Imagine that Newfoundland and Labrador

Is it Scotland's Oil and Gas offshore?

Answer: The vast majority of oil and gas in the UK comes from the Scottish Continental Shelf and will be in Scotland after independence.

Analysis by academics at Aberdeen University tells us that in excess of 90 per cent of the oil and gas revenues are from fields in Scottish waters (based on well-established principles of international law).

Take the PC SMELL TEST

Jobs Jobs Jobs

Let's go back to the theory that a monkey can make a deal to give away natural resources.

Okay where are we?

1. Unprocessed fish
2. Unprocessed ore
3. Energy fuelling industry somewhere else
4. Unprocessed oil
5. Unused gas
6. Pulp and Paper gone gone gone - we are subsidizing what's left.

Where will this get us?

Where is the value to future generations?

Why is our population stagnant?

Why is our population aging quicker?

The PC government were screeching and bawling about natural resource giveaways in 2001-2002.

They never shut-up - Voisey's Bay - not one ounce - Grimes was giving away the Lower Churchill - they said - they moaned about the loss of fish processing. Since? Nothing. Ship it off - dig it up give it away. They talk about all the jobs being created to build the great Muskrat project - the people employed to build it won't be able to afford to pay for the power once it's done. Our great oil resources benefiting refineries everywhere but here - no processing. How about ship building - oh yeah the Tories were hot to trot on that in 2002 - how are we doing?

The media is doing what? They are great at attacking ordinary people - they come at them with a vengeance. They are running around sorting out what the NDP and Liberal policies are - without figuring out what the people who are in control of the government - right now are doing.

The most serious of questions and debate on Muskrat has all been precipitated by bloggers and letters to the editor.

My God - we are more interested in if the Libs and NDP would stop Muskrat than we are in figuring out if we even can.

There is no real critique of the Gil and Ed Executive duo. The geniuses of budgeting and project management.

I know more about when the media are getting together for a political pow wow at a club - or what type of bow-tie to expect - or who is watching what sports team than I gain knowledge from something they are writing about a real issue. I see more tweets regarding who is watching who at media conference - and who gets their names raised publicly by a politician.

So a simple question - if the government said it wanted to demolish Cabot Tower - knock down all the schools and flatten all the hospitals - would you line up for the job?

Does it really matter to you what the job is - or what it means for our future?

And here we are today sizing up Kent, Ottenheimer, and Davis - to what - become a Premier? Really? This after we sized up Coleman, Barry, and Bennett. This after the Marshall Premier pension and the Dunderdale Premier pension and the Williams Premier pension. By the time we are through the already underfunded plans will need to cover almost every Tory sitting - at the Premier's level.

The real fascination for many of the media - is "will Marjorie be attending the next swearing in"? Or will Tony the Tory ever find a kind word for the Liberals? Or the most favorite one - what does Danny think about this or that - who is Danny supporting - is Danny going to get a new hockey team? Is Danny going to rename his subdivision?Or maybe - will Len and Ross get their jobs back after the next election?

We owe our children much more than this.

Something stinks - can you smell it?

Rex Murphy - 2 saviors - Williams and Alberta

Everybody needs to make a buck right? I guess we all decide at one point or another if the activity of making that buck just goes too far for our stomachs.

I am sick of Rex Murphy - the native "Newfoundlander" (as you all know he constantly leaves off Labrador in the name of our province) pontificating his views so vigorously so as to leave one believing it's fact.

As you likely know Rex Murphy and other CBC resplendent mouths have caused a bit of a stir lately regarding their speech junkets. Murphy has been called out for appearances in front of the oil and gas elite. 

Two things Rex wants you to know.

1. Alberta saved us, and
2. Danny corrected the wrongs of the Upper Churchill

Rex would have other Canadians believe that when our fish crisis hit in the early 1990's - it was Alberta that kept us from hundreds of divorces, thousands of bankruptcies, and a population headed for complete annihilation. He thanked Alberta on our behalf.

First of all Rex - you should concentrate on the Newfoundland and Labrador shaft - wherein the entity responsible for fisheries management failed and our people took a direct hit from that mismanagement. Ottawa - Rex - was the bankrupt, Ottawa - owes this province billions of dollars, and Ottawa - Rex should be raked over your coals for this colossal failure. Yes Rex - tens of thousands of Newfoundlanders and Labradorians lost their livelihoods and dozens of communities failed outright. Yes Rex - it is comparable to Ontario losing 600,000 jobs overnight - however the federal response was so different.

Ontario was in peril - about to lose their bread and butter automotive sector - through no fault of the federal government and through great fault of the private sector - but Ottawa responded and continues to respond to any fart going sideways in Toronto.

The fishery - Rex was a direct responsibility of the federal government - and they failed. The consequence of that has been catastrophic to our province - yet Ottawa continues to deny its responsibility - a constitutional responsibility - and watch our province struggle to survive another confederate mess.

So - Rex - in speaking to the oil magnates of Alberta - first describes that the wonderful and professional conference environment is hardly what he found when he did his first speech in the Lion's Club of Joe Batt's Arm. Then he gets to the heartfelt - intellectually drooling - thanks to Alberta on behalf of all of us. Rex can't stop his adoration of Alberta for saving Newfoundland and Labrador, thousands of our people and thousand of our families. My God - Rex thinks divorces would have been so frequent as to shatter the idea of marriage if we were not saved from by Alberta.

The solution to our fisheries crisis should have been found in our province. The billions should have kept coming from Ottawa until the stocks recovered. Our fishermen/women and plant workers should never have had to leave home to seek gainful employment. The billions we lose every year - as a result of Ottawa's mismanagement should be replaced by Ottawa. Our fishermen/women and plant workers could have been employed using the compensation money that should still be flowing from the feds.

Rex - many of our families have been destroyed BECAUSE they had to leave this province to find work. Families were torn apart, communities devastated, and seniors left without a relative to enjoy.

Alberta certainly gained from our loss. They had access to thousands of skilled tradespeople and workers - that they needed at the time for their booming industry. They got our population - not our seniors - but young men and women and families to build their energy sector. They gained - we lost and continue to lose. Yes many of our people travel back and forth - but many others and their children (now adults) have stayed and increase the population of that province. They have now made Alberta home - generations of Newfoundlanders and Labradorians gone.

On another occasion - actually it was when Danny Williams resigned as Premier - Rex joined the CBC's national panel to give his two cents worth on the departure. He agreed with Mansbridge that Danny was a fighter. Rex went on to say - that Williams came in - "in the wake of the closure of the fisheries" and with the Emera term sheet "corrected a 50 year grievance that's gnawed at the hearts of Newfoundlanders since the day that Smallwood signed the Upper Churchill" and further described the Williams agenda as limited but large "the offshore - the revenues - fix all the bad deals".

This verbal nonsense leaves Canada with an impression that is not real. The 50 year grievance has not been resolved - and further the deal Williams cut makes Newfoundlanders and Labradorians pay billions of dollars to go around Quebec and this time benefit Nova Scotia. Meanwhile of course - discussions are always on with Quebec and Williams did not eliminate them from the equation. There is Gull Island.

