Smoky Lake Signal Article No. 197 (November 16, 2011)
Whispering in the Wind
Keystone Pipeline Project –
Last week I thought the TransCanada Keystone XL pipeline project was being put on hold for about a year or at least until after the US Presidential election set for November, 2012. It all seems quite logical, President Obama is seeking re-election for the presidency and he has been hassled by some major “celebrity” environmentalists and farmers who don’t want the pipeline crossing the important Ogallala aquifer in the Sandhills region of Nebraska. On Sunday, in Hawaii, Prime Minister Harper expressed his “disappointment” on the US’s decision to delay the pipeline project until 2013 – nevertheless, the Prime Minister was quick to add that he was not concerned about any fundamental shift Canada – US relations and the Keystone pipeline delay was only due to the “political season.” On Monday Premier Alison Redford was in Washington to promote the Keystone pipeline but had to change her emphasis slightly after the US State Department’s announcement – Premier Redford could only acknowledge that the United States’ regulatory process would have to take its course, but her modified message was clear, Alberta was eager and ready to supply bitumen to the Texas Gulf coast refineries. At the same time in Nebraska, Alex Pourbaix, president of TransCanada’s pipeline division announced that his company would re-route the proposed 1,700 mile pipeline to avoid the sensitive Ogallala aquifer and that would only mean another 30 or 40 miles of pipe and one additional piping station. I think Mr. Pourbaix’s announcement came as a surprise to many political types on both sides of the border – but as fluid as the situation is, I still think the final decision on the Keystone Pipeline Project will not be made until 2013.
Prime Minister Harper, Playing Hardball
Prime Minister Harper has to be congratulated on the way he handled the Asia Pacific summit conference in Hawaii and particularly the way the he addressed Canadian issues and concerns with the conference’s host, President Barack Obama of the United States. The PM was amiable and friendly but in my mind, his messages were clear – not only did the Prime Minister outline to President Obama Canada’s concerns and “disappointment” regarding the announced delay in the Keystone pipeline project, Mr. Harper also made clear that Canada should be exempted from any Buy American provisions that have appeared or might appear in the President Obama’s job creation initiatives. Further Mr. Harper expressed Canada’s objection to the political delays attached to the Canada – US security perimeter initiative and to the $5.50 inspection surtax being placed on Canadians traveling into the United States. To add force to the Prime Minister’s foreign policy sentiments, the PM made it clear that circumstances in the United States (particularly the delayed Keystone XL project) is pushing Canada toward the sale of bitumen into Asian markets – at the conference China’s President, Hu Jintao without hesitation extended an invitation to Prime Minister Harper to visit China in 2012. To add further force to what could be a major change in Canada’s “new” foreign policy thrust, Prime Minister Harper has expressed an interest to join the Trans Pacific Partnership group – something the PM did not consider relevant or warrented just a few months ago.
Wednesday, 16 November 2011
Europe Teetering
Smoky Lake Signal Article No. 196 (November 9, 2011)
Whispering in the Wind
Euro-Europe Teetering on a Cliff!
From my perspective, what’s going on in Europe is without question a disaster and to say that Europe is now in financial (political) turmoil is an understatement – for the moment, Greece has become the convenient whipping boy but the real question is: can and will the insolvency that is so obvious in Greece spill over to other parts of Europe and yes, spill over into other parts of the world?
A Good European Experiment Gone Sour!
In modern times the idea of having a single, mega European market was first envisioned and crystallized some 50 years ago when six nations (Belgium, France, West Germany, Italy, Luxembourg and Netherlands) agreed to a common market concept in 1958 and institutionalized what was then called the European Economic Community. From that year onward the common market concept grew and matured: membership in the European club grew to significant levels; a European parliament was established and disciplined economic cooperation flourished, all accomplished without any suggestion of political or cultural integration. About 12 years ago something quite dramatic happened and is now proving to be disastrous to the original concept of economic cooperation without political integration – in 1999, 17 member states agreed to a basic monetary policy including the use of a single “euro” currency – for me, 1999 was a clear deviation from the community of economic interest strategy and clearly pointed toward more and eventual political integration. Today the European Union is made up of 27 sovereign nations with 17 of those nations operating under what is now known as the euro zone – truly a fractured formulae and in my mind an indicator of financial confusion and political disaster.
