Newtown Conn. - Sad State of Affairs

Smoky Lake Signal Article, Number 250 (December 19, 2012)

Whispering in the Wind

When I first started to write this year-end, political column it was my intent to be upbeat and offer a few humorous comments about politicians; how they might view their elected office and how they might make important political decisions.  My assessments were to be strictly based on their birth date and their resulting zodiac sign – after all this is the season for forgiveness and offering insights without serious judgment or criticism.  Those intentions were shattered on Friday when reports aired that a 20 year old kid had killed 26 people in Newtown Connecticut – of the 25 killed at the elementary school, 20 were aged 6 to 7 years, virtual babies!

The Massacre and the U.S. Response

Last Friday’s horrific crime at Sandy Hook’s Elementary School in Newtown Connecticut has shaken much of world and in the United States it has shaken the country’s population to its core.  The crime, perpetrated by a 20 year old named Adam Lanza was just a kid himself, so what triggered such a horrible, senseless act?  I did read somewhere on the internet that he was an avid player of those violent video games.  Nonetheless almost nothing is known about Adam Lanza himself other than he was quite, reserved and withdrawn.  As to the possible motive for the mass murder, authorities appear to be dumbfounded.  The consensus amongst many informed observers and politicians is that the United States’ loose gun control laws and the constitutional right to bear arms are the prime causes of this and other mass murder events in the United States.  On Sunday President Barack Obams offered his view in a well crafted, telling statement: “We can’t tolerate this anymore.  These tragedies must end.  And to end them, we must change.”  In my view it will take months, if not years to sort out the circumstances of the Newtown massacre but there no question in my mind, Obama will take some quick legislative action regarding assault weapons and he will get some support from his usual Republic adversaries.  Where the president is going to find his greatest opposition, it’s going to be with those Republicans beholding to the very powerful gun lobby, the National Rifle Association (NRA) – one Republican (Louie Gohmert) from the Great State of Texas has suggested that more guns are needed and that if the principal of Sandy Hook Elementary School in Newtown had a gun she might have stopped Adam Lanza – the principal of Sandy Hook Elementary School died last Friday from gun shot wounds.   

HAVE A VERY BLESSED, MERRY CHRISTMAS – GET TOGETHER WITH FAMILY AND GIVE EVERYONE BIG HUGS, TELL THEM HOW IMPORTANT THEY ARE TO YOU AND IT WILL MAKE YOU FEEL GOOD AND WILL MAKE THEM FEEL GREAT! 

China's Taking Over in Canada

Smoky Lake Signal Article No. 249 (December 12, 2012)

Whispering in the Wind

On more than one occasion I’ve been labeled as a person who “rants and raves” when a political issue becomes contentious.  There is no doubt in my mind I’m passionate, particularly when I’m being duped by political leaders – and being duped by political leaders appears to be happening all too often these days.  Take for example the NEXEN deal:  On Friday Prime Minister Harper announced that his government (in all its wisdom) was approving the purchase of NEXEN Inc by the China National Offshore Oil Corporation (CNOOC) and the deal would likely be of net benefit to Canada.  To curb any criticism that the NEXEN deal was the beginning of a Chinese takeover of Alberta’s oil sands, Mr. Harper offered a number of confusing, if not contradictory comments at his press conference.  The prime minister indicated that the purchase of NEXEN by a Chinese state owned enterprise is “not the beginning of a trend, but rather the end of a trend….When we say that Canada is open for business, we do not mean that Canada is for sale to foreign governments.”  Mr. Harper also offered a very confusing summary when he indicated that future takeovers by state owned enterprises (like CNOOC) would only be allowed under “exceptional circumstances.”  When asked by reporters to give further details the prime minister explained:  “What we’re saying specifically is that a transaction, an acquisition of control by a foreign state-owned enterprise in the oil sands would only be permitted under exceptional circumstances.”  In my view Prime Minister Harper’s announcements and his resulting press conference was a mish-mash of confusion, it lacked even the most basic detail and at times the prime minister offered contradictory statements without explanation – ergo, the whole thing was a dismal failure. 

Is China Big in the Oil Sands?

Last July when the NEXEN takeover bid first came to light in the press, I suggested that the CNOOC bid would be accepted and after acceptance there would be serious consequences – China would immerge as a (the) major player in oil sands development.   Reports are now suggesting that with the NEXEN factor in place, the Peoples Republic of China’s state-owned enterprises (SOE) have invested something over $30 billion in Alberta’s oil sands and in some respects are setting the agenda for further development.  Here are some examples of China’s SOE investments:  Last year Sinopec bought Daylight Energy out of Calgary for $2.1 billion – the first successful purchase of an energy company by a Chinese state-owned enterprise in North America.  PetroChina recently bought outright, Athabasca Oil Sands Corp. – China’s first purchase of an oil sands project.  A couple of years ago Sinopec purchased a 9 percent interest in Syncrude for $4.6 billion – I recently read that Sinopec vetoed a recent expansion proposal at Syncrude.  The CNOOC purchase of NEXEN for $15.1 billion brings the Long Lake oil sands project into play as a fully owned Chinese project.  And of course there are the support companies; TransCanada Pipelines is now in partnership with Phoenix Energy Holdings Ltd (a unit of China’s state owned China National Petroleum Corp.) – will the list never end?  No wonder Prime Minister Harper put his foot down and said (in his own way) enough is enough – good for you Mr. Prime Minister but is it too late?

The Alberta Connection, is There One?

In last week’s press conference I don’t know if it was ever mentioned that the oil sands that everyone is all-up-in-arms about are actually the Alberta oil sands.  Constitutionally speaking there is no question, Alberta owns the oil sands and representing that ownership is Premier Alison Redford.  From what I have read Premier Redford has been consulted with in the traditional, un-cooperative federal government fashion – talk to the provinces only when you have to.  Nevertheless Premier Redford has pressed for stronger representation for Canadians in the NEXEN-CNOOC deal – she wants 50 percent Canadian on the board and 50 percent Canadian in senior management positions.  As to whether Premier Redford and the other premiers are being consulted with on the more general and possibly more dangerous Canada – PRC investment agreement, that is another question.  In the meantime I’m getting an uncomfortable feeling that Prime Minister Harper has got his hands in Alberta’s cookie jar and there isn’t any room for anybody else.    

Smoky Lake Signal Article No. 248 (December 5, 2012)

Whispering in the Wind

Alberta’s Opposition Parties, Up in Arms!

Alison Redford appears to have gotten herself into a real pickle regarding the province’s $10 billion law suit against the tobacco industry and what is surprising; the mess she’s in has nothing to do with the merits, or stupidity of the case against tobacco.  The opposition parties in Alberta are claiming that Alison Redford was in a conflict of interest situation in 2010 when she was Minister of Justice and in their view, hired a consortium of legal firms to purse Alberta’s interests in the tobacco case - the consortium, known as International Recovery Lawyers includes Premier Redford’s ex-husband and his law firm.  Premier Redford rebuttal is clear; she did not make the final decision as to which of three competing bids would be given the massive contingency contract – the final decision was made by Veryln Olson, Minister of Justice in June, 2011.  The Speaker of the Legislative Assembly ruled on Monday that the contempt charges put forward by the opposition lacked foundation.  In my view the opposition parties have gone way over the top on this issue and simply don’t understand how governments work, how governments make decisions and what “conflict of interest” means.  NDP leader Brian Mason offered a reckless comment, saying: “… the Premier lied” to the members of the legislature.  The Wildrose Party’s critic, Rob Anderson made an even more ridiculous statement, claiming:  “[This] is absolutely the worst scandal to hit the premier’s office in our lifetime.”  My suggestion to the Premier Redford, ask the RCMP to investigate the leaked commercially confidential documents coming from the Department of Justice, asking how the documents got into the hands of the opposition parties.  Also, the RCMP should be asked to investigate the possibility of lobbyist interference in what is now essentially a legal case – so where are the real scandals?    

