Showing posts with label Encana. Show all posts
Showing posts with label Encana. Show all posts

Wednesday, November 19, 2008

Nepotistic Boondoogle

The idea perhaps originated in the PMO after last election. Being a minority government who knew when King Stephen might get kicked from office. So lets find a legacy project for Steve. And viola what should appear on the horizon but the National Portrait Gallery. And as I pointed out here suddenly it was being moved out of Ottawa, lock, stock, and special atmospheric preservation equipment, to the Calgary riding of the PM.

Until last week when the whole idea was shelved, cause Calgary no longer looked like a shoe in for best P3 deal.

In a scathing editorial in the National Post entitled Portrait of Incompetence it is all made painfully clear. The P3 bid opened up to other cities was a mere fient, the fix was in for Calgary, until Edmonton put in two bids both lower than the Calgary costs.

The thoroughly depressing history of the project has been covered exhaustively -- but here is a capsule summary. Sheila Copps' original 2001 brainwave for a permanent centre at the old U. S. embassy in Ottawa ran headlong into cost overruns, belt-tightening in the national capital district and a new Liberal regime that was none too keen on building an expensive legacy for its leading critic. Paul Martin's government vacillated, and when it was ousted by the Conservatives, they seized upon the opportunity, first engaging in backdoor negotiations to find room for the gallery in downtown Calgary, and then opening the whole thing up to private-public bids from major cities across the country.
Edmonton threw a spanner in the works by coming up with not one but two bids that would have been extremely easy on the public purse; this led to the deadline being quietly extended so that Calgary could improve the terms of its proposed deal. Meanwhile, Ottawa's partisans put on a full-court press, arguing chauvinistically that the right place for a national gallery could not possibly be anywhere but the national capital. These master logicians told an ostensibly pretty story about the Portrait Gallery serving as a locus of educational tours of the capital, but failed ever to mention the real truth -- that in downtown Ottawa the building would probably remain a poor cousin to Parliament Hill, the National Gallery, the Museum of Civilization and other competing sites. The nation's capital Ottawa may be, but not many schools can afford to send children on the week-long field trips that the city perhaps deserves.


And speaking of Shelia Copps she has her own take on this mini-boondoogle.

The decision of Stephen Harper's Conservative government to cancel the National Portrait Gallery was a smart move to get out of a poorly conceived plan to build the museum as a public-private partnership, says former Liberal heritage minister Sheila Copps.
"I think that was a bit of a way of getting themselves out of a pickle that they'd created," Copps said Saturday. Heritage Minister James Moore announced on Friday that the gallery would be cancelled.
Moore said none of the proposals submitted by developers in a nationwide competition was acceptable and the government must act prudently in a time of economic instability.
But Copps said she didn't buy that excuse.
She described the competition as "poorly thought-out" and a "no-win" political situation that would pit the losing cities against the government.


This was always about Calgary. It was a sop to Encana, and the ideology of P3's. Encana of course is the company that Gwyn Morgan used to run. Harpers old political/business pal whom he tried to get appointed as the newly created Federal Government Appointments Commissioner after the 2006 election. But that too failed to pass. And like the National Gallery cancellation the post of Appointments Commissioner was never filled.

Encana was also a victim of the Harpocrites about face on Income Trusts so having the National Gallery in Calgary built by Encana was simply payback.

This was about moving a National Gallery to Calgary to show that political power had shifted west, to the Petro Bay Street of Canada. It was also about selling off the Gallery to Encana. Thus Canada's National Portrait Gallery would have been the Encana National Portrait Gallery of Canada.

The new Conservative government killed that project in 2006 and tried to forge the EnCana deal. When that failed in the face of withering criticism from Ottawans and others, the government resorted to the bidding process. Now cities across the country have spent money preparing bids and $11 million has been wasted renovating the U.S. embassy location. The machinations surrounding the gallery have been a sorry display of government inefficiency and inept politics.

Once again the neo-con ideology of Privatization bites the bullet.



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Sunday, November 04, 2007

Presto Shills For Big Oil

Presto Manning was on CTV Question Period this morning shilling for Big Oil and whining about the Alberta Royalty compromise produced by Eddie Stelmach.

CTV's Question Period: Preston Manning, Fmr. Reform Party leader

Presto was following up on criticisms he made earlier this week in a comment piece he wrote in one of them 'damn eastern newspapers'; the Globe and Mail, aka Canada's National newspaper. Preston Manning: The Stelmach royalty uncertainty principle Which of course is owned by the same folks who own CTV.

Presto has upset folks even on the right like Neil Waugh at the Edmonton Sun.
Whose side is Presto on?

Presto engaged in some political prestidigitations on Question Period about how this will hurt Eddie in the polls when the election comes. And as usual with the rose coloured glasses of the Calgary right wing he predicted that it won't benefit the Liberals or NDP or even the would be right wing rump parties, but rather it would be because conservatives will stay home.

Manning added it's becoming increasingly unlikely that Stelmach and the Conservatives will win another election unless the "government demonstrates a capacity it hasn't shown thus far."

"I don't see votes going to the Liberals or the NDP, I think their biggest danger is another 150,000 people staying home who voted Conservative the last time," he said.



Well at least they have homes. It's not just the royalty deal that is driving a stake in the heart of the Tired Old Tories it's stories like this Halloween surprise.

Drastic rent increases at a Fort McMurray complex are renewing calls for rent control.

"The province needs to step in. Every other province has some form of rent control," said Rob Picard, angered by his skyrocketing rent.

