Mr. Wakeham Saves the Day

A tribute in kind…

Mr. Wakeham saves the day

Where in the name of the

Newfoundland tabloid gods would

we be without Bob Wakeham?

And no, I’m not like some of the clueless readers who might describe Wakeham as a bombastic has-been or one of those herpes like sores that you think has receded from your lip, only to erupt once more each week on that same lip.

Because those crude and intellectually challenged readers, ladies and gentlemen, simply have failed to realize that the day little Bob picked up his first crayon was the day journalism in our fair province took that final step to legendary. Indeed, our people should hail the wisdom of Wakeham’s words not just with a provincial holiday each year, but a cast lead statue with his ferocious eyebrows gracing every school in the land as a reminder to the very young of the land that the crayon is mightier than the sword – a Newfoundland Messiah.

And don’t pay a bit of attention to the nasty naysayers that question Bob’s Newfoundlandness.  After all, he managed to heroically fight his way back to our shores from a youth corrupted by the darkness of American culture and the hallowed halls of the University of North Dakota’s journalism college.  

And never was the inescapable evidence of Mr. Wakeham’s profound influence on our tabloid newsprint more than when, as a young fella, he refused to resign as a scribe when the Telegram killed his story on the Mount Cashel scandal. No, young Bob was as determined as his stoic jaw line to carry on the good fight.

After a decade covering fires, kittens in the trees and other exciting happenings across the province, middle-aged Bob entered the hallowed halls of the CBC. Now most of us can only look in awe at the profound influence on our national debate that fellow Newfoundlanders have had. Whether it be Marg Delahunty or the equally ferocious Mark Critch, our impact cannot be discounted in those places of power. But, no surprise to anyone that has tasted his quill, Wakeham transformed the journalistic profession by bringing court room TV to our very living rooms. Think on it. Without Bob’s unwavering influence we wouldn’t have seen OJ trying on that glove that didn’t quite fit, or the perp walk we’ve all come to embrace as the gold standard of journalism in our province.

I put it to you: We owe a debt to Mr. Wakeham that can never be met. He managed, in just one life time (that we’re aware of) to transform the boring reporting of news stories to the joyousness that graces our TVs and newsprint every day. He set the standard for online radio shows that shake our senses three times a day. I’ll grant you Mr. Wakeham has not managed to go where other great minds have gone before him – historical performers like Jerry Boyle, or Mrs. Enid. It seems downright unspeakable that his insight at the CBC has been passed over for the likes of Johnny- come- lately Rex Murphy. How is it the mother corporation can’t see the striking similarities between the two – the singular raised eyebrow of Horus and the piercing eyes to match.

 Now it seems more than unfair, indeed even unjust, that poor old Bob has been relegated to a miserly Saturday column at his old haunt. So, before you think of jumping on the band wagon that says Bob is just a crusty old fella etching out his final days in sarcasm and the rage of being passed over, remember, without that dash of Wakeham we would all be a little less Newfoundlander (Labrador is just attached b’y) 

Newfoundland's Political Bully Mentality

Newfoundland has a bully problem, and it's not just in the schools. In truth, Newfoundland's biggest bully problem is with the adults - especially when it comes to politics. Now the saying in Newfoundland is that politics here is a "blood sport". Nothing could be further from the truth. In country's like Saudi Arabia, or Iraq, or Lybia, etc, politics is a blood sport. Call in a team, take out a politician, etc, you get the idea. People are murdered and assassinated constantly over their political beliefs. So, for Newfoundlanders to call what passes as politics here a blood sport is giving it far more credit than it's worth. Politics in this province is more along the lines of high school cliques.

The first problem in Newfoundland politics is frankly nobody here understands how a normal democracy is meant to function. That's the simple truth that most Newfoundlanders will be truly offended by, but it is what it is. The province has been held together by a few families, bolstered by every law firm that can get its foot through the door, and then sprinkled down to those willing to do anything for a few scraps of public money. That's what passes for politics here. Nobody gets that politics is an order, and the purpose of the order is to maintain orderly human existence. I should say they get that part, but they don't get the part that rules come with the order. The first, and cardinal rule of exercising power is:

"Power, use it, but abuse it and lose it."

