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  Nonetheless almost nothing is known about Adam Lanza himself other than he was quite, reserved and withdrawn.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.