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.

National Post and Fraser Institute Twist Facts of Abitibi Case

In the January 7th edition of the so called “National” Post, Michael Walker, a self professed “Proud Newfoundlander” and senior fellow at the right wing Fraser Institute, wasted no time in attacking the Premier of Newfoundland and Labrador for safe guarding the province’s water and timber rights or in ridiculing the intelligence of everyone in the province who supported the move.

Based on the content of his commentary I can only assume that Mr. Walker’s devotion and attachment to his ultra conservative think tank is far stronger than his understanding of the circumstances around this particular issue or his attachment to the land he professes to take such pride in.

Regardless of his theology, ideology or allegiance, the argument Walker puts forward against the expropriation of Abitibi’s timber and water leases has more holes in it than a rusty bucket. It seems to have more to do with ingratiating himself with his corporate friends, propagating misinformation and distancing himself from reality than it does with the facts.

In a nutshell Mr. Walker claims that Danny Williams ought to be the last person to strip away Abitibi’s water and timber leases because the Premier himself built his personal financial fortune by leasing cable rights from the federal government and then passing those rights along to another cable provider when he decided to leave the business.

According to Walker the initial investment Williams’ made to gain those rights would never have been made if there was any chance the government might decide to strip them away from him.

The last part of his diatribe may hold a very small droplet of water, but since the initial cost of the water and timber rights issued to Abitibi was zero, zilch and nada, beyond that there is little to be said for his position.

Mr. Walker’s take on the situation is a clear example of the sort of narrow minded cursory examination of the facts his kind are known for propagating when any issue arises that does not fit their capitalist agenda.

When you stack the two situations against one another there are a lot of similarities but none that back up Mr. Walker’s arguments. In fact the complete opposite is true.

The cable licenses granted to Mr. Williams were issued by the federal government for the purposes of providing cable access in the region.

The timber and water rights granted to Abitibi’s predecessors where issued by the Province for the purposes of operating a milling operation in the region.

When Williams left the cable business he sold the operation to another Canadian company and the cable licenses followed so the new company could continue to provide cable access to the people.

When Abitibi’s predecessor changed hands over the years and as new players partnered in the operations the water and timber rights followed so the new company could continue milling operations.

Those are the facts. They are facts that are not difficult to understand, even for a former “Newfoundlander” much more accustomed to life the Bay Street than life on Water Street.

Instead of recognizing and accepting these simple facts Mr. Walker instead has seen fit to stretch the preceding comparison well beyond the breaking point by claiming that even though Abitibi decided to shut down (not sell) their operations they should still retain the rights granted to them for the milling operation.

Just think about that for a moment.

This would be the equivalent of saying that if Mr. Williams had decided to shut down his cable operations but not transfer his license to anyone else then the issuing body, Ottawa, should have allowed him to do just that.

Mr. Walker, just in case you missed my point, if that had happened, it would mean that nobody, not a single soul living in Newfoundland and Labrador today would have any access to cable television because one individual decided that he wanted to keep those licenses for himself and he was backed up in his arrogance by the federal government.

Perhaps you should visit your former homeland more often Mr. Walker.

The hustle and bustle of the financial district seems to have had a terrible affect on your level of common sense. A nice walk along a river or through a nice wooded area, both of which belong to the people of Newfoundland and Labrador, might do you some good.