Williams Sets Record Straight at the National Post

As soon as the news hit the wires that the federal government had settled a NAFTA challenge from Abitib-Bowater over the expropriation of the assets in Newfoundland and Labrador pundits for the so called "national papers" coudn't wait to take another shot at NL and Danny Williams (or as they often refer to him, Danny Chavez, Village Idiot, or some other less than flattering term).

Today Premier Williams decided to set the record straight at the National Post. Here is what he had to say:

Danny Williams, Special to the National Post · Friday, Aug. 27, 2010

I am disappointed, yet not surprised, by the nasty attacks on me in the National Post ( "From Newfoundland, another tantrum," editorial; and "The Cuckoo of Corner Brook," by Peter Foster; both of Aug. 26). I certainly can take the criticism. Where I draw the line is at mean-spirited insinuations and inaccuracies about our province and its people.

In regard to the recent financial settlement between the Canadian government and Abitibi Inc., which resolved the company's NAFTA complaint, let me point out that Abitibi operated in our province for 100 years. After reaping untold millions in profits and also providing substantial employment for our hard working people, the company closed two mills, threw hundreds out of work, and walked away without even paying the severance these people were owed.

There is no doubt that the pulp-and-paper industry is facing difficult times globally. However, Abitibi broke its covenant with our government under the original terms of its operations in the province. We could not simply allow it to desert the workers while keeping rights to our timber, hydro and lands; valuable natural assets that were entrusted to this company based on certain terms and conditions. Our expropriation of those natural resources was the right thing to do for our people.

Additionally, I am compelled to respond to the following inaccuracies:

- From Peter Foster's Financial Post column: "[Williams] appeared to pull off a coup when the owners of Hebron-Ben Nevis offshore prospect ... returned [with] an agreement that included provincial participation and a 'super royalty' that kicked in if prices remained high...When oil price hit $147 a barrel in 2008, Williams looked like a hero. The oil price is now less than half of that."

Fact: Our super royalty kicks in when prices exceed $50 a barrel. Still seems pretty lucrative to me, despite Mr. Foster's further assertion that this was a "wealth destroying" game I had played.

- From the National Post's editorial: "The Premier's demands for super royalties from oil companies caused them to scale back development of the Hibernia South and Hebron offshore fields, which, in turn, caused the federal taxpayers to indirectly subsidize Newfoundland's budget for lost revenues."

Fact: What kind of logic does one use to say the federal government compensated us for projects that didn't even yet exist? Secondly, the paper fails to admit that because of our government's strong stance and ultimate success in these negotiations, both of these projects are proceeding as originally planned. These two projects alone will generate billions of dollars of revenue for Canada and all Canadians.

- From Peter Foster's Financial Post column of: "[Williams'] attempts to force oil companies to do expensive but unspecified R&Din the province led to a further request for NAFTA arbitration."

Fact: The referenced action was in fact taken by the Canada-Newfoundland and Labrador Offshore Petroleum Board (CNLOPB). This is a joint federal/provincial board that operates at arm's length. The action was not taken by me or our government, but it certainly had our support.

- From the National Post's editorial, referring to the EU seal ban: "Ottawa had to play hardball with the EU to keep the meat, skins and byproducts flowing."

Fact: Despite best efforts, the EU ban actually proceeded -- though court action by the Inuit people of Canada has temporarily paused the ban, which we hope will result in a rethinking of the issue by the EU. In any case, I think all Canadians would be proud that our government defends our interests against other countries.

I will never apologize for fighting to protect our natural resources and for getting fair benefits for the people who own them, even if that means taking on big corporations.

Let me close by saying this: Upon completion of Newfoundland and Labrador's current oil and mineral projects, the result in net revenues after expenses will be in excess of $225-billion for Canada. Criticize when you must, but it is time for the Post to start recognizing the contribution made by our province to this country. I am heartened that ordinary Canadians are much more inclusive and generous of spirit, and acknowledge the contribution not just of Newfoundland and Labrador to the Canadian Federation, but indeed of all people, provinces and territories.

- Danny Williams is Premier of Newfoundland and Labrador.

Ottawa Settles Abitibi NAFTA Challenge of NL Asset Expropriation

When Abitibi-Bowater closed its paper mill in Grand Falls-Windsor, Newfoundland and Labrador, in 2008 the provincial legislature immediately enacted legislation to expropriate the company’s assets in the province.

The move was made in an effort to ensure that Abitibi-Bowater did not retain control of land, timber, water and hydro generation rights it had been provided with under a 100 year old agreement that allowed the company to supply its logging and paper making activities in the province.

The provincial government, under the leadership of Premier Danny Williams, as well as many citizens, viewed the move as a necessary one to ensure that Abitibi-Bowater could not simply close its doors, throwing hundreds out of work, while continuing to tie up valuable resources that might be of use to other industries, or to use its power generation facilities to sell power in direct competition with the provincially owned utility.

