BANISH MINISTER DERRICK DALLEY TO THE FUNKS

The Government’s Oversight Committee on Muskrat Falls issued its quarterly report just as the Natural Resources Minister, responsible for the Muskrat file, continues to display the liveliness of lichen at the Funks. Come to think of it, the Funk Islands seem a perfect place for indolent Ministers.

The “JM” Post, last week, contained a reprimand for the Oversight Committee, one implicit in the title: “In Nalcor we Trust”. Nalcor can put no claim to public trust, either; oversight remains as absent as it ever was.  For that reason, focus ought to remain on the Oversight Committee; next week's Post will attempt to shine more light on this sham group who reports what Nalcor tells them. 

But, politicians are ultimately to blame when bureaucrats fail to perform; after all, such recalcitrance is inspired by them. 

While this problem dates back to the tenure of Kathy Dunderdale and Jerome Kennedy, it persists with the current Minister, Derrick Dalley.

I have been thinking of the Minister lately; though not fondly. 

VARDY-PENNEY BRIEF ASKS PUB TO FIX HYDRO

David Vardy and Ron Penney are well-known names in this Province, both having served in a number of senior public positions.  Prior to his retirement David Vardy served as Chair, Public Utilities Board. Ron Penney most recently served as Chief Commissioner and City Solicitor, City of St. John’s.

Equally, they will be recognized for their continuing role as critics of the Muskrat Falls project.

Uncle Gnarley Blog has obtained a copy of a Brief Vardy and Penney just submitted to the Public Utilities Board.  The PUB is about to enter into the second phase of Hearings which are part of the Supply Issues and Power Outages Review for the Island Interconnected System called by the Provincial Government last year, following several days of Island-wide power outages.  

Among other issues, the Brief draws attention to the conclusions of the Liberty Report and, as Vardy and Penney describe, the “damming criticism” of NL Hydro resulting from the degradation of the Province’s hydro assets.

IN NALCOR WE TRUST

Written by: "JM"

Oversight is one of those complex words in the English language, an auto-antonym, a word having multiple definitions which are opposite in intent.  Oversight can be defined as either (i) the action of overseeing something or (ii) the unintentional failure to notice or do something. 

Is there no better word to describe the current government committee which is entrusted with overseeing the giant Muskrat Falls project?  

Originally, the Oversight Committee was formed by government to strengthen and formalize existing oversight of the Muskrat Falls Project. It was mandated to provide reliable and transparent oversight so that the public could have confidence in the management of project costs, schedule and risk.  Premier Marshall was clear in this intent when he originally announced the formation of the committee in March of 2014:

"We're listening. We're hearing what people have to say," he said. “It is a big project. It’s the people’s project. We sense that the people want to have more information, they want more oversight, and that’s what they’re doing.”  

For those of us who remain interested in the Muskrat Falls project, the second quarterly report was issued by the Muskrat Falls Oversight Committee last week.  

EARLE McCURDY'S NDP NEEDS A MAKEOVER

Earle McCurdy is out of retirement; I don’t think anyone will envy him his new job. 

The position which the NDP finds itself is reflected in the most recent CRA Poll which gives the Party 13%; Abacus reports 9%.  McCurdy had better have a new plan; the numbers are proof it will be tough to get more than one or two Members re-elected. Impending boundary changes won’t help.

Like the Tories, the NDP risks being steam-rolled by a Liberal juggernaut as default to that Party is the public’s only option.

McCurdy is intelligent, experienced, and offers management, strategic, and organizational skills.  He is well suited to the job.  The bigger question is whether his world-view has been jaded by too many fish fights with the private sector and with government. Does he possesses a renewal mind-set; one that will put claim to a new NDP political model to replace one most certainly broken?

SEEMS (ALMOST) EVERYONE IS SCRAMBLING

“Scramble” is a word that conveys something more than a sense of urgency.  It suggests a disorganized, frantic, confused, even undignified effort to do something or get somewhere. There is a lot of scrambling going on in the Province, right now.

The Premier and his Finance Minister are scrambling to put together a Budget; private enterprise is back in vogue as they contemplate selling off public services; the crown jewels can’t be far behind.

Carol Furlong is scrambling having recognized, too late, the government has public employees in the crosshairs.

