Thursday, 11 January 2018

THE PARLIAMENTARY BUDGET OFFICER HAS NEWS FOR YOU

There is more than one useful approach to understanding the unsustainability of the province’s debt. In addition to the discussion on the Muskrat Falls project, JM wrote a series of articles entitled “A Decade of Squandered Opportunity”. David Vardy has combined discussions of the debt and deficit with the alarming growth in cost overruns.

The Blog's newest analyst, identified as PlanetNL, undertook the process of dissecting Nalcor’s revenue requirements to sustain the financing, operation and management of the Muskrat Falls project showing that the cost of rate mitigation would seriously compete with funding for social programs and add to annual deficits.  This correspondent has tackled successive Budgets and Budget Updates, too. 
None of the writers have been subtle. All have felt a need to expose the simple reality that successive Administrations, including the current one, have downplayed, ignored or distorted the problem – in the process speeding up, rather than curtailing, our journey towards insolvency.  

Jean-Denis Fréchette, Parliamentary Budget Officer 
The Office of the Parliamentary Budget Officer (PBO) also assessed this province’s fiscal sustainability in its annual Report to Parliament. The PBO "provides independent analysis on the state of the nation's finances..."
Released October 5, 2017 the Report stated that: “Our qualitative assessment that current fiscal policy in Newfoundland and Labrador is not sustainable over the long term is unchanged across the alternative demographic, economic and fiscal policy assumptions considered”.

The PBO uses two approaches to assessing the sustainability of the debt of the national and “sub-national” (provincial) governments. One is by relating the “net debt” to the size of the economy of a province or of the whole country (“GDP”) -depending on which is being measured.
A second measurement used by PBO is called the “fiscal gap”. Again the PBO uses the benchmark “GDP” numbers. GDP is the value of the goods and services produced annually in the jurisdiction under review. Fiscal Gap, on the other hand, is measured by the amount of change necessary through some combination of increased government revenues and/or reductions in program spending needed to achieve fiscal sustainability.
I don’t plan to make this a complicated economics lesson but there are a couple of messages in the Report which require illumination.

Before so doing, it is worth noting that the PBO analysis has three definite short comings. First, the PBO uses alarm signals based upon a very long term horizon (2040, 2065, 2091) to assess the sustainability of the spending behaviour of governments. Given NL's existential fiscal crisis, I suggest a special statement was warranted. 
Secondly, the PBO only uses “Net Debt” in the analysis. Our Auditor General suffers  the same limitation. That approach makes sense if governments were required by law to “write down” the value of impaired assets, especially large ones. When an annual subsidy in excess of $500 million will have to be entertained by government ($400 million by its own account) years in advance of project commissioning for the Muskrat Falls project, it is silly to hide behind "generally accepted accounting principles" ignoring an impairment has already occurred. It leads to poor analysis and false claims by politicians and others content to spread confusion and engage in denial.

Thirdly, as I described in Monday's Post entitled Mary Shortall's La La Land that in the case of NL, oil has a major distortive effect on GDP. Dollar for dollar, oil influences economic growth less than other sectors of the economy. Possibly, that is why the PBO also used a numerical representation in assessing the size of the expenditure cuts and/or new revenues necessary to achieve fiscal sustainability. 

Still , the PBO’s conclusions are instructive even if based simply on the NL “net debt”. It draws these two stark conclusions: 
• “PBO estimates that permanent tax increases or spending reductions amounting to 6.5 per cent of provincial GDP ($2.0 billion in current dollars) would be required to achieve fiscal sustainability.” It concludes: “Current fiscal policy in Newfoundland and Labrador is not sustainable over the long term.”

• “This is equivalent (referring to the amount tax increases or spending cuts) to a permanent 26 per cent increase in the tax burden (including federal transfers) or a 21 per cent reduction in program spending. Health care spending is the key fiscal pressure, increasing by 6.9 percentage points of GDP over 2020 to 2091.”