And this question Rex - what did the great "fighter" Danny Williams do to right the wrongs of the fishery?

If Murphy wants to impress the oil elite in Calgary or share a studio with Mansbridge - he should do it talking about something he knows something about - like Toronto. All Murphy has done here is perpetuate the myth that Newfoundland and Labrador is a welfare state relegated to thanking others for survival. 

Please take the time and listen to Rex:

Talk about Alberta saving Newfoundland and Labrador - PRESS HERE
Talk about Danny Williams saving Newfoundland and Labrador - PRESS HERE

Kudos to Antle and Cochrane - Exercise in Accountability

Rob Antle and Dave Cochrane - two CBC journalists - are to be commended for scratching the surface of PC hypocrisy. Their story today deals with promises made by the Tories in 2003 regarding electoral reform - and the promises broken regarding same. You can read their story HERE.

The bravado and chest-thumping of Danny Williams in 2002-2003 - came with it - promises to do many things differently than the Liberals.

Party leadership contests and the financing of same was absent in legislation and Williams promised to fix it. It did not get fixed.

This is a serious matter - no doubt - but pales in comparison to other promises of change made by then Opposition leader Danny Williams.

These two journalists have begun the process - I hope they continue the probe by reviewing promises on - energy, mining, forestry, and fishery. The people deserve to know - if not by the Tories or Opposition - then by the media - what exactly was promised on natural resource developments.

The information is all there - the only thing missing - the direct questions to the government on why they did not live up to the promises they made.

The commentary on the fishery, the paper mills, the mining sector, and energy was very aggressive and designed to make people believe that we would get more benefits under natural resource development than we would have under the Liberals.

The continued pouncing on the governing Liberals by Williams and rat-pack was specific and aimed toward the ear of the voter.

What should we have expected over the decade that followed 2003? How many long-term jobs from industrial development? How many projects where "construction" was not the objective - but permanent well paying trades positions was the objective?

The Tories have stripped away at the value of resources for Newfoundlanders and Labradorians, they have ushered in closures of many industrial operations, failed to improve our place in Canada, and squandered billions of our oil revenues.

So hats off to Cochrane and Antle - let's keep the accountability coming.

I do have one small critique - you state that, "This is the party’s first contested leadership race in nearly two decades, and the first chance for the Tories to play by the rules they promised to implement while in opposition." 

It's not a contested race yet.

Garbage and Pride - A measure of Dunderdale's success!

How many of you notice the garbage everywhere - in ditches, on the streets, in the woods, stuck to fences, hanging off trees, and flying in the air?

First of all - most of this garbage is from adults - not from kids. Tossing stuff out of the car window and commercial vehicles driving along the outer-ring road spewing unprotected waste - on the way to the dump. Then there are retail parking lots - or just outside their borders - the mounds of waste; branded as applicable. I'm starting to wonder if they consider tens of thousands of Tim Horton's cups decorating our landscape as good advertising?

I'm wondering if there is a way to keep the Colonels boxes penned in - the chickens are far more controlled than the litter is.

Then my favorite, washing machines dumped in the woods just outside of the city boundaries, car wrecks here and there, bits of metal, remains of transport truck tires providing a slalom course on the Trans Canada highway.

More disgusting than all of this are children being tasked to pick up the garbage as a volunteer effort.

So what makes adults toss their waste all over the place; anywhere other than the dump or garbage container? What makes adults desire to live, drive, walk, and run amidst the flying debris?

The answer is a lack of pride. There is no pride left. It has been stripped from our population by lazy, incompetent, disinterested, or ignorant elected representatives.

When you sit in your own garbage - you must feel there is no hope.

Whole communities lost - families moved away - youth leaving everyday - industries dismantled and closed.

Husbands or wives leaving for months on end to other provinces for temporary work. Elderly parents left without family, children without regular presence of one parent or another.

So the leaders that are looking once again for your vote - are asking it - without having performed.

Make no mistake - if success can be measured by companies being interested in stripping us of our resources - without commitment to processing - or secondary industrial development - Newfoundland and Labrador is king. We are at the top of the heap. That was and remains our problem.

Let me give you a sample of good news in our province.

1. We have lost the Abitibi mill in Grand Falls-Windsor - and apparently that's a good thing. We can diversify and expropriate assets and sue people.

2. We have lost the Abitibi mill in Stephenville - and apparently this also is marvelous - to be complimented with the continued downgrading of the Stephenville Airport and Port.

3. Our groundfish stock has not recovered - in twenty years - but this too is an opportunity to do aquaculture.

4. We are going to haul the oil up out of the banks at record levels - this is great because we can spend like drunken sailors during an election. Those valuable non-renewable resources are best taken now - so that our children and grandchildren will not have to worry about their development and use. They could not possibly be smarter than the crew we have elected now - right?

5. We are going to develop the Lower Churchill - oops we mean Muskrat Falls - and in this way we can lower costs to Nova Scotians and green Canada up. We will have the privilege of paying double for this wonderful development - that will ensure Hydro Quebec's success and the inevitable failure of Nalcor. The good news is - somebody is waiting in the wings to buy it from us. Privatize it!

6. The loss of shipbuilding is great - maybe this will open new opportunities for those assets. Perhaps we can be a subsidiary of Irving. Kiewit and Sons -poof - gone. While we are at it oops there goes another fishplant. That's okay - now we can "rationalize" the sector.

7. Last but not least - with loss of population or at best no growth - loss of industry after industry - our power needs are going to go up. Yes sir - we had better get that Muskrat working to protect us from relying on Holyrood. Oh yes Tom Marshall has us heavily relying on that facility. No odds - the fact that the statement is untrue does not matter. What matters is that Tom - thinks he is doing a great thing by imagining we are growing. 


So what have we learned?

Have we learned to do more secondary processing of our fish? NO!

Have we learned to do more secondary processing of our oil? NO!

Have we learned to do more secondary processing of our hydro? NO!

These inept - self-serving or weak politicians are bankrupting us resource by resource. With that - so goes pride - and with that we will agree to sit in our own garbage.

The Lower Churchill Project could lead to loss of Sovereignty

Sovereignty you question? Yes Sovereignty!

Unfortunately we voted ourselves out of complete independence when we "joined" Canada. However there is still this little small item remaining that of a province.

You and I have listened to musings of creating one Atlantic Province called Atlantica. Many business people and some politicians have really entertained this.

From a business perspective - many elite billionaires dream about the super province wherein the resources of Newfoundland and particularly Labrador can be stripped from this geography and delivered to Nova Scotia and New Brunswick for processing and wealth. A corporate dream that would see Newfoundlanders and Labradorians flock to work in the Maritime region - leaving the province with no specific purpose other than camps of workers to extract resource after resource and the power to fuel industry will come from Labrador and delivered to the new Maritime business mecca. Almost like Great Britain when it sent fishermen for a season but would not allow settlement.

If you cannot imagine this - then you could not have imagined we would give up our Dominion status and sell-out to the mighty Canada. But - it did happen.

