One lunch with the St. John's Board of Trade can say so much. Dean MacDonald, for those that don't know, is the b'ys choice to take leadership of the Liberal Party of Newfoundland and Labrador. He's meant to take charge as the PCs decline, which is no coincidence. Set up early in life by Danny Williams, and a few well positioned business deals related there to, he moved on to be groomed in the business circles of Toronto. His company in Toronto, where he spends most of his time, has the establishment likes of Brian Mulroney sitting on his Board of Directors. He is meant to pick up the sword from the dying PCs, and slay the orange dragon (NDP) considered to be on the rise and threatening to send the province back to the days of have not with its irresponsible proposals for the province. That pretty much sets the stage.
So friday they had lunch. It was given publicity by the press for a good two weeks beforehand. Apparently, the very presence of such a man, and the "address" (as the Telegram put it) he was to give were that newsworthy. It was called an "address", because saviours do not give political speeches to promote themselves. That is below the run of the mill saviour. They are only interested in the people, and the fact they are being promoted as a political leader is an unfortunate burden they must bare as the only voice of reason and hope. He is being portrayed as the latest saviour for Newfoundland and Labrador. In order to need a saviour though there needs to be something to be saved from. MacDonald's central "crisis" theme thus far, in his own words, seems to be:
"As a citizen of the province, when a premier walks in the door on day 1, we all want them to succeed...Unfortunately, for the premier, it's been an unmitigated disaster. There isn't a file you can show me that she has handled well - she really hasn't."
The problem with MacDonald's choice of words is the premier of any province does not handle files - their cabinet ministers do. Of course that would muddy the waters that it was all Dunderdale's fault. You see, if it is all her fault, and the rest of the PCs aren't blamed, then they are more likely to join MacDonald at the right time - as per the schedule. Whether Dunderdale never saw her role as the fall guy from the very beginning with the PC leadership race is her problem, but one that good ol' Dean is meaning to capitalize on.
In his role as saviour he called from the mountains to the business community to rise up against the "unmitigated disaster" and speak out:
"We're knowledgeable stakeholders on this, and we should have a very, very loud voice on it, and provide leadership, because I think leadership on these matters would be helpful...It's not about partisanship. It's about good stewardship."
Translation: Its not about partisanship, but hey, I'm running for the Liberal Party leadership, so let's put her down so I can take over - don't worry you will be invited to the party.
He goes on to ridicule the handling of the budget deficit, Muskrat Falls, Bill 29, and the labour shortage in this province. All important issues you say?
The problem with MacDonald, and his arguments, is his hands have blood on them. He would have to explain how he is so opposed to deficits that he signed a lease deal on a newly purchased building with the PC government that saw the rent bill for that government agency go from $200,000 a year in their old location to over $900,000 in his new one. He could also explain why he sold to that same government agency the used furniture left in the building, untendered, for over $85,000. Then there is his support, for Muskrat Falls which has cost the taxpayers to lose $1 billion so far, and has significantly contributed to the deficit.
There is his issue with oil pricing forecasts. As the Telegram put it:
" MacDonald said no other jurisdiction in North America has budgeted based on oil being $124 a barrell like the province did, and that estimate initially masked massive overspending.' What really makes me mad is I think it's just a plug number to balance the budget, which means there's all sorts of overspending.' he said, saying that Alberta budgeted on a $95 barrel of oil."
MacDonald's arguement gives no play to the fact that the PC government somewhat inflated their oil numbers to portray a better than can be expected deficit, because $650 million was taken from the operating budget forthe purpose of financing Muskrat Falls - his pet project. In an apparently obvious political manipulation to try and make the government look inept he cited Alberta's budgeted oil projection of $95 a barrel, but choosing not to state that Alberta prices are based on West Texas crude pricing, while this province uses Brent crude pricing. West Texas is normally $15-20 a barrel cheaper than Brent, so the real difference in oil projections between the two provinces is about $10 a barrel. That still leaves the government's high, but nowhere near the falsely exagerated example given by MacDonald.