Trudeau Immerges as a Weak Candidate

Over the past weekend Justin Trudeau had two “in-depth” interviews, one on Saturday radio and the other on Sunday television.  The interviews were billed as important “kick off” events for Mr. Trudeau’s bid to become leader of the Liberal Party of Canada.  On Saturday morning Mr. Trudeau was grilled by Evan Solomon who asked too many questions on too many subject areas and allowed no time for “in-depth” answers.  The result, Justin Trudeau offered ten second responses that had no depth and came across to the listener as superficial.  Saturday’s interview was a flop for Trudeau’s campaign and I also think that some of his comments will come back to haunt him in the future.  The Kevin Newman interview with Mr. Trudeau on Sunday’s Question Period was equally superficial and disappointing.  One area proved to be interesting was Justin Trudeau’s call for a generational change in the Liberal Party of Canada – which was a direct reference to leadership competitor, Marc Garneau and his age.  (Mr. Garneau is now in his mid sixties and would not likely be a contender for the prime minister’s job until he is in his seventies.)  If you ask me Justin Trudeau started his leadership campaign on the wrong foot (poor planning and poor preparation on his part) and he has got to get some traction over and above his pretty face and an impressive father. Here is an idea that I think will work:  come out to Alberta for three, one hour interviews over the next three months (I’m sure the Town of Smoky Lake would welcome you with open arms).  The first interview would be about; Alberta and its contribution to Canada.  The second interview would deal with Canada and its role in a global world.  The third interview would deal with your vision for Canada and how nation building would occur under your leadership.         

Premiers Meet Without PM

Smoky Lake Signal Article No. 247 (November 28, 2012)

Whispering in the Wind

Three important “political” events occurred in the past week with at least one of them indicating that the prime minister’s inter-governmental relationships are not working out as he planned.  In my view, the country’s governance systems have become very confused and at times dysfunctional, largely because of the political leadership in the country – I see trouble brewing, particularly for the prime minister.  The genesis of the Prime Minister Harper’s problems can be traced back to; his management style and his approach to consultation with the general public and the provincial premiers.  I think Prime Minister Harper has forgotten that the public wants transparency and wants to understand the working of the federal government at a time of international uncertainty.  As well, the premiers of the provinces want to be true partners in confederation – after all, the provinces are in partnership with the parliament of Canada under the constitution – and want to work with the federal government in moving the country forward.  For me there only one solution for the prime minister and his government, Mr. Harper has to start a dialogue with Canadians and the premiers and re-ignite a long standing tradition; start having First Minister’s Meetings, they are difficult but they work.

Premiers Meet on Canadian Issues, Without the PM

Last week’s two day meeting of Canada’s premiers in Halifax can / should be described as one of the most important economic strategy discussions the country has had in the last ten years – and it occurred without Prime Minister Harper’s input and attendance, even through he was invited to attend and contribute.  More formally called the Council of the Federation; the premiers discussed the need for a national energy strategy, the feasibility of moving Alberta oil to eastern Canada and the need for immigration reform.  Mark Carney from the Bank of Canada attended to make his contribution, but the federal government was remiss in not making a contribution.  The real star at the premier’s conference was Alison Redford who has been pushing for a national energy strategy for many, many months (even before she became premier) and her objective moved one step closer to reality, and she seems to be doing it without any reaction from the prime minister.       

Justin Trudeau’s Gaffe

Two years ago, Liberal leadership contender Justin Trudeau apparently said in French:  “Canada’s not doing well right now because it’s Albertans who control our community and socio-economic agenda.  It doesn’t work.”  Last week Mr. Trudeau apologized for the comment and suggested that what he meant to say was: Canada is not doing well right now because Stephen Harper is in control of our community and socio-economic agenda.  It doesn’t work.  I think Mr. Trudeau’s apology was a mistake (a political leadership contender should never admit a mistake that is two years old). What he should have explained in political terms; the economic center of gravity is shifting to western Canada and that means eastern Canada needs help to adjust to the new reality, it’s important, if not a necessity.  So good for Alberta, good for western Canada, but the rest of Canada needs help, Justin Trudeau wants some help to do some NATION BUILDING.

Federal By-elections – The Message from Calgary

Monday’s three federal by-elections proved to be interesting for Canadians and hopefully telling for Prime Minister Harper.  The Conservatives easily won the Ontario riding of Durham with Erin O’Toole reclaiming the federal seat vacated by former cabinet minister Bev Oda.  The Victoria riding was a very tight race between the New Democratic Party and the Greens, in the end NDPer Murray Rankin won the seat.  The most interesting contest was the battle between the Conservative, Joan Crockatt (she won 37 per cent of the vote) and the Liberal candidate Harvey Locke (he won about 33 per cent of the vote) in the Calgary Centre riding.  In the end Joan Crockatt won over Harvey Locke by a thousand votes.  The vote in Calgary was close enough to offer a view on to the possibility of a Liberal win – what went wrong?   The answer is easy – Justin Trudeau’s gaffe was mishandled and his so called apology was an even bigger mistake – Mr. Locke’s loss was not his fault, it was the fault of Liberal organizers and Trudeau advisors.  For the prime minister there was a message, the progressive conservatives within the Conservative Party of Canada are uneasy with PM’s approach to government and some of PM decisions – it’s that simple. 

On the Brink!

Smoky Lake Signal Article No. 246 (November 21, 2012)

Whispering in the Wind

The world is in a mess – politically, economically and financially – with a number of observers forecasting a major global recession. Some “conservative” politicians are recommending that more government money be thrown at a company, sector or situation hoping that the situation will become more competitive and more efficient. For some “neo-conservative” politicians, their conviction is straight forward: let the corporation handle everything and if left alone (without government interference) the corporation will solve most, if not all economic, social issues encountered. From my perspective, political leaders (as well as the electorate) are becoming more confused than ever, largely because the “conservative” and the “neo-conservative” approach has almost always proved ineffective. Politicians have got to wake up and smell the roses (or if you prefer, the weeds). Politicians have got to realize that they are not facing the world as it was just a few years ago; in today’s world they are dealing with a new reality, CORPORATE GLOBALIZATION and its dominance.

The United States

The United States is in deep financial trouble and if the financial meltdown is to be avoided President Obama will first have to get everybody on side so his first major task will be to defrost a polarized Congress. Mr. Obama has already made efforts to come to terms with the Republican leadership and it seems to be working. The US president also must keep in mind the growing $16 trillion debt and who it is owns the paper – at best he will only be able to nibble at the edges. Mr. Obama has another formidable challenge and that is getting the private sector on side if he is to re-build the nation, specifically those global corporations that have flocked to Asia to set up shop and are now sending products back into the US market. If that is Mr. Obama’s debt reduction and job creation strategy it means protectionism – so Canada and Europe beware.

Europe

The 27 nation European Union is the largest economic unit in the world (with an estimated gross national product of $17.5 trillion) – the European Union was set up about twenty years ago to compete in the new global economy. Within the European Union there is a 17 nation Euro zone group of nations and they are experiencing some serious financial issues with four member states (Greece, Spain, Portugal, and Italy) where the unemployment rate is 25 per cent in some regions and the youth unemployment rate is estimated at about 50 per cent. Culture has a lot to do with the financial and economic problems in the southern states causing tens of thousands of younger people going to the streets in protest. This week there has been some resolution to the financial issues in Greece but it is minor compared to the massive problems being faced by the European Union. In my view there is a real possibility of a major recession in Europe and that will cause a major re-alignment on how financing is conducted in the Euro zone. In my view it would have been better to cut Greece (and the other troubled states) from the Euro zone with some guarantees and support for the re-alignment.

Canada

While the United States and Europe are precariously close to recession, Canada is taking the high road, and paving a highway toward prosperity using the country’s natural resources as the prime building block. Prime Minister Harper is skipping around the world creating a lot of interest in what Canada has to offer but specific deals have yet to be signed. While Mr. Harper is to be congratulated on his trade and investment promotion efforts, there is always a price. I’ve already written on my concerns regarding the Canada – China foreign investment agreement signed recently which includes secret dispute resolution procedures and ignores the rights and privileges of the provinces As well, there are some concerns being expressed by the United States and Alberta governments regarding the pending NEXEN purchase by CNOOC (the Chinese government’s oil enterprise). That is why I suggested: Canada wants to trade with foreign countries and Canada welcomes foreign investment, but Canada itself will set its own commercial standards and Canada is not for sale and should never be subject to foreign intervention on its territory. A Foreign Affairs document, recently leaked to the CBC, reveals a major shift in Canada’s foreign affairs policy that to me is very, very disturbing: “To succeed we will need to pursue political relationships in tandem with economic interests even where political interests or values may not align.”

Smoky Lake Healthcare

Smoky Lake Signal Article No. 243 (October 31, 2012) Whispering in the Wind Sorting out confusing statements has always been an important part of any healthcare discussion. Recently in the Smoky Lake area there has been a lot of discussion and a lot of confusion regarding the region’s healthcare facilities and the changes expected to take place in the next year or two, particularly the changes expected for the “community care” facilities within the Town of Smoky Lake. Let me try and explain what seems to be unfolding but remember; the issues are complex, confusing but significant and the information scanty. So it’s going to take two or three “Whispering in the Wind” columns (over the next few months) to address all of what I want say, please let me know your views and hopefully I won’t add to the confusion.

