NALCOR'S GILBERT BENNETT AS JUDGE AND JURY

Guest Post written by Cabot Martin

On VOCM BackTalk with Pete Soucy yesterday, Nalcor VP Gill Bennett, the regulator, examined  Gill Bennett the regulated and pronounced – risk of a North Spur Collapse during construction ? - no problem! Does not exist !

And repeated that assertion at the end of his call supposedly to really clinch the argument.

According to Bennett the risk of a North Spur collapse during construction was , not – acceptable risk; not -low risk; not – negligible risk;,  but 100% pure –unadulterated  NO RISK.

So go back to sleep people – no problem here.

All accompanied by a pious and disdainful  statement on the superiority of the engineering way of thinking and the high standards they hold themselves to – what tripe !

NALCOR'S MUSKRAT PROMISE: REALISM VS. FICTION

Guest post written by David Vardy

Introduction

Previous columns on this blog by JM have spoken about the 2015 budget and its optimistic assumptions with respect to future revenues. JM referred to comments by senior officials comparing the oil and gas developments off our coasts with those in the North Sea and the need to inject reality rather than euphoric fiction into our social and economic planning. Public debate and dialogue on the future of the province must be informed by realistic assumptions.

There have been a number of statements made by government and by Nalcor which promise unrealistic returns to the province from the Muskrat Falls project as well as from Nalcor’s investment in oil and gas. This article deals principally with the revenue prospects for Muskrat Falls and how they have been portrayed by our political leaders.

RECOVERING MUSKRAT'S SCHEDULE: THE SUMMER OF VALIDATION

Guest Post written by "JM"

The Muskrat Falls project is experiencing delay.  

Due to the size of this project, the remoteness, and the complexity there should be no surprise that the ramp up of the major activities are taking  longer than proposed in Nalcor’s optimistic original plan .  

The delay has been  documented in the oversight reports produced by the provincial government, even if the reports continue to put the best light on difficult position in which Nalcor finds itself.  

CHANGE FERRY NAME FROM ‘APOLLO’ TO ‘APPALLING’

Apollo reserves a place, in both Greek and Roman mythology, as the god of music, art, beauty, light, and knowledge.

But there is nothing artful, pleasant, or beautiful about the Apollo, the aged and ill-kept ferry so named, plying the Straits of Belle Isle several times a day between St. Barbe and Blanc Sablon.

As my vehicle crossed over the dock into the vessel, I spied licence plates announcing Texas, New Hampshire, Ontario, as well as Newfoundland and Labrador. A little later, I was given to wonder what their owners were thinking.

While bemusement seemed adequate enough at first, the walk from the car park through the doorway onto several flights of stairs, leading to the reception area, gave even this reluctant tourist fair warning that any expectation of relaxation within pleasant, comfortable, clean, and modern surroundings, might be excessive.

MINISTER WARNED RISK OF NORTH SPUR COLLAPSE

Guest Post by Cabot Martin

Work has recently started on Nalcor’s North Spur “stabilization” construction activities at the Muskrat Falls Project. So far, this has involved the stripping of trees on the upstream and downstream sides of the North Spur and the use of heavy excavation equipment .

The North Spur is known to be unstable and such activities can only heighten the risk of collapse.

As a result, there is presently a serious risk for a North Spur collapse.

THE BUDGET COLLOQUY (Part 5) GETTING BACK TO BASICS

Guest Post written by JM

                                         

Oil has done many great things for Newfoundland and Labrador.  It has diversified our economy, generated wealth, provided tremendous opportunities for our young people, and given us a glimpse into a truly global industry.  Oil has fundamentally changed this province, the people, and our culture.  We can attribute to it a collective confidence on a level never conceived in the pre-oil Newfoundland and Labrador.  

But it can be argued that it has also incubated an undertone of both arrogance and invincibility, a condition which has particularly plagued our political leadership.  It has led to us to think, dream, and spend as if we had made the economic big leagues. From the mammoth Muskrat Falls public works project to the 35% increase in government spending, not once did we consider our exposure should oil prices return to their historical (and far lower) valuations. 

THE POLITICS OF BLIND OPTIMISM (PART IV)

Guest post written by JM

When it comes to recognizing the fiscal imbalance, the political leadership of the province are whistling pass the graveyard.  But government inaction is not limited purely to the deficit.  They are failing to make concrete actions on many of the larger issues facing the province today. 

In a nutshell, they default to the “politics of optimism”.  

THE COP PREMIER AND THE MOB….IT’S ONLY BUSINESS

The CBC recently broke the story that Nalcor had awarded a multimillion dollar Muskrat Falls construction contract to a company from Quebec called Opron - controlled by a well known Montreal construction figure – Mr Joe Borsellino.  

Opron Construction showed up on Nalcor's approved bidders list in February 2013; the CBC story reported “the same month Giuseppe Borsellino testified at Quebec's Charbonneau commission that he and his cousin were 51 per cent owners of the firm.”

Let’s go to his appearance before the Charbonneau Commission into criminal activity in Quebec’s construction industry:

“For two days, the construction boss caught on video delivering cash to the headquarters of the Rizzuto crime family has lurked in the back row of the Charbonneau inquiry, watching another witness, Joe Borsellino, confess to bribing public officials while playing down links to the mob.

Mr. Borsellino has proven a difficult witness..... In one instance that angered commission counsel, he could not remember depositing $1.8-million into a bank account until deposit slips were produced.” - Globe and Mail February 6, 2013

THE BUDGET COLLOQUY (PART 3) WHISTLING PAST THE GRAVEYARD NO MORE

Guest post written by JM

Authors Note:

Initially, I had planned this series in three parts.  Of the two already posted, the first dealt with provincial government spending and the second with revenues.  The proposed third part was originally intended to contain a long term sustainability plan for the province. 

This last piece of work has proven much more difficult to write in comparison with the first two posts, which were heavily annotated with statistics and graphs.  In the course of writing, I found it difficult to be thorough without raising the plethora of issues the province currently faces.  As a result, the script has grown to over 20 pages, and it is still not finished!

Uncle Gnarley has kindly provided space throughout this summer, to continue this colloquy.  I expect it will comprise an additional six to eight posts.  The new plan will conclude with a single post in which the various parts will be reflected in a single reference. 

As Uncle Gnarley cherishes debate, I would be grateful if readers submitted their ideas in the comments section.I have examined the numbers in detail. I am convinced it will be a challenging road to return to balanced budgets. 

GOVERNMENT REFUSES INVESTIGATION; SUPPORT NALCOR'S $ BILLION CONTRACT AWARD

Uncle Gnarley Blog received the Government's reply to my letter requesting that the Premier call an investigation into Nalcor’s award of the contract for the construction of the Labrador Island Link (LIL) transmission line.

While the letter was sent to Premier Paul Davis, it was his Natural Resources Minister, Derick Dalley, who replied.

Readers will recall that this Blogger was contacted by an anonymous person calling himself “Tender Man”. The concerned citizen had conducted extensive research into Nalcor’s handling of the contract award, having documented the process of Nalcor’s decision to first meld one tender into another, and then award the contract without competition. The documentation was gathered from Reports posted on Nalcor’s web site over several months.