Greece, Tip of the Iceberg!
From what I have read about Greece’s population and their political attitudes, it is no wonder that they are in such a financial state, as they are – my understanding is that in the past 10 years the Greek government racked up huge debts that aren’t being addressed through Greece’s taxation system. Added to the confusion is the apparent mindset of many Greeks who feel that taxes are an irritant and should be avoided, after all they are a part of the euro zone and therefore their spending habits, no matter how reckless, will be paid for by others in the euro zone (i.e. France or Germany). Actually Greece is not the “real” problem for the euro zone elite, the problem is that a bailout for Greece means likely bailouts for other euro zone members, most notably Italy (Europe’s third largest economy), Spain, Portugal and possibly others. So how is this Greek, no, European situation to be contained; can the mess be sorted out and can the European Union be saved??? A number of ideas have been put out by the media for discussion – about a month or so back it was suggested that the bonds supporting Greece’s debt be devalued by 50 percent (the banks and other bond holders say no to this, not so much as it relates to the Greek situation but what is likely to happen in other countries such as Italy); another suggestion was to have Greece leave the euro zone and return to their former currency, the Drachma (Greece says no, its their financial comfort zone); a third suggestion is to dissolve the euro zone itself and have each member country of the zone revert back to their past currencies – that is not a bad idea if Europeans want to save their European Union. No matter what strategy is undertaken a key component must include the reining in of their banks so that they truly become national banks that act in the best interest of their “home” authorities.
Any Parallels in Canada?
As Europe struggles with financial chaos and what appears to be an unmanageable debt; Canadian leaders are cautiously patting themselves on their backs and suggesting that Canada’s debt is miniscule when comparing Canada’s strong financial position to the financial weakness what is going on in Europe and the United States. I do agree that Canada’s national debt, as reported in the country’s national accounts, is small but that does not mean Canada is in good financial shape. For a good description of how precarious Canada’s financial situation is, I refer you to the October 24, 2011 issue of MACLEAN’S magazine and its editorial article entitled “Why Ontario is poised to become Canada’s Greece”. Following is the concluding paragraph:
“The sobering truth is that Canada’s largest province is now facing the country’s most troubling debt problem. And the effects of Ontario’s debt will soon be felt right across the country, regardless of how prudently other provinces have managed their finances. Fair or not, we’re all in this together.”
Whispering in the Wind
Euro-Europe Teetering on a Cliff!
From my perspective, what’s going on in Europe is without question a disaster and to say that Europe is now in financial (political) turmoil is an understatement – for the moment, Greece has become the convenient whipping boy but the real question is: can and will the insolvency that is so obvious in Greece spill over to other parts of Europe and yes, spill over into other parts of the world?
A Good European Experiment Gone Sour!
In modern times the idea of having a single, mega European market was first envisioned and crystallized some 50 years ago when six nations (Belgium, France, West Germany, Italy, Luxembourg and Netherlands) agreed to a common market concept in 1958 and institutionalized what was then called the European Economic Community. From that year onward the common market concept grew and matured: membership in the European club grew to significant levels; a European parliament was established and disciplined economic cooperation flourished, all accomplished without any suggestion of political or cultural integration. About 12 years ago something quite dramatic happened and is now proving to be disastrous to the original concept of economic cooperation without political integration – in 1999, 17 member states agreed to a basic monetary policy including the use of a single “euro” currency – for me, 1999 was a clear deviation from the community of economic interest strategy and clearly pointed toward more and eventual political integration. Today the European Union is made up of 27 sovereign nations with 17 of those nations operating under what is now known as the euro zone – truly a fractured formulae and in my mind an indicator of financial confusion and political disaster.