Issue 1: Who Owns What? Who’s Responsible? 
When it comes to healthcare in the Smoky Lake area there is really only one authority in charge and that is the provincial government’s Alberta Health Services (AHS) and its regional administrative arm, the Aspen Regional Health Authority. AHS owns and maintains two facilities in the area; the George McDougall Healthcare Center (an integrated health center often referred to as the Smoky Lake Hospital) is the core healthcare facility in the region. AHS also owns and maintains a separate “continuing care” facility that is referred to as the Nursing Home. Things get a lot more complicated when you introduce the Smoky Lake Foundation for Senior Citizens. The Foundation is a local organization and it owns and maintains a number of health related facilities in the Smoky Lake region – specifically the Bar V Nook Manor in Smoky Lake, the Lodge in Vilna (both are identified as “continuing care” facilities). The Foundation also owns and maintains a number of other affordable housing units in Smoky Lake, Vilna and Waskatenau. It is important to note that both the AHS’s Nursing Home and the Foundation’s Bar V Nook facility are out-of-date and will likely be phased out within the next few years. Sounds a little complex; it is, so let me summarize: The Smoky Lake Foundation for Senior Citizens indicate that they are in the “housing” business and they only provide and maintain the facilities while Alberta Health Services staff the facilities and provide all the healthcare services. All in all I feel that ownership and responsibility is not a major issue at this time but it could blow up if administrative issues aren’t well coordinated with all the stakeholders involved. What is an issue is having ongoing, creative, effective dialogue with all the stakeholders involved in healthcare business and that means; not only Alberta Health Services and the Smoky Lake Foundation but it is vital to include all the medical professionals in the community and of course, the “customers” who are paying the bills.

 Issue 2: The Foundation’s Latest Initiative 
The Foundation recently received a $7.4 million grant from the provincial government to build a new 40 unit “continuing care” building next to the existing Bar V Nook facility in Smoky Lake. It is interesting to note that the $7.4 million came from a housing authority rather than a healthcare authority and yet specific healthcare conditions were placed on the grant, like 20 of the 40 accommodation units must be dedicated to dementia patients. Nevertheless, the cost for constructing the new 40 unit structure is estimated at about $10 million and that means that there is going to be a $3 million shortfall – something that will have to be dealt with in short order. Rick Cherniwchan, Chairman of the Foundation, is confident that the financing issues can be addressed without any tax increases. In my view the math doesn’t add up unless you double or triple the rental rates for the residents of the new facility. Another interesting twist in the Foundation’s plan is the specification that asks for utility capacity to be double what necessary for a 40 unit structure. From my perspective it means that the 40 unit building that is expected to be operational in the next year or two will end up being a 90 or 100 units within 5 years. On the positive side it means the “antiquated” Nursing Home facility (owned by AHS) and the “antiquated” Bar V Nook lodge will most likely be phased out and gone within 5 years – that’s the good news. When it comes down to the construction of the 100 unit “continuing care” facility the Foundation is probably looking at a total price tag of 25 or 30 million dollars and all the Foundation has in the bank is $7.4 million – and that is a pretty risky financial strategy unless there is a worthy Plan B.

Harper in a Box re: Foreign Investment

Smoky Lake Signal Article No. 242 (October 24, 2012) Whispering in the Wind On more than one occasion I have offered the view: Canada is NOT for sale! I have also indicated that the continuing turmoil in the Middle East has put Canada (and Alberta) on a pedestal with the clear suggestion that Canada is now a secure, stable, energy super power. It’s now up to Prime Minister Harper to guide Canada on that stage. Actually that is not the wish for a few nations, including some global corporations – their interest is to claim ownership of Canada’s energy resources rather than simply trading in energy products – these foreign interests have made their position clear; if Canada wants funding for the development of Alberta’s oil sands then these foreign interests want more control over how things are developed and a greater share of the benefits pie. Events are unfolding and I am beginning to think that Prime Minister Harper is sending out mixed, confusing messages to the international investment community, if not sending out contradictory messages. Mr. Harper has tried to control the damage that he and his government created – in the last couple of days Mr. Harper has said that he will shortly make clear the rules of foreign investment in Canada. Canada – China Investment Treaty Mr. Harper’s government has recently and quietly tabled an investment agreement in the House of Commons - the Canada-China Foreign Investment Promotion and Protection Agreement. In itself these types of agreements are no big deal – except in this case it is a big deal. Experts in the investment field have expressed some concerns regarding the government’s rather blaze approach to the implementation process and that the agreement is going through the House of Commons without any serious debate. The law firm McCarthy Tetrault has concluded that the investment agreement with China “is likely to become one of Canada’s most significant investor protection treaties.” Gus Van Harten a professor of international law at Osgoode Hall’s law school in Toronto opines on the arbitration process in the agreement: “This process can override any decision we [Canadian’s] take. It could be a decision of the Alberta legislature, or the Parliament of Canada or the Supreme Court of Canada.” Last week opposition Members of the House of Commons asked for public hearings on the investment agreement with China but their request was turned down by the conservative dominated trade committee. State Owned Enterprises Make a Play on Canada’s Resources In my view, the main issue facing Prime Minister Harper (and his wish for an effective foreign investment development strategy), is going to be how he and his government views and treats State Owned Enterprises. Simply put, State Owned Enterprises are extensions of foreign governments and therefore are the arms of a foreign government and their policies. That in itself adds many levels of complexity to the issue and will generate major problems regarding the monitoring, transparency and accountability of any foreign government’s operations in Canada. There are two examples before Canada’s investment review group and things are not going well for either example. Malaysia’s State Owned Enterprise, Petronas” put forward a $6 billion bid for Progress Energy Resources Corp., a LNG operation in northern British Columbia. Petronas’ bid has been rejected by Investment Canada and Petronas has 30 days to review its proposal and show that their bid is of “net benefit” to Canada. One of China’s State Owned Enterprises, CNOOC has put forward a $15 billion bid for the takeover of Nexen Inc., a diversified energy company with holdings in various parts of the world – including the politically sensitive areas in the Gulf of Mexico and the North Sea. In this case the Government of Canada has asked for another 30 days to review the CNOOC proposal.

The Nexen Deal?

Milton Friedman has been correctly identified as one of the 20th century’s most influential economists. He has been labeled a staunch advocate of the free enterprise system with little or no respect for regulation, and regulation of the world’s financial sector is a no, no. Particularly important, Mr. Friedman was a passionate believer in free trade and by extension, globalization. Mr. Friedman died in 2006 but his theories continue to reign within many of the world’s developed nation states and their political infrastructures – including the present day government of Canada. One only has to look at Prime Minister Harper’s recent libertarian efforts, including his strategy to seek “quick” free trade agreements with Europe and the People’s Republic of China, to see that Mr. Harper’s approach to economic policy management is consistent with Mr. Friedman’s libertarian theories. Nevertheless, Prime Minister Harper might be forced to take a much more practical, political approach when reviewing China National Offshore Oil Corporation’s bid to purchase Nexen Inc. The Nexen Inc. Deal? China’s CNOOC bid to purchase Nexen Inc. for $15.1 billion has become an important political issue in Canada, and suggests a major dilemma for Prime Minister Harper’s government – as it should be. For Nexen shareholders, the bid by CNOOC is supported – after all, the share price offered has been pegged with a 60 percent premium. Premier Redford conditionally supports the sale and recommends that Nexen’s board of directors and its senior management group be sustained with a 50 percent Canadian content level – sooner or later this 50 percent Canadian content condition will likely prove unworkable but for the present it’s not a bad political tactic and the recommendation does have some merit. For the Prime Minister, the issues are quite complex with no clear answers. Following are a few questions facing the Harper government: Should Alberta’s oil sands be considered a strategic resource and should oil sands development be viewed as a strategic undertaking where the national interest is more relevant than most normal commercial undertakings? Should foreign national governments be allowed to establish a “political” foothold within Canada and conduct their commercial activities using a different set of norms and standards? Is Investment Canada’s singular “net benefit” rule sufficient when dealing with foreign investment and negotiating further, future free trade agreements? And finally, when will it be a good time to discuss Premier Redford’s idea of developing, having and implementing a national energy strategy that operates in Canada’s best interest? In the meantime China has reacted to the proposed Nexen purchase and Canada’s apparent procrastination. China’s ambassador to Canada, Zhang Junsai made a few very telling comments a few weeks back which I think demonstrates bully tactics, if not outright threats and not very well camouflaged threats. Ambassador Junsai observed when talking about the Nexen deal: “Business is business….It should not be politicized….If we politicize all this, then we can’t do business.” As well Ambassador Junsai made a connection between the approval of the Nexen deal and the possibility of having a free trade agreement (something that is very dear to the political wishes of Prime Minister Harper). The ambassador observed: “It’s time to open up each others markets….It’s time to do the exploratory work on the possibility of a free trade agreement.” In my opinion Ambassador Junsai came on strong and his message was quite clear – Canada has to approve the Nexen deal or forget about any free trade talks. Even then Canada can forget about any useful free trade talks for at least ten years.

