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.