumbled across an article from the “Hill Times” that immediately caught my attention and captivated my interest. The piece was about none other than Prime Minister Stephen Harper

The headline read, “Harper criticized for not 'taking care' of former MPs, top staffers”.

The author referenced Conservative MPs and staffers who are worried because, “...Mr. Harper demands loyalty … (but) he doesn't show the same loyalty when MPs lose an election or staffers leave their Parliament Hill jobs."

Apparently those loyalists are, "disappointed that he has failed to "take care" of them in their post-Parliamentary lives.”

I have to say I was left in total bewilderment after reading this.

I mean boo hoo for the party hacks moaning to this reporter but what's going on here?

First of all let me say I’m strongly believe that political patronage and the “old buddy” network is a major part of the problem we have with politics today. Anybody who chooses to run for office or to work for a political “machine” shouldn’t have any right to expect to be “taken care of” when the party ends. They do of course but that doesn't make it right.

Knowing how I feel about this I’m sure you can understand my confusion.

Politics in Canada has been an elitist and closed “scratch my back” system for decades and to hear that suddenly Stephen Harper, one of the most underhanded and self serving of the bunch, may have suddenly decided to do the right thing and give up the practice had me flabbergasted.

I mean wasn’t it Stephen Harper who claimed he would never appoint senators to that most golden of retirement homes, the Red Chamber?

Wasn't it also Stephen Harper who did just the opposite by appointing 18 of them?

Didn’t he thank Mike Duffy for his partisan service and support during the last election and for Duffy’s crucifixion of Stephane Dion after a botched Nova Scotia interview (an action by Duffy and NewsNet that was later described by the Canadian Broadcast Standards Council as unethical)?

Didn’t Mr. Harper also send former Newfoundland and Labrador MP, Fabian Manning, to the red chamber after Manning was ridden out of town on a rail in his home Province? Wasn’t that a thank-you to Manning for standing next to the PM in the House of Commons, laughing and clapping as Mr. Harper callously stripped hundreds of millions from Newfoundland and Labrador and publicly ridiculed Mr. Manning’s home province?

Could the Stephen Harper I know and dislike have changed so much in such a short time that his party insiders and toadies were beginning to worry about their future expense accounts and "rolling around money"?

I was so confused. How could some reporter have identified a lack of political pork barreling and cronyism as a serious weakness in anyone but of all people, Stephen Harper?

Really?

What was I missing?

I mean here is a Prime Minister who has proven time and again that he is not to be trusted in any way, shape or form. For Stephen Harper breaking a promise or “sculpting the truth" is as natural as breathing. So my question was this: Had the Prime Minister suddenly turned over a new leaf or was he just proving to those in his inner circle what many of us already know, that he can’t be trusted?

It's something they all should have been aware of by now but in the rarified air of Ottawa clear vision is something often encountered.

Was it something else all together?

Did the Hill Times get boondoggled by the Harper media machine into running a story that might allow the Prime Minister to be viewed as the only one willing to “clean up dodge” even at the expense of his loyal minions?

The whole thing left all me with so many questions my head hurt and I believe (just for a moment) my morning muffin threatened to reappear from the depths.

What was I to say about this new information staring me in the face?

At first I almost thought that even though the Hill Times wasn’t very flattering to Mr. Harper (They seemed to view this lack of cronyism was a bad thing ) I might actually be forced to sit down to write something complimenary about the man.

My blood ran cold.

I nearly passed out from the stress.

But I was saved the horror of defending Mr. Harper's actions.

As I lowered by now tense frame over the keyboard and the blood slowly began to flow back into my head I suddenly realized what was really happening. It wasn’t that Stephen Harper had decided to do the right thing by turning his back on old school politics, it was just a case of the true nature of the man once again reaching the public eye.

I guess all the conflicting facts and my desire to see political cronyism done away with had clouded my judgment and overwhelmed my nervous system.

Think about it, Stephen Harper hasn’t actually done the right thing by deciding not to offer cushy jobs to his cronies on the taxpayer dime. Instead he’s been carefully weighing the market value of those around him and acting accordingly.

Those who have little future value to him, savagely loyal or not, must be removed and forgotten in the interest of the Harper "buddy" portfolio. In this way the limited number of valuable patronage positions available can be offered to those who have continued political or personal value.