Justin, Where's the Beef?

Smoky Lake Signal Article No. 240 (October 10, 2012) Whispering in the Wind About 30 years ago Wendy’s, a major hamburger chain in the United States and Canada put out an award winning TV ad featuring Clara Peller and a couple of elderly friends poking and searching through a rather large hamburger bun; Clara cried out; “Where’s the Beef?” Hopefully some of you will remember the hilarious ad because I’m trying to connect Clara’s question to Justin Trudeau and his bid for recognition. “Where’s the Beef?” Last week, 40 year old Justin Trudeau kicked off his Liberal leadership bid in Montreal and then traveled the country to acknowledge his considerable “fan” support in Calgary, Richmond and Mississauga – and let’s not forget about his visit with one of his biggest fans, boyhood buddy Dominic LeBlanc at an often used cottage hangout near Dieppe, New Brunswick. I don’t think there is any doubt; Justin Trudeau has the celebrity status of a rock star and in the very short term that is exactly what the Liberal Party of Canada wants and needs if the party is to regain some serious attention by those at the centre of the country’s political spectrum. But very quickly, Mr. Trudeau will have to demonstrate his leadership skills if he is to lead the Liberal Party’s team (as weak as it currently is). Further, Mr. Trudeau will have to articulate and defend well thought out policy positions if he is to succeed in the longer term, particularly when the real political battles start opposite the prime minister and the leader of the opposition. In my view Mr. Trudeau stumbled at the starting gate of his leadership bid, but he should be able to recover knowing that a federal election battle is still a few years off, so the question becomes: when will he start showing leadership qualities that embrace the Liberal Party’s aims and objectives and when will he start to generate public confidence by demonstrating that he can lead and manage a political party, never mind a country if called upon – he has got to show that he is more than a pretty face with a large fan club? In the first week in his campaign to be a leader of his political party, he has admitted to be “impulsive.” He has admitted to saying things that maybe he shouldn’t have said. To him his impulsiveness is a reflection of his “authenticity,” a character trait that has gotten him into trouble in the past and he thinks will get him into trouble in the future – being impulsive is a refreshing trait for most of us but for a politician it is very dangerous territory. So the Trudeau drama continues to unfold and it is only week one of a long journey, so Justin Trudeau; “Where’s the beef?” Where’s the Water? In early July, 2012 I wrote a piece about the confusion and the lack of political transparency surrounding the water supply issue in the region and why water was not flowing through constructed pipelines into at least two communities in the Smoky Lake area. Two months earlier Councillor Hennig from Fort Saskatchewan (and a member of their local water commission) said: “Until we get sufficient grant funding to provide the Highway 28/63 water commission with the supply they need, we won’t sign any supply contract.” Mr. Hennig went on to say: “That means Smoky Lake won’t get any water from us for at least another year.” I’m starting to think there is a cover up somewhere and nobody wants to step up to the plate and explain. To add further confusion to an already confusing situation a water conservation group has just released a report asking for a better water licensing system and urging the Alberta government to “….protect river health [because] without rivers that are healthy, everything else falls apart.” I’m getting really confused as to what’s going on and I’m starting to think that I’m mixing apples with oranges. Is the Alberta government procrastinating in its funding decisions because it lacks a well thought out water strategy for the province (and its communities) or is it simply a contract dispute between two greedy, unknowing water commissions in northeast Alberta? When all is said and done is it time for Smoky Lake to look at its current and quite adequate water supply system; a system that only needs upgrading and proper maintenance?

update

Smoky Lake Signal Article No. 239 (October 3, 2012) Whispering in the Wind Two political stories are unfolding that in my mind are good examples of how politics works in this country and the need for a lot more clarity and transparency from our elected politicians. First is the arena issue in Edmonton and the obvious dilemma Edmonton’s City Council is facing opposite Katz’s group. Second story is Justin Trudeau and the leadership of the Liberal Party of Canada. Daryl Katz Playing Hardball and Wants to Win Big Time – An agreement was reached about a year ago to keep the Edmonton Oilers in Edmonton for a long time – or so everybody thought. All that had to be done; a new arena would have to be built in downtown Edmonton, for an estimated $450 million - $125 million would come from the City of Edmonton; $100 would come from the Katz Group; User Payers would cough up $125 million and the federal and provincial governments would somehow contribute $100 million. Since then things have changed and the question is; has Daryl Katz been caught with his hands in the political cookie jar taking out far too many cookies? Mr. Katz is now asking the City of Edmonton to come up with more money – something like $25 million – he also wants a $6million a year subsidy for his operations in the arena and he wants to locate a casino in the new facility. Mr. Katz is refusing to meet publicly with City Council to answer questions regarding the recommended changes to the 2011 plan – he is also quite secretive about the financial performance of his hockey operations in Edmonton. To add some sweetness to his urgings for more public money, Mr. Katz recently went down to Seattle to talk about their $490 million arena – and to add some icing to his cookie grab he took along hockey icon, Wayne Gretzky – a real pompous threat if I ever heard one. So, as the National Hockey League season dwindles and millionaires continue to fight billionaires; will Daryl Katz stop playing hardball with City of Edmonton politicians and start cooperating with his prime stakeholder partner, or will the councilors draw a line in the sand and say that’s enough, that’s it! Justin Trudeau in the Race, No Meat but a Lot of Sizzle On November 3, 1948 the Chicago Tribune ran the following headline, “Dewey Defeats Truman” and the next day the newspaper had to write a retraction because the paper mistakenly declared Dewey the winner of the Presidency in the United States prior to the votes being counted. Well here I am about 24 hours prior to any announcement so I’m going to declare that Justin Trudeau announces that he is running for the leadership of the Liberal Party of Canada – tune into next week’s column should I have to print a retraction. I’m also willing to predict that Mr. Justin Trudeau will end up winning the leadership campaign and will be declared leader of the federal Liberals on April 14, 2013. From the bits and pieces of information coming from Trudeau’s handlers here is what’s going to happen over the next few days. On Tuesday, Mr. Trudeau declares his candidacy at a community center rally with about 500 of his closest friends in his Montreal riding of Papineau, then he is off to Richmond B.C. and then to Mississauga Ontario. Not much of an itinerary for someone that wants to follow in his father’s footsteps, but I think there is a lot of calculation in the strategy – for the next few weeks he is just trying to measure the mood of the country’s Liberals (particularly amongst the younger crowd, both Liberals as well as non-Liberals). We are also told that for the moment he is going to express his personal values without going into any meaty issues. That might work for the first few weeks but sooner or later he has got to show some meat and what he stands for.

Harper's Challenges

Smoky Lake Signal Article No. 238 (September 26, 2012) Whispering in the Wind I have often offered the opinion that NATION BUILDING is a must for Canada and should be a priority policy thrust for all of Canada’s political leadership – whether they are the premiers of the provinces or the prime minister of Canada. I have also said that Prime Minister Harper is the one most responsible for the country’s nation building endeavors and must continually demonstrate that his decisions and changes will make Canada stronger and better. To start with, Prime Minister Harper has to be congratulated for his efforts and keeping Canada’s economy relatively buoyant while much of the developed world is steeped in economic uncertainty, if not chaos. At this point in time, Canada’s economic buoyancy is largely due to: its resource endowments and how they are managed; having a strong, well regulated banking system and having a “practical” prime minister running a government that is without question, in charge. Nevertheless, Mr. Harper is facing a number of important challenges for which there are no easy solutions and from my perspective; the solutions will require government intervention, something Mr. Harper does not relish. Globalization vs. Nation Building – There is no question in my mind: philosophically, politically and practically speaking; GLOBALIZATION and NATION BUILDING are polar opposites – the question then becomes, can a line be drawn in the sand where both globalization and nationhood work in harmony and where will that line be drawn? The Pipeline Debate – The debate between Alberta’s Premier Redford and British Columbia’s Premier Clarke is a complex debate that requires intervention by the prime minister. As one reader of this column expertly put it: “…. there is an ideological issue for Harper when it comes to inter-provincial barriers to trade. He really does try to put provincial jurisdiction first, so in a case like this where the national interest is involved, he is paralyzed. By rights, he should be invoking the trade and commerce power and demanding BC recognize that there is a larger interest at stake which surmounts provincial interests and overcomes petty power plays of this sort: bottom line, BC does not have the right to prevent the sale of commodities in international markets, and it is Harpers duty to enforce that perspective, even to the extent of putting a reference to the Supreme Court.” The Nexen Inc. Factor – The proposed purchase of Nexen Inc. by the state owned China National Offshore Oil Corporation (CNOOC) for $15.1 billion is awaiting a “likely net benefit” decision by Canada’s Investment agency and Mr. Harper’s cabinet. Weighing in on the discussion is another arm of the Canadian government, Canada’s spy agency which issued a general warning in its annual report; suggesting that it unwise (I would say risky) for Canada to allow a foreign, state owned company to own the operations of a major Canadian company involved in one of Canada’s strategic sectors.. From my perspective, and I’ll repeat what I said a month ago – Canadian resources should be developed and traded in the international market place and that is why the pipelines going to the west coast and into the US are so important; but CANADA IS NOT FOR SALE! Secondly, it is time that Mr. Harper and the federal government got off their high horse and give its full support for the development of a national energy strategy that protects Canada’s interests, rather than sharing them.