That's the Golden Rule. It applies to the front room politicians, the backroom politicians, the gatekeepers, the mentors, and even the black side of politics. It applies to European Presidents and Canadian Prime Ministers. It applies. Their collective purpose is to support the order by doing their jobs in accordance with the above noted rule. Not in Newfoundland though. Here it's might makes right - or in other words the bully mentality. Codes of Conduct sworn to are ignored by MHAs and Cabinet Ministers alike. Blatantly lying to the public on a daily basis is so obvious, and so insulting to the intelligence that it's hard to fathom. It has all devolved now into one gigantic mess with zero public accountability. A mess caused by political corruption, political stupidity, and allowed to happen by the bully mentality.

The seeming inability of Newfoundlanders to understand how badly their system of government has become speaks largely to 500 years of political bully mentality. It's the norm. It dates back to the "merchants" and the "fisherman". That however is no longer an excuse. There are now plenty of educated young Newfoundlanders who can step up and make a difference. No doubt many of them are sitting in their political science classes and observing the implosion of their province. And it's not all about oil. In fact, very little of it has to do with the collapse of the oil price. The political implosion began well before the oil implosion began. 

Over the past five years a political revolution has been happening in Newfoundland. It's been happening on the airwaves to some degree, but mostly it's been happening behind the scenes. A dark war, a quiet war, where the political and economic casualties just keep piling up publicly - yet nobody here seems to get it. So here it is: The political families, and their cohorts, have abused their power and now they're going to lose it. In fact, that is already happening between some families, and has for a short while now. You are either onside with the change to a proper democracy for Newfoundland or you're on the side that needs to be destroyed for the betterment of all Newfoundlanders. That's the bottom line. It blows me away that so called "credible" people in this province haven't been able to see what's been happening over the past five years - let alone where it's coming from. Of course, "credibility" in Newfoundland politics is defined by the clique and broadcasted by the local media. The days of the Codfather are over, and a new order based on the rules is coming.

So, if you're one of the fat cats in Newfoundland politics that thinks democracy is just a vote every four or five years, and you can do what the hell you want in between, your days are over. Get out the sun tan lotion, and enjoy your retirement in Florida. See if you can pull off your bullying routines with the locals down in the trailer park down there. 

And for everyday Newfoundlanders, start to understand that you are entitled to dignity, respect, and the truth. Demand it. It's your right. Stop watching politics as a soap opera that you can bitch about, use as a form of entertainment because you're bored, and insist on a form of politics that respects you and respects your governmental institutions. Don't worry about being made to look stupid or wrong. Worry instead about the consequences of what you are witnessing now.

Truth is, the so called backroom in Newfoundland has been getting smoked badly for awhile now. Their little clubs are being torn apart and their powers eroded. They skate on very thin ice. Now their power to intimidate people has been taken away they don't know how to make the system work. They don't have an ever loving clue. It reminds me of a time when I belonged to a weekly breakfast club of backroom boys and they couldn't understand for the life of them how Brian Mulroney wasn't worshiped for everything he had done. That constantly brought to mind another old saying: "There are none so blind as those who refuse to see."

The Newfoundland Nightmare

Newfoundland's economic problems are all structural, and now those problems are all coming home to roost. The structural part is not new. In fact, they trace back to the "merchant" days here - which in many ways have not changed. A small group of select families have controlled everything from insurance to resources, and everything in between for centuries here. Looking through that prism it is easy to see "modern" Newfoundland and Labrador's key structural problems.

Everything that is worth anything is controlled privately. Now, pure economists or extreme capitalists will argue that isn't a structural problem, but rather the way it ought to be. However, a province with such a small population must have a revenue stream greater than more populated provinces in order to adequately support its operations. In Newfoundland's case, successive governments have sold that revenue generating capacity away. The province is at the point where its major streams of Crown corporation revenue, other than oil royalties, rests really in liquor and gaming, and to some extent Nalcor Energy/NL Hydro.

It is quite easy to see why NL Hydro and Nalcor are still in government hands. Firstly, NL Hydro is not a money maker. Its primary function is to generate power - not retail it (where the money is). In other words, taxpayers pay for the generation of power, and NL Power (Fortis Corp) sell the power at retail prices while avoiding the costly problem of infrastructure to produce it. It's a win-win for NL Power, and a lose-lose for the average citizen.

Another industry which should be nationalized, or never privatized as it was, includes the insurance industry. The provincial government sees almost nothing of the car insurance, house insurance industry revenues that regenerate annually.

Telecommunications is another example. There is no provincial phone/cable company that could generate annualized revenue for provincial coffers.