Since that time we have not enjoyed steady population and industrial growth - rather we have had decimation of resource after resource - and the decimation of our rural communities and population of youth.

We have seen naive politicians make deal after deal with global corporations - that always placed the needs of our people last. We have never enjoyed full benefit from any resource we have exploited.

Our history is in the fishery - but the fishery is almost dead - this after turning management over to Ottawa. This was a renewable resource - a food basket of the world - now it is a just a fraction of what it once was. Remember in 1992 it was only to take 10 years to recover - where is that recovery? Where are the 40,000 people it took with it? Where are the communities? Where are the fishplants? Disgrace!

Then there was the mines - the great wealth of minerals - hauled out truck by truck ship by ship train by train to be processed elsewhere - taking the high paying jobs and skilled workers with it. Communities stripped of their wealth without an heritage fund - left with nothing but a polluted place. Disgrace!

Our forestry - almost stripped bare - and then as we finally forced reforestation and sustainable harvesting - we lost the industry it fuelled. Two paper mills gone. Discrace!

Lastly our power - the tremendous Upper Churchill potential lost to generations of our people - nothing to show for it - not industry - not jobs. Where parts of Labrador continue to rely on thermal generation and not an aluminum smelter in sight. 5000 mw's fuelling the Quebec economy and fuelling Hydro-Quebec the most powerful of power companies. For years losing equalization based on revenues we could not even collect.

Now Dunderdale and the Tories feel compelled to export another block of power - this time subsidizing it for Nova Scotia and others - while not delivering this power to all of Labrador - and not one MW for industry in the Big Land. Dunderdale claiming she is willing to listen to real arguments opposed to the Emera giveaway - but as Danny would say "nothing could be further from the truth". Dunderdale drilling down with due diligence so she may be all over a file - she does not have a real clue about.

Tell me something Ms. Dunderdale - who or what is the Atlantica Centre for Energy ?

What of the description:

The Atlantica Centre for Energy is an industry association dedicated to the sustainable growth and economic development of the regional energy sector. Originally centered in southwestern New Brunswick, the Centre's board has expanded to include leading energy professionals and national professional services companies in Maine, Nova Scotia, Newfoundland & Labrador and Ontario.
The Centre serves as a bridge between corporations and the community to help realize the opportunities associated with the energy sector in Atlantic Canada and the American Northeast. It provides a meeting ground for government, the education and research sectors, and the community at large to foster partnerships and engagement in energy-related issues and policy development.

Who is benefiting from power found in Labrador? Why would that be fuelling an Atlantica vision? How is it we benefit by creating wealth outside our province?

How about their vision for the Lower Churchill found HERE

I can tell you this Premier Dunderdale and Cabinet - what you are doing with the Lower Churchill will make the architects of the Upper Churchill look like patriots to this province and her people. Are you that naive - or are you that involved?

Again I remain amazed at the PC members so willing to become part of this - the worst giveaway in our history - the day we sold our province.

The Liar and the Traitor - toxic combination for Newfoundland and Labrador

The Liar and the Traitor

The above "photo" forms part of a story out of the Globe and Mail today by Jane Taber.

Before I proceed with a short commentary - I would like to take a couple of sentences written by Ms. Taber in the article as I believe it demonstrates the disinterest the upper Canadian media has in - critical issues - for Newfoundland and Labrador and her people.

Mr. Manning, who had only served one term, from 2006 to 2008, was, in part, a victim of former premier Danny Williams's “Any But Conservative” campaign. He was angry with Stephen Harper over equalization issues.

As you can see Ms. Taber first makes Manning a victim of Danny Williams and secondly describes Williams as angry with Harper over equalization issues. In the first instance Manning is a victim of his own choices which absolutely went against the will of the people he supposedly represented and sought to represent again. In the second instance Williams was not "angry" over "equalization issues" - rather he was angry - as were the majority of people in our province - over the FACT that the Prime Minister LIED - he LIED directly to the Premier - he LIED directly one on one to me and he LIED to ALL Newfoundlanders and Labradorians. 


The lie was costly - about 10 billion dollars worth - and it will affect many generations of our people. It means the value of our natural non-renewable resources has been diminished to immediate economic benefit versus long-term invested benefit and immediate return. That is the problem with non-renewables - and that is what Harper promised to fix. He promised it as an economist, as a matter of principle, as a matter of good Canadian policy - but in the end he just lied.


If the two gentlemen above are elected again expect the same result for our province. If Fabian gets elected and Harper wins a minority - we can expect both to find ways to diminish our lot to improve the lot of others in Quebec and Ontario. If he wins a majority - there will be nothing left.

Leave it to Old Harry - he can tell you all about the failures of Danny Williams!

Equalization will have to change again - if Ottawa is going to appease Quebec. Unfortunately - it will all be too late for us.

So the feds and Quebec are set to make a deal on offshore oil - in the disputed area between Newfoundland and Labrador and Quebec. Old Harry as the area is nicknamed will see Quebec receive 100% of the royalties from any oil recovered.

Now the problem - Quebec - who argued that NL should not be exempt from equalization respecting oil revenues - non-renewable resource revenues - will now have to argue that they should be able to keep all the revenues without being penalized by Ottawa.

The Atlantic Accord which was supposed to insure that Newfoundland and Labrador was the primary beneficiary of offshore oil development - did not deliver on that promise. The weakness of the agreement - signed off by our politicians of the time - became evident as we witnessed Ottawa claw back close to 80% of the revenues under equalization. So for years the ranting went on - and finally the Williams administration caught Paul Martin on a weak political moment and righted the historical wrong. The Government of Canada passed over 2 billion which at least partially compensated our province by making us the primary beneficiary of the resource.

Then along came Harper - who promised equalization changes that would remove revenues from non-renewable resources from the formulary - allowing our children to benefit from resources that we were going to expire.

Harper lied - became the Prime Minister and then proceeded to put our province virtually right back to where we were before we made gains. That lie cost our province over 10 billion dollars. Danny started the ABC campaign - Conservatives were not elected in any riding and Fabian went to the Senate.

Problem is Danny was bluffing - there was no consequence to Harper - and then Danny quit. He had the political support but he chose to sit back and allow our province to be screwed - yet again - by Ottawa.

Now what do you think will happen to Quebec - do you believe they will let Ottawa claw back revenues from oil or gas under equalization? I for one am not that stupid. If Quebec ever recovers oil from this offshore parcel - equalization will be changed to accommodate that development. By then our resources will effectively be exhausted and the change will provide minimal to no return for us.

Today the feds and Quebec are set to sign a deal on the deposit ( potential 2 billion barrels of oil and 5,000 billion cubic feet natural gas) with environmental studies set to be complete by 2012.

Then there are the lagging questions - once again left hanging by Premier Williams - who owns the resource, which boundary is correct, if Newfoundland and Labrador opposes it what is the government going to do about it?

So Danny thinks he got one up on Quebec with the Emera deal. What a failure - and what a cost to our people.

Danny's idea of punishment was skewed - do not let this cost us yet again!