Tribute to a Good Man

Smoky Lake Signal Article No. 237 (September 19, 2012) Whispering in the Wind Over the past week, tributes for the late Peter Lougheed have dominated the local and national media, with politicians and broadcasters describing the former premier as one of the greatest provincial leaders in Canadian history. A number of pundits have also labeled Mr. Lougheed as the Father of Modern Alberta and the province’s most important political leader in living memory. These accolades are well deserved and largely based on Mr. Lougheed’s strong conviction toward cooperative federalism and his passion for consensus building – two beliefs that are a must for political leadership in Canada today; although not always followed. For me personally, I was touched by Mr. Lougheed’s unique leadership qualities in the 1970s and 80s and along with working for a number of outstanding ministers (like Hugh Horner and Horst Schmidt); I enjoyed the exceptional experience, an experience for which I will always cherish. Redford’s Wants Consensus – Something Harper Rejects? Six months ago Alison Redford was on the campaign trail fighting for her political life and for another Progressive Conservative mandate, at that time it looked like a losing battle – remember the polls predicting a minority, if not a majority win for Danielle Smith and the Wildrose Party. Enter the big gun Peter Lougheed giving strong support for Premier Redford and her call for a national energy strategy. Well the election is now old news and Premier Redford is enjoying a strong majority government, largely due to Peter Lougheed’s support; but the national energy strategy wished for by both Alison Redford and Peter Lougheed, continues to be resisted by Steven Harper and his government. Last week, Joe Oliver (Mr. Harper’s Natural Resource Minister) opined that Premier Redford’s call for a Canadian energy strategy is redundant, unnecessary and that everything that needs to be done is already being done. In my view, Mr. Oliver is like the proverbial ostrich with its head in the sand – does not Mr. Oliver (no, does not Mr. Harper) realize that one province (British Columbia) is capriciously holding another province (Alberta) hostage when it comes to the movement of product (bitumen) to overseas markets – sounds a lot like blackmail and unless Alberta coughs up a lot of royalty money Alberta will not be able to transport its bitumen to Asian markets. In the meantime Premier Redford is continuing to gain a consensus amongst the provinces with hopes to present an consensus (for at least nine provinces and three territories) to the nation next year. In the meantime Mr. Harper’s government continues to say that everything that needs to be done is already being done. It’s time for Mr. Harper and his government to get more active and do some “cooperative federalism” and a lot of “consensus building” amongst the provinces. And as I’ve said many times before, it’s time that Mr. Harper did some NATION BUILDING. What’s Next for the Liberals? The Liberal Party of Canada has been relegated to third place in the federal parliament’s pecking order and that’s a long, long way from the top. That pecking order is not going to change next April 14 when so-called liberal supporters, through a kind of “free vote” system will have chosen a new leader of the Liberal Party of Canada. How the press handles the work-up to the selection and how they handle the April 14 convention is going to interesting and very telling – will the press write-up the political event as an obituary or a renewal for the Liberals of Canada? Well I’m not going to keep you in any suspense and I’m no seer, it’s that obvious – Justin Trudeau is going to enter the Liberal leadership race and he is going to win. If he decides not run, which is highly unlikely (it should be known within a month or so) then the press can start writing the party’s obituary early and take the spring off. Justin Trudeau (with his youth, charisma, spunk and heritage) is already courting the youth vote with success and if it catches on he could become a formidable force in Quebec and Mulcair’s NDP. Give Mr. Trudeau a couple of years to hone up on policy and he could very well become a real threat to Steven Harper – and the telling part will be the next federal election. So we will all have to wait and see how things unfold – Trudeau has already made a serious error regarding his popularity in Alberta; he’s against the pipeline to the west coast. Nevertheless there is no question in my mind; he is the savior for the Liberal Party of Canada, but he’s a very long way off from being a savior of anything else – let’s wait five years and see.

Harper's Selling Canada?

Smoky Lake Signal Article no. 236 (September 12, 2012) Whispering in the Wind IS CANADA FOR SALE? When it comes to dealing with the Peoples Republic of China (PRC); I advised the Prime Minister of Canada a couple weeks ago that: CANADA IS NOT FOR SALE! I guess he didn’t read my article (ha-ha) because on Sunday, Prime Minister Harper and China’s President, Hu Jintao (while at the Asia-Pacific Economic Conference in Vladivostok, Russia) signed the “Foreign Investment Protection and Promotion Agreement.” After reading the reviews and the interviews with the PM, the main issues became a little clearer. According to the PM the new Agreement will better protect Canadian businesses operating in China – apparently the laws and business practices can and are being applied differently opposite foreign owned businesses – so if the Agreement reduces discriminatory practices in the PRC then that’s good news for Canada, only time will tell. As well, the Agreement will apparently offer greater reciprocity for Canada in terms of market access – for me this reciprocity element of the Agreement is by far, the most important part and possibly the most dangerous part of the Agreement. In my view, Mr. Harper’s government has been far too generous with Chinese state owned companies and how they are operating in Canada, particularly when it comes to their oversight, ownership and management practices in the resource sector. When questioned in Vladivostok about Chinese human rights practices Mr. Harper responded with: “In terms of the Foreign Investment Protection and Promotion Agreement, [it] is an instrument focused precisely on that, and I’m not aware of any such agreements with Canada or with any other countries that try and include other broader issues but those things, as I say, are part of our relationship and dialogue with the Chinese at every opportunity.” Now I’m not one to criticize politicians for evading a question and the use of political speak, but this one takes the cake – if anyone can sort out the issue and explain what Mr. Harper said or what he meant, please let me know. Apparently the prime minister did raise human rights and consular cases in his discussions with Mr. Hu – I suppose that’s some good news. If I were to sum up the present economic / political relationship between Canada and China, it would go something like this: Canada wants market access to the world’s largest centrally planned market system and to gain that access Canada has already allowed heavy investment, ownership and management by Chinese state owned companies in parts of the Canadian resource economies – without appropriate conditions. The big question for me has become; will this new Agreement address and meet Canada’s social and economic goals or are we just selling off the country?