Now all this may sound a little socialist in its undertones, but the bottom line is all the worth while wealth of the province has been transferred from the public's hands. That means there is not sufficient cash flow returning to the provincial coffers to adequately fund a modern quality of life. This becomes glaringly obvious when the one gravy train,oil, falls on its face. That is exactly where we are at today, and where we keep finding ourselves in the future. Structurally there can be no other result.

However, it isn't just the "little" people that get hurt in this cannibalistic economy. Small and medium sized businesses, municipal governments, non-governmental actors, and even the provincial government suffer as well. Eventually the loss of revenue from the local economy results in: less consumption of goods and services; higher government taxes; and uneven business cycles. That makes economic activity and necessary governmental wealth unstable and inadequate. And all that combined puts Newfoundland and Labrador's economic and social existence on thin ice - which in turn results in out migration, which in turn makes the core problems even worse.

Eventually all this must come to a head and fail. I believe we are almost at this point now. With an accumulated deficit now reaching almost 9 billion dollars, and structural budget deficits of at least a billion dollars a year for the foreseeable future, there is no answer for this province's nightmare. Raising taxes further will kill whatever consumption economy is left here, while failing to do so will kill governmental activity. Cutting civil service jobs may make governmental activity somewhat more efficient, but it will also severely damage the one "stable" economic driver for consumption. In short, the economic elites in the province have managed to paint all of us into the proverbial corner. There are no immediate solutions left. Nationalization of key industries like power, cable and insurance would provide some long term stability, but would require putting out money now that the province doesn't have. All in all it's a nightmare - a Newfoundland nightmare to be sure.  

Danny Williams in Contempt

Without Prejudice


This past Tuesday I was in front of Justice Orsborn requesting a date be set to hear my application that Danny Williams' lawsuit against me for defamation be thrown out. The grounds for striking the lawsuit were that Williams accepted being named to a court house building in Corner Brook that houses the chamber of the Trial Division of the Supreme Court of Newfoundland and Labrador, and through which justices of the Court rotate through as part of their duties.

Justice Orsborn, quite seriously, put an end to the Court's involvement in the matter. He stated that neither he, nor any other justice of the Trial Division would hear the case, and that he had requested Chief Justice Green of the Appeal Court appoint an Appeal Court Justice to preside over the matter. In effect, Justice Orsborn recused himself and the entire Trial Division from hearing the matter. I was surprised. Williams' lawyer was in a state of shock. Then came the big one. Orsborn continued by saying he had written former premier Marshall on the naming issue, and had decided to give counsel a copy of the letter. The Court Clerk dutifully delivered us each a copy sealed in a vanilla-type envelope.

The letter, which is below, essentially raises many of the same concerns I had over the court house naming after Williams. Kind of common sense stuff, which doesn't seem to be so common in the Government of this Province.

I made the decision to release the letter to the media, because, in my mind, it was a very real matter of public interest, and a classic example of abuse of power and position. It most importantly illustrated that the sanctity of the Courts could be violated by politics, which then brings the independence of our court system into question. This is especially true given our judges are appointed by politicians. In effect this takes on the perception that powerful politicians become judge, jury and executioner.

The story went across the country. Williams, belatedly spoke to the issue. I was almost as shocked by his response as I was of the similar theme between Justice Orsborn's commentary and my own argument.

Williams actually attacked Justice Orsborn's integrity.

Here are some samples of what he said:

" Obviously, this Chief Justice Orsborn had an issue that he had dealt with privately, unsuccessfully, and then basically through another vehicle (that would be me) decided to table it and make it public"

Now, if I was Justice Orsborn, Williams would be waking up this morning in jail. Parse the above statement. " 'This' Chief Justice Orsborn." Really? As if he is speaking down to one of the top judges in the province, like a petty little school girl. Then, in the remainder of the sentence he accuses Justice Orsborn of willfully and with malice of using his courtroom and position in a way that would be an abuse of the bench. In my way of reading, if that isn't contemptuous of the position of Justice Orsborne, and the Court, then I'm not sure what the meaning of contempt of court would be. Black's Law Dictionary defines contempt of court: Contumacy; a willful disregard of the authority of a court of justice or legislative body or disobedience of its lawful orders. Contempt of court is committed by a person who does any act in willful contravention of its authority or dignity.

 I'll go with that last one. Willful contravention of the dignity of the Court. Also, It would also seem to me that Justice Orsborn has a very strong, and likely very expensive defamation case against Williams if he wants one.