The cost of an error.

As we muddle along into Danny's vision of a legacy - we should be reminded what happens when we as people do not ask questions regardless of media and opposition disinterest.

The Upper Churchill goes down in the history of western world developments as one of the worst deals ever to be perpetrated on a people.

Today as we see Hydro-Quebec lower its rate for Quebec consumers - we are pondering an astronomical raise in rates to accomplish what Nalcor says is a need to get rid of Holyrood.

Imagine our children having to deal with Holyrood and Labrador oil generated facilities while Hydro-Quebec and the people of our neighbouring province enjoy virtually complete hydro generated power - including the fabulous 5000 MW's from the Upper Churchill. That is a cost of that mistake. Our children should be enjoying complete clean renewable hydro energy but for the mistakes of Joey Smallwood, John Crosbie, Bill Rowe and others. We can thank a silent opposition of the day as well.

Imagine our children leaving Newfoundland and Labrador to work in processing facilities powered by our energy and value adding from our resources. That is the cost of such a mistake.

Imagine a place full of renewable hydro losing industries and not gaining them at a time when energy hungry smelters and refining facilities seek such energy in today's marketplace. That is the cost of that mistake.

Imagine our children's shoulders burdening billions in debt as we continue to lose billions we could have enjoyed - if a mistake was not made on the Upper Churchill contract.

Imagine - for years - we accepted a significant reduction in equalization payments because we produced the energy from the Upper Churchill - even though we were not the beneficiaries of the tremendous profits. Ottawa looked and said - even though the deal was bad - you could be collecting more - so we will reduce your payments as if you were. Billions more in lost revenues - a cost of doing a bad deal.

Imagine - had we simply waited - we would have attracted industry and developed the power for the benefit of Labradorians. Imagine what could have been in the 70's and 80's as oil prices rose from 60's prices of $3($18 adjusted for inflation) a barrel to $38($90 adjusted for inflation)dollars a barrel and now even greater again. That attractive hydro power that uses water not oil for fuelling generation. That water that is not impacted by an oil embargo from the Middle East in the 70's or the civil unrest in Libya today.

Imagine we would be debt free like Alberta - we would be utilizing a significant portion of our oil revenues for a heritage fund so that our grandchildren benefit from the non-renewable resources we are extracting now. Instead it is keeping us artificially afloat - keeping our growing budget in health care intact - until that is - when the oil is gone. That too will be a cost of that mistake.

Imagine the pride and not anger we could feel if we had just questioned a little more and waited for the right opportunity for us. Labrador's population could have exploded and industry could have flourished. We would not blame Quebec for our own mistake and their intelligence in choosing risks.

Here we are again - Danny says the Emera deal will right the wrongs of the Upper Churchill. What a joke. Does he take us all for fools? Apparently and that continues on with his successor Premier Dunderdale. We are mad at Quebec so we will go around them - be damned the cost - we will punish them.

Danny's idea of punishment clearly is skewed. Stephen Harper's lie robs us of 10 billion dollars - he punishes him by electing all Liberals (who cares) and by sending Fabian Manning to the Senate (oh the pain). Currently he wants us to punish Quebec by ramming through a hydro project which ships even more power out - to another company (publicly traded) which is vulnerable therefore for takeover. Punish Quebec by driving our power rates through the roof while making competitive jurisdictions cheaper.

Danny did not right the wrongs of the Upper Churchill as he promised - if there was a deal to be done on the Lower Churchill. I believe if it's even possible he's made matters worse.

First the unearned arrogance of the PC government continues to assume that the best possibility for power development is for export. Prove this to me and the rest of our people. Prove how exporting even more of this industrially attractive resource helps Newfoundland and Labrador more than if we used the power here. Show us the numbers - the normal economic studies that would be completed to reach such a conclusion. The government will have studies on everything but the economics of shipping out hydro power versus utilizing it through industry in Labrador.

The Upper Churchill will continue to punish generations of our people for decades to come - we hardly need to couple that misery with the untested policy of yet another Churchill development.

Why would industry ever consider coming here if we so willingly ship it to more convenient jurisdictions. Jurisdictions that already enjoy an advantage through the use of our raw resources?

We lose our fishery - and we sit and take it.

We lose our forestry - and we sit and take it.

We lose billions of dollars from a Harper lie - we sit and take it.

We are now on the verge of losing yet another tremendous resource - will we sit and take it?

What will it take for Newfoundlanders and Labradorians to stop taking it and stand up for their children and grandchildren?

Why are we not in the streets and demand action?

Danny bluffed and bluffed and bluffed. We lost and lost and lost - on his way out he has asked us to giveaway yet another resource. This time say no. Just say no.

You want to debate the Emera project Kathy? Ed? Shawn? Are you sure?

WHAT DOES THIS MEAN TO YOU?

Now are we all willing to take a look at the chart above produced by  EDC?

When we talk about sending out raw energy versus refined product - in the case of oil and gas and in the case of using hydro-power for industry - we might start to recognize some very strange things. That is - strange to Premier Dunderdale, Minister Shawn Skinner and the rest of the geniuses on the hill.

Just curious Newfoundland and Labrador - how is it that New Brunswick is ahead of this province in exports? We do all realize the resources we have - right? Oil, gas, fishery, hydropower, forestry, iron ore, nickel, and others. Now what do we have to show for it in value? Look at New Brunswick - they don't have our oil, our 5000 MW's, our fishery, not even minerals in such quantities and quality such as iron ore and nickel.

You want the answer?

The opening of the Saint John LNG regasification plant in September 2009 will provide a significant boost to exports in both 2010 and 2011, as production ramps up and industrial production in New England recovers. However, most of the increase in energy export earnings this year will be due to higher prices for refined petroleum products, as the price of crude rises to an average of USD 77/brl in 2010 from USD 62 in 2009.

Oh my - we have the oil right? They refine it right? What we need to do now - according to Ed Martin, Shawn Skinner, and Premier Dunderdale is to ship them some more cheap reliable renewable power. That should help them pick up some more industrial development - maybe they can refine and process more resources. Anything else the gang would like to give them?

WE GOT IT - WE GOT IT  yep we got it all right. So are we allowed to refine our own oil and gas yet? No that's right it actually belongs to Canada - we can have royalties which Ottawa can then strip back - and oh yes - that's right New Brunswick and Quebec would have to exceed their refining capacity in order for us to be able to. Or is it that Irving controls that roost?

Well then in the name of growing a strong Atlantic Canada - the least we could do is throw some of that unrefined energy (that is we don't plug it into anything here) over to Nova Scotia - with any luck the Minister of Natural Resources of Newfoundland and Labrador can be hailed as the fellow who helped Nova Scotia along with it's lagging exports.

While we are at it - that much bashed (by Canada lovers) Iceland - the home to 250,000 souls - as Shawn Skinner would say - is looking at exports exceeding 5 billion - a billion of which for seafood - the majority of which is ground fish. Very healthy Atlantic cod stocks. You got to love the nice exports of aluminum. They are humming away - plugging in every industry they can attract with hydro power. Their exports are up 21% in January over the same period last year.

