Sue's Blog

Saturday, August 25, 2007

Will Hebron attract the "Homing Pigeons"?

Don't count on it Premier.

Homing pigeons is how Williams likes to describe Newfoundlanders and Labradorians who move away to find jobs.

Every time he says this - I get a little annoyed at his comparison and his false belief that people who have been forced to establish themselves in another province or country - will just pack up and come home should short term opportunity present itself.

That's a natural weakness from somebody who has not been forced to make ends meet - or somebody who goes paycheck to paycheck barely paying the bills - no reserve for investment for pension or otherwise - or somebody who has the lights cut off or telephone disconnected.

Make no mistake many of these people work hard day in and day out - and are those who primarily vacation at home - hunt a moose - catch a few trout or a rabbit. They don't need the advertising from Tom Hedderson to tell them what their vacation realities are. And I suppose - if you must vacation at home - we are lucky enough to have the best place in the world to do it.

A story out of the Edmonton Journal yesterday expresses what some "homing pigeons" feel about the Hebron announcement.

Barry Shortt originally from from Burnt Point said - in part...

He thinks the project will jump-start the Newfoundland and Labrador economy and create more jobs, but he plans to stay put.

"Most of these people travel to Alberta to find work and return when work arises at home," Shortt said. "As for professionals, they settle into a good company and start a family here, so they will probably stay."


Stephen Ennis originally from St. John's said - in part:

... he misses the sense of community in St. John's, but doesn't see the project as a reason to move back home.

He came to Edmonton unemployed, but now has an established career as a plumber-gas fitter and calls the city his home, he said.

"I'm not interested in going back to Newfoundland because you have to look at the opportunities and the position Alberta is in right now"...

Then there is:

Dominic House, 54, came to Fort McMurray from St. Alban's Bay, N.L., in 1979.

"This is home for me, it's where my kids were born and Alberta has been good to me," House said.

His first job was as a truck driver. Eventually, he worked his way up to a job with the human resources department of the same company, he said.

House said he would never think of moving back to the East Coast for a job that would likely be temporary.

"You're looking at a lot of jobs for the construction phase. If you have a permanent job in Alberta, why would you leave?"


And that probably says it all right there. Hebron means numerous construction and building trades jobs for a relatively short period - then it's all relative to supply services and working on the rigs.

Hebron will drive the economy and the revenues are great for the treasury - more particularly the long-term - one anticipates - generous returns as a partner and recipient of royalties.

Getting those "homing pigeons" to return is going to happen when Newfoundland and Labrador establishes long-term industry prospects like we see with the IOC or will see with the processing facility for nickel. It's the jobs that will be around for 25 -50 years that will bring a person home to Newfoundland and Labrador - and that's where energy is key.


We can build the Lower Churchill facilities and while doing so - the engineering and building and construction trades will be booming - but if we don't use the resulting energy to power industry - the exodus begins again.

Quebec - Ontario - Nova Scotia - New Brunswick - and the New England States really don't mind if Newfoundlanders and Labradorians build the project - they only care they can access the reliable - renewable - cost competitive - superior energy - to develop their industries. If that happens - I can predict where our next generation of Newfoundlanders and Labradorians will be living.

If our Premier does not get this - there is no Hebron - that will ever stop the out-migration of our people and the continued decimation of rural Newfoundland and Labrador.

Yesterday I heard Kathy Dunderdale express they are gambling on the price of oil remaining above $50 a barrel for the next 20 or so years. I would agree and say our treasury will be the better off for the gamble. If the Minister and Premier want us all to believe that - then they must accept how valuable Lower Churchill power will be over the same period. That's what happened with the Upper Churchill. So while Quebec pumps over 80,000 jobs into their economy last year - while we grow 500 - remember what drives that province. Energy and the industry attached to it.

We must not export Lower Churchill power. Industry must be told they won't pick it up in Ontario - New Brunswick - or the USA - if they want it - they must come to Labrador and use it.


Then and only then Premier will homing pigeons return.

Think about it - if a homing pigeon is currently in Alberta with a guarantee to be fed for 30-40 years - or can fly home for 4 or 5 years - only to return to Alberta again - then don't be surprised at the choice made.

Oil and gas are temporary - finite - the fishery and renewable energy is where the real policy choices have to be made.

When you have the whole of Labrador lined with refineries as Edmonton's east side does - then you can say - we got it - we got it.

10 comments:

Anonymous said...