His criticism of Bill 29, and his condemnation of government reprisals for speaking out is almost to foolish for words. MacDonald supported Danny Williams for eight years. A government that held "purple files" on journalists that gave negative reviews on the goverment. A government that promised whistleblower legislation, but never delivered. A government that expropriated businesses. A premier that was known to crucify anyone that dissented - Manning, etc.
MacDonald did not once publicly criticize Danny Williams methods. Instead, he profitted during Williams reign. He decries financial mismanagement while advocating for the Muskrat Falls project, and the Gull Island project that they plan to follow with. He portrays himself as a new voice of reason and discipline, yet he comes from the very same group that has put the province in its current financial problems.
What we didn't hear him say was how the gross debt will potentially double with the construction of Muskrat Falls. We didn't hear him say how that would raise annual interest payments on servicing the debt, and how that would impact future deficits. We did hear him critique the business community for not speaking up, but we did not hear him speak of the province's accountants questioning of Tom Marshall last year on the impact of losing $500-600 million per year with the loss of federal offset payments, and the impact that would have.
Yes, the problem with Dean MacDonald is in what he says and what he does not. He is not new. He does not represent change. He is the same old same old.
Showing posts with label alienation. Show all posts
Showing posts with label alienation. Show all posts
Saturday, September 15, 2012
Monday, October 17, 2011
Newfoundland and Labrador's Three Solitudes
It was the best of times. It was the worst of times. Newfoundland and Labrador's financial windfall from oil since 2004 filled the coffers with over 7 billion dollars. Corporate and personal income tax takes over the same period swelled the treasury. Hyperinflation in the housing market, centered exclusively in urban areas, drove massive new home construction. A belief that Newfoundland and Labrador, as Danny Williams coined it, was Canada's "newest and coolest province". An almost nationalistic pride swelled the chest, and a belief that this province could well do without the encumbrances of Confederation filled the lines of its many radio talk shows.
Yet, as all these good times unfolded, the worst of times were also hammering away at the province. Rural Newfoundland continued its slide as out-migration drove people to urban centres, leaving behind as it did abandoned homes and separated families. The population continued to gray as the massive hole in the province's demographic charts, left by the out-migration of young people to the West in the 1980's and 1990's, came home to roost - as such occurrences always do. The nearly 200,000 souls that left chose the West as their new home. It's where they chose to have and raise families. It's where their children refer to as home. They are not here to support the retirement of their parents or grand parents.
Those left behind in rural Newfoundland are a mix of the very elderly, and the remnants of a once proud fishing industry. The fishery people subsist on a tiny income from the very short fishing season, a ridiculously low quota of fish, and most importantly the now permanent unemployment benefits they receive for the remainder of the year. The elderly subsist on the bare CPP pensions they receive. The lucky are the elderly that worked for mainland companies and have a bit better pension. The economic activity, such as it is, is primarily fueled by housing in the "hub" communities. The housing is fed not by any real economic growth, but rather a need for the aging population to be closer to medical facilities and doctors - and provincial spending on "hub" recreation and health facilities. So ridiculous, and unsustainable, has this "boom" become that housing in a small hub like Clarenville is now on the same cost footing as Calgary.
Any person who has lived off the Island knows the end result of this type of "economic boom". Eventual market saturation. Subsequent halts in construction. Immediate declines in property values. Major unemployment and personal financial chaos. The always too familiar out-migration to the West.
Rural Newfoundland is the saddest of the three solitudes. Its fate sealed in demographic numbers that impact its ability to reproduce and consume. Its roads left to fall to pieces - almost exaggerating the point the government believes further investment is futile. Its fishery soon to be dealt the cold, ruthless hand not seen since the days of resettlement. Rural Newfoundland is the tragic solitude.
Labrador is the alienated solitude. For generations it has given its wealth to other parts of the world - in many cases literally given it. Its mines and dams have fueled whatever real economic activity has happened in the province. The decisions that have affected her have almost always been dictated by St. John's and its boys club. A palpable resentment has resulted and been in evidence for many years now. Separatist movements have come and gone. Politicians dedicated to redressing these wrongs have come and gone. Yet still she sits with unpaved highways, and unfinished hospitals.
