From today’s luncheon address by Craig Westcott to the Newfoundland Ocean Industries Ass’n;
Chevron, the lead operator on Hebron, has all but pulled out of Newfoundland.
ExxonMobil, one of the other partners, has shuffled its checklist of projects, tucking Hebron/Ben Nevis back to 2010 or 2011 before it gets another look.
Hibernia South is on hold.
Even worse, grassroots exploration is at a near standstill.
We need millions of dollars worth of seismic work and exploration drilling every year to find the next big oil field, but we’re getting diddly.
It looks like Big Oil has given up on Newfoundland, at least for the time
being.
It appears the oil companies, which have projects all around the world they can chase and advance, are content to wait Williams out.
And if you look at our recent past history, that may seem like it makes sense.
Most premiers don’t last all that long.
Brian Tobin lasted four years. Roger Grimes two. Even Clyde Wells, the man of iron will who stared down the country over Meech Lake lasted just over six years.
Most premiers don’t last very long. The job burns you out.
But Danny Williams isn’t like most premiers.
It’s a gooder.
(h/t to reader “grithater”)
It is a gooder… Lord knows we all got politicians like Mr. Williams. In New Brunswick, its Kelly Lamrock, the Education Minister, because the big difference is that in NB the Premier is actually a stooge for Big Oil…
GREENPEACE is killing NEW FOUDLANDS econemy its time they had another one of their damn ships sunk
The sad part is that the oil is still under the Grand Banks, and it is not doing NFLD any good there at all as Mr. Williams refuses to cooperate. I truly believe the author of the speech is right. The oil companies should buy a full page add in every newspaper in NFLD and go to the people.
Kelly Lamrock – is he Len’s kid? My old G7 teacher – he was a good guy – through a pencil at me once.
Williams has taken a page right out of Tommy Douglases playbook.LITTLE oil was in Sask but Tommy was afraid that if Sask got rich then we wouldnt need him so he sent them to Alberta and now they are BIG oil.Danny will be SOL if cold fusion or something similar comes along and every one converts to electricity and hydrogen using oil just to lubricate, make plastic and other products.
Newfies are shit out of luck anyway with Williams as Premier. HE is keeping NL as third worldish, nit “global moneybags”.
Be interesting to see what he donates personally to charities. Bet zippo.
Newfoundland has this remarkable habit of producing these blowhards as leaders. It seems almost every company that tries to create jobs in Newfoundland gets treated like they’re some sinister conniving outfit that’s trying to rob them.
They tried to shake down the Inco project at Voisey’s Bay for a decade before finally letting it start. I don’t blame the oil companies for walking away from such a business-hostile place.
The best way to keep the kids at home, is to get some jobs happenin, dere by.
So flippin off the non-traditional industries, (anything not related to fishing) is a garanteed way of not getting jobs.
It’s no wonder Ft.Mac has the biggest Newfie population outside the Rock. Used to be T.O.’s claim to fame (goin down the road).
Lots of small Alberta businesses have flourished supporting the oil patch. But ya gotta have a government willing to encourage and work with industry.
The view from here is The Rock thinks everyone is out to screw em. So when the government keeps pushing for the best deal, miners, oil developers, heck even PQ hydro will back off.
Sometime it comes back to bite ya.
The Globe and Mail is onto Danny Millions:
If Newfoundland opts to stay with the equalization formula that it has — and Mr. Flaherty has allowed such a choice — its fiscal capacity could continue to exceed the capacity of many of its fellow provinces for the duration of the deal, to 2011-12.
And that is not the end of Newfoundland’s good fortune.
The accord continues for another eight years so long as Newfoundland’s per-capita debt-servicing charges are not lower than those in at least four other provinces and as long as it still qualifies for equalization (minus the inclusion of resource revenues, of course!).
Something is wrong with this picture.
Newfoundland spent $8,567 per capita on program expenditures such as health in 2005-06.
Ontario, which could not afford middle-class tax cuts in this week’s budget, spent only $5,975 per person — the lowest among the 10 provinces — during the same period.
Newfoundland’s debt charges are roughly three times the provincial average, so the accord is likely to remain in force until 2019-20. It is hard to see in what way the province has been shortchanged.
Mr. Williams says the federal budget marks “a very sad day for this federation.” In fact, Newfoundland is the big winner in the equalization sweepstakes. Either Mr. Williams does not understand the arithmetic or he is playing his usual politics with the federation.