I mean if Harper just gave away those plumb jobs as a thank-you to every Tom, Dick or Sparrow how would he be able to buy future influence inside Ottawa?

Consider this, were the onslaught of senatorial appointments really a political thank-you on the PM’s part or a way for him to meet his own self interests?

I admit that at first I thought they were nothing more than a taxpayer funded pat on the back but on reflection, and in light of this recent information I’ve been forced to look for another explanation and it isn’t hard to find one.

Just squeeze your eyes into tiny slits, forget you’re human or even a primate and try to think like Stephen Harper. I know it hurts but if you try real hard the answers will come.

For anyone afraid of having their personality or moral compass get stuck in Harper mode stop now and I'll tell you what I came up with.

Mind you I didn’t have the time, inclination or article room to research all the senate appointments made my this PM but in the case of Duffy and Manning the answer is simple.

Those appointments weren’t Harper’s way of thanking two political hacks for climbing into his back pocket they served a much more important purpose.

Duffy’s senate seat ensures that Mr. Harper has a very experienced and well connected media insider at his back pocket and at his beck and call whenever he needs to create some spin. And here’s the really interesting part, it’s not costing the Conservative party a cent because the taxpayers are footing the bill for Mr. Duffy’s enormous salary and golden perks.

As for Fabian Manning’s appointment, that ones a lot simpler and less forward looking.

Harper still has a major pissing contest underway with the Premier of Newfoundland and Labrador, Danny Williams, and he needed a way to retaliate against the Province for not electing a single Conservative during the last election. What better way to send a message to the Province and the Premier than to offer a highly publicized senate seat to the Province’s poster boy for “traitor of the decade”?

Can you say “slap in the face” Premier Williams? I bet you can.

Anyway, once the reality of the situation got a little clearer I slapped myself for being so politically naive and I felt much better, not for Canada which is still politically screwed, but about my personal well being.

My headache went away and things began to return to normal after a few minutes of deep breathing. It was then that another terrible thought occurred to me. What will happen after the next federal election?

According to the same “Hill Times” article that threw my morning into such turmoil, Mr. Harper may not always “take care” of his loyal supporters but the Liberal party has, “a fairly strong support network, not only political, but also corporate and academic” to help its loyalists.

Oh great. Once again we are faced with proof that the Canadian political system is nothing more than a joke. The banana republic of the North.

Now Canadians can either elect a ruling party that has no morals but which is pickier about feeding its loyalists at the trough or one that claims to have all the morals in the world while historically handing out patronage positions like Halloween candy.

Thank God we live in a democracy (well actually a democratic monarchy) where the public is free to decide which party had the best publicity machine leading up to election day.

Personally I think I’ll take next polling day. At least nobody will be able to blame me for “choosing” our next government.

Historical Perspectives in our School System

Over the past week a great deal of media attention and public hand wringing has been evident in the wake of a report by the Dominion Institute. This independent report looked at Canadian history education across the Country and came to the conclusion that there is a distinct lack of focus on Canadian history within the various education systems from coast to coast.

According to the study Newfoundland and Labrador, along with 3 other provinces or territories should receive a failing grade for the limited level of Canada history being delivered in provincial schools.




Members of the Newfoundland Regiment WWI

Personally I don’t know what the reason might be for specific levels of delivery in the other so called “failed” provinces but in the case of Newfoundland and Labrador I beg to differ with the position of the Dominion Institute that the situation is troublesome.

Remember that education is a provincial mandate and is controlled by the governments of each province. Remember as well that although Newfoundland and Labrador is indeed a Canadian province today this was not the case just 60 years ago. There in lies the difference between Newfoundland and Labrador and the other jurisdictions across Canada and the reason why the province should not have been lumped in with the rest of Canada for the purposes of this study.

Prior to 1949 (just yesterday really) Newfoundland and Labrador blazed its own trail, developed its own culture (or multiple cultures) and made its own stamp on history.

Historians, social studies experts and others will tell you without hesitation that it is extremely important to the social and mental well being of any culture that they understand their past because it is one of the biggest factors influencing who a person is.

Perhaps this is the reason for the trepidation expressed by the Dominion Institute and various media commentators since the report was released. Unfortunately they forgot that the history of Newfoundland and Labrador’s people is not, for the most part, tied to the history of Canada at all.