Greece, Tip of the Iceberg!
From what I have read about Greece’s population and their political attitudes, it is no wonder that they are in such a financial state, as they are – my understanding is that in the past 10 years the Greek government racked up huge debts that aren’t being addressed through Greece’s taxation system. Added to the confusion is the apparent mindset of many Greeks who feel that taxes are an irritant and should be avoided, after all they are a part of the euro zone and therefore their spending habits, no matter how reckless, will be paid for by others in the euro zone (i.e. France or Germany). Actually Greece is not the “real” problem for the euro zone elite, the problem is that a bailout for Greece means likely bailouts for other euro zone members, most notably Italy (Europe’s third largest economy), Spain, Portugal and possibly others. So how is this Greek, no, European situation to be contained; can the mess be sorted out and can the European Union be saved??? A number of ideas have been put out by the media for discussion – about a month or so back it was suggested that the bonds supporting Greece’s debt be devalued by 50 percent (the banks and other bond holders say no to this, not so much as it relates to the Greek situation but what is likely to happen in other countries such as Italy); another suggestion was to have Greece leave the euro zone and return to their former currency, the Drachma (Greece says no, its their financial comfort zone); a third suggestion is to dissolve the euro zone itself and have each member country of the zone revert back to their past currencies – that is not a bad idea if Europeans want to save their European Union. No matter what strategy is undertaken a key component must include the reining in of their banks so that they truly become national banks that act in the best interest of their “home” authorities.
Any Parallels in Canada?
As Europe struggles with financial chaos and what appears to be an unmanageable debt; Canadian leaders are cautiously patting themselves on their backs and suggesting that Canada’s debt is miniscule when comparing Canada’s strong financial position to the financial weakness what is going on in Europe and the United States. I do agree that Canada’s national debt, as reported in the country’s national accounts, is small but that does not mean Canada is in good financial shape. For a good description of how precarious Canada’s financial situation is, I refer you to the October 24, 2011 issue of MACLEAN’S magazine and its editorial article entitled “Why Ontario is poised to become Canada’s Greece”. Following is the concluding paragraph:
“The sobering truth is that Canada’s largest province is now facing the country’s most troubling debt problem. And the effects of Ontario’s debt will soon be felt right across the country, regardless of how prudently other provinces have managed their finances. Fair or not, we’re all in this together.”
Redford Stumbles, or was Tripped
Smoky Lake Signal Article 194 (October 26, 2011)
Whispering in the Wind
Redford Stumbles, or Was Tripped?
Less than a month ago, when Alison Redford was first elected leader of Alberta’s Progressive Conservative Party many, if not most Albertans viewed her election as a refreshing change from the status quo – after all she did run her leadership campaign on a platform of “change” and transparency – in my view, she continues to opine a sincere desire to do things differently. Alison Redford was sworn in as Alberta’s 14th Premier on October 7 and a week later formed her first, smaller cabinet team – a cabinet that reflects; regional representation, youth, experience and both, right and left wing perspectives in Alberta’s “progressive conservative” movement – no question, a well balanced cabinet team. So you would think that Premier Redford would be given some sort of a honeymoon so she could get more comfortable with her cabinet appointments; allow some time for her to get into the swing of things; and a little time to test her skills in the art of governing, delegating and agenda setting – well she wasn’t given the luxury of a honeymoon period and in real time, things have blown up in her government’s face, blown up in spades! To recap the current situation; last Friday morning it was reported that former leadership contender Ted Morton, now Alberta’s Minister of Energy sent a letter to the Alberta Utilities Commission indicating the government was reviewing three proposed electric transmission projects in the Edmonton area and that any decisions regarding these three projects would have to be delayed until further notice. Later that same Friday, Premier Redford said in Calgary that there was a “miscommunication” regarding one of the projects and the Alberta Utilities Commission could release its decision on the “Heartland” project based on their time schedule. Without going into the merits or non-merits of the electric power generation and transmission issue; and there is a lot to be said about how the former Stelmach government handled the electricity transmission question; what is seriously bothersome is how “miscommunication” could occur between possibly the two most senior cabinet people in the Alberta government – surely such a controversial question would involve cabinet discussion and at the very least, would have several senior civil servants around to advise on the specific wording of such an important directive. I’m sure Albertans haven’t heard the last of what happened last Friday and I do think Premier Redford deserves a better deal than what she is getting. For the moment I am reminded of a quote from one of William Shakespeare’s plays: “Something is rotten in the state of Denmark.”