CUPE President, Wayne Lucas, says “there will be war”; it’s a safe bet he’s scrambling; some call it leading from behind.

DO YOU THINK "THE ARSE IS OUT OF 'ER", TOO?

Last year, the Minister of Finance, Charlene Johnson, released a PR piece entitled: “Five Things to Know About Budget 2014”. It’s very first claim was: “A return to surplus in 2015-16”! 

The problem isn’t just the price of oil. Johnson forecast $791 million extra revenue next year and assured us $28 million would be left over. It would be foolish to say the surplus constituted a rounding error, because the whole forecast was just made up. 

It’s the stuff that earns Finance Ministers laughs, but not much more. 

Charlene should have known better than to compete with Snook for the Stephen Leacock Award; yes, that’s the one for humour.

NAPE CAROL FURLONG’S LOSS OF FAITH

 “…if you are looking for some money, why don’t you delay the monies you are paying out to Muskrat Falls…a significant amount of money…”

These are words of Carol Furlong, Head of the Province’s largest public sector union, NAPE, giving advice to the Davis Government on NTV, Feb. 13^th.

Furlong continued her expostulation: “We have a war chest now…combined assets… of more than $40 million…I can assure Government, if they believe they can just lay off workers …they will feel the brunt of NAPE to the full capacity of our finances.”

These are heavily laden statements. One would be foolish to think them merely drum beating in advance of a contested leadership.

Carol Furlong has done what the Head of no other Union, political party, or business organization has considered.  To her membership and to NTV’s large listener audience, she has telegraphed a stark message, one slow in its evolution, perhaps, but powerful in its timing and implication: ‘I no longer have faith in the Muskrat Falls project’.

WILL DWIGHT BALL PLEASE STAND UP

If Opposition Leader Dwight Ball continues to hide in the reeds, failing the test both of courage and cleverness, he risks being denied the ‘Mandate of Heaven’.

The ancient Chinese believed that Heaven granted emperors the right to rule, based on their ability to govern well and fairly; the idea is distinct from ‘divine right’. Possibly, due to the Liberal Party’s unblemished by-election record and favourable Polls, Mr. Ball may have embraced the latter concept far too early. 

Ball’s handling of Premier Davis’ seat reduction plan (Bill 42) contains elements of self-immolation. But more importantly, has helped reinforce an impression of an under-tasked House of Assembly. Catering to the unmindful, he has raced down-market in search of cheap applause. But, those who are not complacent with democracy would never entertain the thought that opposition parties have nothing to do.

For that reason, Mr. Ball may be the one a bit light.

GIVING NALCOR THE AX (PART III)

Ronald Reagan once said the nine most terrifying words in the English language are: “I’m from the government and I’m here to help”.   The Economist recently voiced the equivalent ‘Reaganesque’ threat, most relevant to enterprises like Nalcor: “I’m from a state-owned firm and I want your capital”. 

The newspaper, consistently insightful, noted state owned enterprise (SOE) share of global market capitalism has shrunk from a peak of 22% in 2007 to 13% today. The problem is not just Nalcor; it is international.  

Nalcor doesn't always have to be our problem.

It offers no public policy role that is not available through the private sector.  The SOE had the opportunity, not lacking money, to change NL into a modern, technically advanced and cost competitive electricity market. But, the talent was never in their genes.

WHAT WOULD YOU LOSE, LOSING NALCOR? (PART II)

This piece was supposed to deal with some specifics about how we might begin to dismantle Nalcor. But, on reflection, it is insufficient to condemn Nalcor having been unwise enough to be born a state owned enterprise (SOE).  The question deserves a wider evaluation than the condemnation, offered in Part I, for its high spending ways; though I cannot assure a different conclusion. 

Still, it might be a good idea to discuss and determine whether that SOE has made decisions so wise that their public policy impact exceeds even its ability to destroy public money. The originally intended part II will now become part III.

Typically, governments establish SOES to fill a spot in a program it deems essential to economic growth and development; one that the private sector is unwilling or unable to undertake. In addition, governments expect SOES to use the clout of the state to lever those goals.

When SOES act in conflict with economic policies or when they behave recklessly, management must be cleared out. This outcome equally applies if the SOE’s original purpose is no longer relevant, having been submitted to the clarity of changing circumstance, or clearer minds (for Nalcor it is both).