All you have to do is look at the sad story of aboriginal peoples across Canada to see what happens when a culture’s history is usurped and replaced by that of another. Over the decades many attempts were made to assimilate the native peoples of Canada at the expense of forgetting their own rich past. The results have been disastrous and are a major contributor to the problems many native people suffer with today.

In the case of Newfoundland and Labrador, at least in recent years, more local history has been added to the curriculum in an effort to ensure that people never forget their rich roots and rightfully so. In fact it is Newfoundland and Labrador history courses that should be made mandatory and more accessible in the schools of the province, not Canadian history courses.

As far as Newfoundland and Labrador is concerned a large percentage of the Province’s current population still remembers quite well when Canada became a part of our history and the events that have taken place since then. Taken in that light, the brief moment of time since 1949 hardly demands the cost of introducing and teaching a full Canadian history curriculum in our high schools.

No offense intended to the rest of Canada but in Newfoundland and Labrador teaching Canadian history as a side note to World history courses should be more than sufficient to ensure that what little shared past we have is recognized.

Newfoundland and Labrador Takes 10% Stake in Offshore Expansion

"That amount ($10 billion) is actually double the royalties collected by the province from all three projects to date, since 1997," - Premier Danny Williams

Speaking at the Newfoundland and Labrador Offshore Oil and Gas Industries Association Conference in St. John’s on Tuesday Premier Danny Williams announced a long awaited tentative deal with a consortium of industry partners for expansion of the Hibernia South offshore project.

An agreement on the expansion was put on hold by the Province months ago when the government introduced its new energy plan. At the time government requests for clarification on some aspects of the expansion and the lack of an agreed upon royalty regime or equity position for the Province delayed the project.

On Tuesday Premier Williams announced to a packed house at the NOIA conference that a tentative agreement has now been reached that will see the province take a 10% equity stake. Depending on the future price of oil, the equity position, combined with provincial taxes and an enhanced royalty regime is expected to put $10 billion dollars into provincial coffers over the life of the project.

The royalty regime for the extension can top out at 50% once payout is complete and if specific oil pricing conditions are achieved. The final contract is yet to be completed so precise details of what those conditions are or what the province’s 10% equity stake will cost have not been released, though some estimates have put the cost at about $30 million.

The Hibernia South extension is estimated to contain more than 230 million barrels of oil and based on past estimates from within the oil and gas industry in the region those estimates are likely on the conservative side.

According to Premier Williams, "Hibernia South will increase and sustain production from the Hibernia field, preserving employment, while providing a significantly greater royalty return for the province than any previous project."

Comparing Report Cards - Harper vs. Williams

This week Prime Minister Stephen Harper delivered his “report card” on the status of the federal stimulus spending. Ironically, Mr. Harper waxed poetic about how much money has been earmarked for specific projects, municipal leaders across the Country sat in stunned silence wondering where the money was.

Always one to turn a phrase to his advantage, during his address Stephen Harper was quite skillful in saying that money has identified for the many projects while knowing full well that approval and delivery are not the same thing.

What Mr. Harper intentionally failed to admit was that most cheques have not been cut and most tenders for development have not been issued because the money is still somewhere in the bowels of the Finance department tangled in red tape. Stimulus funding is wonderful stuff when it’s needed but it isn’t much good if the money doesn’t flow.

As much as the Prime Minister dislikes the place, perhaps Mr. Harper would do well to look toward the province of Newfoundland and Labrador if he wants to see how stimulus funding really works.

On the same day the Prime Minister delivered his report card to the Professor Ignatieff and the rest of Canada Newfoundland and Labrador Premier, Danny Williams, and several of his Ministers delivered an update of their own.

The Provincial infrastructure stimulus package included in the 2009/10 budget was set at $800 million dollars and just yesterday that amount doubled to $1.6 billion and the program extended to include the 2010/11 fiscal year as well.

The biggest difference between the Newfoundland and Labrador package and the one touted by Ottawa isn’t in the numbers or the duration but in the delivery.

Perhaps Provincial Transportation and Works Minister, Trevor Taylor, put it best when he said at yesterday’s press conference, “It's one thing to make unprecedented commitments but it's quite another to get this money flowing and projects tendered quickly and that's just what our government is doing."