The PBO’s forecast won’t surprise readers of this Blog. The figure of $2 billion is also the same one I used in a recent Post entitled “Fiscal Crisis Bigger Than Accounted for in Employers’ Council Plan” which the NLEC called an “Alternative Way Forward”.  

T
he PBO Report confirms fixing a deficit problem of $2 billion won't do.

Rate mitigation for the MF project will be required around 2020-21. that will cost another $500 million.

The PBO did account for falling revenues and GDP due to challenging demographics which will account for lower labour inputs. The PBO also noted that GDP will be "substantially lower than (the) historical average growth of 2.6 per cent over 1982 to 2016." 
In short, the province needs to achieve spending cuts/revenue increases not of $2 billion annually but of $2.5 billion. 

Still "not a crisis"?

Finance Minister?

29 comments:

  1. Our political leaders, and I use that term loosely, are unable and unwilling to make any tough decisions. Prime example, lets borrow 250 million while on the verge of bankruptcy to solve a problem that could have simply been eliminated for free. Our politicians all have their fingers and toes crossed hoping the price of oil will save the day. Leadership at its finest. We are doomed with this type of decision making. We need to find a political system that brings the power back into the peoples hands. We need the ability to fire inept politicians who have no spine. The system is so flawed its beyond repair, its needs complete dismantling and start with a fresh open and accountable system.

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    1. There is one political system that can save the day in NL...if you have the courage to bring an end to the feudal grip on NL politics.

      Drumroll please...it is time to try democracy. It is said it is the worst system of government, except for all the others. Democracy is government by and for the people and has two fundamental principles, transparency and accountability.

      Even a cursory look at your government makes it clear that there is no transparency and accountability in government decisions that will burden not only taxpayers today but their children, grandchildren and great grandchildren. There is no accountability for these decisions either by government or civil servants unwilling or unable to speak truth to power.

      Your system today once in four years elects a feudal chieftain wearing tartans of red, blue or orange masquerading as democratic leaders. To satisfy their vanity they build not pyramids but energy projects built on shifting sands.

      The controls, transparency in spending and accountability for decisions, have been stripped away by the Nalcor bills. What remains is only an empty shell of a democracy, reduced to a meaningless choice every four years. This is little more than a fig leaf covering the obscenity of a swollen feudal organ.

      Reclaim your democracy. It will mean standing up, confronting the feudal rot and the chieftains impersonating democratic leaders. It will mean insisting that first the unfolding fiscal obscenities be laid bare and those responsible held to public account.

      It will require courage and expose the democratic champions to personal risk. It means moving from analysis to action. It means confronting the feudal bullies head on and standing strong. The more that find the courage of their convictions, the easier it becomes to confront the cowardly bullies.

      Who will stand up and act now?

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    2. I agree with your commentary.
      Our Democratic system of Government has to change for a province with such a low populated revenue base. We need to implement "Legal Regulations" for those who are elected to govern the Province's affairs. (And if they're not followed, then the elected politician should be relieved of his responsibilities.)
      We need to change and start regulating the future for it's citizen's, similar to what has been happening in the Netherlands...i.e., Iceland has a gunboat diplomacy to protect it's Fishery, Norway or Iceland also (?) charged CEO's of the Banking Institutions for causing financial mayhem or bankruptcy, and the associated banks were given heavy fines.
      This should be a part of our new futuristic governing platform....without change, we are destined for failure, at a very heavy cost.

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    3. "Our political leaders, and I use that term loosely, are unable and unwilling to make any tough decisions."

      And our political "followers" - the general public and the electorate - are unwilling to accept any tough decisions.

      The media elite in St. John's keep beating the "resettlement" drum rather than talking about the only thing that can really fix the rapidly-accellerating crisis: quick and deep cuts to public-sector spending, especially wages. That would hurt the media elites' buddies in St. John's. FOR GOD'S SAKE WE CAN'T HAVE THAT, NOW, CAN WE?

      Another $250-million thrown at the public-sector unions... 80% of that benefit will be drawn on the Northeast Avalon. But go ahead and blame the rural areas.

