Category Archives: Western Canada

BC Rejects HST!

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Read this story and watch video from CTV.ca on the historic defeat of the HST.

“A majority 54.73 per cent of voters sent in ballots to turn down the tax. More than 1.6 million people — or 52 per cent of registered voters
— mailed in referendum ballots during the eight-week voting period that
ended earlier this month. The number represents almost as many people
who voted in the last provincial election. The province will now return to a GST/PST system, in a process estimated to take between 18 to 24 months.” (Aug 26, 2011)

http://ottawa.ctv.ca/servlet/an/local/CTVNews/20110826/bc_hst_judgement_day_110826/20110826/?hub=OttawaHome

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Cobb Fallout: Coleman, Clark Say No New IPPs but Refuse to Kill Policy

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The admission by Dave Cobb, President of BC Hydro, that Hydro is spending 100s of millions for energy they don’t need came as a shock, except for Damien Gillis and me and others, notably the Wilderness Committee, who have been saying this for three years without a peep out of the government. It’s too bad that Mr. Cobb didn’t stand up and be counted by way of a press conference – instead his remarks were leaked. It could still cost him his job, although if he were fired, he would get a pretty penny in severance, to be paid by us of course.

The response by Energy Minister Rich Coleman is what I would expect from a member of this appalling government, though I did harbour hope, in vain, that the minister is made of sterner stuff. He simply replied that they had no plans for any more private power at this time, but they’d be sticking with the underlying policies that justified IPPs – criticized by both Cobb and the recent panel report on Hydro.

Coleman knows, or ought to know, that there will be no new private power, period. The political fall-out from Mr. Cobb’s statement has been enormous but if Bute Inlet, Glacier-Howser or other projects are approved, this government will never be allowed to get away with it. Without any doubt, such a happening would be ugly.

Let’s not overlook another problem: the environment. This is what got many of us involved in the first place. The environmental consequences of these plants is enormous and that alone would have kept any government of decent, caring people away from private power in the first place.

The issue of private power being both wrong economically and environmentally was raised by Dr. John Calvert in Liquid Gold, a book that every one should read. When Damien, Tom Rankin, I and others started raising the economic argument, it was greeted by silence, making me think of the famous Sherlock Holmes story about the dog that didn’t bark. Roughly, in the solving of the case, Holmes said that he solved it because of the dog. When it was pointed out to him that the dog hadn’t barked Holmes said, “Precisely.” We were, up until last week, faced by public dogs that wouldn’t bark, which confirmed we were right.
 
It wasn’t easy dealing with this matter, for the government insisted on the negotiations and the contracts remaining secret. Reflect on that for a moment – Billions of dollars of taxpayer’s money, given away in secret deals!

We had to fly blind with no help whatever from the mainstream media. Dr. Calvert’s book was published 4 years ago and the media remained silent. Op-ed pieces by industry and apologists for it were as regular as ones supporting fish farms but nary a discouraging word. The “hardnosed” columnists, Vaughn Palmer and Mike Smyth said nothing. Indeed the Province, the day after the Sun finally printed the statement of Mr. Cobb – and blockbuster story it was – was silent on the subject. Frankly, it’s been lonely as hell.
 
Now comes the issue of what next?
 
I can only tell you what an honest government would do. The minister would state that the policy had turned out to be too pricey for the shareholders (us) and it was hereby abandoned and would not be revived, Finis.
 
But this is not an honest government. It has been a corrupt gang from the start and Christy Clark was part of it, an integral part, as deputy premier. During her time in radio, she raised not a whisper about the Energy Plan – indeed she abstained from any criticism of the government. The hallmark of this bunch is one falsehood after another. They make the last NDP government look like paragons of virtue with brilliant economic policies.

When, in 2001, then attorney-general Geoff Plant introduced the legislation for fixed election dates in the legislature, he called it “an important tool for moving some of the power out of the premier’s office and restoring public trust in the political system.”

“When people are suspicious of the timing of an election, they become suspicious of the work their politicians do,” he said.

