Community Newspaper Threatened

Whispering in the Wind December 16, 2013 (WITW 9)

For me December has always been the month for reflection and the setting of goals for the upcoming year – never mind contending with the recent dumps of snow on my driveway and the buildups of ice near my front door.  Aside from the unusual, uncontrollable weather I do see a storm brewing in the Town of Smoky Lake over a recent decision by four councillors.  Their decision was to end the financial support given to the Smoky Lake Signal for the circulation of its newspaper to town ratepayers.

The December 4, 2013 Decision

At the Town of Smoky Lake Council meeting of December 4, 2013 there was a five minute discussion on the town’s long standing agreement with the Smoky Lake Signal to circulate newspapers to about 500 rate payers in the Town of Smoky Lake.  One councillor voiced that during her election campaign a number of businesses expressed their concern over the subsidy given to the Signal and why shouldn’t their businesses be “topped up” as well.  Another councillor indicated that he was elected to be a good manager and “a lot of budget cuts” were in order.  In the end Councillor Randy Mykitiuk moved to “cancel the bulk subscription program” with the Smoky Lake Signal – the four sitting councillors voted in favor of the motion, Mayor Brousseau was absent from the meeting and the vote.

Lorne Taylor’s Response

In the December 11 issue of the Smoky Lake Signal, owner and publisher of the Signal offered his response to the decision made by the town’s council.  Mr. Taylor explained that the dollar support (about $6,000 annually) is partly offset by a discount given to the town for advertising placed in the paper by the town (about $1,500 to $3,000 annually).  Mr. Taylor calculates the cost to the town to be $12 for each yearly subscription or approximately 25 cents per week per subscriber.  Mr. Taylor also points out that mailing charges are also a major factor in his business – for a $25 yearly subscription it costs the Signal $15 dollars in mailing charges if you live in the area.  Mr. Taylor concludes his open letter with a very disappointing comment: “We are not fighting the decision but another nail has been driven into the coffin of your community newspaper.  It is now up to the Smoky Lake 500 to show if they care by subscribing.”   

My Response

For me the thought of Lorne Taylor and the Signal struggling with Smoky Lake Town Council’s decision is heartbreaking but sooner or later reality sets in and it comes down to the question of the paper’s survival.  For me it is worth a few comments and suggestions:

1.       I’m not a historian but my feeling that when the agreement was first struck some 34 years ago it was a win, win situation for both the townspeople and the Signal.  In my view that situation still exists today. 

2.      The figures that Lorne outlined in his open letter indicate a greater “subsidy” than warranted – I feel the support is under $10.00 per bulk subscriber.  Last week’s announcement by Canada Post that postal rates might double, is bad news for the Signal and should be an indicator to the Town of Smoky Lake (and Smoky Lake County) that support of the Signal is critical.

3.      I think the purpose of a community newspaper is to offer information about what’s going on in the area, the events, the people and yes the politics.  I’ve been on the internet feed to get information and a feel of how the decisions were made at council meetings – the performance of the town website leaves a lot to be desired.

4.      During the December 4 meeting several words were used to describe the arrangement between the town and the Signal – incentive, subsidy – I’ve tried to use the word support.  Another way of looking at the arrangement is the Signal is offering a “service” to the community and therefore there should be a fee for surface.  With the decision made on December 4 that service has been withdrawn from the community.

5.      Another important element is the employment impact of the Signal’s operation.  My understanding is that there are three administrative employees; three reporters and at least two unpaid columnists like me – need I say more?

6.      I cannot speak for Lorne but I feel that more can be done to mend some broken fences.  I would appreciate some feedback, so please write to me at the Signal with your ideas – remember time is short.

Does Language Betray Thought?

Whispering in the Wind (December 2, 2013) WITW8 - 

Does language betray thought?