"Right now our Tendering and Contracts Division is the busiest it has ever been. On average, at any given time, the Provincial Government has between 20 to 30 tenders in circulation. We currently have 107 tenders out, which is a record for this province."

"We are issuing and awarding our tenders earlier than ever before and we plan to maintain this aggressive tender schedule as long as the commodity and labour prices hold and the industry has the capacity to do the work. Also, we are duplicating the designs of many of our new schools and health care facilities which expedites the process and makes it more cost-efficient,” said Taylor.

While there is no doubt the economic downturn is affecting the Province, as it is the rest of Canada, with increased unemployment and a lower GDP there are some positive indications for improvement over the coming months.

Finance Minister, Jerome Kennedy noted that, "At a recent meeting of finance ministers across the country, the Federal Government indicated that Newfoundland and Labrador is now leading the rest of the country with stimulus flowing to the economy in 2009 and 2010 relative to our GDP."

"In addition, thus far this year, our province is leading the country in a number of economic indicators, including investment intentions, retail sales, labour income and urban housing starts," said Kennedy.

Perhaps one of the best features of the Newfoundland and Labrador stimulus package is that isn’t overly dependent on Ottawa to provide a share of the funding. 85% of the program’s funding will come from provincial coffers with the remaining 15% being shared by federal and municipal governments.

It’s a good thing there isn’t too much dependence on Ottawa. We all know where that has led the Province in the past. In this particular situation and at the speed federal infrastructure funding is flowing the recession is likely to be a distant memory by the time the first cheques go in the mail.

It’s really too bad Stephen Harper and Danny Williams aren’t on speaking terms or the PM might have picked up a few pointers on how to handle an economic crisis.

Canada's Economic Recovery Plan (For Dummies)

With the economy on life support, businesses closing their doors and laid off workers stacked up like chord wood across the Country the political thermostat has been cranked up on bust in Ottawa and the self serving rhetoric is flying around like hungry bees at the hive.

Unfortunately the only ones with anything to gain from all the hyperbole are the politicians themselves. Like it or not, the rest of us are on our own.

They can spin it however they like but the fact remains that there is no money available to bail out the forestry sector or the commercial fishing industry, both of which until recently employed hundreds of thousands of individuals. You see the problem with those industries, according to the Conservative talking heads, is not one that Ottawa can address. It’s all about a lack of markets for their products.

On the other hand to listen to our elected officials, you’d somehow believe that pouring billions upon billions of our tax dollars into the auto sector, which employs tens of thousands, is simply the right thing to do.

Funny, but I thought I read someplace that a lack of buyers for North American gas guzzlers was what was killing the industry. My mistake I guess.

Meanwhile, up on the Hill, the Liberals, NDP and Bloc are all claiming to be the champions of the working classes. Yes sir, they all want to be seen as standing up for little guy who’s lost his job. Why if the Harper government doesn’t soon implement changes to the qualifications for EI and help those people the opposition will…well it…

What? What exactly will Mike, Jack, Gilles do anyway?

Every MP in Ottawa knows the odds of electing another minority government are staggering. Nobody knows if the Liberals can actually win the next time out or not. According to the polls both the NDP and the Bloc stand to lose seats if an election were held right now. Add to this the fact that it would take all three parties to boot the Tories out of office, at a time when a huge percentage of MPs (mostly with the Bloc) need only one more year in office to qualify for their fat taxpayer funded pension and we all know exactly what they’ll do.

They’ll complain and attack each other for political advantage, protect their own incomes, ensure that 45 members of a party bent on splitting Canada apart get a good federally funded pension and they’ll do all of this, knowing full well that at the end of the day none of it will help the unemployed who need EI to survive.

On the topic of EI, I’m sick and tired of the rhetoric surrounding how many hours it takes to qualify. Once again the political elite and pundits have pulled Newfoundland and Labrador out of their back pockets (or from slightly to one side of it) in an effort to show how unfair the rest of the Country is being treated and how easy Newfoundlanders have it on the “rock”.

The latest trend these days is to compare the number of hours necessary to qualify in BC or Ontario, between 600 and 700 hours, while, and I quote, “…in most parts of Newfoundland it’s almost a God given right to collect and you only need the minimum of 420 hours”.