Not to worry because Newfoundland and Labrador has the fish right? Well no - we are third behind British Columbia and Nova Scotia - oh yeah that's right - the king cod is lost in Ottawa somewhere and we are missing a billion dollars a year. Shawn get that power to Nova Scotia quick - with our fisheries planning they are going to have to increase processing in that province - just as soon as our people are forced out.


BRITISH COLUMBIA:

• Canada’s top exporter of fish and seafood, valued at $882.8 million.
• Exported 162,834 tonnes (t) of fish and seafood products.
• The three most valuable species exported by this province were farmed Atlantic salmon (49,543 t valued at $330.9 million), herring (3,470 t valued at $57.6 million), and crab  (5,862 t valued at $54.5 million).

NOVA SCOTIA:

• Canada’s second leading exporter of fish and seafood, valued at $809.7 million.
• Exported 111,454 t of fish and seafood products.
• The three most valuable species exported by this province were lobster (23,065 t valued at $353.8 million), scallops (4,946 t valued at $88.4 million), and snow/queen crab (8,519 t valued at $72.8 million).

NEWFOUNDLAND AND LABRADOR:

• Canada’s third leading exporter of fish and seafood, valued at $720.5 million.
• Exported 167,691 t of fish and seafood products.
• The three most valuable species exported by this province were snow/queen crab (31,571 t valued at $270.3 million), shrimp/prawn (52,384 t valued at $191.1 million), and mackerel (22,981 t valued at $37.2 million)

Now if we really try we can help out our "have not" partners in Ontario - they are planning to lead export growth driven by the automotive sector. How did that happen? Oh yeah we "bailed out" that sector after corporate fraud just about crushed the markets - from the USA outwards. They could really use our power and with any luck - we can help them get back to the "have side".

Maybe Ontario can get to experience a 12.4% unemployment rate instead of that backward 8%  or even worse Iceland's 7%.

Ed Martin called the Lower Churchill "low hanging fruit" in Ontario - I guess he meant it.

You wonder why - I sit and scratch my head - at our government's insistence at getting the power out of  Labrador at all costs? This valuable resource that means industrial advantage - only if we keep it here. If Ed Martin is right and Canada will be short 14,400 MW's of power by 2030 - this Lower Churchill power should be kept in Labrador at all costs. Just curious Ed - why is so much more power going to be needed? Increase in Canadian population and industry? How much of that growth are you predicting for this province? Oh - you must not be predicting growth for here - you did not say we would be short - that means we would have to attract significant industry which would attract back home significant Newfoundlanders and Labradorians that left to find WORK.

I would like to see our exports increase significantly in the fourth quarter - I have dozens of politicians available to be shipped to your jurisdiction. Any takers?

Who does Minister Shawn Skinner work for?

Minister of Natural Resources Shawn Skinner as quoted on a government of Nova Scotia website.

"I am pleased with the approach to work together, discuss issues, and exchange ideas to benefit a strong, united region. I was particularly pleased to discuss the development of Muskrat Falls, which will provide tremendous benefit for the region and indeed the country, and look forward to a continued partnership in support of the development."

"The people of Atlantic Canada will benefit from regional co-operation on energy issues. I am pleased with this spirit of regional co-operation among the provinces. Working together we can strengthen the energy sector, generate more economic activity, create more jobs and lower energy costs across the region."

Okay so I employ Shawn Skinner to aggessively develop Labrador resources so that the region can benefit and become strong and even the country for that matter. And I am also employing him so that we can use Labrador power to lower energy costs in the region. 

I have never witnessed in my adulthood such a skewed mandate and an absolute effort to marginalize one's own province so that other provinces in the region can move industrial development forward on our resources.

Is there anyway to put this politely? Minister Skinner your job is to use Newfoundland and Labrador energy resources to benefit our province - particularly Labrador - and if at all possible make our energy more competitive than our neighbouring provinces so we can attract industry here for our people. 

Your government's insistance on exporting the raw resource of hydropower has left us with little to look forward to. The method you have chosen to export - only makes it that much worse. Emera - a publicly traded Nova Scotian company - vulnerable to takeover by a party - Hydro-Quebec that would benefit them tremendously - all at the cost to Newfoundlanders and Labradorians. 

Which Nova Scotian resource are they shipping here to Newfoundland and Labrador to assist us in developing our industries and long term sustainability? 

What Canadian resources are being shipped here to help this province develop?

As Quebec also in many cases fall within our region - what will Quebec be shipping our way? Do you even talk to them and what of your government's promise for redress on the Upper Churchill?

What of the equalization formula which continues to rip away any benefit we will get from our depleting oil resources? We already expect to lose 10 billion or so on that - while Ontario and Quebec benefit?

Why are you down on bended knee for a loan guarantee from Ottawa when they have already stripped a billion a year from us for mismanaged groundfish stocks?

If I were cynical - Minister Skinner - you are speaking like you are a Minister of Atlantica - do you support that concept of joining the four provinces together? I'd like a polygraph on that. 

Renewable Energy is the only future left - they have taken the rest

Oil is here - Oil is gone

To be competitive in today's world you must have an advantage.

Newfoundland and Labrador is rich in natural resources - unfortunately either by giveaways or mismanagement we have lost the industrial edge we were geographically gifted with.

Our non-renewable ores were shipped out without processing fuelling the economies of Ontario, Quebec, and even Manitoba. The rich iron ore from Bell Island was shipped out to Nova Scotia for processing and do you believe Labrador has gained properly from its iron ore?

The Upper Churchill was developed by an astute Quebec and is a major reason Hydro Quebec is an "energy giant" today. The fishery (best in the world) was taken over by Ottawa a few years after confederation and was destroyed by Ottawa in a few short decades. The forestry resources were given away and advanced industrial development on the paper mill side was non-existent.

The boom in metro is at the cost of rural communities and is only as a result of oil. Where are the real oil jobs? What of our oil do we refine or process into goods?

Politicians of all stripes have contributed to the mess we have today - short-term prosperity for Newfoundland and Labrador - long-term prosperity for others who process what we own.

We lost at least 40,000 people to the fisheries moratorium and numbers of plants while decimating rural communities. Who owns what is left of our fishery now? Is it still being plundered (shellfish) and when will that collapse?

We are down to one paper mill when we should have kept at least two. Politicians made fine work of that planning - there was grest opportunity in Stephenville but it was squandered by politicians who did not have foresight and certainly no vision. What we do now in Grand Falls-Windsor and Stephenville is manage the loss. Can we bring in a Costco or Walmart a Canadian Tire or Sobeys or Kent - that is the mantra. Maybe haul a few government agencies or divisions to (decentralize). Where is the new money in this - it is simply hauling the same money around and in this case giving to mainland companies so that reinvestment happens outside Newfoundland and Labrador instead of local companies reinvesting here. What happened to our airports?

About the only thing we have managed to hang on to is renewable hydro - and only because the people waged a three year battle against the policy. Now we are set to start giving it away again. We need this energy to attract industry. Industry goes where the power is and we are making sure that it is everywhere but our province.