United States Protectionism –
Protectionist sentiments have again arisen in the United States and I think the situation is more serious for Canada than it was a few years back. US President Barack Obama announced last month that he wants to implement a $447 billion job plan that includes “Buy American” provisions – the clause, as it presently stands, prohibits the use of foreign made iron, steel and other manufactured goods in all of the program’s public works projects. Almost immediately Prime Minister Harper’s office issued a statement saying that the government will “defend Canadian interests” and added that if the Buy American provisions are fully implemented and Canada is not excluded, the Canadian economy could be negatively affected and growth in Canada stalled. The Canadian government was successful in 2009 and obtained a wavier from similar Buy American provision in the United States, but things are quite different today – first the US economy is in much worse shape than it was in 2009; second Barack Obama is seeking re-election in November, 2012 and he doesn’t want to go against the protectionist mood in the US where over 90 percent of the electorate is supporting the Buy American provisions.
Whispering in the Wind
Redford Stumbles, or Was Tripped?
Less than a month ago, when Alison Redford was first elected leader of Alberta’s Progressive Conservative Party many, if not most Albertans viewed her election as a refreshing change from the status quo – after all she did run her leadership campaign on a platform of “change” and transparency – in my view, she continues to opine a sincere desire to do things differently. Alison Redford was sworn in as Alberta’s 14th Premier on October 7 and a week later formed her first, smaller cabinet team – a cabinet that reflects; regional representation, youth, experience and both, right and left wing perspectives in Alberta’s “progressive conservative” movement – no question, a well balanced cabinet team. So you would think that Premier Redford would be given some sort of a honeymoon so she could get more comfortable with her cabinet appointments; allow some time for her to get into the swing of things; and a little time to test her skills in the art of governing, delegating and agenda setting – well she wasn’t given the luxury of a honeymoon period and in real time, things have blown up in her government’s face, blown up in spades! To recap the current situation; last Friday morning it was reported that former leadership contender Ted Morton, now Alberta’s Minister of Energy sent a letter to the Alberta Utilities Commission indicating the government was reviewing three proposed electric transmission projects in the Edmonton area and that any decisions regarding these three projects would have to be delayed until further notice. Later that same Friday, Premier Redford said in Calgary that there was a “miscommunication” regarding one of the projects and the Alberta Utilities Commission could release its decision on the “Heartland” project based on their time schedule. Without going into the merits or non-merits of the electric power generation and transmission issue; and there is a lot to be said about how the former Stelmach government handled the electricity transmission question; what is seriously bothersome is how “miscommunication” could occur between possibly the two most senior cabinet people in the Alberta government – surely such a controversial question would involve cabinet discussion and at the very least, would have several senior civil servants around to advise on the specific wording of such an important directive. I’m sure Albertans haven’t heard the last of what happened last Friday and I do think Premier Redford deserves a better deal than what she is getting. For the moment I am reminded of a quote from one of William Shakespeare’s plays: “Something is rotten in the state of Denmark.”
United States Protectionism –
Protectionist sentiments have again arisen in the United States and I think the situation is more serious for Canada than it was a few years back. US President Barack Obama announced last month that he wants to implement a $447 billion job plan that includes “Buy American” provisions – the clause, as it presently stands, prohibits the use of foreign made iron, steel and other manufactured goods in all of the program’s public works projects. Almost immediately Prime Minister Harper’s office issued a statement saying that the government will “defend Canadian interests” and added that if the Buy American provisions are fully implemented and Canada is not excluded, the Canadian economy could be negatively affected and growth in Canada stalled. The Canadian government was successful in 2009 and obtained a wavier from similar Buy American provision in the United States, but things are quite different today – first the US economy is in much worse shape than it was in 2009; second Barack Obama is seeking re-election in November, 2012 and he doesn’t want to go against the protectionist mood in the US where over 90 percent of the electorate is supporting the Buy American provisions.