The government is now putting some money into Labrador as it realizes the provinces future economic wealth lays in Labrador's lands. The question is: Is it too little too late? Will Labradorians be emboldened by their new economic successes? Will they tire of St.John's old refrain that we are one province, yet the benefits of their toil seem to go in one direction? Will they grow closer to Quebec, and its new "Plan for the North"? Will they want to go it alone and be masters of their own house? Hard to say, but one thing is certain - Labrador as the second solitude will be wanting its resources to enrich Labradorians. That is a future certainty. Labrador is the alienated solitude.
Of course that leaves St. John's - the last solitude. The great bastion of power, wealth and influence in the province. The cultural centre. The economic centre. The political capital. It has been in the past, and continues to be, all of these things. The decisions of its backrooms, and prominent families have always directly affected the other two solitudes. It encompasses the classical Newfoundland relationship of "merchants and fishers". It takes and it gives as it sees fit. It directs the exploitation of the province's resources and it directs the many cycles of resettlement - past and current.
Its concern is for power. It often makes critical decisions with short-term gain at the expense of long-term gain. Whether it be the premature exportation of salt fish to the Americas, which destroyed Newfoundland's reputation as a quality fish exporter. Whether it be the Upper Churchill deal rushed into so Brinco could avoid bankruptcy. Whether it be the current Muskrat Falls agreement that despite all common sense is being rushed through the corridors of power. Whether it be the frittering of one time oil revenues at a time of massive debt. No heritage fund. No major debt retirement or even a plan to eliminate it. The only significant debt elimination that has occurred in the province was the $2 billion Danny Williams received from the federal government in offset payments. The kicker here is that the government had to apply the $2 billion to debt as part of the agreement, so they put it toward unfunded pension liabilities.
Yet despite its current oil wealth, St. John's continues to pry every cent out of the federal government that it can. Perhaps old habits die hard. Perhaps the precedent was set when Ottawa paid out Newfoundland's debt as part of the agreement to join Confederation. Whatever the reason, St. John's has historically attempted to spend at will and have others cover its expenses. St. John's has always taken care of itself before it looked at the needs of the other two solitudes. That trend continues to this day. Look past the rhetoric of "all for one and one for all". Look where the dollars are spent. Look where the government facilities are. The health facilities. The legal facilities.
St. John's has always been the centre of power - unapologetically so. It sees itself as the centre of Newfoundland and Labrador's universe. It has ensured, by fiscal policy, that as the population retreats in the rest of the province that it will be the centre of the population remaining. It has thereby ensured that the majority of political seats in the House of Assembly will be in its geographical area. Just as it builds hockey rinks in its new suburbs while 258 boil water orders become permanent in nature in the rest of the province, it takes care of its own first. The old "overpass" slogan arises. Before there was an overpass it was "Townie vs Bayman". Another is "Merchant vs Fisher". For all these reasons, historical and current, St. John's is the selfish solitude.
There you have it: the tragic solitude; the alienated solitude; and the selfish solitude. This is Newfoundland and Labrador today, and yesterday. This is not Canada's "Newest and Coolest" province. This is the latest chapter in a story that remains the same.
Yet, as all these good times unfolded, the worst of times were also hammering away at the province. Rural Newfoundland continued its slide as out-migration drove people to urban centres, leaving behind as it did abandoned homes and separated families. The population continued to gray as the massive hole in the province's demographic charts, left by the out-migration of young people to the West in the 1980's and 1990's, came home to roost - as such occurrences always do. The nearly 200,000 souls that left chose the West as their new home. It's where they chose to have and raise families. It's where their children refer to as home. They are not here to support the retirement of their parents or grand parents.
Those left behind in rural Newfoundland are a mix of the very elderly, and the remnants of a once proud fishing industry. The fishery people subsist on a tiny income from the very short fishing season, a ridiculously low quota of fish, and most importantly the now permanent unemployment benefits they receive for the remainder of the year. The elderly subsist on the bare CPP pensions they receive. The lucky are the elderly that worked for mainland companies and have a bit better pension. The economic activity, such as it is, is primarily fueled by housing in the "hub" communities. The housing is fed not by any real economic growth, but rather a need for the aging population to be closer to medical facilities and doctors - and provincial spending on "hub" recreation and health facilities. So ridiculous, and unsustainable, has this "boom" become that housing in a small hub like Clarenville is now on the same cost footing as Calgary.