We will give it to Nova Scotia to either use themselves or transport to other provinces or states to use there. Nothing in Labrador! Labrador who relies on Quebec and thermal generation for power. What a joke.

We must stop this Emera deal and start again - go back to an energy plan which uses that raw resource to generate industrial growth right here. If we go ahead with the Emera deal we will have escalating costs for our own domestic power and have nothing to offer industry which will follow our power out of the province.

We continue to have excessively high unemployment, our rural communities continue to be decimated and Labrador continues to be raped of its tremendous resources without any real return. This must stop.

Where is the vision of government - does it rest with senior faceless bureaucrats who quite often move on to the same private industrial sectors they help through policy? Is it politicians too lazy to read - to understand - or are they incapable of real vision. Do we ever really know who stands to gain personally from decisions they have played a part in?

Then there is Ottawa - Danny gains 2 billion (gets hit with the stock crisis) net??? and then loses 10 billion in the change-up of equalization while Quebec the (have-not) province continues to receive the most equalization.

When you take on the establishment the banks, brokers, investors,  basically private sector greed there is a price to pay. Personally and professionally they attack you until you starve. They run political parties like they are their own assets. They move saviors in and out and ensure that their policies continue to move forward.

When they go after the last of our hopes for the future - we must take a stand - and that we will do. Premier Dunderdale and her Cabinet take note - this will not happen without thorough  discussion and consultation and it will be done to benefit us not to ruin our future.

I ask the backbenchers of the Tory government - do you want to be responsible for a giveaway as great as the Upper Churchill?


And while we are at it why does the a crown corporation of Saskatchewan deliver tv service to hospital rooms in Newfoundland and Labrador

Iceland toSecure Rights on Continental Shelf (News Bytes)

Read the story in the Iceland Review HERE


Here's a couple of paragraphs to get you started...

In less than two years Iceland has to submit a report to the United Nations Commission on the Limits of the Continental Shelf (CLCS), which will then estimate reports from all nations claiming rights to the continental shelf in question and propose how it should be divided.

Iceland automatically has the rights to an area of the continental shelf limited by 200 nautical miles around the island, but can, under certain natural circumstances, claim rights to other parts of the continental shelf as well.

Gerry Reid will PRIVATIZE NLH

I can state this because Reid is opposing the people of this province investing in oil and gas projects offshore.

I am left to wonder if Reid's "war room" actually even considered that this thinking could be applied to all our resources.

Think about this for a minute - first Reid says Newfoundland and Labrador already owns the oil and gas. In fact we do not - Canada owns it - and we receive royalties based on Canada's recognition that we are the province adjacent to the resource. If we want to own it - we must separate from the federation.

Then Reid says - Danny should not risk the peoples money by taking an equity position - in fact he says if we elect the Tories and let Danny buy equity - he will bankrupt the province.

On that basis - the debt outstanding by Newfoundland and Labrador Hydro would also be seen as a risk and have to be eliminated. Reid's thinking would have our Crown Corp sold off to outside investors (Ontario Pension Fund) or perhaps Fortis - and we will take royalties instead of the profits. Taking that further - he would develop the Lower Churchill by giving that development to outside investors and ask for a few royalties in something we actually own. Under Reid's New Liberalism we - of course - could not risk investing our money in such a project.

Williams has many weaknesses in policy - especially in areas such as the fishery - pulp and paper - agriculture - and rural development - and in these areas he does not enjoy broad-based support. Reid chooses to take on the equity position - which does have broad-based support of a people who are sick of giving away our wealth for a few coppers and jobs.

Reid has gone from left of center - to Harper's best economic policy bud. And all of this because the Libs have resurrected policy experts like Rex Gibbons. The Liberal leader has not yet learned that this direction is a political failure. If the party does not wake up and understand that people of this province want more from our valuable resources - Williams will have an unending term of office. This is not what we need and the fishery and rural Newfoundland and Labrador will suffer. But if we elect Reid - everything is gone.

Can we learn in under a century what Iceland took...

...hundreds of years to understand?

Denmark was to Iceland - what Canada is to Newfoundland and Labrador.

The Iceland Review Online features young Icelanders speaking out about issues important to them. The latest one is probably a great lesson for us - and one that all Newfoundlanders and Labradorians should think about.

Here's a few paragraphs from the column titled "A Colony's Revenge":

You see, the Danes have at times in the past, done some pretty rude things to Iceland and generally behaved a bit like some kind of brute.

For example, there was the time back in 1380 when Denmark took over Norway (and subsequently Iceland as we were a bit of a package back then) and decided that unlike Norway, Denmark no longer needed any of the homespun wool or fish Iceland was used to selling and exporting, a decision that led to a dramatic financial and trading deficit on the little island of ice and fire.

By 1602, when Iceland had finally established a pretty good income through European trade, Denmark decided that they didn’t really want Iceland to trade with others either and enforced this with the looming threat of their massive naval army. Iceland embraced poverty yet again.

Then there was the time back in 1783 when Laki Volcano erupted and killed off 9,000 people (a hefty chunk considering our size) and about 80 percent of our livestock. The livestock deaths led to a starvation that killed off 25 percent of the nations populous. “Where” the people asked “is Denmark? They are meant to be helping us”. The answer? “Nowhere”.

Take the time and read the rest of this interesting story. Witness the passion young Icelanders feel about their history - culture - and nation. I'm just a little envious - are you?

Can't vote Liberal - Energy Policy by Gibbons and Dumeresque

Voting Liberal means returning to the energy policies of Clyde Wells and Rex Gibbons - PRIVATIZATION included and further deters any ownership of oil and gas projects. And worse he tries to dupe the media - or he does not understand the issue at all.


It's no secret that I have policy issues with the Premier. I support his move to acquire equity in the oil patch - but I do not support his failed fisheries policy - failed rural policies - and especially the suggestion that Lower Churchill power be exported. The "pamphlet" he calls an "energy plan" could have been written in a few nights by myself and a couple of energy zealots. Further it is an insult to Labradorians - simple as that.

I also don't like his style - the Führer comment that got him into an outrage - pontificating on hitting below the belt. The Premier says they will do the campaign without getting into "gutter" politics. The truth is - the man threatened civil servants - threatened to sue bloggers - and generally is a bully. He surrounds himself with "experts" as long as they are his buddies or past business partners.

I support his stand on removing non-renewable resource revenues from equalization - but he is doing nothing practical to make "Steve" live up to his promises.

He's just dragged out the joint management of the fishery again and his desire to see Canada take custodial management of the nose and tail of the Grand Banks - but oddly when Loyola Hearn reneged on this promise - he claimed Tom Rideout and the provincial government agreed with changes made to NAFO on surveillance and penalties. Then the whole works of them got rid of FPI - no equity there. This also includes the Liberals who did not want to upset some of the potential for political contributions.

But let's get to it.

Gerry Reid has just added another piece of logic to his "no equity" policy. Now he says Norway just took equity because it needed to kick start it's offshore - in the same way that Canada did when it took equity in Hibernia.