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    4. Anom @ 12:35
      I have to admit you have some valid points there. It seems to me that the leviers on the NE Avalon need a diversionary tactic for our problems and since they can't blame Ottawa anymore (yes it IS our own fault-we elected them) the NE Avalon turns is attention to rural NL. The way the CBC is reporting this situation you would swear that there is a Health Sciences sized complex in every single cove and a MUN university in every town on the island along with the thousands of civil servants such as those that are employed at Confederation Building that go along with these institutions. But they can go on with their distorted fantasies since most are living in a dream world about the state of this province.

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  2. This government needs to start communicating their plan. If they cant produce a plan, get out of the way.

    2 years ago we were in a crisis.

    We are beyond that now. We are adding 50-100 million in new debt servicing costs every year.

    It is a gong show.

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  3. Agree with you an 8:38, but get out of who's way, can you amplify or explain. Do you mean chess, or some completely unknown, or some new form of commission of govt. or many economic union with the us if a, to get rid of terrifs. Not really following you, so it begs the question (lol), what's your plan, who will do what????

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    1. Stop trying to undermine a valid comment Anon 9:56.
      We are not opposition MHA's here. Just because one cannot articulate a three pronged approach to replace this inept government doesn't mean their comments are not valid.
      Anon 8:38 is quite correct in their observation.

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    2. Thanks an 12:54 for your comment. First of all I said I agreed with an 8:38, and you said you agree with him too, so that makes all three of us in agreement, not bad, and non of us are MHA's, I suspect. And I agree anyone can make any comment they wish, (if ok with UG) and another person can comment on their comment, especially if it is open ended and as I said, and begs a question, like get out of the way!!!! whose way??? If the said Lorain, or Paul, or Ches or anyone else that's fine. Everyone is entitled their opinion.

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  4. My first comment is while rigor of the analysis methodology employed by the PBOs can be debated; provided the methodology is uniform between provinces the result is valid. I suspect the methodology employed is such that it is a historical method; thus changing methodology in 2017 would not provide a relevant comparison to previous analysis in say 1990, so as UG notes special statements are probably warranted but I offer changing the methodology would give fodder to politicians to skew the analysis as not being comparable.

    When I tabulate the Provincial Income Tax to be paid I find some alarming issues that make the ‘Fiscal Gap’ plot above more disturbing:
    1)NL trails Que / NS / NB / Man and PEI in amount due
    2) the order of amount due is(decreasing order): Que / NS / NB / Man / PEI / NL / Sask / BC / Alb / NWT / Ont / Yuk / Nun

    When we consider 1 and 2 and also the provincial sales tax, it is clear that NL is leading the Fiscal Gap in the wrong direction by a much larger amount than is depicted by the plot, 3-4% points between us and ‘our next closest competitor’. NL has very limited ability to generate more tax income (sales tax being fixed regionally and our provincial tax rate already being high), an unmanageable debt load and a political history of ‘kicking the can down the road’ to the next guy.

    I know Bruno constantly talks of the feudal system we have---well, the same system in inplace throughout the country, provincially, municipally and nationally; so a change in political system isn’t the answer; our system of government is uniform nationally. The question that needs to be answered why is NL so bad off, or are we ‘hard done by’?

    In reviewing docs linked by Robert a couple days ago with this UG posting, the problem is clearer na di can see the following issues:
    1) the NL populace has historically allowed governments to develop a Public Service system (manpower, program execution, labour contracts, centralization etc) that is inefficient in program delivery
    2) the wastage of resources (renewable and non-renewable)
    3) a historical reliance on bailouts
    4) a tax regime that is to the breaking point

    Granted I am not an economist, but for a layman versed in managing works this is what I read from this and I cant see a solution forthcoming that will be palatable to NLers.

    PENG2

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    1. So PENG2 your argument is that all Canadian governments are equally corrupt and devoid of transparency and accountability, is that it? Therefore your argument goes there is nothing wrong with governance in NL? Now there is is some airtight logic! You also have been infected with Doublethink "noun: double-think
      the acceptance of or mental capacity to accept contrary opinions or beliefs at the same time, especially as a result of political indoctrination." Is this infection, rampant it seems in your profession in NL, transmitted by that iron ring?