Nelson Mandela – A Man with Vision and Hope

The death of Nelson Mandela last week has over-taken all other news stories in Canada and around the world.  Mr. Mandela was South Africa’s anti-apartheid icon and President of South Africa from 1994 – 1999.  After spending 27 years in prison for his revolutionary leadership, Mr. Mandela guided South Africa away from the 1948 apartheid policies (i.e. legislated discrimination and segregation) to a more democratic system of governance.  With the passing of Mr. Mandela there is concern that there will be a backlash from those who have not benefited from the reforms introduced by the “father of modern South Africa”.  Important to note, South Africa continues to be labeled by a number of international organizations as one of the most corrupt nations in Africa – so Mr. Mandela’s vision of hope, equality and fraternity has yet to be fully achieved.  In the years to come, one can expect turmoil, chaos and there is even a possibility of violence involving the minorities in South Africa – including the white minority.  In the meantime Prime Minister Harper is attending the State Funeral for Mr. Mandela along with four former Prime Ministers (Brian Mulroney, Kim Campbell, Jean Chretien, Joe Clark), the Governor General of Canada, including  Michaelle Jean and Alberta Premier Allison Redford.

The Signal Loses Town Support

I was all prepared to write about developments in the Senate Expenses Scandal and a couple of other items that I think are emerging political trouble spots – The Rogers takeover of hockey in Canada and the threat to the very existence of the Canadian Broadcasting Corporation (CBC); the major change in Canada’s foreign policy which places business, rather than diplomacy, as the country’s top foreign relations priority.  These subjects have taken a back seat to some shocking information I received last Thursday – The Town of Smoky Lake will no longer be supporting The Signal newspaper with a subsidy on the subscriptions to each property owner in town.  I’m still trying to sort out some of the facts and what it will means to residents of Smoky Lake.  In the weeks to come I hope to get a handle on the issues and will be reporting my views in future Whispering in the Wind columns.  It is a little early in this political debacle, but let me offer two observations.  The four town councillors made a mistake (apparently the Mayor was not at the meeting to give his guidance).  Second, I think Smoky Lake County should get involved and offer support to the region’s businesses.

The Emperor Has No Clothes

Whispering in the Wind (December 2, 2013) WITW 7

I start this week’s column with the fairy tale “The Emperor Has New Clothes” by Hans Christian Anderson – here’s my take on this famous story.  The fable involves a mythical land and an emperor who prided himself on his fine wearing apparel.  At one point in his reign the emperor wanted to re-enforce his authority so he asked his tailors to make him a new set of clothes that would astound his underlings and impress all under his rule.  In fear of losing their heads, the stumped tailors clad their emperor in “invisible” finery saying to the emperor: only those who are stupid, incompetent, or unfit for office will not see the emperor’s “new” stronger presence in his fine new clothes.  With confidence the emperor proudly went out to his people in his new finery and the crowd was in awe and applauded enthusiastically – only one, a small child innocently cried out: “The Emperor Has No Clothes.”  For me there are political lessons that can be drawn from this fairy tale and they come out in spades when looking at Canada’s current political landscape and three of its most prominent personalities.. 

Prime Minister Steven Harper – The Emperor Has No Clothes

A year ago it was a simple expenses scandal involving three rogue Senators who got greedy and didn’t play the game, the way the game was normally played in the Red Chamber.  Recently the scandal has blossomed into an expose of political intrigue, manipulation and corruption - all apparently engineered out of Prime Minister Harper’s office.  Mr. Harper’s obfuscation in the House of Commons (by not answering straight forward questions) indicates a cover up with the real possibility that Mr. Harper was directly involved in the abuse of power – at the very least.  To me, Mr. Harper has been stripped of most of his defenses and his approval rating has plummeted to an all- time low with a good number of “grassroots” conservatives suggesting that he step down.  From my perspective it is no longer the Senate Expenses Scandal, it has become an Abuse of Power Scandal and I expect the RCMP is strong enough to see it through to the end, for the “Emperor Has No Clothes”. 