Why then Gerry does Norway continue to take equity position? Why then Gerry does Norway continue to be a major shareholder in Norsk Hydro? How about this?

Norway has produced this year - a "simple" easy to follow "FACT" sheet on the petroleum sector. Here's a sample found in the document.

The government receives a large share of the value created through:

* Taxation of oil and gas activities

* Charges/fees

* Direct ownership in fields on the Norwegian continental shelf (through the State’s Direct Financial Interest, SDFI)

* Dividends from ownership in Statoil

The State’s Direct Financial Interest (SDFI) is an important source of state revenues, in addition to taxes, fees and dividends from its ownership in Statoil. SDFI is an arrangement in which the state owns interests in a number of oil and gas fields, pipelines and onshore facilities. Each government take is decided when production licences are awarded and the size of the state interest varies from field to field. As one of several owners, the state pays its share of investments and costs, and receives a corresponding share of the income from the production licence.

Gerry - regardless of what Rex says - trying to sell the media that crap is bound to come back and bite you.

And Gerry - let me cut this off at the pass - on Hydro...

Just last month - and based on the current and future value of hydro-power the Government of Norway issues this News Release:

The right of reversion – The Government secures public ownership of hydropower

It says in part:

Today, a provisional decree has been passed in the King’s Council with instant effect which is considered to bring the right of reversion in accordance with the ruling of the EFTA Court and the EEA agreement. It is stated that the basic principle of public ownership of the Norwegian hydropower resources at state, regional and local level is being maintained. It will no longer be given licenses for acquisition of waterfalls and hydropower plants to private actors. Such actors can, however, still own one third of public owned hydropower plants, Mr. Enoksen says.

and

I am very pleased that we have reached an arrangement which completely keeps our most important renewable resource on public hands. We maintain public ownership at state, county and municipal level and thus secure all public hydropower owners rights to the hydropower without time limits, Minister Odd Roger Enoksen states.

Voting Liberal means returning to the energy policies of Clyde Wells and Rex Gibbons - PRIVATIZATION - included and further deters any ownership of oil and gas projects. And that goes for Party President and Candidate Danny Dumeresque (another Clyde boy that promoted and apparently still does support the ideology of privatizing hydro).

The smell of "Old Liberalism" cannot be masked by expensive perfume...

What is it with the Liberals? They describe themselves as left of center on their web-page (at least it did until they updated it today)- while going right of Williams and the Tories on energy policy.

The answer is Rex Gibbons - if the Liberal Party of Newfoundland and Labrador continue to follow the strategy of this man on energy - the Liberals will fail - politically.

Yesterday Gerry Reid was telling university students that equity in oil projects would not happen under a Liberal government. In defense of this position - Reid said that Alberta does not do it - so if that energy powerhouse does not do it - why should we?

Two answers to that Mr. Reid - and you would see them if Gibbons would stop advising for a little while.

1. Alberta owns it oil and gas resources. We do not. When Alberta develops it can say - you may develop this parcel if we receive this amount in royalties and we get a refinery or other petro-chemical industry in Alberta to process the resource. We are not allowed to refine our own oil until the refineries in Eastern Canada are fully satisfied. Do you understand this? Have you read the Atlantic Accord recently? Rex has - and Rex knows. Rex was the Minister of Energy - he made the deals on oil and he attempted to privatize Newfoundland and Labrador Hydro. His policies failed and he has not been re-elected since.

2. Who cares if Alberta or other Canadian provinces do not take equity? I don't - I do not need Alberta to guide us on what we as our own jurisdiction should or should not do. We can have independent policy choices. Further - Reid should know that many other jurisdictions in the world do seek and achieve equity positions - such as Norsk Hydro.

Then there is the Liberal policy on wind development. Once again Rex (Clyde) rares his head and Gerry spews a suggestion regarding private wind generation.

Here is the situation Gerry - if Hydro guarantees to buy the output of such generation then you and me Gerry will pay for it via our electric bill. When that is paid - who do you prefer a portion be returned to - our provinces treasury or let's say the Government of Italy. This creeping in of private sector energy developments is back-door privatization of a resource we own outright. Further Gerry - you should ask Rex what happens when you have multiple players in the generation sector inputting into an electricity grid. You should ask him why Ontario had the big blackout when Quebec did not. You should ask him how we guarantee maintenance with a group of private generators and the cost of not having that control. You should ask him what happened with the joint use of utility poles - and what happens when one group maintains the poles a little more or less than another.

Until the Gerry Reid's "New Liberalism" stops depending on failed "Old Liberalism" policies - the party will continue to enjoy falling polls. It's time to let new thinking take over from Rex Gibbons - Clyde Wells - and past Minister Walter Noel. There is no perfume they can buy to make these policies smell good.



And as for Labrador energy policy - both the Liberals and the Conservatives fail - and they will get a sense of that as they crawl and slither around Labrador looking for a vote (the right to exploit Labrador to benefit the Avalon).

As I write this - back comes John Efford - dipping his toes in the political ocean - John - even if we can get past all the spending scandal and you were as pure as the driven snow in the administration of your constituency allowance - you are the one who told us to take or leave a lesser deal on equalization.

I close with this observation. If Williams does not win 3 of 4 seats in Labrador - he will not have a real mandate to develop the Lower Churchill under less than "best" terms for the Big Land. This is something I hope Labradorians will consider.

A + for the Hebron MOU - stay tuned...

As one Newfoundlander and Labradorian who stood squarely behind the Premier on his position with big oil - I am not disappointed. The benefits announced from the Memorandum of Understanding signed off by both sides are extremely beneficial to the people of our Province.

As I also believe strongly in equity positions on major resource developments - this 4.9% is something I support fully. That is exactly what Norway has done to make Norsk Hydro what it is today.

The equity position is great. 4.9%

The super royalty is great. 6.5%

The stated intent on local engineering - design - and construction work is great.

The Research and Development commitment is average.

$120 million over the life of the project.

The Education commitment is poor.

$1 million pre-sanction to College of North Atlantic and Memorial University of Newfoundland to enhance skills training.

On the choice of platform - Floating Production, Storage and Offloading (FPSO) - or Gravity Based Structure (GBS) - myself and the Premier may disagree but both would have exceptional benefits for the province - if the legal agreement delivers the objectives of the MOU.

Here's the difference for me:

The FPSO can be costed over more that one project and is significantly cheaper. The GBS is one project - one unit and currently is a permanent structure in the water.

This means cost recovery or time to royalties may be increased with the GBS. On the Premier's side of this however is the GBS is more labour intensive especially for building and construction trades. So one might say what we lose on the cost recovery/royalties we make up for through increased employment and perhaps materials supply.

I would and have argued that the FPSO technology is an area where facilities such as those found in Marystown benefit greatly from gaining expertise in building and maintaining them - in a fashion that additional work from FPSO's not involved in our oil patch would be achieved. In other words an industry developed on but not dependent on our resources.

Having said that it is believed that GBS is better for heavy oil projects.
Further the GBS is now being looked at for LNG applications. Perhaps we can develop an industry based on these structures.