Deputy Premier Clark vociferously supported the move then, but somehow 10 years later – when a premier wants to exercise that very power we all assumed had been taken away – she recants. This is quite in tune with the insincerity and dishonesty of this government.

The revelation by Mr. Cobb could not come at a worse time. Premier Clark had hoped that the blue ribbon committee set up by Rich Coleman would fuzzy over the scandalous issue of costly and useless private power but, try as they might to be nice to the government, they disappointed the premier, who thought she could run an election with BC Hydro an issue for environmental kooks only.

It fortifies an old and cynical rule that governments should never appoint commissions unless they know what their answer will be or don’t care. Ms. Clark cares about this answer, that’s for sure!

Whether there’s an election in the fall or on its proper day in 2013, Premier Clark will have to tell us why she supports a policy which gives private power a monopoly to create new power which BC Hydro doesn’t need but is compelled to buy at a huge loss – while the IPPs ravish the environment.

I sense that no matter when she calls an election, Premier Clark will learn that being a photo-op is not enough.

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Rafe & Damien on EVOTV (Part 2)

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Watch part 2 of Rafe and Damien’s discussion on Shaw’s EVOTV, with host Irma Arkus. In this episode, the pair talk wild salmon and aquaculture, private power and environmental politics in BC. Damien Gillis: “This isn’t free enterprise – it’s piracy. It’s a bunch of people looking out for their pals – global corporations that have taken over our whole system of governance; and it’s about whether we’re going to get back to common sense, public-oriented policy.” (30 min – taped in late July) Watch Part 1

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Hydro Chief’s Leaked Comments Trash IPPs – What Will Clark Do Now?

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I have called it the Campbell/Clark government because that’s what it is. Premier Clark was in on the beginning of most policies including the disastrous energy plan that sees private power companies (IPPs) destroying our rivers to produce power for BC Hydro which it doesn’t need and must take anyway, bringing Hydro to the brink of bankruptcy. (In the private sector BC Hydro would be bankrupt, except as a Crown monopoly it can always pass its grief over to us the ratepayers.)

You could have blown me over with a feather when I read in the Weekend Sun excerpts of an internal conference call in which Dave Cobb, president of Hydro, condemns the government’s IPP policy. A recording of the call – which occurred August 12, on the heels of the recent panel report on the utility’s financial situation – was leaked to the paper. Cobb pulled no punches, detailing his concerns with the government’s exaggerated “self-sufficiency” and “insurance” requirements:

“‘If it
doesn’t change, it would be hundreds of millions of dollars per year
that we would be spending of our ratepayers’ money with no value in
return,’ said Cobb. ‘The way the self-sufficiency policy is defined now…would require us to buy far more long-term power than we need…I think they’re going to make a major change there, which will
significantly reduce the amount of power we will be buying from
independent power producers and anybody else,’ he said. ‘Government has
to make a change.'”

 
I found myself asking why this headline story, so clear about the IPP financial millstone around Hydro’s neck, was not reported after the panel report and why, last week the once intrepid columnist, Vaughn Palmer, dealt with this panel report, noting Hydro’s financial grief at considerable length without even mentioning IPPs.
 
In the Weekend Sun report, much coverage and a picture of Paul Kariya dealt with the responses of his Clean Energy Association of BC and their appallingly shallow concerns. Whatever these industry apologists may say their concerns are, you can be sure that the interests of British Columbia are not amongst them. The Clean Energy Association is the private industry in drag, and refuses to tell us where they get their funding. NB the name – with the clear influence of George Orwell’s 1984 the association calls itself precisely what it is not.
 
It’s hard to believe that Minister Coleman had any advance warning of this conversation – it was, after all, a leaked conversation and at any rate, deliberately leaking a policy change of this unbelievable proportion is not Coleman’s style.

What’s the government going to do now? It can hardly fire Mr. Cobb and deny the truth of what he said for no one would believe that for a moment. Clearly, Mr. Cobb didn’t make this all up but was concerned that his staff would be caught by surprise and wanted to give them a heads up. If Mr. Coleman doesn’t fire Mr. Cobb, he might just as well have made the statements himself.