At the time of expropriation the provincial government said it would pay Abitibi-Bowater fair market value for its buildings and infrastructure but not for the resource rights, which government maintained were directly to the mill staying open. The province said it would assess the environmental impacts left behind by the company and reduce any payment by the amount required to perform cleanup activities.

Although Abitibi-Bowater is often thought of as a Canadian company, with its corporate headquarters in Montreal, the company is in fact incorporated in Delaware.

Almost immediately Abitibi-Bowater launched a NAFTA challenge, essentially saying the Province had no right under the North American Free Trade Agreement to expropriate the property of a foreign owned corporation and seeking $500 million in compensation.

While the expropriation was conducted by a provincial government, Canadian provinces are not signatories to the NAFTA agreement, meaning the challenge landed squarely in the federal government’s lap.

Today, after nearly 2 years, the federal government has reached a settlement with the company valued at $130 million which is to be paid out after the company’s restructuring activities are complete and it emerges from bankruptcy protection.

At this point there has been no formal comment from the Newfoundland and Labrador government beyond a short statement saying, “we are pleased the matter is settled”.

It isn’t known at this point whether or not the province will help foot the bill but it has no obligation to do so since NAFTA is a federal agreement. Any payment from the province is unlikely however in light of the deep divisions between the Provincial Premier and Prime Minister Stephen Harper.

Ottawa To Address Forestry Woes - Only Quebec Need Apply

When the auto sector ran into financial trouble Ottawa was there, Johnny on the spot, to lend a helping taxpayer funded hand.

When the manufacturing sector stumbled Ottawa was there to offer taxpayer funded bridge funding.

When the banking sector hit a brick wall Ottawa dug deep into taxpayer’s pockets faster than a Younge Street pickpocket.

When the forestry slipped under water, while mills closed in places like Newfoundland and Labrador, and while laid off workers were being denied their severance pay, all that could be heard in Ottawa was the sound of crickets chirping outside 24 Sussex Drive.

There are two things the federal government never turns a blind eye toward. In no particular order those are: Ontario and Quebec (actually those both equate to large numbers of federal votes and as such are really same thing).

Large scale manufacturers, auto makers and major banks all have one thing in common. They are, by and large, headquartered in the only important part of Canada, from the federal governments perspective.

Well it turns out that while the federal government was enjoying a collective snooze after patting itself on the back for all the tax money it’s doled out recently, and while 50,000 forestry related jobs were lost right across Canada (and I mean RIGHT ACROSS Canada, from BC all the way to NL, not just as far as NS) somebody forgot to tell the political elite that they should do something for that industry as well. It looks like somebody finally did.

Ottawa may have turned a blind eye to the problems in the forestry sector up to now but not any more.

I can almost hear the warnings now, “Come on, we’ve got to do something. Never mind that troublesome crowd who lost their jobs in places like Newfoundland and Labrador but come on, Quebec is also being hit. Quebec for God’s sake!!!”

Suddenly out of nowhere Ottawa has begun making a show of having an interest in the forestry sector.

A joint federal/Quebec panel (note, the involvement of only one province) has been setup to see what can be done to protect Canadian forestry jobs (in Quebec of course).

Ottawa has, according to one political figure, “…fostered an agreement with the government of Quebec…” to the tune of 100 million dollars in loan guarantees to be delivered by the Quebec government. No doubt this is just a small down payment with future installments to come in the near future. You can bet your last dollar (if you have any left after taxes) that it won’t just be Quebec taxpayers footing that bill either.

Calls are being made for Ottawa to offer tax credits to the forestry industry (similar to ones now being offered in the U.S.). Credits that will save companies like Abitibi millions of dollars a year.

Yes indeed. Quebec stands to lose nearly 10,000 jobs unless something is done quickly and, as Ottawa is wont to do, the squeaky wheels have begun turning as they get well greased once again.

Unfortunately Ottawa’s sudden interest in the forestry sector is too little, too late and certainly too Quebec focused to do anything for the 50,000 non-Quebecers who’ve already lost their jobs or the thousands more who will in the future (outside of Quebec that is).

Are the Sheep Really Eating the Wolves?

Here we go again.

It seems like every time the people, the government or, God forbid, the premier of Newfoundland and Labrador does anything that rubs Ottawa or big business the wrong way the mainstream national media swiftly calls a team of verbal mercenaries into action to attack not only the action itself but the motives, agenda and personalities of anyone involved.

It’s the sort of yellow journalism that would have been all too recognizable to the late newspaper magnate, William Randolph Hearst, who built his empire by manipulating public opinion for his personal and political advantage.

Up to this point the attacks have been somewhat immature and asinine in nature, ranging from questioning the intelligence of every day Newfoundlanders and Labradorians to comparing premier Danny Williams to a South American dictator.

The latest assault, by the Globe and Mail, is far more sinister.

Not only does it question the actions of the Newfoundland and Labrador government but uses unsupported comments, supposition and presumptions in an all out character assassination against the Province’s premier.

Clearly as far as the Globe is concerned unbiased journalism is dead.