What they never mention is that the high number of hours quoted for Ontario, BC (or what ever province is the flavor of the day) is what’s needed in urban areas with low unemployment rates. By comparison, in the North East Avalon region (call it the St. John’s area if you like) you also need more than 600 hours to qualify, just as in most urban parts of Canada.

While I’m on the subject, they also don’t inform anyone that roughly half the population of Newfoundland and Labrador lives in that particular area or that in parts of Ontario and BC and across Canada there are rural areas, just like those in Newfoundland and Labrador, where the minimum number of hours are all anyone needs.

The only difference between Newfoundland and Labrador, when it comes to EI qualification, is that many other provinces have far more people living in those rural areas than Newfoundland and Labrador does and as a result are more likely to have large numbers collecting EI, or as Jim Flaherty is likely to refer to them these days, “EI finalists”.

Personally I don’t like the idea of someone only having a job for 45 days being able to collect EI for a year. On that one point Stephen Harper and I can agree, but really, why all the bawling and blaring over EI anyway? To hear Steve and Diamond Jim Flaherty talk about it you’d think lowering the number of hours required was going to crush Canada and send the national debt spiraling into some bottomless abyss.

It seems they’ve conveniently forgotten something. For years the Canadian debt was paid down by siphoning off EI premiums meant to be used in just the sort of situation the Country finds itself in today. Billions were diverted over the years to debt reduction instead of being put aside for income support. Some estimates put the figure at $50 billion or more.

In other words the comparatively low Canadian debt the Harper government is so happy to talk about in these hard times is there, in large part, thanks to $50 billion in EI premiums that were collected from individuals and businesses who thought they were paying an insurance premium. If the debt now needs to be increased by a billion or two in order to see workers and families through the tough times it’s only fair Mr. Flaherty get off his high horse and pony up.

But of course he won’t and the reason is simple.

Any increase in EI costs would impact the federal budget and debt. If, on the other hand, a large percentage of laid off workers don’t qualify for EI and instead have resort to joining the welfare rolls it’s a provincial cost to deal with and who really thinks Ottawa could give a crap about provincial deficits or crushing debt loads?

So what lessons can we take away from all of this?

1. Canada’s politicians are very concerned about job losses and stabilizing family incomes, primarily their own;

2. Money to bail out corporations in major urban centers and protect tens of thousands of jobs– Good. Money to bail out industries in rural areas and save hundreds of thousands of jobs – Bad;

3. Canada’s growing deficit isn’t the result of large corporate bailouts or unchecked federal spending. It’s being caused by laid off workers who paid into EI and who would now like to collect a little of the insurance they paid for; and

4. No matter how bad things get, or how much they improve, someone will always find a way to crap on Newfoundland and Labrador simply because it exists.

The Demise of Newfoundland & Labrador - Manufactured Right Here

What do hand soap and bathroom tissue have in common?

Both can be found in the bathroom. They are both considered basic necessities and, as far as I can tell, every scrap of either one used in Newfoundland and Labrador is imported from someplace else.

Why is that?

I mention those two products simply as an example but the same holds true for much of what we consume in Newfoundland and Labrador. For centuries our people have been contented to import almost all of the basic necessities of life while exporting our valuable raw materials elsewhere.

Will this outdated and short sighted practice ever end?

I recently read an article out of Memorial University that was written nearly a decade ago. One passage noted, “Newfoundland continues to import many of the products its people consume while exporting primarily raw materials, a trade imbalance which has served to exacerbate the island's economic troubles.”

I couldn’t have put it better myself.

Before Confederation our biggest trade imbalance was with the United States, afterward it was (and is) with Canada. Only the players have changed, the game remains the same and it’s a one sided game that’s not in our favor.

The reality of 1949 is that many of those who voted for Confederation did so because they hoped for lower prices on imporated products. Very little consideration was given to producing many of those products, and related jobs, right here.

For as long as anyone alive today can recall Newfoundland and Labrador depended primarily on two major exports, fish and forest products. Today Newfoundland and Labrador’s economy isn’t as dependent on the fishery or the forest as it once was but the numbers show that little has changed with the overall picture of where we once were and where we are now.