"there were other judges there and: They didn't see anything wrong with it, but obviously Chief Justice Orsborn has a different opinion. That's probably the nicest way I can put it." So now Williams, typical to form, is pitting people against people to try and win a point. The problem with this particular comment is that he's referring to Justices of the Courts. It's as if he is not conscience of the fact that Judges shouldn't be endorsing political events. It's as if he doesn't care. It's as if "hey, everyone else is doing it, so it must be right, and you must be odd man out." It's childish and it's stupid, and it's contemptuous of the positions that judges hold, and have to hold, in our society. All this from a man that purports to hold a law degree.

The Newfoundland and Labrador Law Society describes these 3 criteria for it's members:

2.1-1 A lawyer has a duty to carry on the practice of law and discharge all
responsibilities to clients, tribunals, the public and other members of the profession
honourably and with integrity

[2] Public confidence in the administration of justice and in the legal profession may
be eroded by a lawyer’s irresponsible conduct. Accordingly, a lawyer’s conduct should
reflect favourably on the legal profession, inspire the confidence, respect and trust of
clients and of the community, and avoid even the appearance of impropriety.

2.1-2 A lawyer has a duty to uphold the standards and reputation of the legal
profession and to assist in the advancement of its goals, organizations and institutions.

Seems quite obvious to me Williams has not followed these rules of his profession.

Williams is also quoted as saying:

"I was quite surprised, you know, that a current chief justice would have sent a letter to the Premier raising an objection, because you know, there's a clear distinction between the role of the executive branches of government, and you know, that crosses the line."

Really? What line? Williams' line, because Williams wants the ego trip of having a court house named after him? It's clearly a constitutional requirement that judges protect their independence from the appearance or perception of bias. You would think Williams would know that. Still, he ridicules the Chief Justice.

Then in an attempt to show just "how normal and non-controversial" the naming of the court house after him was, Williams says:

" The Court House in Grand Bank was named after Chief Justice Hickman who was the former Minister of Justice in either the Smallwood or Moores era I think, but he was alive at the time and of course there wasn't ever an issue with that, so."

Williams conveniently doesn't mention that after his political career, Hickman was Chief Justice for 20 years until he retired. Whether that remains a correct thing to do or not is up for debate, but it in no way compares to Williams situation. Justice Orsborn assessed it as such in his letter to Marshall.

All of this is the way Williams has attempted to rule Newfoundland and Labrador since at least 2003. Pit people against each other in an attempt to humiliate and marginalize his opposition. Ignore realities that don't suit and manipulate arguments to suit the purpose. Threaten those that disagree by accusing them of "crossing the line". For myself and the Telegram provincial newspaper that meant being sued by Williams for defamation. For Chief Justice Orsborn it apparently means being derobed of your judicial dignity and independence publicly by a man consumed by his own image - as he sees it.

It is time for Danny Williams to be brought down a whole lot of pegs. It's time that his abuse of his public position as former premier, that is to say using that position to threaten and demean those that see things differently than him, to end. Attacking a well-respected, extremely experienced and highly intelligent Justice like Chief Justice Orsborn is an outrage. Williams should be dragged through every editorial column in the land for even daring to attack the integrity of a Chief Justice. The Court should defend the honour and integrity of Chief Justice Orsborn, and its own, by throwing Danny Williams into jail for contempt, so that he realizes that nobody is above the law. Yes, not even Danny Williams. Or, perhaps, especially not Danny Williams. We have to know that the Courts and the media aren't afraid of the little man from St. John's.

Why Old Harry Belongs to Newfoundland and Labrador

The "administration line" dividing Newfoundland and Labrador's maritime economic zone and Quebec's is in dispute. At the heart of the dispute is the Old Harry sub sea oil/natural gas formation - a 29 km long aquifer of  up to 2 billion barrels of oil and/or massive quantities of natural gas. The oil there is so plentiful that satellites pick up at least 6 natural oil leaks from the sea floor. Newfoundland and Labrador are already exploring it on the eastern side, but Quebec cannot start as it does not have an agreement with the federal government to proceed. One issue Quebec has is it's demand the federal government recognize it's sole jurisdiction to these waters - which the feds won't do. The other major problem is a lack of agreement over where the "administration line" is between the two provinces.