The editorial board of the Globe has now sunk to substituting unsolicited letters from individuals as hard facts worthy of spreading a conspiracy theory.

It makes me wonder if their lawyers have ever hear of the word “slander” because they may well learn what it means.

The latest attack has to do with the Province’s expropriation of Abitibi’s hydro and timber leases undertaken when the company decided to close its last paper mill in Newfoundland and Labrador.

In a February 19th Globe editorial the paper intentionally left the Canadian public with the impression that the Premier of Newfoundland and Labrador had secret plans to drive Abitibi out of the Province, at the cost of nearly a thousand direct and indirect jobs, so he could sieze control of their power supply to feed a planned smelter that would employ 450 people in another part of the Province.

I'm no genious but to me it makes no sense for anyone to sacrifice a large number of jobs to create a small number. This simple reality appears to have escaped the brain trust at the Globe, but then again, when has reality ever been a factor when it comes to propaganda?

The basis of the editorial was a letter from a single individual living near the soon to be closed Abitibi mill. The letter was sent to premier Danny Williams and copied to the media. The letter, written by someone who was clearly upset about the closure, used rhetoric that the Globe and Mail was more than happy to seize upon to serve its purposes. Reality be damned.

According to the Globe article, “Mr. Williams knew (the mill wouldn’t survive)…it now appears, (he) had other plans."

It goes on to “suppose” that the Williams government only made a token gesture to keep the mill open because it wanted the power to supply a new Vale Inco smelter in the town of Long Harbour and says, “This begs a question: Did Mr. Williams sacrifice the 800 Abitibi mill and woodlands workers in Grand Falls to provide 450 permanent jobs in Long Harbour and another 5,700 person-years of employment during the construction of the hydromet facility?”

“Few people in Newfoundland, where Mr. Williams is challenged at one's peril, would dare ask”, says the Globe.
It’s a conspiracy theory worthy of Oliver Stone himself.

The original author of the letter has since stated that the Globe took parts of his letter out of context. He admits not having any connection with the mill, the government or any political party, meaning he would not have been privy to what transpired between the mill operators, government officials or the unions in the months of negotiation leading up to the decision to close the mill.

Is this what passes substance in the Globe these days?

It apparently is, leading to one of two possible explanations. Either everyone at the Globe, from the editors on down, have no journalistic training and experience or they have no problem ignoring the facts in favour of self serving propaganda.

In reality, the contract that requires the building of a smelter in Long Harbour was signed by a previous Liberal administration under then premier Roger Grimes more than seven years ago. It was in place long before the current Williams administration took office.

Does anyone really believe that the mining company involved, Vale Inco, would have agreed to build a smelter, invested more than a billion dollars building a test plant in the Province and went ahead with plans to invest billions more in a seven year old agreement without ever knowing whether or not they would have any power to run the facility?

Surely nobody could have foreseen, when the original contract was signed back in 2002, that Abitibi would conveniently fall into financial difficulties and close its mill at the exact time the new smelter construction was about to go ahead. The speculation is ridiculous.

The Globe also states that, “Few people in Newfoundland, where Mr. Williams is challenged at one's peril, would dare ask”

What peril?

Would the Globe have people believe that Newfoundland and Labrador’s “dictatorial” premier is travelling the width and breadth of the land beheading the serfs or feeding their still wriggling carcasses to his wolf hounds?

Give me a break.

I’ve heard this fairy tale from the national media and partisan political types before but I’ve yet to find anyone who has suffered in any way, let alone lost their head, because they disagreed with the premier?

Sure, some comments may illicit a terse response and some cabinet ministers or caucus members have been disciplined in the past for not toeing the party line, a process I personally find disgusting, but that happens in all politcal parties. Neither response may not be something we all approve of but they're certainly nothing new under the sun.

I've yet to see anyone in the Province quaking in fear.

I’ve publicly questioned Mr. Williams’ tactics and his actions a number of times including his direction on the Lower Churchill hydro project, a project that appears to be something he's hoping will be his legacy.

I still have my head, my job, my home, my family, all of my appendages. I have yet to hear any hounds baying outside my windows and I don’t expect to hear them any time soon.

It seems that after crying foul over the abitibi expropriation, screaming that the little Province of Newfoundland and Labrador is about to single handedly destroy NAFTA and using every means possible to question the legality of the Province’s actions, the Globe has reached a point of desperation that has led them to skirt the edges of libel and slander in an effort to meet their objectives.

As one proud Newfoundlander and Labradorian recently put it, “They’d have you believe the sheep is going to eat the wolf.”

NL Legislature Determined to Protect Public Interest

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

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

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

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

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

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

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

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

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

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

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

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

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

Go figure.

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

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

I guess my worries were unfounded.

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

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

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

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

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

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

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

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

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

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

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

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

Well said, well said indeed.

Where Once They Stood We (should) Stand

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

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

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

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

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

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

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

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

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

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

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

No mill, no power.

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

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

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

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

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

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

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

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

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

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

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