In 1948 fish and fish products accounted for 40% of Newfoundland and Labrador’s exports, pulp and paper products 32% for a combined total of 72%.

These days (as of 2007 anyway) energy exports accounted for (wait for it) 72% of the Province’s exports.

We’ve traded fish and forests for oil and gas all the while continuing to import the vast majority of our manufactured goods.

Either way you slice it the Province still exports its resources instead of creating value added products for the local and export markets.

It seems we’d rather ship off our raw materials instead of creating a genuinely diversified economy through manufacturing right here.

Even after centuries of economic turmoil we've yet to learn the lesson that ending our narrow minded practice of exporting all raw materials and instead increasing our manufacturing capability will help us become a more economically stable place to live.

Increased manufacturing and local purchasing would eventually improve our export values, decreasing our import costs and create much needed employment. Something that might be quite helpful in an area accustomed to double digit unemployment.

The fishing and pulp & paper industry are now mere shadows of what they once were in Newfoundland and Labrador. Eventually the same will happen to the oil, gas and mining industries.

Unlike Fish and forests (both currently mismanaged) oil and minerals are non-renewable. Once they’re gone they’re gone. When that happens, as it surely must, gone as well is the last of the work in Newfoundland and Labrador. Gone as well are the exports and the Province’s revenues. Newfoundland and Labrador will cease to exist in any relevent way.

Why, after 500 years have we not learned from our past?

Why do we continue to depend on others to manufacture the goods we depend upon instead of supporting, encouraging and facilitating the development of local goods through our purchasing power and with provincial incentives?

Until the public demands more locally produced products at their favorite stores nothing will ever change.

Make no mistake, the Wallmart’s and Sobey’s of the world don’t give a damn about where they buy their products as long as their customers keep coming back. They also don't care who they sell them to and won’t hesitate to pull up stakes and move elsewhere when the resources and money run out.

The way I look at it, a simple bar of soap may not be as glamorous or as lucrative as high seas oil development but after a hard days work on the rigs I defy anyone to tell me it isn’t worth producing.

Walking a Mile in Someone Else's Shoes

After months listening to Ontario politicians and the national media crying a river about how Ontario has had to stoop to collecting equalization payments I believe I’ve finally figured out what all the fuss is about.

The shame they are now wearing on their sleeve hasn't come to them because Ontario’s economy is on a downswing. It is, but that can happen anywhere.

It’s not even that Ontario doesn’t want to accept handouts from Ottawa, they do it all the time in other ways.

No, the reason for Ontario’s new found state of mental depression is that the province doesn’t like to receive their handouts in such a transparent and public way.

You see doing so makes it very difficult to continue pretending that Ontario is somehow better than the rest of Canada.

How many of us remember the words of Ontario’s interim Tory leader, Bob Runciman, when he told the Globe and Mail, “I think it’s a very sad day in the history of this province that we’re now going on the dole”?

What about references made in the Ontario Legislature to the effect that Ontario is now a “have not” province while, “Newfoundland and Labrador is not. Look how low we’ve sunk”. Clearly a statement intended to use Canada’s favorite whipping boy, Newfoundland and Labrador, as a means to show just how sad it was that Ontario was about to receive equalization payments.

With equalization now a reality for Ontario the province is screaming to change the way the system works or even to scrap it completely. They wonder how the people of Ontario can possibly continue their good work of subsidizing the rest of Canada through their tax dollars if they have to pay themselves out of that pot. It's like someone forgot to tell them that people in other parts of Canada (equalization receiving or not) also pay federal taxes and fund federal transfers.

The fact of the matter is that the $347 million in equalization payments Ontario will receive this year is a drop in the bucket when it comes to that province’s overall budget, yet to read the editorials, comments and news stories you’d think Ottawa transferring those funds to the province was a slap in the face rather than a simple financial exchange.

Equalization is simply one of many federal transfers to the provinces, including Ontario. Transfers that are funded by tax revenue, everybody’s tax revenue both inside and outside the self proclaimed "Center of the Universe".

Billions in Health transfers flow to Ontario each year but it doesn't make politicians there spout off about how hard times have gotten.

Gas tax transfers don’t either, neither does funding for highways or education or infrastructure.