From Norman Spectator
Danny Hugo Williams made his money in the cable TV business by kissing the right butts in the bureaucracy. He thinks that makes him a businessman , it doesn’t , it makes him a bureaucratic butt kisser.
There’s a lot of thing he doesn’t understand about the global oil business which is a commodity. Perhaps the biggest thing that he doesn’t get is that it isn’t the oil that is scarce around the world …yet. What is scarce is the capital and human resources that are capable of lifting the oil out at competitive prices. Danny just chased some of the world’s best project managers out of St. John’s to other projects on the planet and they won’t be back for another generation.
Meanwhile NL is empting out its people to Fort McMurray.
I once saw an impressionist doing an impression of Mandy Patinkin being deeply moved, while performing a song on Broadway, by his own awareness that he — Mandy Patinkin — was centerstage in front of all these people performing that particular song.
His expressions, of course, were intendedly showcased as being a deep appreciation of that particular song, and he gave every indication that it was all being done on everyone’s behalf, but in fact all that was going on was a public display of, well, sexual self-sufficiency.
Danny Williams exudes at all times that same deeply self-considered performing mindset. You get the feeling he’s perfectly happy to hold back his province’s performance so long as he can stay in the foreground.
His revolting grandstanding is so out of whack with the character of Newfoundlanders. In Saint Johns the only possible way a person can turn off the tap of friendliness is by being a pompously heroic windbag like Danny Williams.
It’s hard to believe he’s their premier. All I can think of is that he’s so good at doing that thing-he-does that he’s got everyone thinking he’s doing it on their behalf.
Craig Westcott, on the other hand, is more like it when it comes to Newfoundlanders. Now THAT’S a speech — music off, houselights on. Great to see.
“It’s hard to believe he’s their premier.”
He has around 70% of the province supporting him. The conduct of NL voters is equally revolting IMO.
By chasing out the Project Managers, Williams will not have to worry about resource revenue being included in payments. There wont be any. That oil will be there long after Williams is gone, and some future govt will take advantage of it. By that time, all those working in the industry in Fort Mac will be very experienced to be able to oversee all the work in Nfld.
He should also think about a Harper majority, or much larger minority. He could be facing at least 4 budgets with nothing for Nfld. And how would liberal MPs from Nfld be able to get anything.
Does he realize that those wages pd his men and women in Fort Mac exceed 60,000/yr. A lot of it goes to support families back home, but what if those families move also.
“wages pd his men and women in Fort Mac exceed 60,000/yr. ”
Try 110,000 dear.
60k won’t get you a typist…
If you elect a conservative Government you may get a winner or a turkey, but if you elect a Liberal Government, or God help us, an NDP Government, you are guaranteed to loose in the long run. Even out here in the Left Coast our Liberals (who wore blue hats for the first election) are looking more and more cookier as time goes on. They seem to feel they have to do some controlling or they just aren’t doing their jobs. The last straw for me was the suggestion a tax on fast foods such as soft drinks to fight child obesity. Nut jobs, all.
Gord: We’ll see about that in a year or three.
I agree he has 70% support of the people…they deserve what they get.
It just amazes me that he is screaming that he isnt getting enough candy. Maybe its time to get him off the sugar high and slash the equalization period.
However, no need to push the resource out the door, it isnt going anywhere….but I refuse to subsidize his demagogary…Canadian flags taken down, this stunt…..I wonder how the negotiations with Rogers went when he sold his cable company. Ted doesnt put up with that kind of bullsh*t, he engages in it himself….
As someone pointed out elswhere there is a large navy maintenence contract up for decision in the next month….will it go to St Johns or to Victoria…..????
Mary T, actually there is oil money coming in, for example, from mature Hibernia. But it was the new Hebron project that “Hugo” overplayed his hand with and so the oil company execs up and left St John’s.
Another lesson here is that many Canadians assume that Alberta is just lucky with its resources. It’s not that simple. Political management of those resources by finding the balance between oil investors and doing what is fair with royalties for the population is not to be taken for granted. Alberta has put in political leaders that “get it”.
Also ,why isn’t Saskatchewan as wealthy per capita as Alberta given its resources? Could it be that Sask NDP governments are more “scary” to investors than Alberta’s?
Finally, there’s no question that the St John’s cab drivers are part of the 70% support for Danny’s blustering style. But the local business community is very disenchanted and that will spread as the cabbies see their fares dry up.