That this is the government’s unannounced (yet) policy makes political sense, insofar as one can make sense out of the appalling Campbell/Clark energy policy because the policy will kill them in the next election and they know it. It also explains why (I have this on the best authority) the industry big wigs were lower than a snake’s belly when they got the panel report last week and why it was when I met Mr. Kariya coming out of the CBC last Monday morning, he was so defensive and uneasy.

One thing’s for sure – the cat’s out of the bag, and to mix metaphors, the contents of Pandora’s box can never be put back.

The question for the Premier is obvious and simple: What now, madam?
 
The issue is in the public domain and will be a big time political issue.
 
Here’s where Premier can separate herself from the disgraced Gordon Campbell and put her own brand on her government while stealing a march on the NDP.
 
It will take guts to do what is right and Ms. Clark must bite the bullet and announce the end of IPPs and clearly state that it’s for two reasons: the environment and the Energy Plan itself.

She does this in several ways:

  1. She revives the Ministry of Environment, giving true power back to it – naming someone tougher than Barry Penner, who was indeed the longest serving Environment Minister and, sad to say, the worst. The issuance of permits to desecrate the environment must be returned to the Environment Ministry to be dealt with by a minister who has the courage to care about the environment before considering those who want the permit.
  2. She must announce that henceforth the Precautionary Principle, when dealing with those who need permits to encroach upon the environment, will be paramount. This principle states that if an action or policy has a suspected risk of causing harm to the public or to the environment, in the absence of scientific consensus that the action or policy is harmful, the burden of proof that it is not harmful falls on those taking the action. No longer must the onus be on the public or environmental organizations or their spokespeople.
  3. She must squarely face the fact that Hydro is in deep trouble and can only be saved by abandoning private power.

This is hardly the full picture because of the Ministry of Transportation running roughshod with highways over wildlife preserves and agricultural lands, and the proposed pipelines and tanker traffic.

The premier’s eminent grise, Patrick Kinsella, will be appalled but Ms. Clark, who has active political antennae, knows that Families and Children will not be the big election issue but that BC Hydro and the environment will be.

Ms. Clark, in order to extract the government from the devastating policy of Campbell must understand and face the hell, fire, brimstone from her corporate backers and lose election funds if she does what I suggest.

The decision will mark clearly whether the premier is just another pretty face or a leader the people of BC and generations to come will mention her name in gratitude… or if she remains a Campbell clone and one can fairly call her administration the CampbellClark government.

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Attorney-General Barry Penner Resigns from Cabinet to “Spend Time With Family”

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Read this story from CBC.ca on the sudden and unexpected announcement by BC Attorney-General Barry Penner that he is stepping down from his cabinet post and will not seek re-election in his Chilliwack riding.

“His resignation from cabinet is already effective, but a new attorney
general has not yet been appointed by Premier Christy Clark. Penner will continue sitting as an MLA until the next election is
called, but said he expects the nomination process to find a new
candidate for the party in the next election to begin soon.” (Aug 18, 2011)

http://www.cbc.ca/news/canada/british-columbia/story/2011/08/18/bc-penner-resigns.html

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Hydro Report: Death Knell for BC’s Public Power?

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This will be a short blog because the point is simple…and devastating.
 
Mark down August 12, 2011 as the day BC Hydro all but concluded its suicide mission, with the Campbell/Clark government and the Review Panel playing the role of Dr. Jack Kervorkian.
 
When you sort through the announcement by Rich Coleman and the verbose report itself, you learn that BC Hydro will cut its future costs by 50%, which in practical terms means this: Hydro will be unable to upgrade its facilities and build generators on flood control dams which means they will buy more and more power from more and more private power producers – which is surplus to their needs – buggering up more and more rivers and streams, thus fulfilling the Campbell/Clark government’s ambition to privatize power in BC.
 
BC Hydro, in taking all this unneeded power from Independent Power Producers (IPPs), must either export it or use it instead of its own vastly cheaper power. This means that BC Hydro will use power at at least double what it can make it for or export it at half to a quarter what they were forced to pay for it. Last year Hydro wasted $600 million buying IPP power it didn’t need – that money was our money, folks.