Oddly enough, no fuss is made even after the most blatant handouts Ontario receives on a regular basis. Handouts like the recent multi-billion dollar payoff intended to convince Ontario to harmonize its sales taxes with the fed. Something other provinces received absolutely nothing for doing just a few years back.

Does Ontario hide its head in shame when Billions in infrastructure stimulus is offered to them? Of course they don't, instead every politician at Queens Park lines up for a chance to get in on the requisite photo op that accompanies any such announcement.

What about the billions being poured into Ontario’s auto industry these days? How shameful is that when forestry workers, fishermen and others across Canada are being ignored by Ottawa?

Apparently there is no shame when those sorts of bailouts take place so why the wailing and gnashing of teeth over the so called “dole” or equalization?

Is it truly because of Ontario’s self professed pride in “helping” the rest of Canada or is it really about the desperate need to Lord their “generous” nature over what are perceived to be lesser provinces and peoples, a sort of holier than thou scenario?

I suspect it’s the latter.

Certain small minded individuals tend to make themselves feel good by ridiculing others, we've all seen that sort of thing before, but when you have to walk a mile in someone else's shoes and those shoes are stepping out in a very public way, everything changes.

Some readers may view this commentary as a serious case of Ontario bashing. It isn't intended to be. In fact I see it as something of a long overdue reality check. After all, it surely can't be easy to look down your nose at yourself.

Let’s Be Honest for Once

George Washington is remembered to have said, “I cannot tell a lie.” Since then no politician has been able to make the same claim without being guilty of telling one.

These days truth itself should be placed on an endangered species list.

It’s gotten to the point where the truth is coming under a constant attack from all sides.

Today its truth, not lies, that have become something to be avoided at all costs and it’s no longer just politicians who have a monopoly on the practice, we’ve all gotten into the act.

With that in mind Web Talk is proud, well at least mildly pleased, to present a hastily compiled:

Top 10 list of (politically incorrect) Comments You Won’t Find in the National Papers

Or

10 Rants For the Price of One

10 – I feel for Ontarians who are losing their jobs. Being from Newfoundland and Labrador I can sympathize with their plight and wish them the best. Having said that, I wouldn’t be human if some small part of me, deep in the back of my mind, didn’t feel like shouting the following from the roof tops:

“If Ontarians are really suffering from rising unemployment why don’t they stop their incessant whining about wanting more EI and do what they’ve been telling Newfoundlanders and Labradorians to do for decades, suck it up and move someplace where they can find a job. The rest of us can’t be expected to keep Ontarians living in a place where there’s no work so pack up and move on. By the way Ontario, your unemployment rate is still only about half of what it is in Newfoundland and Labrador so slag off.”

But I won’t say it. I really do care about the individuals being hurt in this recession, including in Ontario and I hope they work their way through this.

9 – North Atlantic Harp seals are not endangered. North Atlantic Harp seals are highly efficient and effective carnivores with big sharp ugly teeth. They are not cuddly little “ice bunnies”.

Activists say seals are not hunted for food so they shouldn’t be hunted at all. In reality it was anti-sealing activists who lobbied to destroy a once profitable market for seal meat and are now using the lack of one as an excuse to ban the hunt.

The seal herd is thriving, the meat tastes great (yes it’s still eaten across Newfoundland and Labrador) and the furs are warmer, softer and more beautiful than anything else you’ll ever wear.

Thanks to their screwed up view of the world animal rights activists will cause far more damage to the seals, the fish stocks those seals depend upon and the entire ecosystem in the region than the annual seal hunt ever did.

By the way, for anyone interested I’ve got a great seal flipper pie recipe I can send you, just let me know and I’ll get it right out to you.

8 – Yes the Alberta oil sands are without any shadow of a doubt a messy and destructive environmental catastrophe.

They are destroying the air, land and water, but droning on and on in a vain attempt to force oil companies into cutting emissions in an effort to meet Kyoto targets is the environmental equivalent of the misguided anti-sealing movement.

Those companies cannot and will not meet those targets without running themselves out of business and that isn’t going to happen. It would take a shutdown or at least a major scale down of most oil sands activity in order to meet those targets and simply put, neither Canada nor the U.S. can afford to do that no matter what it might mean for the environment.