At a recent political fund raiser, a $500. a plate dinner , Williams only spoke to the business community for 10 minutes then hurried out the back door without even a Q&A.
Watch it, EBD. I like Mandy Patinkin.
Maybe he’d be too much in person, but on CD, I’m partial to his jump-out-at-ya chutzpah (maybe because, as a Canadian, I don’t come across much of it). He’s an entertainer, after all, in the old style–you know, they had to project to the back of the hall without teletrons and sophisticated sound systems?
Danny Williams, on the other hand, isn’t an entertainer, he’s a bloody politician/Premier and should know better. Save the chutzpah for when you’ve actually accomplished something, Danny Boy.
“The conduct of NL voters is equally revolting IMO.”
If Danny-boy were really standing up for his province – he would realize that “Big Oil” could bring the native son’s and daughter’s home. But he would rather keep NFL a “have-not” because that means that he doesn’t have to make the hard choices as a provincial government, he can just point fingers at the Federal Government.
The question of all NFL should be – do you want us to become a successful province, flush with money and able to keep our kids at home, or should we continue to watch them leave for brighter futures so we can keep begging Ottawa for more money.
Inkless Wells description . . .
“A prominent St. John’s journalist delivered what is, in the local parlance, called — and here, the salty-language filters at Rogers will kick in — a “shitknocking” to Danny Williams today. It’s getting a lot of attention. Basically the message is that Premier Danny’s constant bug-eyed ranting is scaring away big investors.”
Bug-eyed ranting 🙂
Excellent.
Danny ya old blowhard, we hardly knew ya.
Danny and Lorne are a bunch of whiners.They should follow Alberta’s motto “Boys were open for biz come on in”
Danny is just following the Quebec formula of whine for wine.They cry and Ottawa keeps the taps of dependance open.
It keeps the population in permanent subservience to the feds.They can bluster and brag but always rely on the government cheque.
I find it hard to believe that the attitude of one minoe provincial poli chased the likes of Exxon/molel/chevron outta town…they work in some pretty inhospitable climates in other fields, they also work for less profit in other fields….no there’s something elese that would make them cap off Atlantic oil.
..Maybe the same thing that is starting the run of US vencap out of Alberta’s patch recently….I mean there is always someone else who will work the fields…but why is it that the smart US money is leaving Canadian oil exploration and development now??
I smell a fresh turd here…and I think it came from a dog named Kyoto….perhaps US energy ven cap is not pleased at seeing how a federal opposition can push the government into accepting carbon taxing the resource industry against its will….and then the bobble-head premier of Canada’s oil province ( Hapless Eddie S) jumps to the carbon taxing trough before he has to…maybe they figure with a grumpy little megalomaniac Lib-left premier to deal with in Hibernia, and the carbon tax simmering on the back burner, that it was time to close up the fields and wait out this madness.
Below is what a friend of mine who was at the luncheon and heard the speech first hand e-mailed me last night:
“Man, you coulda heard a pin drop today when Westcott spoke at the NOIA luncheon…. everyone was riveted… at the end people were kind of looking around, thinking, “If I stand up for an ovation, will someone see me and tell Him??” It’s that bad here now, like East Germany or something. The comment I heard several people make was, “This needed to be said”. …
Wait ’til the infamous Energy Plan hits the public with its powers of expropriation….
The trade show…(cancellation) IS a direct reflection of the attitude that there’s not much new business opportunity here for suppliers. ”
The Energy Plan is legislation that the NL gov’t will soon be tabling that is sort of a mini-me version of what hugo Chavez has done in Venezuela. Now that the Oil cos have taken a walk, NLers want to expropriate without compensation the oil leases that the companies have.
I don’t know what powers the federal government has over this kind of thing, but turning off the transfers as punishment would be an excellent option as this kind of communist activity hurts all of Canadian business.
Danny Williams the Chavez of North America
It wouldn’t take long for a demagogue like Danny (Chavez) Williams to destroy the economy of Nfl as he continues to scrap with everybody and makes unreasonable demands. At his current rate he won’t have to worry about any caps because he won’t come close to reaching them – he will have his hand out to Canadian taxpayers to pay his bills.
Danny Williams is a Blowbag Bullshitter. Definitely not good for Newfoundland. If the people of that province want to stick with him, they do so at their loss. He is not a real Conservative anyway.
They have a good deal, if they stick with the Atlantic Accord, and they have a choice, they will be right on track with Harper’s promise.