This comment on the report by former BC Hydro board chair and SFU political scientist Marjorie Griffin-Cohen. She said that the review – which also called for the utility to cut its proposed 50% rate hikes by half – distracts from the utility’s real problem: that  the real burden of cost is the government’s policy on private power. “Basically, what they have required to happen in BC is for new power generation to be in the private sector, BC Hydro to buy that and their hope was that this could spur exports of electricity to the United States,” she said.

“It was a very serious miscalculation of what was going on. So what we have now is a lot of private power that is extremely costly.”

Griffin-Cohen said private power projects produce 16 per cent of domestic power, but account for 49 per cent of energy costs. (emphasis added)
 
The much esteemed SFU professor and energy economist Marvin Shaffer had this to say:

“The real story in the review panel report, although gingerly and cautiously stated, is that it is government itself which bears major responsibility for driving up BC Hydro costs and rates. It was the government that directed BC Hydro to acquire all new sources of energy from Independent Power Producers (IPPs) except in the refurbishment of existing projects or developments like Site C on existing BC Hydro-controlled river systems. (emphasis added)

It was the government that legislated self-sufficiency requirements that have forced BC Hydro to buy more power than it needs to ensure reliable supply. It was the government that imposed debt/equity provisions that exaggerate the cost of BC Hydro financed investments. And it was this government that raised water rentals in a way that directly affected BC Hydro and its customers, but that would not impact private power producers, including Alcan and Teck.
 
Anyone who’s run a household budget knows that leads to the poorhouse and bankruptcy.
 
What this means is that the Campbell/Clark government, as advised by the right wing Fraser Institute, see their dream come true – the end of public power in our province with the ruination of our rivers in ever increasing numbers.
 
We at The Common Sense Canadian have been saying this for close to two years and as individuals nearly four. I have faced audiences all around the province and have seen disbelief in the faces of the audience saying to me, “No government would do anything so stupid!” Well they have and are about to make it worse.
 
BC Hydro is the egg that’s become the omelette. The dice were cast and they turned up snake-eyes. The Campbell/Clark government privatized BC Ferries and BC Rail and now it’s moments away from privatizing power by bankrupting our crown jewel – the much coveted BC Hydro and Power Authority..
 
The story Damien and I and many others including our adviser, economist Erik Andersen, have been telling since 2008, has been difficult to believe.
 
Well, folks, BELIEVE IT!!!

Postscript – to Vaughn Palmer and Mike Smyth – repeat after me: “The problem with BC Hydro is the massive sweetheart deals made with private power companies where under Hydro must buy ever increasing amounts of power at a huge loss.” Now, having spat it out, PRINT IT!

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Gov’t spending $100,000 plus on PR site renovations

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Article by Sean Holman at Public Eye Online. “According to records obtained by Public Eye via a freedom of
information request, Pennsylvania-based After6 Services LLC. received
$55,441 to setup the software powering the new ‘Digital Hub BC
Newsroom.’

“Another $43,085 will go to Liberal-connected Backbone Technology Ltd.
That includes the $16,685 the company has already received to design
the hub and another $2,000 per month to host the site.

“Backbone Technology is the same firm that has worked for the BC
Liberals since 2001, setting up a private intranet for its executive, as
well as the party’s Website.”

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The BC Liberals and the “Family” Issue

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What do families have to do with the
environment?

Quite a bit, actually.

The Campbell/Clark government is
looking for an issue to run on and the Family is the answer the backroom boys
and girls have decided is the best one.

This decision is sure as hell not
based upon the government’s great successes in this ministry. In fact
they have been a near disaster if not a full one. Mind you, in fairness, this
isn’t the area that’s good to any government and the NDP had its
share of problems but the point is simple – why would the C/C government
run on a failure?

Easy – everything else has been
worse.

Let’s start with law and order,
a favourite for all rightwing governments. The major problem here is BC Rail.
This is where the Government put the fix in and settled the Basi-Virk bribe
case just as Gordon Campbell and former Finance Minister Gary Collins were to
give evidence.