Enough is enough. It’s time to tell the Kyoto zealots to go to hell (as should have been done with the seal protestors), find a sensible way to manage the problem, cut the grandstanding on all sides of the political arena and reach a compromise on this issue that will do the least harm to everyone and everything involved. If not then forget about it and move on.

7 – The future of Canada means absolutely nothing to Stephen Harper who is a right wing, egomaniacal, hillbilly, educated beyond his intelligence level. He is a man who would gladly sell his soul and those of his children, if he hasn’t done so already, for the one thing he craves above all else, absolute power and control.

Canada’s future also means nothing to Michael Ignatieff, who is a thinly veiled American decked out in Canadian clothing. A man who wants nothing more than to add the title “Canadian Prime Minister” to his scholarly C.V. so he can demand more for his book sales in the future.

Jack Layton, well, enough said about Jack. No point in kicking a dead horse, especially with so many animal rights activists around these days. It’s getting so you can’t swing a dead cat (or a live one) without hitting one of them.

6 – Stephen Harper claims to be defending Canada’s territory, as well as Newfoundland and Labrador interests, by not accepting a French claim for extended offshore territory. His position is pure and unadulterated crap.

All St. Pierre – Miquelon is looking for is a means to survive its economic challenges by extending its existing 200 mile corridor (away from Canada) to the edge of the Continental Shelf. This is no more or less than Canada itself plans to do under the U.N. Law of the Sea.

The small French islands should have a right to an extension of that little strip of territory and France is correct to demand it. Otherwise the islands will effectively be trapped inside Canadian waters with no free access to the open ocean once Canada makes its claim to an extended economic zone.

No matter what the Prime Minister says, this has nothing to do with protecting Canadian sovereignty or NL’s interests. It has everything to do with lucrative oil potential in the region.

5 – The Quebecois culture is no more distinct than that of Newfoundlanders & Labradorians. Period.

4 – Contrary to popular belief, Quebec is not benefiting from a one sided contract to purchase Churchill Falls power.

Neither Quebec nor Newfoundland and Labrador ever actually signed a legal contract.

Quebec committed fraud by using insider information and blackmail to get the signatures it wanted. Quebec has committed a criminal act and has been stealing billions of dollars from the people of Newfoundland and Labrador for decades. What’s more they’ve been doing it with the tacit acceptance of successive Federal and Newfoundland & Labrador governments, both of which refuse to take any decisive or clear action.

Personally I’d love to see the Province throw the damn switch at the generating station and turn off the lights right across the so called “Quebec Nation”.

3 – Canada is not a Country. It’s a group of individual provinces financially controlled, oppressed and blackmailed into subservience by a corrupt central regime.

Thanks to the lopsided political power wielded by Ontario and Quebec, Canada is nothing more than an excuse for ensuring the advancement of those two jurisdictions (upper and lower Canada) regardless of what that might mean for the rest of the population.

Calling Canada a real Country is an insult to honesty and intelligence on an epic scale.

2 – Brian Mulroney is corrupt and he is without a doubt guilty of all sorts of immoral if not illegal acts. Everybody knows it but nobody really gives a crap so let’s enjoy the death of his legacy, not to mention his squirming on the hot seat, and then move on.

1 - We are told that we have freedom of speech but that’s one of the most widely accepted lies out there.

Show me someone who has expressed their frustration at the political system by simply “saying” they would “like to see” something blown up and I’ll show you a person either under federal surveillance or actually in custody.

In fact, even this article has been self edited. Just try making a public statement about Brian Mulroney, as I did in the previous section, without qualifying it with a phrase like “if not illegal acts” and see how quickly you end up being sued.

Even if you forget the legal or civil methods of stifling our freedom of speech, the docile acceptance of so called political correctness we all subscribe to has done more to quiet the masses than any law ever could. Everyone is so afraid of being ostracized by their friends, neighbors and co-workers for being politically incorrect that nobody really says what’s on their mind anymore.

This top-ten list may not be as funny as some others but the truth seldom is.

In an effort to help fight censorship and political correctness Web Talk will, on occasion, tackle this subject just as it has today. Feel free to add your two cents but please remember, as much as it sucks, for our own protection even Web Talk must adhere to the same anti-free speech edicts as everyone else, so act accordingly (but don’t hesitate to push the envelope).