      You accept that politics in NL is feudal and conclude it must be democracy because you believe the others also betray democratic ideals. Pretty airtight reasoning. One for the ages!

      When you strip away that figleaf your member is an embarrassment to some of us. Please restrain your pubic display in public.

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    2. To respond to your bullets:

      1) the NL populace has historically allowed governments to develop a Public Service system (manpower, program execution, labour contracts, centralization etc) that is inefficient in program delivery
      In actual fact the biggest mistake is NL Hydro and Nalcor along with several other poorly managed agencies and schemes that have spent Billions in future revenues. Muskrat Falls was the biggest but not the only one. Sprung Greenhouse and the hundreds of fish plants were others along with Marble Mountain and the Rooms. I am sure there are more but time is limited when people like you read.
      2) the wastage of resources (renewable and non-renewable)
      The biggest wastage of our resources was shoring up the Construction Industry both union and non-union as well as the local construction contractors. Most of these resources royalty give away like the GBS for Hibernia and Hebron were done to create an unsustainable industry here. And PLEASE don’t try and tell me what a wonderful project these were. We have gained more from Terra Nova and White Rose floating systems through royalties than the long gone construction jobs from Gravity Based Systems. Muskrat falls was just a continuation of the Mega project mentality that is ripe here in this province.
      3) a historical reliance on bailouts
      Many of these bailouts were done because of poor planning and interference from government in private industry. Like the bailout of $1.8 Billion from the federal government for Hibernia. If it hadn’t been for Brian Peckford’s insistence on A GB system then the development would have went ahead without a massive subsidy from the federal government.
      4) a tax regime that is to the breaking point
      You seem to forget that Norway kept its high level of taxation even though it had the most generous resource royalty regime in world history and as soon a little bit of oil revenues did flow into NL guess what? A tax break was given to everyone even though the oil fields had very limited life span.

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    3. Bruno - Seems to me that you are the one that has the big problem with contrarian opinions. You always revert to insults and hitting below the belt when someone disagrees with you. Does nothing for the credibility of your commentary. Grow up and behave like an adult.

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    4. An 20:56,.... An historical reliance on bailouts....to my recollection, that was not a massive subsidy of 1.8$ billion by the Feds, that was an equity steak of some 10 per cent in Hibernia, when imperial oil pulled out, that the Feds took, an worked out in hindsight for them as they have raked in billions and are still raking in billions from their investment. Too bad we as a province didn't have the 1.8$ billion for an equity steak, as I said in hindsight, as I don't think governments should be investing public money in oil, because if such uncertainties of loosing it, but in this case it was a great investiment, in hindsight. On item 4) anytime we compare our oil industry with norway's is like comparing King Kong with Micky mouse, I mean in terms of size, not money made. Even item 2) is not so clear cut as you say, for safety reasons, ice, weather, choppers etc. As considered at the time, one gbs was required. And if it was not why are we still building gbs, Hebron just finished building, and a smaller one for white rise being built in Argentia. I don't think governments have that kind of control over oil companies today to decide what kind of structor is required.