The first version by crown counsel
Bill Berardino was that he had made the deal all on its own, then it was with
the Deputy Attorney-General – then it had the Deputy Finance Minister
involved and before you knew it, it was obvious that the whole cabinet had to
be in the know. Crown Counsel looked bad thus so did the entire A/G ministry.

What then about fiscal probity?
Surely the Liberals could claim that here’s where the Campbell/Clark
government shone as it made the NDP era look so bad.

Unfortunately for them, it did the
opposite as all the yardsticks by which you gauge these matters, the NDP look
like paragons of fiscal prudence by comparison. The only evidence that the
Liberals did well was the bullshit they peddled.

Let’s look at two areas, the
2009 fudge-it budget.

You will recall that in 2009 the
Liberals presented a nice rosy “election budget” which went a long
way towards painting themselves as fiscal geniuses especially compared to that
wastrel NDP. The trouble was that the budget was a falsehood by over $1 BILLION
dollars.

And how they explained it took the
breath away. Why, how were they to know that there was a world wide recession?

Apparently they hadn’t heard of
the financial meltdown the previous year including a stock market crash.

To fudge a budget then win an
election based upon their ignorance of what the rest crown counsel is one thing – to pretend that
you, a self declared fiscal genius, didn’t know what everyone else in the
world knew takes the breath away.

The HST scarcely needs further
comment except that the Campbell/Clark government lied through its teeth as
became obvious when we learned that then Finance Minister Colin Hansen had, two
months previous, been given a report by his ministry telling the minister what
a bad deal it was.

What about “health” as an
issue?

Every opposition loves this issue
because they would have been much better but governments know better and avoid
the issue like the plague.

Well, then, what about the
environment? Surely Pat Kinsella and the boys have lots to work with here?

Everywhere in this broad field has
been a self created disaster for the C/C government starting with fish farms.
Ignoring all the scientific evidence, the government took its advice from a
discredited DFO “scientist” and fish farms prospered decimating
wild salmon runs in the bargain. While the debate from our side of the issue
talked about penned fish escaping and the horrendous damage done to migrating
wild salmon now an even bigger threat has appeared – disease from
contaminated eggs from Norway which all but wiped out the fish farm industry in
Chile. The Campbell/Clark government have made a bad idea into a catastrophe.
Not a good election issue.

Then there is the energy plan which
gives the creation of power to private companies that not only bugger up the
rivers used, but have the sole power to make electricity which BC Hydro must
buy at a time they don’t need and loses huge sums of money, $600,000,000
last year alone. In the bargain, this policy has all but bankrupted BC Hydro and
bids fair to do that in the near future.

This doesn’t look much like a
good election for the C/C government does it?

Then we have the matter of the
installation of Smart Meters by BC Hydro which will spend a billion dollars on
it – in essence using taxpayer’s money without their MLAs having the
right to ask questions. In addition to the cost, and indeed more importantly,
there is a substantial health risk which, again, will not be debated in the
Legislature. The Campbell/Clark government shows as much concern about the
health of citizens on this issue as it did for the folks in Tsawwassen with
overhead power lines.

Then there are the Sea-to-Sky and
Gateway projects where the Ministry of Transportation has been aggravated by
the government’s haughty attitude which was so well articulated by then
Transport Minister Kevin Falcon (who is the second most powerful in the
government) when he said: the Chinese “don’t have the labour or
environmental restrictions we do. It’s not like they have to do community
consultations. They just say ‘we’re building a bridge’ and they move everyone
out of there and get going within two weeks. Could you imagine if we could
build like that?”

With
the Sea-to-Sky upgrading, Falcon rode roughshod over the protests of citizens
of Eagleridge who wanted to preserve significant and sensitive wild preserves.
With the Gateway Project, the C/C government has not only endangered wildlife
preserves and Burns Bog, it’s taken whatever farmland they want without a
care.

You ask, then, why is the
“family” according to Premier Clark the big election
issue?

Because no matter how lousy this
issue is for the government, the others are all worse.

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