Brilliant article Sue. It should be published in each and every paper in the province, and broadcast on each and every newscast. I am just afraid that for the most part your message is only being heard at present by those on open line and the few who access the internet. But the whole province and the expats are just not hearing what you have to say. Please try your best to get this out all over the province before the election. If Mr.Williams keeps pushing on with his plans for the Lower Churchill and does not listen to the sane call for industrial development for Labrador what do we do then? Can this be stopped the way that the privatization of hydro was stopped? The oil itself should be refined here also. The people of the province must realize this and be rallied to stop it.
Is Mr.Williams afraid that if he makes the demand on industry that our power must be used here and here alone they will not set up shop here? An intelligent man like himself must realize that the long term jobs and prospects of building our population and economy is in industrial development. I fail to see what he is trying to do. I ma nobody's idea of an economist, but this just seems basic for a province like ours. If we were a separate country would the premier then be so hell bent on saving Canadian industry? Maybe he is looking at Steve's job and is just ingratiating himself with the Canadian public before he announces his candidacy?

Anonymous said...

I will say Sue,that now we have the money to build The Lower ChurchHill I strongly believe that we should develop it for ,the people of Labrador.But,on the same hand something is telling me that we should develop the "Saxon Route" as well.

This deal with Hebron will get us to one year befor we get the Upper-ChurchHill back.If I was Quebec right now ,I would be very,very,nervous.

The Faster,and Farther we can can get this power away from Quebec and its dealings the better.They have shown thier true stripes .Un-ethical and Immoral buissness practices,along with Federal Canada,has shown and proven one thing to us over time.That no matter what happens ,the Federal Government will always favour Quebec over our Province because of the number of seats they have and then the separtist issuse.We are simply not going to win if we have to deal with them in such away.As Hebron has shown us ,we are far better off when we "DO IT OURSELVES"

Anonymous said...

I think that short term work projects like the Hebron project will bring back some people - Maybe those who recently moved and who are not yet firmly established in, say, Alberta for one example. Also those at a certain age who are looking for work to fill out their remaining time to retirement for another. Those who are finding it difficult and expensive to live in the boom towns will be another group - providing housing etc. remains cheaper on the Island amid all of the development. I'm sure there are many other categories as well...
I'm sure there are many who have no desire to return. That young family who had to wrench themselves away to find work and a home and who have now become established with new friends, new neighborhoods and who financially have it better than they ever have back home - I wouldn't expect many of those to be back. There are those who believed they lived in the best place in the world, only to find there are many great places to live and raise a family. We all know many people who like living in Alberta or other places and have no strong desire to move back - they are secure where they are and why move for short term possibilities where infrastructure and facilities lag far behind that of many other places. Many of those people have become Albertans, Ontarians (?) and so on...
As for Labradorians, I think many of them see no difference in moving to Alberta/Ontario/BC, as opposed to Newfoundland. For them, what's the difference, they still have to move away from home.
And I agree - building, or trying to build a provincial economy on a project here and there is no way to build a future. Fine for now, perhaps, but the future is a long long time. It's sort of like relying on those famous make work projects to get 'stamps'.
The concentration has to change to good renewable resources with economically, environmentally sustainable development. We have to give up asking more from a resource than it can sustain - i.e. fishery, forestry and so on.

WJM said...

When you have the whole of Labrador lined with refineries as Edmonton's east side does - then you can say - we got it - we got it.

We got what? We got what? Incredible pollution, and spoilage of our environment?

Only a Newfoundland nationalist, Sue, would aspire to such a future.

Anonymous said...

"When you have the whole of Labrador lined with refineries as Edmonton's east side does - then you can say - we got it - we got it"


I interpret this comment as an analogy and, like the Creation Stories, not to be taken literally. Keep it up, Sue. Not many are blessed with your kind of gift, and though it must seem to you sometimes that you are shouting into the wind, be assured that your message is nevertheless being heard. God help us if there were no such voices in our midst!!!

L.C. Rees.

Anonymous said...

Sue, I wonder if anyone has thought about the financial incentive of returning to Newfoundland to live and work on the Hebron? I work overseas, leaving my wife and children behind, why, because I can earn (and take home) a great deal more elsewhere - even with paying my taxes in this province.

To the working man or woman, it's not the fact that there is work available, it's whether or not working locally will net enough money every month to pay the bills. I am speaking of the net earnings after tax.

Alberta has greater hourly rates and lower rates of income tax.