Considering the engineering expertise employed by government and the oil consortium - I yield - to that decision.

All in all this is an advanced MOU which satisfies the Province's benefits list for the Hebron development.

Danny Williams was right to hold off until equity - super royalty - and employment/construction/engineering targets were achieved.

This MOU is a superior and an advanced position for a province in deals with oil companies/consortiums.

I do not believe the oil consortium gained anything tremendous in this MOU. I do believe the Province gained substantially in this particular project.

I do believe the additional benefits to some or all of the consortium partners will be found outside this deal in future ventures. We will get into that next week.

Now it's back to the Lower Churchill.

Keeping our eye on the ball...

On this day of oil frenzy - I am not commenting on until I see the meat - we must keep our eyes on the ball. Lower Churchill Power


First of all most of Sue's Blog readers know I am not a fan of Atlantica. This new corporate version of the 4 Atlantic Provinces - which best I can tell boosts Nova Scotia and New Brunswick first and foremost

Now the latest - seems Newfoundland Power has jumped into energy policy and the Lower Churchill by selling the concept of an Atlantic transmission line to Atlantica participants

Recently Atlantica (AIMS) held a conference where energy was discussed.

Here is what the Newfoundland Power representative said - according to Charles Cirtwill acting president of the Atlantic Institute for Market Studies.

Newfoundland Power took that opportunity to outline the significant benefits of the Lower Churchill development. Access to the energy generated by this clean and renewable hydro-electric project could enable provinces and states throughout Atlantica (and beyond) to shift to lower-cost, reliable energy while taking off-line older, and arguably less clean, coal-fired generation capacity.

Cirtwill then adds:

The proposed route for this energy would bring the power via undersea line from Labrador to Newfoundland and then from Newfoundland to New Brunswick. Yes, New Brunswick, not Nova Scotia – despite the fact that Nova Scotia is significantly closer to Newfoundland and that undersea power lines are very expensive. I was curious as to why, so I asked.

It turns out that, first off, "pancaking" of transmission rates (stacking one rate on top of another) would drive up the price of Lower Churchill electricity. Apparently, the longer undersea power line is cheaper than the pancaked rate of running through two provinces. Second, Nova Scotia has only a single connection to the continental grid, increasing the risk of service interruption due to breakdowns or maxing out the capacity of the existing infrastructure; whereas New Brunswick has just upgraded some of its linkages to the grid and is exploring how to do more.

These types of barriers are not only going to keep Lower Churchill electricity from travelling through Nova Scotia (and make it more expensive for consumers than it needs to be even if it goes through New Brunswick), they are also limiting the potential for further expansion of our own renewable energy projects. Proponents argue that the potential for Nova Scotia to become a centre of renewable energy is virtually limitless. They are quick to point out, for example, the innumerable potential locations for wind farms (locations that would not, by the way, require us to put one in Anne Murray’s, or anyone else’s, backyard).

The problem is, they have limited ability to ship the power off once they generate it; and even if they could send it along to market, pancaking and other inefficiencies guarantee them a higher cost product when it comes time to sell it to you and me.

Atlantica isn’t just about ports and roads and bridges. Saint John is fast becoming an energy hub. Nova Scotia, indeed all of Atlantica, needs to be seriously exploring the potential of becoming a sustainable energy gateway.

First of all Atlantica is not real - however when AIMS makes such declarations we should be looking behind doors or under beds because a bogeyman is close. Cirtwill speaks of the Atlantica concept in such real terms - you and I are left to wonder why our Premier has not told us about the deal yet. Or whether Williams even knows the discussions are taking place in Halifax on Newfoundland and Labrador resources and the benefits it can bring other provinces and states.

This is however the hangover of presenting the Lower Churchill as an export project designed to help everybody else where their economies or environmental problems or industry woes. This type of talk - which is essentially other provinces divvying up our power before we develop it - is because Danny Williams will not treat this power potential with the same level of detail and protection "accorded" to oil and gas.

Now if all this is not enough - the Atlantica ghost held another preach-in called "Reaching Atlantica: Business Without Borders" 2006 in Saint John - New Brunswick.

According to a story in the Telegraph-Journal - Tim Curry director of the Atlantica Centre for Energy had this to say during that get-together:

"It's an energy age and people are going to be increasingly mindful about the diversity and security of energy sources.."

"It doesn't matter what you're doing. If you're going to plunk money down to build a manufacturing plant or any other business that is critically dependent on a source of energy, then you're going to look long and hard at the energy regime in the area where you are looking..."

"If you don't have both secure and diverse energy supplies, you're not going to invest. Not anymore."

Well you can't say it better than that - if you want manufacturing - smelters - heavy industry - you use power (energy) to attract them. If we export the Lower Churchill then what?

By the way what information does Newfoundland Power have on all the transmission route potentials - that we the people do not have. Will Fortis be the one to build and operate the transmission grid for exports? Is that the private sector Williams alluded to recently?

Clearly the discussion of Lower Churchill Power is very public and open in Ontario - New Brunswick - and Nova Scotia - not here! Clearly the only reason it is being discussed is the anticipation that other Provinces and States might get their hands on this superior renewable power supply.

And again - our media asks nothing.

If one wanted to be a dictator - there's no better place than Newfoundland and Labrador to fulfill that personal need for "power".

Liberal Policy could see Lower Churchill developed the same way as the Upper Churchill

Liberal oil and gas development policy if applied to other energy resources could see the Lower Churchill developed under the same terms as the Upper Churchill.

Here's what I mean - Yesterday Linda Goodyear - Liberal candidate for Conception Bay East Bell Island - repeated what most Liberals MHA's - including Gerry Reid - have already articulated - it's time to get on with Hebron. When asked by host of Open Line Randy Simms what about "no more giveaways" Goodyear explained that Hebron was already discovered and it is not fair to change the rules now.

Let's extrapolate from that policy and insert the same thinking to the Lower Churchill development. Hydro Quebec and Quebec took the original risk on the Upper Churchill - the Lower Churchill is just another "well" already discovered in the 1960's - so why change the rules now?

Here's the deal - everybody says if we had only known that oil prices were going to triple - we might have thought of an escalation clause for the Upper Churchill contract. In other words if the market circumstances changed substantially - we could have reaped billions more for the people of the Province. The Labrador highway would be finished - there would be major infrastructure developed in Labrador - which in turn would have attracted more industry to that region to utilize the power.

The Liberal Party should acknowledge that oil has since tripled again - and this time we are not locked into a permanent contract with no ability to improve our lot - so this time we are invoking our "escalation" clause.

The Party's inability to see this tells me and should tell the voter that giveaways would continue for the sake of quick development and long-term agony.

Just a note to Linda Goodyear - as she talked about the possibility of getting some post-secondary trades training on Bell Island - I remembered the bitter fight we had when Roger Grimes - Brian Tobin - and Vince Withers made the decision to close the campus on the Island. I stood with the people of Bell Island but we lost the fight. She needs to ask the incumbent Liberal MHA's what they think about her idea.