Mayor Rob Ford Scandal – The Emperor Has No Clothes

The Rob Ford saga continues and there is no doubt, more revelations are at hand.  Last week a Superior Court justice issued an order that the censored portions of incriminating police documents are to be released, in full, without any blackouts.  As to why the Toronto police have not charged Mayor Ford with known criminal infractions the authorities are mum – my feeling is there are bigger fish to fry so Canadians will have to be patient.  Nevertheless there continues to be some support for the down to earth Rob Ford and his serious addictions and inappropriate actions – actions that have been labeled as “just shenanigans”.  So the saga continues and The Emperor Has No Clothes. 

Premier Pauline Marois – The Emperor Has No Clothes

Quebec’s Premier Pauline Marois has shown herself to be a shrewd strategist when it comes to Quebec politics.  As leader of the Parti Quebecois her ultimate goal is clear, Quebec’s separation from Canada.  To achieve that goal Premier Marois has taken a big, first step toward sovereignty by tabling Quebec’s Charter of Values in the province’s National Assembly.  The unpalatable charter bill has been labeled by one reporter, “PQ’s madness has a method” and the leader of the official opposition in Quebec has called the bill “a frontal assault on our freedoms” and will be challenged in the courts if the charter becomes law.  As surprising as it might be, the defeat of the Charter of Values in Quebec’s National Assembly is likely and just might be exactly what the Parti Quebecois leader wants – Marois heads up a minority government and has stated that a defeat of the charter bill could be treated as a vote of non-confidence – and that means an election.  An election based on the Charter of Values as presented will end being a sovereignty election with extremely dangerous religious, ethnic overtones.  Premier Marois has shown her colors and no matter how it turns out, it’s not good for Canada, it’s not good for Quebec. 

Federal By-elections - Winners and losers

Whispering in the Wind November 26, 2013 WITW6

Prime Minister Harper Has to Face Up to Reality

Canada’s political landscape has changed dramatically in the last number of years and some would say not for the better.  In the last year Canadians have been exposed to two scandals which continue to be investigated by police authorities – charges are pending in both scandals.  What is so fascinating and very, very disturbing about the Senate Expenses scandal; the authorities are now investigating the role of the prime minister and his staff – there is a real possibility that criminal charges will be assigned to a number of people associated with related cover-ups including, Senator Mike Duffy and Prime Minister Harper’s former Chief of Staff, Nigel Wright.  To measure the mood of Canadians and how they view the Senate scandal a large number of polls have been undertaken and it’s never good news for Prime Minister Harper and the Conservative Party of Canada.  As to the mood of the electorate there were four federal by-elections held on Monday.  The results are fascinating and some are saying that the results are an omen of what is to come in 2015.

By-Election Results – The Winners and Losers 

November 25, 2013 saw federal by-elections take place in four ridings – Toronto Centre; Montreal Bourssa; Manitoba Brandon-Souris and Manitoba Provendcher.  The results did not change the party standings in the House of Commons and the status quo was maintained, two Conservative victories and two Liberal victories.  It goes without saying that the Liberals claimed a major victory for leader Justin Trudeau - Mr. Trudeau has made his mark, now he has to deliver.  Tom Mulcair of the NDP will have to lick his wounds because of his poor showing in Montreal and Steven Harper will have to admit that the Senate Expenses Scandal has tarnished his brand in Manitoba, if not all of western Canada.

Premier Alison Redford Endorsed by Party Faithful

Alison Redford was given a 77 percent approval rating by the Alberta Progressive Conservative Party last week in Red Deer.  Her comfortable support – political supporters call it strong – is under-rating her skills as a political leader.  From my perspective she proved to be a major political force in Canada because of three recent initiatives – thwarting the premier of British Columbia from grabbing onto some of Alberta’s royalties; sponsoring and helping to lead in the development of a Canadian Energy Strategy and negotiating an energy framework agreement with the People’s Republic of China.  Alison Redford still has a lot of work to do on the Alberta royalty issue and she has to find some way to get Prime Minister Harper (and the other provinces) engaged in a Nation Building exercise.   As an aside: to those that produced “The Building Alberta Plan 2013 Edition” add a fourth building block and label it “Nation Building”.         

