The Premier is inconsistent with resource policy.
Let's look at the situation. We will begin with Voisey's Bay - and Williams insistence that the contract guarantee that ore would be processed in the province. We all agreed with that and the contract does provide. The idea is - if you want to use the resource you must establish secondary processing here. The basis of that demand from the previous Liberal government was the size and quality of the ore body. We knew the economics allowed such a facility to be built.
Moving on to Hebron and the Premier's demand that we achieve an equity position - once again the majority of people agreed and as a result - the Premier's polling remained high - while the Liberals stagnated.
Both INCO (at the time) and the Oil Consortium had other preferences. INCO would have preferred to utilize other processing facilities in Canada and the consortium did not want to give in on equity.
Moving now to the Lower Churchill - first let's be clear - the quality and size of that resource is comparable to that of the oil and nickel - and because it is renewable it is superior. If companies want to avail of the premium energy generated they must come to Labrador to use it. Instead the Premier has no such secondary thoughts here - just revenue.
We could have taken a super royalty or escalating revenues from nickel sales (the price has increased substantially) - we could have taken a super royalty from the oil (the price has increased substantially) - but we wanted more - as we should - they are our resources. The best potential of the three is the Lower Churchill but not a sign of such recognition from Williams.
The idea that recall will save us in the event we find some capability to attract industry - is flawed. The Upper Churchill had recall and yet through 35 years we have found no real need for it other than to sell it back to Hydro-Quebec. The reason for this is simple - once it's left the barn - the door will not open again. The major industry players would prefer to operate in Ontario and Quebec - where they already have infrastructure and presence. If they refuse to show interest in Labrador after the fact - there will be no such development based on power in Labrador. If however they truly believe the Government of Newfoundland and Labrador is not exporting the power - they will look at negotiating industrial development there.
As it sits now - heavy energy industry will sit back and wait for Newfoundland and Labrador to pump it out - preferably to Ontario or even New Brunswick or Nova Scotia - and then negotiate with those provinces for industrial development projects.
One Sue's Blog reader - rightly pointed out sometime ago that Iceland had to use the energy in-house because they were a northern Island with markets not readily available. Due to that physical impairment they gained three aluminum smelters - and arguably succeeded where we and our Upper Churchill power failed. We cannot assume that Iceland would not have chosen that path even if they were connected to markets - but one thing is for sure - they prospered from keeping their power home.
If the Premier is serious about his demands with big oil and mining companies - there is no way the man would be exporting renewable - reliable - industry preferred power. Especially at a time when the environment has surpassed health on the priority list of Canadians.
Premier - we do not have an obligation to save Canada from it's fossil fuel woes or big provinces from energy shortfalls. We do more that our fair share now from the Upper Churchill. Your job is to use our resources to build our economy. If you export the power - you seal the fate of this province and will have orchestrated the biggest giveaway in our history.
4 comments:
Sue you gave a great lesson on VOCM Open Line this morning during your talk with Randy.
Premier Williams should forget about focusing on revenue in the development of the Lower Churchill Hydro-electric energy and put the emphasis on utilizing the energy produced to create industry in Labrador instead of exporting that wonderful energy to maintain and create industry everywhere west of the province of Newfoundland and Labrador.
As we know once the order is given for that power to be exported out, no matter what the provisions that are contained within any contract constructed to bring power back to the province, once industry gets the upper hand, industry will lobby to keep that power in the areas to which it gets destined until the end of the contract. We have seen that with the Upper Churchill Hydroelectric Contract., since industry is programmed to operate in the heartland Premier Williams please forget about the exporting of that power and only focus on the development of that wonderfully, clean energy to do what is right and that is create industry in Labrador.
And, oh yes, Sue we do need somebody who is not holding allegiance to either of the parties, Conservative, Liberal or NDP and who is not forced to toe the party line. All of these parties once in power operate on the same principles.
But Sue can we expect you to be that voice without pay? As we know this has been an ongoing battle here since we have been in existence. You have been the head of the helm in that regard for 15 years, especially since you took on the fight to stop the privatization of Newfoundland Hydro. I am happy to have you there, but you, too, have to make a living.