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    5. Anom 09:56
      There was also some $2.5 Billion spent on exploration by the federal government through the PIP grants (Petroleum Incentive Program) during the exploration phase in the 1970's and 1980's. Essentially a Canadian owned, Canadian registered, Canadian crewed company like Husky and Petro Canada were eligible for upwards of 80% of the cost of exploratory drilling on the East Coast of Canada. The oil companies quickly raised their day rates for rigs through the roof to obtain this massive subsidy. At one point one of Husky’s rigs was on charter for-if I remember correctly-$250,000 per day in 1986 when rigs were going for even less than $40,000 per day on the world spot market. Husky was making money on the PIP grants at a tune of about $200,000 per day-all compliments of the Canadian Tax payer. It was one of the first things Prime Minister Mulroney canceled when he was elected and the rate of exploration after 1986 went down to pretty much zero with a collapse in oil prices due to OPEC’s inability to reach an agreement on production quotas. Such was the case until the price of oil sky rocketed again in the early part of this century and that is the kind of control that you think governments don’t have. Gulf pulled out of the Hibernia consortium because oil was down to $12.00 per barrel at one point during the construction of the GBS and such John Crosbie had to go begging for the $1.8 Billion. As long as the massive subsidies are in place, corporations bite and one could even argue that OPEC’s artificial prices are a direct subsidy to North American oil producers. Without OPEC’s medaling, I doubt if many developments worldwide would have taken place-possibly not even Hibernia-since the price of oil would never have risen beyond a realistic market price of about $15 to $30 per barrel. It was lobbying and only lobbying by John Crosbie that salvaged the Hibernia GBS and to dispel Albertan critics who were outraged at another Eastern subsidy, crosbie and the federal government came up with the equity stake instead.

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    6. Thank you an 17:27, for the quick history recount of the off shore oil. As you have stated, if you remember correctly, that implies that all numbers and dates may not be correct, but that's fine by me, I have not checked any of the numbers either. But my original comment was to challenge the statement, that the Feds bailed out Hibernia construction to the tune of 1.8 billion, where as it was an equitity stake taken in hibernia, and they have made billions on that equity position, and will do so well into the future. As you stated the Feds put 2.5 billion into the PIP grants, and no doubt have collected that many times over two. You might know how much the Feds have made on Hibernia to date and their expectations in the future. But as stated I don't like govts. Putting public money into these risky ventures, but this one in hindsight paid off. I did mention that the provincial govt. today has very little control in what kind of structor the oil companies build, as long as they meet cnlopb requirements and policy. But anyway a good overview of world oil prices, and rig daily hires, but am sure you keep in mind that all rigs are not created equal, as what's required in tropical regions is not the same as some of the harshes climates and weather as on the Grand Banks. Am sure that mr. Rob strong could give a very accurate overview of offshore drilling here and world wide as he has been on top of these things in the past 40 years or so. Cheers.

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  5. Bob Buckingham
    How do you all view this angry comment on the CBC article regarding the disposal of Bull Arm Asset?;


    "NLs playtime in the oil box is over, we have what we have and when it is gone we are done with the oil industry. NL has no use for that site, just as well to lease or sell it. What is wrong with you people, do not lease it we may need it. Really? So we will keep paying for the upkeep of the site JUST IN CASE we want to use it again is 20 years. You people have no idea how to make money, make no wonder NL is in the financial state we are in. Yeah do not lease the site and charge the taxpayer millions to keep it up. That is why NL is broke, we elect the dullest knives in the drawer!!!"

    NALCOR seems to have a habit of owning non-revenue producing assets.

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  6. Yes, for goodness sake, a plan, a plan of action, a plan...

    Come on boys, stop the thumbtyping rants and let’s get together and make a plan

    Dwight and that crowd don’t seem to be able to plan an escape from a wet paper bag let alone the end of the world.

    Once we have a plan we can the implement it through citizen actions and political and fiscal actions.

    A plan, a plan, our future needs a plan
    And soon.

    Ee cummings wrote about starting a magazine and the yakker that goes on leafingup toit:

    Something graced with guts anf gutted with grace
    Squeeze your nuts and open your face.

    Time to leave go the nuts and get into the guts.
    Any volunteers?

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  7. It is hard to believe that after reading the above piece about our finance problems that people would actually go on open line and try and recruit Danny williams back into politics.

    That is one of the first things that have to be done. Stop listening to open line shows.