Alberta's Royalty Windfall

Whispering in the Wind: (November 18, 2013) WITW 5

As unbelievable as it is, the Rob Ford saga isn’t the only political story worth discussing:

Northern Gateway Pipeline Project

After months of “frosty” dialogue and intense debate Alberta Premier Redford and British Columbia Premier Clark signed an accord that moves the Northern Gateway Pipeline proposal a step closer to reality.  In the first week of November the two premiers agreed to a strategy that will most likely see Alberta bitumen shipments going to Asia through coastal facilities at Kitimat, British Columbia in 2015.  Critical to the joint announcement – Alberta royalty sharing is not part of the agreement (never a consideration according to Alison Redford) – British Columbia will have to negotiate with Enbridge and other private companies if it wants to receive “additional” economic benefit.  The BC premier also announced that her government supports Premier Redford’s “Canadian Energy Strategy” initiative.  Initially Premier Clark insisted that Alberta share its bitumen royalties with British Columbia and it became a key condition if BC was to give its okay for the transport of bitumen through BC’s territory.  Premier Redford quietly, but firmly, responded that Alberta’s royalties were not up for any discussion and reminded the BC premier that 42 percent of her province’s natural gas shipments pass through Alberta territory – does it mean BC is willing to share her province’s royalties with Alberta?  With that clear consequence, Premier Clark’s strategy of royalty sharing collapsed.   As foolish as Premier Clark’s provincial strategy was, it is going to have consequences and will linger in arguments put forth by First Nations groups.  From my perspective Premier Redford is to be congratulated for her guiding the negotiations with British Columbia and her clear commitment for a “Canadian Energy Strategy”.  But the Northern Gateway Pipeline project doesn’t end with the Alberta – British Columbia Accord – there are a number of other so called obstacles yet to be dealt with.  There are the regulatory hearings being held in Ottawa, the more active Idle No More Movement that is starting to dictate national policy measures for their territories as well as more “accommodation” when it comes to development.  And for this week’s column, a new pricing structure for bitumen. 

Pricing Bitumen

The price of oil is set by an international bidding system where there are numerous buyers and numerous sellers.  The benchmark oil price most often used in North America is WTI (West Texas Intermediate) and is the number most often seen on your television sets.  For those who watch the WTI price, the WTI varies on a daily basis, sometimes significantly – in December, 2012 the WTI averaged $106 per barrel.  The benchmark oil price in Alberta, including oil sands bitumen, is WCS (Western Canada Select) – in December, 2012 the WCS averaged $75 per barrel.  What is most relevant to Alberta, there is a third standard which Alberta should be using when planning for its future prosperity, the Maya price.  To quote from an Alberta government release:  “Maya, a benchmark for heavy oil produced in Mexico, is similar in quality to Alberta’s WCS, but sells $43 more than Alberta’s bitumen (as of January 11, 2013) at $101 per barrel in the market.  Oil from Mexico has direct access to the ocean where it can reach international markets.  For that reason, it fetches a higher price than Alberta’s oil.”  Here is my take on this very complex, risky pricing structure – when the Northern Gateway Pipeline project is completed in 2015, the international price for Alberta bitumen (will continue to be determined by the international bidding system) is likely to increase significantly and could be sold at a premium to the WTI price.  No matter how you look at it, the revenue streams going to the producers, transporters and governments will grow dramatically as well – it is not just a windfall, it is a “continuous” windfall – and it might be the underlying reason for Premier Christy Clark of British Columbia insistence that her province participate in Alberta’s royalty system.  And for anybody that will listen, the revenue pie for Alberta’s energy sector (particularly the bitumen producers) is going to grow significantly after 2015 – now is the time to re-think who should be benefiting and who shouldn’t be benefiting from the expected, ongoing windfall – to the Alberta government, re-think Alberta’s royalty system and do it now!