Quebec historically clings to the argument that an unofficial agreement in general between the Atlantic provinces and itself settled the boundary issue in 1964 - the so-called Stanfield Line. Newfoundland and Labrador has always challenged that boundary stating that not only was it general in terms, but that it was not ratified by an Act of Parliament as would be required under the Constitution. In actuality, the 1964 agreement was more an effort by the provinces to secure sub sea minerals (oil and gas) for themselves. The boundary issue was loosely agreed to in connection with this strategy. In 1967 the Supreme Court of Canada, in a constitutional reference on the matter, found that the seabed belonged to the federal government.

In 2001, Newfoundland and Labrador and the Province of Nova Scotia went to arbitration in order to establish the validity, or lack thereof, of the 1964 Stanfield Line agreement. The following is the finding of that group:                                            
                                                                AWARD
             For the forgoing reasons, the Tribunal unanimously determines that the line dividing the respective
             offshore areas of the Province of Newfoundland and Labrador and the Province of Nova Scotia
             has not been resolved by this agreement.
             Hon. Gerard La Forest
             Leonard Legault
             James Richard Crawford
In other words, there is no agreement upon which any maritime boundaries could be established or recognized.

The old 1964 agreement had an administration line that essentially brought Quebec's maritime border all the way from the mouth of the St Lawrence to 80 kms east of the Magdelen Islands - a massive 350 kms or so. Without such an extension to encompass a tiny set of islands Quebec's maritime boundary would not surpass 50 km east of Anticosti Island into the Gulf. In reality, the Magdelen Islands actually lie more in Nova Scotia's waters than they do in Quebec's. There have been legal precedents set for small islands lying off the waters of another's jurisdiction, and not conforming to the natural coast line of the host jurisdiction. One in particular case, St Pierre and Miquelon Islands (France), is a very good example.

St Pierre and Miquelon Islands are the last territorial remnants of France's once great empire in North America - located just south of Newfoundland. In fact they are so close they are located within Canada's Exclusive Economic Zone (EEZ). Canada and France had been squabbling for many years over the territorial waters that such an island deserved, and the effects on Canada's EEZ. In 1992 it was finally submitted for binding arbitration with three neutral international panelists, and one each from Canada and France. In a three to two decision, the two being Canada and France, the committee decided that France kept a 22.5 km territorial sea surrounding the islands and an additional 22.5 km contiguous zone. It was only 18% of the claim that France had made. The remainder of the territory was to remain Canada's EEZ, with the exception of a small corridor to the open seas. The committee used a straight forward interpretation of the Convention on the Law of the Sea, which Canada was a signatory to.

Based on this very close example, The Magdelen Islands would only have a very small "territorial sea" surrounding them, and not essentially the entire Gulf of the St Lawrence. Quebec's "administration line" or maritime boundary would then stretch in a line following it's mainland coast, but encompassing Anticosti Island. The result of this alignment is that Old Harry is not actually situated in Quebec's maritime economic zone. Far from it. The same territorial sea argument can likely be made for Anticosti Island as well.

According to the Constitution, boundary changes between provinces themselves must be agreed upon by those provinces involved and then sent to the federal government for ratification. The federal government can arbitrate, but only if requested to do so by the affected provinces. Without a settlement of the boundary issue Quebec cannot form a joint board with the federal government to oversee and grant licences for offshore exploration and development. It is highly doubtful that Newfoundland and Labrador would subject themselves to that process. Although, if they did, precedents seem to indicate that Quebec would lose and Old Harry would belong to Newfoundland and Labrador. However, should Quebec continue to cut it's nose off to spite it's face, Newfoundland and Labrador might as well develop the east side of Old Harry and, as they say, oil has no borders.

What should be:

The 1964 Stanfield Line:

His name was Igor - we have a different one for him...

As the outer rain bands of Hurricane Igor pounded Random Island, my family gathered to watch at the dining room window - 15 feet from the ocean. We new something was not quite right as the eye of the hurricane was still some 400 kms off Cape Race. We were to find out the brutal, ferocious power of Mother Nature at her finest. The power went out in the early afternoon, followed by the phone service some ten hours later. Life was about to become much like that experienced by our ancestors. Gone were the electrical powered luxuries and distractions of modern life. Gone was the freedom of unimpeded motor travel - except of course bikes (ATV's).

We, the whole community of Hickman's Harbour, were hunkered down in our homes, isolated and vulnerable, ernestly listening to our emergency radios for any news of the events unfolding around our little Harbour. For us it was VOCM. We listened to the morning show, we listened to the afternoon show, and we listened to the evening show. All the family huddled around the table under candlelight. Like a few generations before us, the radio waves kept us enthralled and connected.