Smoky Lake Signal Article No. 235 (September 5, 2012) Whispering in the Wind An important article appeared in last week’s MACLEANS magazine entitled “Harper v. the Judges” and well worth a read. Written by Andrew Sniderman, the article describes two lower court rulings that have gone against federally passed laws on minimum jail sentences for gun related crimes – one judge called the federal law “fundamentally unfair, outrageous, abhorrent and intolerable” another judge called the law “unconstitutional.” Prime Minister Harper defended his stance on the mandatory minimum jail sentencing law indicating that it is “essential” in the government’s getting tough on crime strategy. Mr. Sniderman’s essay also describes a number of other cases that have been “rebuffed” by the courts (i.e. safe injection sites; having a national securities regulator; Omar Khadr’s return from the US); are presently “in the courts” (i.e. mandatory minimum sentences; assisted suicides; open prostitution and brothels); and some issues that are likely to be challenged in the courts (i.e. detention of refugees; back-to-work legislation). After reading the “Harper v. the Judges” article it is my view that Canada’s elected politicians and members of the court had best come to a better, no, a clear understanding as to their respective roles in Canada’s legal system – the consequences for not clearing up this confusion could result in a major failure in Canadian democracy. The Neo-conservative Perspective: The “battle” between Mr. Harper’s government and the courts is being viewed by some neo-conservatives as a struggle between an over zealous judiciary that is establishing its own legal framework versus an elected, majority government passing laws which in its mind, reflects the will of the people. Spokespeople on the government’s side, have offered some unusual views that are particularly troubling to those who believe in a judicial system that is and remains independent from the legislative branch of government and still in full compliance with all the tenets of the country’s Constitution and its Charter of Rights and Freedoms. The former head of the Reform Party of Canada, Preston Manning suggests that the Charter of Rights and Freedoms encourages and empowers the courts to be activist and because of this judicial activism, the courts are out of sync with Canadian society. Mr. Manning also reasons that in the last federal election the Conservatives were successful in winning a majority government and that means, all Canadians generally share Conservative values. Mr. Manning concludes: “When the court goes against those [Conservative values], the court is not only going against the government, but also going against values that are alive and well in society.” Even Prime Minister Harper has entered into the fray over the role of the courts. A couple of weeks ago in Toronto the PM defended his government’s law on minimum sentencing by saying: “I think these [shooting] events in Toronto underscore why these penalties are essential, why it is essential to have tough and certain penalties for gun crime….and I certainly call on the courts to take these penalties seriously.” My Perspective on the Court Debate: Surprise, Surprise; I actually support a part of Prime Minister Harper’s political agenda, particularly when it comes to having and implementing a getting tough on crime strategy; having a single securities regulator for Canada and supporting the development of infrastructure to move bitumen to foreign markets in an environmentally sound manner – these are all good things and are all good building blocks when building a stronger, safer, more economically sound nation. But when Mr. Harper and his supporters attempt to discredit, if not destroy, the independence of Canada’s court system, then Mr. Harper and his neo-conservative advisors have gone over the top. Preston Manning, possibly Steven Harper’s most ardent supporter and a close libertarian advisor to the PM has floated some ideas that are ridiculous and without question, illogical. Mr. Manning states that because Mr. Harper won a majority government, the values of the government (the Conservative Party) have become “generally” the values of all Canadians – I sincerely hope Mr. Manning realizes that Mr. Harper won his majority government with 39.6 percent of the popular vote. In my view Mr. Manning’s inference is not only wrong, it’s ridiculous. Mr. Manning also feels that the judiciary is activist and not responsive to Mr. Harper’s government and the laws passed by his majority government. What I gather from Mr. Manning’s outrageous statements, he feels that Mr. Harper’s government, because it is a majority, is somehow supreme to all the other arms in Canada’s constitutional framework; including the country’s Constitution and the courts. The judiciary has a specific task and that is; to assure all elements of our society operate within the tenets of the Constitution and to make judgments on that operation – in my view, Mr. Manning’s opinions are not only ludicrous, they are irresponsible. Prime Minister Harper is also attempting to influence the courts when he suggests that judges should take his legislative initiatives “seriously” – it’s not up to Prime Minister Harper to tell or direct the courts to do anything; the courts are guided by the Constitution and not by some single political will or philosophy. Should the Prime Minister prevail in this debate, some observers are rightly suggesting that Canada will no longer be a democracy with its checks and balances, it will operate with a single, absolute ruler and by definition, that’s tyranny.

Canada - Targetted?

Smoky Lake Signal Article No. 234 (August 29, 2012) Whispering in the Wind Over the past five years I have written “Whispering in the Wind” with one important objective in mind: to have the reader think about politics and react to the assessments and opinions offered in the column; whether they are positive or negative. I get e-mails and have been stopped on the streets in Smoky Lake with encouraging remarks and suggestions – I have also been told that my views are “out to lunch” and I wage biased “battles” opposite politicians and how political issues are being handled – keep the comments coming. China is Awash in Money For those that have forgotten, the Peoples Republic of China (PRC) is a communist country – forty years ago the so called “western” nations voiced distain on the PRC and its repressive, undemocratic society. Today, the PRC is simply called China, it is still repressive and undemocratic but it has grown to be the world’s consumer goods manufacturing center – thanks to many global corporations moving into China to take advantage of its cheap labor environment. China has also become the holder of much of the United States’ debt so China is now awash in US debt-money. As a result of its wealth it now appears that China is starting another phase in its world presence – imperialism. China has not only has proved itself to be an astute player at the game of capitalism, China has now become imperialistic and could it be that one of its targets is Canada? Is Canada a Target? China’s National Offshore Oil Corporation (CNOOC) recently put in a $15.1 billion bid for the takeover of the Canadian, Nexen Inc. – it is the biggest takeover bid of a Canadian company by a Chinese state owned entity. Also Talisman Energy Inc. wants to sell a 49 percent interest in its North Sea operation to Sinopec for $1.5 billion – last year, Sinopec bought Daylight Energy Ltd for $2.1 billion and that purchase was the first successful bid by a Chinese state owned company for a North American energy company. In 2012, PetroChina was successful it its bid for the purchase of Athabasca Oils Sands Corp. making PetroChina the full owner of that oil sands project. It is also estimated that in the future there could be tens of thousands of Chinese workers stationed in the Fort McMurray area under what is called the temporary foreign workers program – there are already a number of serious labor charges that the Chinese workers are not being treated in accordance to Canadian, Alberta labor and safety standards. Both the Nexen and the Talisman deals are still pending with the final decisions awaiting a ruling by the federal government as to the “likely” net benefits accruing to Canada. From my perspective, Canadian resources should be developed and traded on the international markets and that is why the pipelines going to the west coast and into the US are so important; but CANADA IS NOT FOR SALE! Secondly, it’s time that the federal government gave its full support for the development of a national energy strategy.

Inquiries in Alberta - Is a Good Thing

Smoky Lake Signal Article No. 233 (August 22, 2012) Whispering in the Wind Redford Wants Change – At What Price? A year ago Alison Redford was advocating “change” and a new way of doing government business in Alberta – since then Ms. Redford was installed as premier and her party was re-elected with a strong majority. With Premier Redford’s victory at the polls 10 months ago she has announced something like a dozen inquiries and investigations into how government operates in Alberta and how her government might operate better – I call her actions a necessary requirement for change and anxiously await the results, the follow-up and the implementation. Her announced investigations vary widely and include: a more effective monitoring system in the oil sands industry; queue-jumping in the medical services industry and her latest inquiry; the expense account scandal at Alberta Health Services. Critics have said that the various issues under investigation have already been studied to death and it is time for action. From my perspective, each and every issue under review should, no, must be thoroughly and closely examined before change is implemented – otherwise things could get even worse, adding mistake upon mistake. For example, the so called Alberta Health Services scandal when first exposed, appeared to be the actions of a rogue executive (with the possible help from his supervising board member) who had his greedy hands in the government’s “cookie jar” – a despicable set of actions but something the RCMP could have easily dealt with in their white collar crime unit. On closer examination, the press now suggests that there might be a culture of greed and elitism within the top echelons of Alberta Health Services, where about 50 senior executives are gouging the healthcare system with their lavish salaries, expense accounts, severance packages, pensions and supplementary pensions. So what started out as a single, rotten incident (that will have to dealt with and the perpetrator(s) thrown into jail) has evolved into an inquiry that will review the hiring practices and employment contracting practices for outside contractors and senior government bureaucrats. The inquiry will also establish reporting requirements and expense account guidelines for cabinet ministers and senior government officials. What I find particularly confusing in this whole mess is the lack of action on the part of the province’s Auditor General or independent auditors, when they are used – Ah, another inquiry. Regardless, I applaud Premier Redford’s call for the Alberta Health Services inquiry and all the other investigations she has initiated but she has to be cautious so as not to be branded a procrastinator – and accused of covering up all of the ground-in dirt. Does Smoky Lake Need a Couple of It’s Own Inquiries? Over the past year or so I have periodically commented on the EPCOR water pipeline coming to Smoky Lake – well the pipeline has been built but there is no EPCOR water coming into the Smoky Lake region? Months ago I concluded that Strathcona County oversold its water allotment leaving nothing for communities in the counties of Thorhild and Smoky Lake. Local politicians seem to be reluctant to talk about who did what to whom so in my view, I can only hope that politicians in the Smoky Lake region did all the right paperwork to guarantee an appropriate portion of the EPCOR water allocated to the northeast region, comes to communities in the Thorhild, Smoky Lake region. Another issue has arisen in the last week or so that seems to be troubling our local politicians – the federal elections commission has re-drawn the federal electoral map and in their wisdom recommend that residents in the Smoky Lake fall under a Fort McMurray constituency. From my perspective I don’t see any advantage or benefit to having Smoky Lake residents attached to a very large population center some 400 km away.