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    1. Open line has mostly entertainment value, whereas UG blog challenges the mind and brain. Obama is one in a million who seems to reflects momentarily as he speaks in a thoughtful and logically manner, compared to Trump who talks like an idiot, but is very entertaining.
      Here, the slower process of typing one's views allows a little time for reflection, and one can pause longer before hitting the PUBLISH button. So this blog is an elevated medium compared to Open Line.
      We sometimes get a little entertainment here, like today from Bruno, and that is ok, to challenge Nalcor engineers (or ex-Hydro enginers, like me). Bruno, like all of us,is not without fault. There is a FUNNY check mark on this blog. And some whole pieces like "The nightmare before Christmas", with Nav, is highly entertaining, with a serious message.
      I very seldom listen to the open line shows.......and favour the serious writers of this blog, and many that comment. And UG has a growing audience.......but where most all the scallywags,the guilty parties to our financial mess, likely read this blog, but hide and stay silent.
      Winston Adams

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    2. Winston...please read this article from Conrad Black on Trump's first year in office. http://www.nysun.com/national/president-trumps-foes-retreat-to-a-rat-infested/90168/ I seem to remember much of the same vitriol on one "Stephen Harper". It even got a name "Harper Derangement Syndrome". I think it now applies to Trump as well. Queue the hysterics.

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    3. Well Lord black has outdone himself. This is just pompous blather that amounts to self titillation and not much more.

      Well it seems the rats have turned on one another trying to be the biggest villain. Wolf on Trump, Trump on Wolf and Black on the MSM. It is a veritable knaw fest. Poor little Lord Black calling out how unfairly Trump is being treated for calling Haiti and Africa Shithole countries. WAAA....waaaaaa. That convicted felon still has a lot of nerve, no integrity but a lot of nerve!

      Lord Black renounced his Canadian citizenship for a peerage, was convicted in the US and did time and now won't leave Canada. Get your ass back to your pompous peers who now shun you in the UK Conrad.

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  8. "Well" as Ronald Reagan would say when starting to make a point, It seems the solution to our boondoggle has largely been solved by retired engineer David Fox, and as detailed in today Telegram:
    In Brief:
    1. our province, retained certain rights not given up to Canada in 1949 ( I recall a big issue decades ago about term 29, was that the Nfld railway issue?) , but this is different.
    2 our rights include air space, and we have a lot of air space, and Labrador more than Nfld island.
    3. Countries in the 1940s got international agreements for these rights, and it brings cash to these countries for the use of their air space.I guess it much be little fee collected on every ticket sold. How much cash is our air space worth?
    4. We have never been compensated for this, even thought Canada collects about 1.2 billion per year, and about 400 million of this due to our airspace!
    5. Mr Fox calculated that about 9.8 billion is owed our province, including interest. He has it all worked out, the discussion in the 1940s, and fees due , including allowances for extra days for leap years.
    6. No shit.......another example of how our resources and assets have been to the benefits of others outside our province. Why didn't Ches Crosbie break this news as part of his plan?
    7. This is rather remarkable, and the result of some 20 years of work and research by David Fox...........an engineer by the way. Hang your head low Wade Locke........you missed this.......as we all did, and only recently have I read about Canada moving in here in the late 1930s to take advantage of our airspace, knowing where this was heading and the importance of it for the future. The Wright brothers had created an economic seismic shift in a few decades. I had relatives working in Gander from the late 1930s .......a modern place when I visited as a child in the 1950s
    Politics is the art of the possible. Present yearly value of our air space rights is about 400 million. What do you think of that, fellow UG readers!If this pans out, then a statue to Mr Fox, I say.
    Winston Adams