Any person who has lived off the Island knows the end result of this type of "economic boom". Eventual market saturation. Subsequent halts in construction. Immediate declines in property values. Major unemployment and personal financial chaos. The always too familiar out-migration to the West.
Rural Newfoundland is the saddest of the three solitudes. Its fate sealed in demographic numbers that impact its ability to reproduce and consume. Its roads left to fall to pieces - almost exaggerating the point the government believes further investment is futile. Its fishery soon to be dealt the cold, ruthless hand not seen since the days of resettlement. Rural Newfoundland is the tragic solitude.
Labrador is the alienated solitude. For generations it has given its wealth to other parts of the world - in many cases literally given it. Its mines and dams have fueled whatever real economic activity has happened in the province. The decisions that have affected her have almost always been dictated by St. John's and its boys club. A palpable resentment has resulted and been in evidence for many years now. Separatist movements have come and gone. Politicians dedicated to redressing these wrongs have come and gone. Yet still she sits with unpaved highways, and unfinished hospitals.
The government is now putting some money into Labrador as it realizes the provinces future economic wealth lays in Labrador's lands. The question is: Is it too little too late? Will Labradorians be emboldened by their new economic successes? Will they tire of St.John's old refrain that we are one province, yet the benefits of their toil seem to go in one direction? Will they grow closer to Quebec, and its new "Plan for the North"? Will they want to go it alone and be masters of their own house? Hard to say, but one thing is certain - Labrador as the second solitude will be wanting its resources to enrich Labradorians. That is a future certainty. Labrador is the alienated solitude.
Of course that leaves St. John's - the last solitude. The great bastion of power, wealth and influence in the province. The cultural centre. The economic centre. The political capital. It has been in the past, and continues to be, all of these things. The decisions of its backrooms, and prominent families have always directly affected the other two solitudes. It encompasses the classical Newfoundland relationship of "merchants and fishers". It takes and it gives as it sees fit. It directs the exploitation of the province's resources and it directs the many cycles of resettlement - past and current.
Its concern is for power. It often makes critical decisions with short-term gain at the expense of long-term gain. Whether it be the premature exportation of salt fish to the Americas, which destroyed Newfoundland's reputation as a quality fish exporter. Whether it be the Upper Churchill deal rushed into so Brinco could avoid bankruptcy. Whether it be the current Muskrat Falls agreement that despite all common sense is being rushed through the corridors of power. Whether it be the frittering of one time oil revenues at a time of massive debt. No heritage fund. No major debt retirement or even a plan to eliminate it. The only significant debt elimination that has occurred in the province was the $2 billion Danny Williams received from the federal government in offset payments. The kicker here is that the government had to apply the $2 billion to debt as part of the agreement, so they put it toward unfunded pension liabilities.
Yet despite its current oil wealth, St. John's continues to pry every cent out of the federal government that it can. Perhaps old habits die hard. Perhaps the precedent was set when Ottawa paid out Newfoundland's debt as part of the agreement to join Confederation. Whatever the reason, St. John's has historically attempted to spend at will and have others cover its expenses. St. John's has always taken care of itself before it looked at the needs of the other two solitudes. That trend continues to this day. Look past the rhetoric of "all for one and one for all". Look where the dollars are spent. Look where the government facilities are. The health facilities. The legal facilities.
St. John's has always been the centre of power - unapologetically so. It sees itself as the centre of Newfoundland and Labrador's universe. It has ensured, by fiscal policy, that as the population retreats in the rest of the province that it will be the centre of the population remaining. It has thereby ensured that the majority of political seats in the House of Assembly will be in its geographical area. Just as it builds hockey rinks in its new suburbs while 258 boil water orders become permanent in nature in the rest of the province, it takes care of its own first. The old "overpass" slogan arises. Before there was an overpass it was "Townie vs Bayman". Another is "Merchant vs Fisher". For all these reasons, historical and current, St. John's is the selfish solitude.
There you have it: the tragic solitude; the alienated solitude; and the selfish solitude. This is Newfoundland and Labrador today, and yesterday. This is not Canada's "Newest and Coolest" province. This is the latest chapter in a story that remains the same.
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