Redford has a Couple Problems

Smoky Lake Signal Article No. 232 (August 15, 2012) Whispering in the Wind For those who read this column regularly it is well known that I have supported Alison Redford’s candidacies, right from the start: in her bid for the Alberta PC leadership and then again in her success at the polls in the last provincial election. Today, I continue to support Premier Redford (and her team) but she is facing at least two challenges which could prove disastrous for her (and her progressive government). She must handle these two issues with conviction and determination – and yes handle both expeditiously. The Pipeline Saga Alberta, no Canada is on the threshold of becoming an energy superpower and to a large extent success will be dependant upon the acceptance of a pipeline running from Alberta to Kitimat, British Columbia. Rather than showing responsible leadership and preparing for the opportunity, politicians are squabbling amongst themselves – at least one is demanding a bigger piece of the revenue pie and another is showing indifference to the major issues involved – typically this approach is called the “Canadian Way”. Right from the start Premier Redford has asked for a “national” energy strategy and for that vision I congratulate Premier Redford, she is on the right track. On the other hand, Premier Christy Clark of British Columbia is demanding a share of Alberta’s royalty revenue (to her, if the money doesn’t come from Alberta then it will have to come from Ottawa) – some have called Ms Clark’s approach to be blackmail. I discount Premier Clark’s argument, to me her statements are largely a ploy to win power in next year’s provincial election in BC. The Prime Minister seems to be quite indifferent to the issues surrounding the pipeline debate – it’s like the decision to build the pipeline has already been made in Ottawa with only a few bureaucratic hoops to be overcome. Initially, Mr. Harper didn’t want to get involved in the squabble between Alberta and British Columbia, he seemed to view it as a tiff between two unruly children, he being the senior. More recently, the Prime Minister indicated that the decision on the Enbridge Northern Gateway pipeline would be based on the “science” and not on the politics – in my view it’s all about politics. No question in my mind; Premier Redford has got it right in asking for a nation building, “national energy strategy” and Prime Minister Steven Harper has got the responsibility to develop such a strategy. The first step for the Prime Minister, call for a First Ministers Conference on how Canada will become a responsible energy superpower. Alberta Health Services Debacle Alberta’s “expense account” scandal has blossomed into a monster of a problem for Premier Redford and Health Minister Horne and they had best deal with the problem quickly or suffer both short and long term consequences. What started out as a very serious bureaucratic problem; where chief financial officer, Allaudin Merali (with the possible help of a board member) milked the health system for a couple of million dollars between 2003 and 2008 when he was with the Edmonton Health Authority – very serious yes, possible contravention of the law, possibly and should any proven fraudster or any other related culprits be thrown in jail, no question! More information is coming to light on the whole issue of compensation, pensions and surprise, surprise there are even supplementary pensions in Alberta’s healthcare system. The press now confirms that Mr. Merali not only was given a million dollar severance package in 2008, he was given a generous regular pension and are now told was given a supplementary pension of $1.6 million over a ten year period. What is bizarre, Mr. Merali was re-hired by Alberta Health Services earlier this year (after he was fired by Ontario’s health authority) and only recently resigned after his extravagant expense spending was exposed. What is even more bizarre is that the outrageous compensation package offered to Mr. Merali seems to have been carried on and offered to about 50 executives within the province wide Alberta Health Services. Just looking at the “supplementary” pensions (that’s over and above regular salary and regular pensions); President and CEO, Chris Engle will receive $1.4 million; Executive Vice-president David Megrau will receive $783,000 and too many more to list – no question, something is “rotten in the state of” Alberta Health Services. To this point in time I will not accuse Premier Redford (nor Health Minister Fred Horne) for being complicit in this monster of a problem (I still think it is a massive, out of control bureaucratic problem); nevertheless, they both are responsible for the monster and will have to address the problem – they had better do it quickly; otherwise, they will be accused of a cover-up – the only course of action is a full blown inquiry.

Scandals Unfolding

Smoky Lake Signal Article No. 231 (August 9, 2012) Whispering in the Wind From my perspective, scandals should be described as shameful acts that go against “acceptable” standards or any codes of conduct as identified in the area’s legal systems. Scandals are almost always viewed by the general public as offensive, if not despicable and depending on how the news media handles a specific set of circumstances; scandals usually bring disgrace and humiliation to the individuals involved. In the last few months Canada has been exposed to three so-called scandals which have received varying degrees of attention: “Bev” Oda Scandal Bev Oda lost her job as the federal government’s International Cooperation Minister because she apparently up-graded her accommodation while on a trip to England and at the time, ordered a glass of orange juice costing $16. Bev Oda was also harassed in the press for having purchased an air filter contraption for her ministerial office (she’s a smoker). In my view, Bev Oda’s resulting resignation was not warranted and the Prime Minister should have never accepted her resignation – anybody that has done any amount of international business travel will not be shocked at being over charged for something (like $16 for a glass of orange juice) – simply put, being over charged for something is not an unusual occurrence when traveling and the media totally mishandled this non-scandal. Alberta Health Services Scandal One would have to be in a coma to not have heard of the Alberta Health Services scandal involving Sheila Weatherill and Allaudin Merali. From 1996 to 2008 Sheila Weatherill was President and CEO of the Capital Health Authority and between the years 2003 and 2008 she approved something like $350,000 in expenses for a Mr. Allaudin Merali who was, at that time, Chief Financial Officer of the Edmonton authority – he was also earning over $300,000 in annual pay. Mr. Merali left the Edmonton authority in 2008 to join EHealth Ontario where he earned $2,700 per day plus expenses – he was fired in 2009 because of an expense account scandal (his) in Ontario. In 2008 the Edmonton authority was consolidated into a province wide system, Alberta Health Services. Ms. Sheila Weatherill moved to the new province wide system as a board member and it’s chief operating officer – guess what, about 4 months ago, Allaudin Merali was re-hired as Executive Vice-President and Chief Financial Officer, Alberta Health Services at $425,000 per year. When all this expense account stuff was exposed by the CBC both Sheila Weatherill and Allaudin Merali resigned their positions. Premier Redford responded to the shocking revelations, stating that Mr. Merali’s actions were “entirely inappropriate.” Health Minister Fred Horne was “outraged” and “dumbfounded.” but did not indicate the possibility of legal action. The opposition parties did not hesitate with their comments and blamed Redford’s government and demanded action, including a forensic audit. For me it is a little early in the scandal to cast responsibility and the public has yet to hear from Dr. Chris Eagle, President and CEO of Alberta Health Services. One interesting point raised by Minister Horne who indicated that any contract commitment would be honored and that means a years severance pay (after only four months work) and a number of other “hidden in the contract” benefits which could end up costing the province millions. For the moment I think it is unfair to accuse politicians for faults that might have occurred in an “arms length organization.” In my view it will be up to Dr. Eagle and the board to clean up what is an obvious mess – after all there are something like 36 senior executives at Alberta Health Services (1 president; 6 executive vice-presidents; 18 senior vice-presidents and 11 vice-presidents) and that should be enough to manage the people and the $12 billion dollar budget – Dr. Eagle it up to you to offer appropriate transparency and undertake appropriate action! Manitoba’s Judicial Scandal I was challenged by an interested reader to deal with a judicial “sex” scandal unfolding in the Province of Manitoba. Lawyer Jack King and his wife, Judge Lori Douglas have been accused of sexual harassment and placing sexually explicit pictures of Judge Lori Douglas on the internet. Apparently the explicit pictures were taken between 1996 through 2003 and then placed on the internet in 2003. The pictures were also used to entice a third party (Alex Chapman) to participate in some form of group sex activity. The harassment charge comes from Mr. Chapman who apparently was given $25,000 (from Jack King) in 2003 for the return of the pictures? Judge Lori Douglas’ lawyer has already asked that the Canadian Judicial Council inquiry be folded because the judges in the inquiry are themselves biased (the inquiry is headed up by three distinguished judges from three provinces). Because another 10 witnesses have to be questioned, the inquiry has been scheduled for further hearings in the fall. To me, there are two primary issues involved in this scandal: First the harassment charges made by Alex Chapman – in my view the 2003 payoff of $25,000 to Chapman has settled the issue (Chapman initially asked for $100,000). The second issue has not been settled and it is whether Lori Douglas knew the sex photos taken of her were being posted online – and whether she lied on here application form to become a judge, when she was asked, if there was anything in her past that could or would negatively impact on the image of the judiciary in Manitoba (and elsewhere)? More to come on this one!