On Halloween night, Picard was spooked by an 86% increase to his rent. The three-month notice means the rent on his two-bedroom 700-square-foot apartment in the River Park Glens, also known as the Syncrude Towers, is jumping from $1,425 per month to $2,650.

"I work for Suncor. I make good money, but I can't afford this. The illusion that this is Fort McMurray and everybody can afford this is just wrong," said the heavy equipment operator.

He's not the only one complaining.

Gunner Antos has a two-bedroom apartment in the same building and will see his rent go from $1,500 a month to $2,700. Those prices could even drive highly paid workers away.

"They're crying for workers and they're raping us," said Antos.

"You've got people who have jobs living in tent cities. They have people with jobs living in the bush."

Service Alberta spokesman Eoin Kenny said the government is not looking at rent controls at this time.

The apartment building has about 500 units, although some are individually owned.

"With this type of hit, even though I work for Syncrude, I may be forced to take a room this late in life," said Gerald Morrison, who has lived at the complex for more than 20 years.

"I always thought Fort McMurray was fair and square, but they're gouging now."

The landlords left a note on apartment doors Wednesday afternoon saying the change will be effective Feb. 1.

Mr. Morrison said his three-bedroom apartment is going from $1,800 a month to $2,950 - without utilities - despite a leaky roof, carpenter ants and unpainted walls. Two years ago, his rent went from $1,100 to $1,500, and then to $1,800 last February.

David Campkin said the one-bedroom apartment he and his wife share rose to $2,250 from $1,450. He said the unit's condition is "absolutely appalling" with a carpetless concrete floor and none of the promised security.

The provincial Residential Tenancies Act passed in April requires landlords to give tenants three months' notice before raising rent once a year. River Park Glen appears to have met the conditions.

There is no ceiling on rent increases in Alberta, where a sizzling economy is attracting workers from outside the province and making affordable housing scarce. A government-appointed committee suggested rent controls to Premier Ed Stelmach earlier this year, but he rejected the recommendation.

Lets do some quick math shall we. 500 units X $1500=$750,000. Rolling in the dough while not providing tenants with repairs. Can you say high rise slum lord.

Another whiner from Alberta is Harpers pal the ex-CEO of Encana, Gwyn Morgan
who also published a comment attacking the royalty compromise in that same eastern rag. The irony is that populism was what got Presto elected and made the Reform/Alliance/Conservative party possible. And Gwyn makes the same case that Presto does in attacking Farmer Ed.

Populism tramples principle in Alberta

GWYN MORGAN

From Monday's Globe and Mail
October 29, 2007 at 6:30 AM EST

Experience has taught me that populist politics are seldom principled. It's not that populists don't want to do what's right and best; it's just that if a choice has to be made as to which has priority, what is popular wins.

The second matter of principle Mr. Stelmach's government has violated is reneging on oil sands royalty commitments under which capital has already been invested. Except in the case of Syncrude and Suncor, the money was invested without a contract binding the government to honour the terms.

Nonetheless, investors rightly see this unilateral change as a clear case of doing what is popular rather than what is right. And in terms of doing what is best, the damage to Alberta's reputation certainly illustrates the wrong choice.

Industry is still in shock, but the computer models used to compare before and after investment feasibility are grinding away. Companies with investment opportunities outside Alberta will be looking at them a lot closer. The natural gas drilling and development service sector was already suffering, so expect an even worse downturn. New project decisions in the oil sands will have to factor a much higher government take into a business already replete with risk.

Mr. Stelmach states: "I'm confident we've made the right decisions for today and for Alberta's future."

As for me, I continue to believe that populist politics are seldom principled.


Populism is what kept Ralph in power for years. Of course in Ralph's case that was populism that benefited the oil boys in Calgary. So that was principled.



SEE:

Income Trusts; Predatory Capitalism

Stelmach's Royalty Give Away

Made In Calgary Homeless Plan

The Sky Is Not Falling



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Thursday, October 18, 2007

Nationalize The Oil Patch


Under workers control!

A publicly owned Petro-Alberta would have a democratically elected board of directors, including representatives of the workers, consumer advocates, environmentalists, and the public.

Share ownership by the public and the workers, union investment with profit sharing and public debentures.
The Stelmach government should tax energy companies' profits up to nearly 100 per cent and the government should take ownership of part of the oil sector, rather than adopt the tamer recommendations of the royalty review panel, an Edmonton-based think tank said today.

In stark contrast to the energy industry's complaints that the review's proposed hikes go way too far and would cripple the economy, The University of Alberta's Parkland Institute said Albertans deserve to capture at least 90 per cent of available economic rent on oilsands project.

The left-leaning institute also noted that the nationalized oil companies in Norway, China, Korea and Japan have taken stakes in Alberta's oilpatch, and that a predecessor to energy giant EnCana was once partly province-owned.

"Public ownership is the best way to capture royalties, as 100 per cent goes to the owners, the people of Alberta," the report says.

Parkland research director Diana Gibson says Albertans should expect the same kind of return on the province‘s resources as an oil and gas executive earning a multimillion-dollar paycheque would get for his shareholders.

Selling Albertans Short: Alberta's Royalty Review Panel fails the public interest by Diana Gibson, Parkland Institute October 17, 2007
Release View Executive Summary Download Report (pdf)


SEE:

It's Time to Take Back Our Oil and Gas

NDP And Workers Control

Nationalize the Oil Industry

I Am Malcontent

Who Will Decide About Royalties

The Myth of the NEP

Aren't you sorry you sold your shares

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