Danny Boy wants to keep his cake and munch it too.
His buffoonery knows no bounds. Is he going to pull the Canadian flag on this issue or did he learn from his last grandstanding fiasco?
Gord: I find it hard to believe Williams can “nationalize” off shore oil leases…they are not his to give or take…that does not mean I don’t think a megalomaniac would try it…just that he can’t do it legally/constitutionally…he could if it were in his jurisdiction but from what I see of the fields most are outside provincial borders in the Canadian national ocean zone.
Alberta owns her oil leases outright and sells development franchises to work them but makes it lucrative for producer and the province…Newfies have to become a tad more politically stable before their (resource sector) business base comes on line for the province. It’s one thing to have oil it’s quite another to get people to develop it for you and share their profits with the province…obviously you have the wrong political culture for that.
At any rate you folks may join the other provinces with oil and gas reserves who blew the head off the golden goose by continuing to elect bone head political regimes who destroyed the business atmoshere of the resource sector with blatent commie greed and chased private development outta town.
Like Chavez…who must, now that he nationalized resource industries, develop them, deliver the goods to customers at a competative price and make a profit doing it…government is ill suited to be a competative player in the petro-energy game…particularly with the venture capital risks in development and extraction. Mr. Williams will find that out as did BC and Sask.
Just keep an eye out he doesn’t get desparate and sell leases to China just to get the fields on line again.
sell to China , you mean that great technological marvel that Forlorne Calvert has been trying to bring over to do the sask. oilsands?
China the environmental super studs?
WLM:
that is precisely what NL is planning to do. the E&D leases are jointly admined by the feds and NL. NL would take back their right.
Williams has already said that he would develop the lower churchill alone (i.e. without Que’s help) and that predictably has meant that the project has come to a standstill.
Danny Millions is not smart enough to know that he’s not smart enough to get antagonistic with Stephen Harper. PMSH never responds to the likes of this ranting with a knee-jerk defense. He is a strategist. I’m quite certain that, at this moment, there is a plan being developed to give Danny-boy a good spanking. Apparently, he’s not even perceptive enough to see this coming so it may be fun to watch.
Danny “Hugo” Williams finely illustrates why regional subsidies including Equalization are harmful.
Subsidies provide a reward for failure and make it more likely for the wrong choices to to be made.
Danny millions is providing a case study for the next generation of economists to learn from. He can be used to illustrate when you can offload the consequences of anti-business, petulant whining off on other people, you get more of it.
NFLD should hang it head in shame. You are a province of welfare deadbeats who think you’re entitled to continue to take what doesn’t belong to you and what you didn’t earn.
Seeing the t4s of those in their early 20s or just out of school, working 6mos/yr and spending the winter months in warm climates, are showing at least 60,000. Those working full time, overtime etc do come in at over 100,000. Depends on the job you have. What gets me is that not one of these guys has a savings or investment income of any kind, ignore RRSPs and willingly have over 35,000 tax go to the govt. As they say, the capitol of NFLD is Ft Mac in Alberta.
I agree with Warwick the equalization payments (aka”Canadian wealth transfer scheme)are the problem.
Since he gets all that free money from out west why would he bother his people with having to work for it. There is a lack of impetus for oil development in Newfoundland, and given their current situation rightly so.
At the moment they have no need to generate funds, the other provinces already do that.
His oil isn’t going anywhere! it’ll be good 50 years down the road, The oil companies will be back sooner than that guaranteed, for petes sake they do business in Nigeria!!
I am no fan of Danny williams but looking at the larger picture he’s no idiot, he knows what he’s doing. (and its not neccessarily in the best interests of NFL). The idiots are going to be found out to be along with hapless Ed in Alberta and and the real losers Albertans. (Letting other provinces ride pogey off their back, when they don’t need to)
If Albertans are smart they need to find a way to invest that money so they can afford to get out of the oil business eventually. (especially given the current climate, wealth transfer schemes)
Did anyone notice if Hydro power in la belle Province (Quebec) was included in the equilization transfer calculations?
NFLD is the one province/territory I haven’t had the pleasure to live or work in. Rugged coastling, breathtaking scenery and enough wilderness to satisfy almost any outdoorsman, I often wondered about moving there to work for a bit. However, after seeing the latest of a long series of political stupidness, I realize I’ll never get there. That would be economic suicide and I’m too close to the rocking chair to gamble on common sense coming to St John’s anytime soon.