Premier Williams you are an astute Premier, you have oodles of Newfoundland and Labrador History in the archives of what has happened. I know you are aware of all of it, so please do not make the same mistakes that former Premiers and bureaucrats have made and sell us further down the stream that does not create a Macro Economy here. It has to stop and you are the person who should do it. Thanks
"Iceland had to use the energy in-house because they were a northern Island with markets not readily available" - too bad we werent Iceland then "EH"
"And, oh yes, Sue we do need somebody who is not holding allegiance to either of the parties, Conservative, Liberal or NDP and who is not forced to toe the party line" - Someone like www.NLfirst.com maybe .Someone who is going to think of the Province first maybe.Sue,ever think of giving Mr Hicky a call,Im sure that he would be happy to have someone like yourself on the team.
but one thing is for sure - they prospered from keeping their power home
What other option did they have?
WJM asked a question below to the statement of "but one thing is for sure - they prospered from keeping their power home".
WJM's statement was "What other option did they have"?
WJM I will say this - You could also say the province of Newfoundland and Labrador does not have another option, since it does not have a Macro Economy started here after 58 years being under part of supposedly the best country in the world, Canada, and despite its abundant natural resources.
WJm your question bolds well for Newfoundland and Labrador since it means that if little Iceland could prosper in a much more remote location, which is much further away from a large consumer than Newfoundland and Labrador is, so can a much larger Labrador and Newfoundland with at least twice the population and many more resources than Iceland.
WJM again - Why would you even make such a statement "They did so because they had no other option?"
That means we can say we didn't have any other option since we were held under bondage by Ottawa and we had to follow Ottawa's orders that were systematically written before we became part of Canada. The Upper Churchill Hydro-electricity could not be developed unless it went to Quebec because Quebec would not grant permission for the corridor across its jurisdiction. Voisey's Bay Ore had to be destined for the two existing smelters in the heartland that were thirsting for ore to keep them running. It didn't matter what the province of Newfoundland and Labrador wanted. It was already written in stone.
It is due time that the province of Newfoundland and Labrador told Ottawa to get ready for the province of Newfoundland and Labrador to break out of bondage.
And from now on, since Newfoundland and Labrador has no other option under the Ottawa Government, it will be throwing off the yoke that Ottawa has around our necks and we will develop any further resources to benefit the province of Newfoundland and Labrador and its people. Consumers when they are thirsting for commodities of all sorts will buy our manufactured goods, no different than they will buy Quebec or Ontario's manufactured goods. And we will have no problem shipping our manufactured goods from this province via our ice free Atlantic Sea route.
We must make changes to the way Ottawa prefers our resources to be developed, Ottawa is not going to do that for us.
We will still be paying our dues to Ottawa but they will be coming through a different corridor than they have been for the past 58 years. Instead of Ottawa seeing her other children getting Newfoundland and Labrador's resources, the child Newfoundland and Labrador will develop what belongs to it and create a real market economy and remit equilization to Ottawa.
Then instead of being tagged as a welfare case, the province of Newfoundland and Labrador will be tagged as a "have" province which is making it on its own accord with a real market economy and remitting its fair share to Ottawa to feed the covetous ones who have held such avarice greed ever since the province of Newfoundland and Labrador has been in the fold.
Good Gracious if the ordinary Newfoundlander and Labradorian had known what the Canadian Federation had in store for us before we became part of it, would we not have screemed at the top of our lungs to have averted the disaster?
You can be damn well sure the other NINE Provinces had their say into what Newfoundland and Labrador could or could not be under that regulation. No doubt we were destined to be Consumers instead of Competitors of the rest of Canada. It could have been no other way, since they would not have allowed it to happen. The resources of the province of Newfoundland and Labrador had to be for the use of the other provinces and the consumption by the people of Newfoundland and Labrador had to create Jobs for the other provinces. We were doomed from the start and nobody shouted BOO HOO from our direction, because nobody from the ordinary electorate knew what was in store for them. The Fish Merchants joined hands in unison with the Ottawa Merchants and we, the electorate were doubly doomed.
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