Newfoundlanders are, for certain, the great communicators of Canada, and for four uncertain days they communicated on the phone-in shows from coast to coast. At first, when events seemed centered around St John's, the shows seemed almost to downplay the events unfolding. The best, or worst example I can recall was talk show hosts and callers decrying the apparent fact that "townies" don't know how to use a four way stop. I recall this because it seemed so absolutely foolish, trivial, and out of touch with the hell unfolding around us. Yet, as the roads in town turned to raging rivers, and the fields and lawns to ponds, the tone seemed to get more grave. It was as if an understanding of something far more ominous was beginning to sink in.

Finally the news started to circulate of the massive devastation around the Burin and Bonavista Peninsulas. The news broke of the first, and thank God the only, fatality of Igor - Mr Alan Duffett. Although I never met the gentleman from Britannia, friends told me he had successfully fought cancer twice and survived several heart attacks. A man of obvious strong determination. It seemed particularily tragic that Mr Duffett should have to die in such a violent and random way. Yet, true to the nature of this storm, nothing was to be untouched by it's fury. The mood seemed to darken over the province.

In our Harbour, like many around the province, people began to emerge from their homes and check on their neighbours and friends. They started to clean their yards and streets. However, their hands were tied when it came to the massive destruction of the roads and flooded areas. The power, phones, water, and fuel were all out of their hands - although some determined souls managed to take bikes to distant communities for jerry cans of gas.

What we learned was that this old land was created by sea, travelled by sea, and populated by sea. The Bights, Coves, Harbours are all used to describe the sea shore at their communities - unlike many places in the country. We were reminded that there is really only one road that runs through the province, and how the link can be shattered at whim. Yet our sea links can not. Even after ferocious Igor pounded the Island, the seas were back to their original, unaltered, state within days. No reconstruction is required there. No intervention by governments. It's as if nature is reminding us of the basic truth that Newfoundland is, and will always be, a land tied to the water.

As we move to reconstruct this land, let us move together, as we always have, and rebuild it stronger than before. In defiance of the odds, and in the knowledge that we are preserving this beautiful land for those that will follow.

Upper/Lower Churchill

Almost everyone in this province knows the beating we took at the hands of Hydro Quebec in 1969. The infamous Power Contract that has seen Quebec reap 22 billion so far and Newfoundland a mere billion. The agreement that sealed our fate as a have not province - unless oil is high. Whatever news story we hear regarding out migration, lack of health care, social services, roads, etc can be directly traced back to the massive loss of money Newfoundland has suffered since 1969. Don't believe that? Consider that even a mere 50-50 split of that 22 billion Quebec has received so far, 11 billion, would be enough to pay Newfoundland's complete debt of today. Yes, like Alberta - debt free.


Now consider that Newfoundland has the largest per capita debt in Canada. A massive 11 billion for a population of less than 500,000 souls. We aren't getting any younger either. That means less people to pay the debt we already have - which is increasing by at least 200 million a year. That is where the hydro projects come in. Not one single shovel has been turned at the Lower Churchill. The reason - we can't raise the money locally or internationally. At an estimated cost of 6-7 billion for the Lower Churchill and another 3 billion for the under sea cable to transmit the power, well, let's just say we don't have the credit limit to cover that. Hence our Premier trying to twist arms in Ottawa to get it's Hibernia share, and other such revenue generating adventures. The only problem with that strategy is Ottawa's got it's own bills to worry about, and they need the cash.

Some here have said that Ottawa will intervene on Newfoundland's behalf, and help us finance the Lower Churchill development. That seems very unlikely. It would require the federal government side with Newfoundland in an energy war with Quebec. The political calculation is 9 million votes or 500,000 votes. Some say that we should be partners with Quebec in the Lower Churchill, but the reality is we are shaping up to be competitors in the continental energy market. Partnerships with Quebec in hydro tend to be one sided in any case. Think that is too strongly worded? Consider that when Quebec automatically renews the agreement for another 25 years in 2014 they will be paying us less than they do today. That's right - less.

