Ignatieff Puts Ambition Ahead of National Unity - Todd Russell Toes Party Line

UPDATE 5:15 PM - Although he is turning his back on Newfoundland and Labrador, Liberal leader, Michael Ignatieff, announced today that is willing to make a token gesture by giving a one time only "free pass" to the NL MPs so they can vote with their constituents.

In a clearly opportunistic move, Todd Russell immediately announced that he is now willing to vote against the federal budget along with the other party MPs who made their decisions before being given the nod and wink of their federalist leader.

It seems Todd Russell believes he can have his cake and eat it to by happily toeing the party line until his federal handlers approved of him voting in support of his constituents.

One can only hope the people of Labrador will not fall for his self serving actions and take him to task when the next federal election rolls around.

In offering this meaningless gesture to Newfoundland and Labrador Mr. Ignatieff said he is doing so because of the "radical unprecedented" cut to transfer payments by Prime Minister Stephen Harper. He noted that the move "weakens the federation" which can only mean he supporting it for political and personal gain rather than in the best interest of Canada.

END UPDATE


The federal budget, which was intentionally designed to single out Newfoundland and Labrador in retaliation for not electing any Conservatives in the last election, will be passed in the Commons this evening with the support of the Liberal Party.

In a move that can only be seen as an attack by Stephen Harper, new measures will be introduced to remove $1.6 Billion in offshore oil transfers to Newfoundland and Labrador. This has been estimated as an amount equivalent to the Province of Ontario suddenly being stripped of $22 Billion dollars a year.

The move comes at a time when the economy is staggering, unemployment in Newfoundland and Labrador is over 13% and is part of a so called “fiscal stimulus” budget.

When challenged over the issue Finance Minister, Jim Flaherty said in the House of Commons recently that, “…one of the principles involved in equalization is that all provinces should be treated equally."

He used that arguement as the reason he does not intend to change the legislation for Newfoundland and Labrador.

What he didn’t say was that this has nothing to do with equalization and is not directly impacted by the new cap being introduced.

Newfoundland and Labrador no longer receives equalization payments, however the formula used to calculate equalization itself is also a determining factor in calculating offshore oil revenue transfers which are intended to ensure that the province is the primary beneficiary of its offshore oil production rather than Ottawa.

Mr. Flaherty’s position that “…all provinces should be treated equally” has since been shown to have no merit.

On Tuesday Finance officials confirmed that Newfoundland and Labrador will be the only Province in the federation to lose revenue because of the specific changes that will be put in place.

It was also confirmed that two other provinces, specifically Nova Scotia and Manitoba, would also have been affected by the change however the Harper government have decided to provide those Provinces with one time payments to shelter them from the economic impact.

No such arrangement was put in place, or even offered, to Newfoundland and Labrador leaving it the only jurisdiction in Canada to be impacted.

This “poison pill” for Newfoundland and Labrador may have been an intentional act of the Conservative government but it is being abetted and supported in its implementation by the Liberal Party.

In his post budget address to the media Liberal leader, Michael Ignatieff, said that one of the “tests” he will be conducting in order to permit the Conservatives to remain in power is ensuring that the budget “addresses the needs of all regions of Canada”.

Since the financial attack on Newfoundland and Labrador was identified Mr. Ignatieff has lobbied the Prime Minister over the issue but is not willing to take away his support of the budget regardless of the damage it will cause.

The fact that the Liberal party intends to pass the budget and allow the Conservatives to remain in power even after failing on a Liberal imposed test calls into question the ethics of the Liberal leader himself and whether he is truly acting in the best interests of “…all regions of Canada” or simply serving his own political ambitions.

The singling out of Newfoundland and Labrador for punitive actions by the Harper government, with the support of the Liberal caucus, has resulted in an internal challenge to Mr. Ignatieff’s leadership abilities.

Confidence votes, such as this budget vote is, are generally considered a “Party” rather than a “free” vote in the Commons. This means the entire party is expected to vote in unison at the direction of their leader. In this case however 5 of the 6 Liberal MPs from Newfoundland and Labrador have decided they will defy their leader, refuse to toe the party line, and instead support their constituents by voting against the budget.

The only hold out is Liberal MP Todd Russell, from the Labrador riding, who, in spite of the serious impact to his province, has been quoted as saying he will “…vote for the budget to promote party unity”.

It’s a move that may ingratiate him to his Mr. Ignatieff but will almost surely make it impossible for him to gain re-election in the future.

A similar situation occurred a few years ago when Newfoundland and Labrador Conservative MP Fabian Manning supported his party over his constituents.

Manning was defeated by Liberal Scott Andrews in the most recent election however he was given a special thank-you gift for his actions by Stephen Harper this past Christmas. In return for supporting the Conservative party Mr. Manning was gifted with a Senate seat.

Its likely Mr. Russell, a career politician, arrived at his decision with the Manning experience in mind and that he is also expecting a senate pay off should the Liberals form government during the next election.

NL Legislature Determined to Protect Public Interest

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

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

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

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

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

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

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

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

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

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

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

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

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

Go figure.

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

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

I guess my worries were unfounded.

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

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

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

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

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

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

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

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

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

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

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

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

Well said, well said indeed.

Newfoundland and Labrador Balancing Act

This week Newfoundland and Labrador’s battle hardened Auditor General (they don’t call him a General without reason), released yet another direct and accurate report. This one focused on the financial situation in the province and it shone a bright light on an issue that screams to be addressed.

Fiscal Responsibility

According to the General, John Noseworthy, it’s time to take stock of where the province is and what the future will hold.

It should come as no surprise that his report identifies a record per capita debt (well over 20,000 per person) or that the province has become dependent on free flowing oil revenues. Those are points most people in Newfoundland and Labrador are painfully aware of, unless they’ve been living under a rock instead of on top of one.

What's most interesting is Noseworthy's belief that the province should introduce some method of ensuring that all future governments are obligated to table balanced budgets.

This is not a new idea but...

According to one party insider, the idea of introducing balanced budget legislation is something that has been floated (to put it mildly) inside the PC party in the past. It's also an idea that the decision makers have refused to move forward on.

The debt Newfoundland and Labrador is struggling to manage is, by and large, a result of decades of deficit producing budgets. Budgets that saw the province borrow to pay the light bill, so to speak. Yes, times are good now, with the oil revenues rolling in, but what about the future?

What will happen once the oil is gone, or even sooner, should oil prices drop to more familiar levels than they are at today? What will the provincial budget look like then?

How will the budget look when money is tight and a party or premier, who is not fiscally responsible, is in power? Will the province’s massive debt sink the island and force Labrador to disown the place altogether? (they’re almost there now)

Many other parts of Canada have already enacted balanced budget legislation. A step Newfoundland and Labrador, the most debt ridden of them all, has not done.

This is not about starving people when times are hard. With properly enacted legislation a province can potentially still run a deficit, but the governing party would be forced to stand in front of the House, face the opposition parties and the media, and convince the public that the deficit is justified.

If nothing else at least the legislation would force financial accountability and ensure that the sort of shenanigans that led Newfoundland and Labrador to where it is today don’t happen again.

The current Finance Minister, Tom Marshall, has said his government is working to reduce the debt and to be fiscally responsible. That may be so, but even if it is, it simply isn’t enough.

Oil doesn’t last forever.

Good times fade into memory.

Governments change, and so do Finance Ministers.

Newfoundland and Labrador’s debt is the single biggest stumbling block to the bright future the province’s people crave. Now that the opportunity exists, it is a moral crime for a sitting government to refuse to ensure the viability of that future and ongoing fiscal responsibility.