The Redford Team
Smoky Signal Article No. 193 (October 19, 2011)
Whispering in the Wind
The Redford Team –
Last week Premier Redford announced her cabinet team and an interesting team it is! The two people that I thought deserved seats at the cabinet table made the cut – Jeff Johnson is now Minister of Infrastructure and Doug Griffiths is the new Minister of Municipal Affairs; both are important, well deserved appointments. If there were any surprises in the cabinet appointments, I have got to mention Ted Morton (now the Minister of Energy) and Ron Liepert (now the Minister of Finance); both received very senior cabinet posts and for me, it demonstrates Premier Redford’s intention to see her cabinet become a “big tent” cabinet that reflects a full range of views in the Alberta Progressive Conservative Party movement – others have suggested it proves a Sun-tzu adage: “keep you friends close and your enemies closer.” A further point regarding the cabinet appointments; Premier Redford offered the names of her cabinet members in an “order of precedence” which is a ranking of the appointments, some call it a political pecking order – if you identify Premier Redford as number 1 in the 21 seat cabinet and Deputy Premier, Doug Horner number 2; Ted Morton is number 4; Ron Liepert (7); Ray Danyluk (15); Jeff Johnson (16); Doug Griffiths (17) – some say that the ranking is irrelevant and is nothing more than some sort of honor role – to me it means that people like Jeff Johnson and Doug Griffiths have to be a little bit more cautious when preparing and presenting ideas in the cabinet room – said another way, the rookies in cabinet (like Jeff Johnson and Doug Griffiths) will have to earn their stripes in what is possibly the most exclusive club in Alison Redford’s government.
Congratulations to Jeff Johnson –
I can’t let this week’s column go by without offering congratulations to Athabasca-Redwater MLA, Jeff Johnson and his appointment to Premier Redford’s cabinet as Minister of Infrastructure. So what does it mean being the Minister of Infrastructure? Simply put and taken from a government web-page: “Alberta Infrastructure is responsible for infrastructure planning, and building and managing government-owned infrastructure. [The] ministry works with other ministries to ensure Albertans have schools, hospitals and other public infrastructure necessary to meet the needs of a growing economy and population.” If that isn’t enough, Jeff Johnson has some added responsibilities: Jeff Johnson is now responsible for the Oil Sands Secretariat; Jeff Johnson is Vice-Chair of Treasury Board; Jeff Johnson is Political Minister for Northern Alberta on the government’s Operations Committee; and Jeff Johnson is a member of the government’s Finance Committee. As a rookie cabinet minister, Jeff Johnson has an awesome set of responsibilities and he will face many, many significant challenges – you know what, I think Jeff Johnson is up to it. Nevertheless, he is going to need the support and patience from all of us in the Athabasca-Redwater constituency and if we give him the support he needs, Smoky Lake, the Athabasca-Redwater constituency and Alberta will benefit from Jeff Johnson’s work, commitment and dedication – congratulations and good luck to you Jeff!
Alison Redford, You’ve Got Six Months –
Along with announcing a new set of cabinet responsibilities, Premier Redford also announced a new committee structure, a new way of doing the government’s business. Premier Redford said: “This cabinet reflects what change looks like. It’s a team that’s committed to listening to Albertans, and getting to work right away on bringing the change Albertans want and expect.” In my view it is all well and good to have change of faces in the cabinet room and a committee structure that is different from past administrations, but I think Albertans want to see action on at least four priority areas: a more affordable, caring public healthcare system; a more efficient public education system; a meaningful economic development and diversification strategy; and a government that protects its citizens from too much government. To address these monumental issues, it is going to take some time and a lot of patience, something not available to the new Redford government – my sense is that the PC Alberta government has got about a year before the next election and that means that Alison Redford and her new cabinet have about six to eight months to show what “change” is all about.