There is one chance to undo all this history, recover our finances, end our financial decline, and even reverse our population lose. We must cancel the Upper Churchill agreement and recoup as much of those funds as possible moving forward. With that revenue coming in financial backers could realistically invest in our long term future. To change the deal has proven fruitless over the years, but only because the strategies have been flawed. Hydro Quebec's lawyers ensured their contact with us was air tight according to the laws of the land in 1969, and likely could not foresee any change in contract law. However, in the 1980's, we repatriated the Constitution - and the Notwithstanding Clause. Essentially, the Clause allows the federal or provincial governments to pass laws, within their jurisdiction, that would otherwise contradict the Constitution. One such area of provincial jurisdiction we can use, as others have, is language.

Our provincial government must pass legislation banning the export of hydro power to any jurisdiction that does not recognize English as it's primary language. This ties a provincial jurisdiction, which the law can be used on, to the Power Contract. I other words it would be illegal for Nalcor to sell power to Quebec. We could not be sued or even challenged in court as the Clause exempts the government that uses it from any legal challenge. It should have an inclusion that the law takes effect in 60 days, and the government may amend the law to allow sales to whomever it wishes on a case by case basis. It could also be cancelled at any time the government chooses. Suddenly, Quebec is in the same position that they put Newfoundland in back in 1969. With their American customers telling them to get their house in order, and their supply secured, Hydro Quebec will have no choice but to renegotiate. They should hurry with their offer as nobody likes a middleman.
   

Newfoundland's Debt Anchor

Who new Newfoundland had a debt of 11 billion dollars? I mean outside of Newfoundland that is. Other than being the best place to live in Canada, I would say discovering this debt was the second biggest secret in the country. Coming from Saskatchewan, where their debt of 6-14 billion(depending on who you speak to and what they include as debt) is a constant source of political bemoaning, it was interesting to note that Newfoundland's debt did not appear to be that big of a talking point. Considering Saskatchewan's population is roughly twice that of Newfoundland, and let's say the their debts are roughly equal, people here ought to be pretty concerned.

The cost of serving that debt was enormous and acted as an anchor on the development of Saskatchewan's economy. It was not until the 100-145 dollar per barrel oil that Saskatchewan's economy started to take off. That, and a large investment of Alberta dollars seeking to buy cheap properties up, and flip them for Alberta sized profits. Of course now that they have doubled the price of housing there, and the oil has dropped, Saskatchewan has leveled off economically. That being said, they did start paying down debt with the goal of eliminating the debt. They know that with the growing elderly population, their tax base to support this debt is declining rapidly, and dumping all that debt on the relatively small working population will only cause another exodus to Alberta or elsewhere.

Is there a lesson for us in all this? I say yes. Some of the biggest economic/demographic traits of Saskatchewan are: rural people leaving for the cities; many people working in Alberta; low prices in the farming sector combined with higher input costs (such as fuel); high taxes; inability to attract new people including such critical sectors as health; an over reliance on the provincial/federal government civil service for well paying jobs; and generally people fighting over what they can get their hands on.

Sound framiliar? As a new comer I can only speak from recent knowledge, but what I have seen so far is a very similar path for these two provinces. In Saskatchewan the labour (read government worker) movement is constantly at war with the "right wing" political parties (read anyone who doesn't support them getting on-going increases in pay and benefits). I like to say that when there are only crumbs left these two fight like dogs for their bit. I hope Newfoundland does not share this futile trait with Saskatchewan. If it does, the ability to reduce the provincial debt will be impaired - to say the least. As we can see with Greece, most recently, and the world in 2008/2009, debt is laying waste to our ability to grow. As they say in business, if you are not growing, you're dying. Newfoundland needs to seriously look at creating a debt payment fund and stick to it. Each year pay down what we can, especially when the Canadian dollar is so high. We likely incurred the debt when the dollar was .65 - .85 US. Now at par we can pay down 20% more debt with  the same Canadian dollar.

One thing is certain, at 11 billion dollars, Newfoundland's debt will be an anchor around our neck. If we hope to break the cycle of below average wages, higher than average taxes, and a massive untaxed black market, then the debt has to be the number one priority. Some will say that the economy won't grow without the government (read us) dumping the dollars in. The truth of the matter is a real economy is a private enterprise driven organism. High debt equals high taxes equals less disposable income equals an unhealthy place for business to be.