B.C. Premier on a Rampage

Smoky Lake Signal Article No. 230 (August 1, 2012) Whispering in the Wind An interesting thing happened to me while writing this article, the power went off and my plans had to change abruptly. I had to quickly learn my wife’s portable, battery operated computer system and at 71 that wasn’t easy. Hopefully this re-write will make it through the system before the copy deadline. B.C. Premier on a Rampage – Wants More Money! Premier Christy Clark of British Columbia threw a monkey wrench into federal-provincial and inter-provincial relations last week when Ms. Clark demanded more “benefit” and less risk from the construction and operation of the proposed Northern Gateway Pipeline; a $5.5 billion project that would ship bitumen from Alberta’s oil sands to Kitimat B.C. and then onward to Asian markets. According to some research done by the B.C. government; 8.2 per cent of the Northern Gateway’s projected $81 billion tax revenue would go to B.C. over a 30 year period. Said another way: $6.7 billion for B.C.; $4 billion for Saskatchewan; $32 billion for Alberta; and Ottawa would take in $36 billion. Premier Clark carefully states that if the Province of British Columbia doesn’t receive more “benefit” (from Alberta’s royalty levy) there will be no pipeline project. In one sense, Premier Clark has outlined her version of a National Energy Strategy, specifically as it relates to oil sands development in Alberta, in the meantime Premier Redford is moving forward on her version of a National Energy Strategy with the support of nine premiers and the territorial leaders (apparently without the participation of the Premier of British Columbia). To sum up, I think Premier Clark’s demands are ridiculous and divisive – and most important; extremely dangerous for the country – leads me to think that she has other motives. B.C. Premier of a Rampage – Wants to Get Re-elected! In early June of this year a poll was taken on Canada’s provincial premiers and their approval rankings – Saskatchewan’s premier, Brad Wall raked first with a 67 percent approval; second was Alberta’s premier, Alison Redford; and the premiers of Manitoba and Newfoundland / Labrador tied for third. The poll put Liberal leader and premier of British Columbia, Christy Clark’s rating at 30 per cent, a drop of 3 per cent from a similar poll taken in March of 2012 – only the Nova Scotia premier had a worse showing. Relevant is the ranking of British Columbia’s opposition leader, NDPs Adrian Dix, who ranked second most popular opposition leader in the poll with an approval rating of 58 per cent. To repeat, the poll was taken in early June, 2012 and the pollsters at that time indicated that if Christy Clark wants to hang on to power, she and the Liberals will have to find a way to close the gap before the next election (the election must be held in less than a year). Well, Christy Clark found a way to gain positive attention in British Columbia, the Northern Gateway Pipeline project. One pollster has already indicated that Christy Clark’s actions and rhetoric is going over well in British Columbia and could mean an approval boost of 10 or more points. Ten or more points is critical when fighting in an election – looking forward to an election in the early fall in British Columbia and a lot more Alberta bashing.

CHANGES IN ALBERTA

Smoky Lake Signal Article No. 229 (July 25, 2012) Whispering in the Wind Two important “political” events occurred just two days ago with another unfolding as this column is published. Collectively, these three events will end up showing the effectiveness of Canadian “cooperative” federalism – or show that “cooperative” federalism is just not working. NEXEN Inc. Takeover China’s state owned China National Offshore Oil Company (CNOOC) put in a bid on Monday to take over the interests and assets of Calgary based, NEXEN Inc. for $15.1 billion. The CNOOC will have to go through a lot of hurtles but in the end I don’t see any Canadian foreign investment review process turning down the application. For many in Ottawa it is particularly welcome news and demonstrates that Prime Minister Harper’s strategy of diversification of markets is working. The Prime Minister also wants Alberta’s oil sands development to be the cornerstone of Canada’s national energy strategy that identifies Canada as being an international energy “superpower” with locked in markets – the logic fits in perfectly with Premier Redford’s call for a National Energy Strategy. Nevertheless there are consequences for supporting the NEXEN takeover and the loss of some control over Alberta’s (if you will Canada’s) oil sands resource base. In my view the NEXEN has to be put into some sort of context, here is my first attempt: 1. Two studies that I have read about indicate that about two thirds (or about 71 percent) of oil sands production in Canada is owned by foreigner entities. 2. The Peoples Republic of China through state owned companies have invested something like $11.7 billion in oil sands production (between 2007 – 2011) which is about 16 percent of total investment of $73.6 billion (between 20907 – 2011). The NEXEN takeover price is $15.1 billion, one could conclude that China’s interest in Alberta’s oil sands development has increased to somewhere around 30 percent. 3. The NEXEN news releases regarding the CNOOC bid stress the fact that a good deal of their activity is international in scope, but it should be pointed out that NEXEN has significant interest in oil sands development: they have a 7.23 percent interest in Syncrude; have an operating project at Long Lake that NEXEN own 65 percent and CNOOC owns 35 percent. In total NEXEN has something like 300,000 acres of leased land in the Athabasca region with something like 3 – 6 billion barrels of recoverable oil sands resource. If the China National Offshore Oil Company is successful in the purchase of NEXEN, the CNOOC plans on opening a head office in Calgary which would control their North and Central American operations. CNOOC will also register on the stock market, something I find strange? British Columbia Demands More Benefit and Less Risk On Monday the British Columbia government released it’s conditions regarding their support for the proposed Enbridge Northern Gateway Pipeline project which, if approved, will move bitumen from Alberta to Kitimat, British Columbia and then onto Asian markets. For the British Columbia government the demands are quite straight forward; they want a greater share of the benefits (currently estimated at 8 percent) and a greater spread on the potential environmental risks attached to the project (both marine and pipeline). The Alberta government has rejected both demands indicating that the government of British Columbia, in making demands that will pit one province against another. The real question is going to be how Prime Minister Harper is going to deal with the aboriginal questions; where the proposed pipeline route will be going through hundreds of reserves. Council of the Federation Meeting The Premiers of Canada are meeting this week in Nova Scotia and there appears to be a lot of frustration regarding the apparent cool relationship between the Premiers and the Prime Minister. That coolness is not only reflected in the lack of First Ministers Meetings (none have been held for years) it is also reflected in the PM’s reluctance to have national discussions on topics like healthcare, education and of course, a national energy strategy. Premier Darrell Dexter is hosting this years meeting and suggests that there is some “consternation” amongst the premiers in that the Prime Minister is not engaging the provinces when the provinces are directly impacted by decisions made in Ottawa. What transpires at this meeting in Nova Scotia is not only going to be interesting the question is going to come down to will Prime Minister change his mind and do some NATION BUILDING with the premiers?

Smoky Lake Signal Article No. 228 (July 18, 2012) Whispering in the Wind After a two week holiday it has not been easy to get back into the groove of writing a weekly column; largely due to the hot weather and my unexplainable passion for the game of golf. Fortunately the Smoky Lake area saw some much needed rain on the weekend and that allowed me to set down some thoughts on what has been going on (or not going on) in the news. Smoky Lake Area A few weeks ago I wrote about Smoky Lake’s potable water issues and thought that the Highway 28/63 Regional Water Commission would explain why water is not flowing from the recently built (and completed) water delivery system. My understanding is that the bottleneck is a result of Capital Region Northeast Water Services Commission over-dedicating water supplies to industrial subscribers in the region south of Redwater – which likely means more pipeline capacity will have to be added if potable water is to flow into the Thorhild-Smoky Lake region. Two questions immediately come to mind: when will additional pipeline capacity be realized south of Redwater, and who is going to be paying the bill? Another bit of information has come to light that I found quite disappointing, if not disturbing; Dean Pickering resigned his position as Smoky Lake’s Town Manager. I personally found Mr. Pickering to be a very capable administrator and hope that the town council’s selection group finds someone with equal capabilities and qualifications. National Energy Strategy Even before she became Premier, Province of Alberta, Alison Redford was a strong advocate for a national energy strategy – from my perspective it was one of the key elements in her successful bid for the leadership of the Alberta PC Party and then her subsequent success in last April’s general election. More recently Premier Redford has taken her message for a Canadian National Energy Strategy into numerous political discussions within Canada, the United States and most recently, into the Peoples Republic of China. From what I have read there is some support for the concept (even in the private sector) but a real lack of detail and that is why Prime Minister Harper is a little cautious in offering the federal government’s “gung-ho” support for Premier Redford’s ideas. There is no doubt in my mind that the Prime Minister likes and supports some of the building blocks of a Canadian National Energy Strategy but doesn’t want to be involved in some of challenges attached to the development of a common regulatory framework in the provinces, never mind the problems attached to and dealing with the many aboriginal issues related to the construction of pipelines. For Premier Redford, her priority wish list is clear – the construction of two bitumen pipelines from Alberta to satisfy United States and Asian markets. If I were to summarize: Premier Redford has a brilliant economic idea that should be pursued with vigor – in the end, there will be a Canadian National Energy Strategy – and in the end, that Canadian National Energy Strategy will have to include environmental sanity, resource upgrading, diversification and economic consolidation. For Prime Minister Harper, it is time that he get off his ideological high horse and reject the idea that it is CENTRAL PLANNING and accept that the process being discussed is a form of NATION BUILDING.