Whispering in the Wind
The Redford Team –
Last week Premier Redford announced her cabinet team and an interesting team it is! The two people that I thought deserved seats at the cabinet table made the cut – Jeff Johnson is now Minister of Infrastructure and Doug Griffiths is the new Minister of Municipal Affairs; both are important, well deserved appointments. If there were any surprises in the cabinet appointments, I have got to mention Ted Morton (now the Minister of Energy) and Ron Liepert (now the Minister of Finance); both received very senior cabinet posts and for me, it demonstrates Premier Redford’s intention to see her cabinet become a “big tent” cabinet that reflects a full range of views in the Alberta Progressive Conservative Party movement – others have suggested it proves a Sun-tzu adage: “keep you friends close and your enemies closer.” A further point regarding the cabinet appointments; Premier Redford offered the names of her cabinet members in an “order of precedence” which is a ranking of the appointments, some call it a political pecking order – if you identify Premier Redford as number 1 in the 21 seat cabinet and Deputy Premier, Doug Horner number 2; Ted Morton is number 4; Ron Liepert (7); Ray Danyluk (15); Jeff Johnson (16); Doug Griffiths (17) – some say that the ranking is irrelevant and is nothing more than some sort of honor role – to me it means that people like Jeff Johnson and Doug Griffiths have to be a little bit more cautious when preparing and presenting ideas in the cabinet room – said another way, the rookies in cabinet (like Jeff Johnson and Doug Griffiths) will have to earn their stripes in what is possibly the most exclusive club in Alison Redford’s government.
Congratulations to Jeff Johnson –
I can’t let this week’s column go by without offering congratulations to Athabasca-Redwater MLA, Jeff Johnson and his appointment to Premier Redford’s cabinet as Minister of Infrastructure. So what does it mean being the Minister of Infrastructure? Simply put and taken from a government web-page: “Alberta Infrastructure is responsible for infrastructure planning, and building and managing government-owned infrastructure. [The] ministry works with other ministries to ensure Albertans have schools, hospitals and other public infrastructure necessary to meet the needs of a growing economy and population.” If that isn’t enough, Jeff Johnson has some added responsibilities: Jeff Johnson is now responsible for the Oil Sands Secretariat; Jeff Johnson is Vice-Chair of Treasury Board; Jeff Johnson is Political Minister for Northern Alberta on the government’s Operations Committee; and Jeff Johnson is a member of the government’s Finance Committee. As a rookie cabinet minister, Jeff Johnson has an awesome set of responsibilities and he will face many, many significant challenges – you know what, I think Jeff Johnson is up to it. Nevertheless, he is going to need the support and patience from all of us in the Athabasca-Redwater constituency and if we give him the support he needs, Smoky Lake, the Athabasca-Redwater constituency and Alberta will benefit from Jeff Johnson’s work, commitment and dedication – congratulations and good luck to you Jeff!
Alison Redford, You’ve Got Six Months –
Along with announcing a new set of cabinet responsibilities, Premier Redford also announced a new committee structure, a new way of doing the government’s business. Premier Redford said: “This cabinet reflects what change looks like. It’s a team that’s committed to listening to Albertans, and getting to work right away on bringing the change Albertans want and expect.” In my view it is all well and good to have change of faces in the cabinet room and a committee structure that is different from past administrations, but I think Albertans want to see action on at least four priority areas: a more affordable, caring public healthcare system; a more efficient public education system; a meaningful economic development and diversification strategy; and a government that protects its citizens from too much government. To address these monumental issues, it is going to take some time and a lot of patience, something not available to the new Redford government – my sense is that the PC Alberta government has got about a year before the next election and that means that Alison Redford and her new cabinet have about six to eight months to show what “change” is all about.
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