I saw this “What (else) can Canada do for us” attitude back in the ’70s when I was in New Brunswick. Glad to see nothing has changed. (The line at the time back then was all the fish shipped to the prairies in the dirty thirties to feed starving farmers.)
We should blockade Newfoundland. End equalisation, and only offer assistance to people moving to Fort Mac. No more subsidising socialist outports.
Let the Newfies starve on their ignorance. No flights, no boats, let’s see how long they last.
Oh Danny boy, the pipes, the pipes are calling
From glen to glen, and down the mountain side
The summer’s gone, and all the flowers are dying
But don’t worry I’ve just one word for you;
Cucumbers!
I call sell you a big tent to grow them in.
The Fraser institute has an excellent series of articles on equalization and other transfers in its latest Forum Magazine:
http://www.fraserinstitute.ca/admin/books/chapterfiles/Mar07fffedtrsf.pdf #
http://www.fraserinstitute.ca/admin/books/chapterfiles/Mar07ffMcmahon.pdf #
http://www.fraserinstitute.ca/admin/books/chapterfiles/Mar07ffKumi.pdf #
http://www.fraserinstitute.ca/admin/books/chapterfiles/Mar07ffLeroy.pdf #
One factoid is that federal transfers make up 58.7% of NL provincial ‘revenues’. The next highest is NS with 39.5% and the lowest are AB 10.4% and ON 15.5%. NL has a very long way to go before it approaches “have” status and the dependency of the non-governmental economy on gov’t spending is something to consider as well.
It must be really chaffing Danny Boy’s butt that nobody outside of Newfoundland takes him seriously, he’s a joke at best.
Haven’t made it to Newfie yet, if that’s their attitude, doubt we’ll take the time and expense.
You can’t have it both ways on equalization, doesn’t work that way. You share when you have it, you get when you don’t.
Danny’s acting like we all just fell off a turnip wagon.
…turnip truck, you vegetables are still on it.
[other portions deleted for profanity. Remainder left to preserve tone. – ED]
Alex:
Nice touch to use all those curse words – really helps support your cause.
Alberta has contributed over 350 BB in today’s dollars into tranfers to other provinces. Why should NL get special treatment for its non-renewables?
If you want to have non-renewables treated differently under the equalization formula I am all for it, as long as it applies to ALL ten provinces.
Blockading NL would not be necessary. over 65% of it provincial revenues come in the form of federal transfers. withholding those funds would be far more efficient, effective and less labour-intensive.
On behalf of semi articulate Newfoundlander’s I apologize for alex at’s useless outburst.
I grew up just outside of St. John’s until I was 22. Always was a conservative and despised liberal thinking. Moved to Alberta for 9 years, started a family and I moved back just this past year.
There is no such thing as a true blue conservative here. Everyone feels they are owed something, everyone complains. Yes I’m happy back here for the reasons Texas Canuck mentions and I got out of Alberta at the right time (and I still work for an Alberta company). I have come to learn that we are the friendliest people on the earth to visitors. With each other, boiling lobster syndrom abounds.
For the first time in my life I didn’t vote in an provincial by election recently. I couldn’t stomach marking my name next to any of the canidates, their parties or their leaders. I don’t know if there are real conseratives in this province anymore but if there are, a new party should start or find a way to get rid of Danny. I don’t want someone to bend to the will of oil interest but someone who behaves like an adult would be a start.
bagadonitz:
There are several “real” conservatives in NL. I know many of them personally and I once was one (I now live in Innisfail AB). However, they are almost all very successful business people who have their careers, businesses and families to consider before they dare speak publically about what’s going on.
Gord-Nfld is not asking for special treatment on it’s non-renewables. It’s asking for the same thing that it was promised, along with Nova Scotia and Saskatchewan. Hardly special treatment. Go ahead, blockade the province. Blockades work both ways. No iron ore to Oshawa to make cars, no oil from hibernia, or from the Holyrood refinery, no ore from Voisey’s Bay to keep Sudbury and Thompson employed.
Bagadonitz, what was semi-literate about my post. Were there misspeled words, incorrrect grammar anywhere. That’s the definition of literacy, and I certainly don’t need you to apologize for my little rant. By the way, the “at” refers to the time the post was made, it’s not part of my name.
Alex: The other 7 provinces were being treated differently. AB has been paying transfers with petro dollars for decades. no sooner than NL and SK and NS start earning them that they want a deal excluding them.