I have tried applying for work locally on occasions when openings occur for my skills. The standard quote from any company when you query the hourly rate is ' But you are working at home!' This cannot go on forever. These Companies need to get realistic about the cost of labour, skilled or no, in the Oil and Gas industry.

Sadly, working at home does not make ends meet. If the Provincial government has agreed to the Hebron progressing with the Oil Companies, I guarantee that in the agreement somewhere it will state that NL is a 'Low Cost Centre' or to be more PC, 'High Value Centre'.

Think again. To attract the skills required, and to fill all of the positions from unskilled labour to highly experience designers and engineers, the rates per hour will need to be higher than those paid in Alberta. Why, because it is all about how much you take home at the end of a week or month.

You do not need a degree in advanced Math to work out that to achieve the same take home pay working locally as you can working elsewhere in Canada, the 'Local' companies will have to pay substantially more per hour to workers to bring them back.

Will the Companies do this? If they do, the manhour cost of the project will be higher than doing the job elsewhere in Canada. What do you think the Client will do then?

In my opinion, I think the level of wages and salaries in this Province need a complete re-think. It costs more to live on the island than on the mainland. Houses are not cheaper than the mainland, food, clothes, petrol are no cheaper. Need I say more.

This is a subject that is talked about amongst the workers in the Oil and Gas industry who work away at present. This Province has to either pay higher hourly rates or lower the Provincial tax. Whatever way it is achieved, until individuals can 'Take-Home' the same or more than they can elsewhere in Canada (or overseas) then you won't be filling all those positions on Hebron with local labour.

I would be interested to hear others opinions on this.

BB.

Anonymous said...

I have to weigh in on the discussion of wages and the cost of living arguments.

A number of years ago I was courted agrressively to move to the Toronto area to work for a multi national pharmaceutical company. At the time I had a few options in where I could migrate but all the areas were in the Toronto and "golden triangle" of southern Ontario.

After doing the math I would have increased my gross salary by at least 80 % of what I was earning in NL. As for my wife, who is a professional, we anticipated that her salary level would have increased by at least 50% of what she was taking home in St. John's.

At first glance the numbers were intriuging and enough to contemplate the move away from NL.

After further thought and analysis we realized that we would have been financially challenged and certainly not " better off" socially.

Let me explain;

At the time our children were 1 and 4 and obviously they would need child care. The costs for a 1 year old was $1500 a month and for our 4 year old approximately $1000 a month.

In St. John's we owned/mortgaged our comfortable $140,000 house and if necessary we could both come home for lunch. In the Toronto area comparable houses started at $500.000 and the area would mean a two hour commute back and forth to work each day. The thought of lunch and dropping by to see your chidren or taking them to the doctor/dentist was a major ordeal.

On the "quality of life" issue the change was dramatic. Friends, family/grand parents and the comforts of home were no longer an option. The question is, would the extra $100,000- $150,000 a year to our family, warrant a move?

The answer is no!! The cost of safety, going home to use my toilet during the day and having friends and family near by is worth more than the $100,000 + that a move to the Toronto area would mean.

When I hear about parity and people moaning about wages in NL being lower than other areas, my first inclination is to say to these people; GO!!
Go spend your 10 plus hours a week in the car,; go and spend $3000 a month on your mortgage; go and put your grand parents pictures on the fridge; go and leave your house in the dark and come in the dark!!

A number of years ago when our physicians were on strike demanding parity wages with their mainland conterparts, my stomach turned.....the same for other trades people who moan about the salaries before taking in the "quality life" costs.

For people who are bottom line driven I suggest you go or stay away. People who are not, are doing just fine in the province.

Coming home to my toilet in the day, kissing my kids after school or having their grandparents go to their soccer games or school concerts is worth $100,000 a year to me!!

Anthony

Sue Kelland-Dyer said...

Thanks for your input Anthony - unfortunately most are not siding your way. Thus the outmigration numbers. Secondly - the story is different when the choice in Newfoundland and Labrador is not secure or on a relatively short time-frame.
I would agree with the overall quality of life argument - but that's me and apparently you. Many of our people have not been to Labrador or Bell Island - but they flock to Florida every chance they get.

nadinebc said...

Anthony and Sue, My husband and I would have stayed home, but there was no work there for us. We would come back in a heartbeat- for something real. For something stable. I don't think Hebron is it.

Anonymous said...

August 28, 2007 3:59 PM - Oh God I didnt want To hear That ,LOL!!!But at least its Honest.