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    1. Omg Winston, you have outdone yourself again, along with your no less than an engineer, lol. 9.8$ for fresh air, you are away ahead of your time, maybe way down the road it will be worth that much, with the pollutions that are airborn and expanding all the time. But I digress to your other point, of term 29. I think it was a term in the terms of union that nl would get 50$ million per year from Ottawa until we reached 50 percent parity with the maratime provinces. These may not be tha actual numbers but that's the jest of it. And when definbaker becam pm he balked at it and got joey' s dander up. And there was a war between them, not a holy war, but a war, as Joey would say. Think Joey won the war but deif was not a happy camper afterwards towards us. Think that's the jest of it, but I stand to be corrected. Now back to the fresh air, not sure why that was not a term of the terms, but then in signing they did not have the notes to the ode, so think Joey and others tried to sing it by air. Would have been difficult to get 400$ million for that performance. Now how do we get the 9.8$ billion. Our last struggle from changes to the Atlantic accord, netted us a cool, 2$ billion, as Danny shouted from air canada, we got it, or was it I got it. Johnny E. Was satisfied with 1.5$ billion, but Danny wanted more, so he literately wrestled Paul m. To the floor and got it from Paul's hind pocket, it's all in bills r. Book. Now who can wrestle Justin, not Dwight, or John c. Just has already established a reputation of being the ring champion, when he laid cold the seneator a few years ago. Plus Justin don't carry around that kind of change in his hind pocket, the deficit is too high and climbing...9.8$ for fresh air, omg, nope not even the nice guy justin will fall for that one. But a good try....keep her up.

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    2. Agreed, anon, this is a long shot solution, and I likely got carried away, grasping for straws (or fresh air), under a lot of stress these days. But air is a valuable resource, as Dillon wrote: the answer is blowing in the wind.
      1. I count mostly the value of thermal capacity of air source heatpumps........doing heating for 300.oo a year for 1000 sq ft, looking good with 2.5 months to go for 1 year full monitoring. This can save about 1000.00 per year for typical houses in Nfld for heating.
      2. Air that drive wind generators, now very economic, air can be fresh or a little salty, as we have one of the highest average wind speeds in the world.
      3. Moisture laden air that brings rain and snow for our hydro generation, a 600 million value per year.
      4. Air space rights? Never entered my thoughts.....but seemed to have value, if FOX is right. Time will tell.
      Fresh air, has much value, more than you think.Yes, I remember the war between Joey and Dief. As to air rights, when Gander started , Joey was but a pig farmer there, so I guess aviation, and air space rights was not high on his list.Seems Peter Cashin was a bit more tuned in to this.
      Fox's suggestion sounds more plausable then Jerome Kennedy's vision of export sales of 1 dollar per kwh, do you agree?
      Winston

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    3. I can't vouch for your friend fox, I don't know him so will leave that up to you. I don't really know Jerome either, but his limited days as a MHA's gave us an insight into what he was all about, and I can vouch from my prospective that he was not a breath of fresh but rather full of foul air, and not the kind that you could harness to produce kw's, so I would place his power rate predictions in the same catagory. As for air space payments, I am going to have to consult mr Google to educate myself. Guess we all have some knowledge of rights to fly over a sovereign territority, especially in terms of the military, and civil as well, I guess. I wonder if Kju, nkorea, will seek trumpies permission and payment to send his missiles over their territory, or visa versa. Guess that could be considered a bad joke, but in the age of Trumpie, we are all becoming imminue to all kinds of foul language , words and jokes. Keep up your good recording on attic mounted mini split pumps, we may all need them, some day soon.

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    4. I do not know Fox, but impressed with his 20 years of research into this, triggered by seeing fees for ships coming into St John's Hr.
      I am now starting year 8 with successful (no failure, zero down time) attic mounted mini split, and now doing detail monitoring as to our climate on the Avalon, to take away the guess work and speculation, so accumulated data day by day, which is rather impressive results.
      Good to see you are open minded, and agree Trump language, once termed locker room talk, is going main stream......SAD. Sets a poor example for children.This blog is pretty civil, and likely to stay that way.
      Winston

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  9. Check out this article in The Western Star... it's yet another lamentable example of how NL's local media is little more than a font of propaganda devoted to portraying the government of the day in a positive light... just like those tinpot dictators in those the banana republics, where the proles are kept ignorant and oppressed by a select cabal of the politically connected.

    http://www.thewesternstar.com/news/local/premier-dwight-ball-in-good-spirits-with-major-hospital-projects-on-track-176904/

    It truly is enough to give one the dry heaves.

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  10. Go to iPhone in Canada.ca and read the new article about bitcoin mining. It discusses the power suplus and costs in Quebec. It answers the question about the economics of MF.

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