Order of Canada and a Newfoundland Separatist

It was 25 April 2010, and I was taking in a NTV show called meeting remarkable people. I did not know, nor had I heard of the gentleman being interviewed. He was, however, wearing an Order of Canada pin on his lapel. The show was a replay and apparently was aired in 2008 before Mr Williams officially executed the "ABC" strategy of dealing with the federal government. For those of you that don't know, the ABC strategy means "Anything But Conservative". The guest spoke of this stategy and how he believed the Premier was on the right track. He said years of talking to Ottawa to straighten out the long standing issues Newfoundland had were going no where fast, and this strategy was a solid effort to turn the heat up. Fair enough.

Quebec has the BQ, and they are nothing but a regional protest movement - albeit on the payroll of Canada. Alberta had the Reform Party - again regional protest. So why shouldn't Newfoundland take a similar strategy and, while not having an actual party representing them in protest, send a message by definately not voting for or with the Conservatives. Many would consider that not only fair, but also a semi-unique exercise of provincial influence in national affairs.

Here is the kicker. This well-educated gentleman then goes on to state that he was all in favour of Newfoundland going its own way as it "never really fit into the Canadian model". His evidence of this was the fact that Newfoundland had an unemployment rate of 14%, that the ferry service was poor, and that other Canadians made Newfie jokes. Well, I have to tell you I could not believe the words coming from his mouth, and my mind immediately went to " how does a joker like this get an Order of Canada?". It is common knowledge that at the end of the Second World War the British Empire was dissolving - primarily due to the cost of the war. Newfoundland was left facing a future as an independent country or a province of Canada. A hard choice for a people with strong ties to Britain, and a fierce pride in their own traditions and culture to be sure. What people, like the man on the show, seem to always refuse to see or speak to is where would Newfoundland be today if it had not joined Canada.

Well, in fairness, he did bring up the examples of Iceland and Ireland as two successful island nations that went their own way. As noted earlier, the show was recorded in 2008, before the great market meltdown. Iceland, which has lost many people to emmigration since its independence, completely melted down. They had to take humiliating loans from the Dutch and British just to stop the complete collapse of their banking system. They are grossly indebted and even unable to pay back a relatively small debt of $5 billion dollars. Then of course there is Ireland. Well, the foolishness of this statement should be readily apparent - especially to someone from Newfoundland. The great many Newfoundlanders are of Irish descent, your's truely included, and if it were such an iconic nation-state people would not have to literally die to get out of it. They were starving to death. They were in an unending civil war. They had massive unemployment. The Irish populated many of the "new" countries. All of this points to a country that has had its problems through out history - including today. Again, the financial collapse of 2009 caused the collapse of many Irish banks, and massive unemployment. Joining the EU and its status as a tax free zone for banking helped make Ireland in recent history, however there are now many countries that  have banking havens, and the Irish advantage appears to be fading - quickly.

So, judging by his comments, the gentleman wants Newfoundland to be a country with a crippled banking system, massive unemployment, massive emmigration, but atleast we can say she is ours...Come to think of it, wasn't that the condition Newfoundland was in when it joined Canada. My own Grandmother had to leave Newfoundland, along with her five sisters, for Montreal after her father was knocked off his boat by the boom and drowned off Long Tickle. Two of her older brothers were already there working, as were many from the Bonivista area. From a family of fifteen one brother remained. They were third generation Newfoundlanders. The reason they went to Montreal was the same reason people today are going to northern Alberta - work that pays. Newfoundlanders helped build many parts of Canada. They have always been welcomed and loved in any part of Canada that I have been to. The dollars raised in the rest of the country have often gone back to help out on the Island, and even today fuel much of the economic boom occuring here. Not one Canadian bank folded during the meltdown of 2009, and Canada is in a strong position throughout the world. How is it then that this gentleman doesn't think Newfoundland fits with the Canadian model.

Perhaps, in 2008 when the story was first aired, he was intoxicated by $145 a barrel oil. That although Newfoundland had been relying on the rest of the country for many years, now that it had to contribute back, it was time to cut the anchor rope and sail off. Although there are legitimate issues Newfoundland has, especially the going over it has been getting from Quebec Hydro, it has no better fit than Canada. Newfoundlands's future depends on modernizing and diversifying it's economy - much like Saskatchewan did. The trade, income and expertise to do that comes from its place in Canada. The stronger our union, the stronger our international position to the betterment of our people. Instead of looking at others to criticize for our position it is time to look in the mirror at those that are in charge of shaping the economy here.

To the gentleman wearing the Order of Canada lapel - please take it off. You do the people of Newfoundland a disservice. It is not always about "standing up for Newfoundland". We need to work hard for what we want. We can disagree without being disagreeable. Shed the complex.