Canadian politics

Nov 142012
 

Race could be more exciting than pundits had predicted.

by Dave Cournoyer

A new survey conducted by Forum Research shows a three-way race in the Calgary-Centre by-election between Conservative Joan Crockatt, Liberal Harvey Locke, and Green Chris Turner.

As reported by the Globe & Mail, the November survey of 376 randomly selected residents in Calgary-Centre showed Crockatt with 32 percent, to 30 percent for Locke and 23 percent for Turner. New Democrat Dan Meades was in fourth place with 12 percent.

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Nov 122012
 

Conference Board's report omits oil sands' direct and indirect costs.

Nathan Lemphers

Picture Alberta’s oilsands. If you’re thinking of gigantic mines, oozing bitumen or smokestacks, think again: according to a new report from the Conference Board of Canada, what you should be seeing is a pot of gold at the end of the rainbow.

The Conference Board’s report, Fuel for Thought: The Economic Benefits of the Oilsands for Canada’s Regions, seeks to show that industrial activity in the oilsands is good news for all of Canada.

No one would disagree that the oilsands industry represents a significant source of current and future wealth in Canada. And it’s good news that we’re seeing more and more discussion of what the oilsands mean for Canada: the massive economic and environmental consequences of extracting that oil deserve thorough national consideration.

Many folks in Alberta’s oil patch saw potential profits evaporate while operating costs rose 250 per cent over the past decade.

The Conference Board’s report offers a starry-eyed view of the economic benefits of oilsands development, but comes up short on examining the other side of the balance sheet.

Back in May, I co-authored a report for the Pembina Institute, In the Shadow of the Boom: How Oilsands Development is Reshaping Canada’s Economy, that started to fill in the other side of the ledger by looking at some of the economic downsides for Canada of continued oilsands expansion.

For starters, there’s the rising cost of oilsands development. Many folks in Alberta’s oil patch saw potential profits evaporate while operating costs rose 250 per cent over the past decade. As the extended commodities boom continues, we can expect more shortages of material, which in turn will continue increasing the already high capital costs.

Many economists are also predicting a massive shortage of skilled labour in Alberta, driving wages even higher and pushing down profitability and expansion forecasts. Significantly higher costs in the oilsands push up the price of doing business in Canada across the entire economy — not just within the oilsands industry — making it tougher for all Canadian companies to compete internationally.

What does this look like? Expect to see an increase in the number of Canadian companies sourcing their materials or labour from outside of Canada. An estimated 25 per cent of all oilsands jobs can be moved offshore, according to management consulting firm Accenture — a prospect the Conference Board only mentions in passing, while failing to monetize the risks of labour and materials being sourced offshore.

An estimated 25 per cent of all oilsands jobs can be moved offshore, according to management consulting firm Accenture.

Higher costs also spell more closures of factories, pulp mills and small businesses as they struggle to compete against lower-cost economies. As rapid oilsands development and the global commodities boom pushes up the cost of doing business in Canada, the supposed economic benefits destined for other provinces may very well fail to materialize as more of the supply chain shifts overseas.

For some companies, a rising dollar also makes it tougher to compete. The combination of the continued weakness of the US economy, rising global commodity prices and Canada’s booming natural resource exports will very likely drive up the value of the loonie. A higher dollar helps to make foreign-priced goods less expensive for Canadian buyers, but it also makes Canada’s exports more expensive on the global market.

Indeed, back in 2010, the Conference Board of Canada itself was warning that a strong dollar represents a double-edged sword. Striking a very different tone than the celebration of the oilsands in their most recent report, the Board’s 2010 analysis discussed the risks of a high-dollar environment for some Canadian companies and sectors, concluding that a “do-nothing approach is not a viable option.”

Government must change its attitude from “selling” the oil sands to stewarding them.

The Board even went so far as to say that the “conditions for Dutch disease are already occurring in Canada” and that doing nothing creates a “much greater risk of contracting a serious case of Dutch disease.” For those who missed the fury of the punditry this spring, Dutch disease happens when commodity exports drive a currency upwards, making it more difficult for non-commodity industries to compete internationally.

Industry Canada and the Government of Alberta funded the Conference Board’s report. Unfortunately, it doesn’t offer Canadians much in the way of new insight into how to optimally manage oilsands development, and willfully turns a blind eye to the economic downsides. If oilsands development is to happen responsibly and extend its benefits across the country (and generations), our government leaders must shift from “selling” the oilsands resource to stewarding it.

Nov 082012
 
Alberta Premier Alison Redford

Alberta sees new viability for eastbound oil pipeline.

by Gillian Steward

CALGARY — Pipeline politics have been whipping us around for over a year now and they are about to get even more intense.

Just last week, Calgary-based TransCanada, which operates one of North America’s largest pipeline networks, confirmed that it is moving right along with plans to convert its natural gas pipeline that stretches from Alberta to Montreal into an oil pipeline that would deliver crude to refineries there and points further east. Not south to refineries in Texas or west to tankers in Kitimat, BC, bound for China but to Montreal, possibly Halifax.

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Nov 082012
 

US election battle pits major disappointment against scary alternative.

by Bill Tieleman

The country Obama inherited was indeed in shambles, but Obama took a bad situation and, in certain ways, made it worse.
– Film director Oliver Stone and historian Peter Kuznick.

One candidate for president of the United States supports privatized health care, extrajudicial killing of opponents in foreign countries, wiretapping without warrants and big business bailouts. This candidate’s US$1 billion campaign is heavily corporately funded, with Microsoft and Google among his largest contributors, and he has Wall Street economic advisors and the strong support of the former speechwriter for ex-right-wing presidents Richard Nixon and Ronald Reagan.

The other candidate is Republican Mitt Romney.

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Nov 082012
 

Inside Queen's Park profiles the known contenders, declared and undeclared.

from Inside Queen's Park  Vol 25, No 24&

Three kinds of candidates
Let's take the gang of sixteen probable candidates and divide them into three categories: those who have declared formally that they are really running; those who are not or probably not running; and watch this space.

Two candidates are really, really running:

Glen R Murray
First out of the gate last Sunday, the very talented former Winnipeg mayor offered a tongue-in-cheek claim to be the front-runner, drawing media mention of his famously egotistical manner. Reporters gave the former Training, Colleges and Universities Minister a fairly hard time over his "no-money down" tuition scheme, though it is usual for details of such campaign initiatives to be held in abeyance. Managing the Murray team is Jonathan Espie, the Premier’s Office staffer who also co-managed the LIBs’ third-ranked Kitchener-Waterloo by-election campaign.

Murray has pointed out that both he and Kathleen Wynne are out gay politicians, which will make for fierce competition in that community.  They will also tussle hard over 416 [city of Toronto] backing in general.  Murray’s kick-off was at Ryerson’s beautifully made-over athletic centre in Make Believe Gardens, which had been the drab locale for the 1996 LIB leadership convention at which Dalton McGuinty was chosen the fifth-ballot victor shortly after 4:30 a.m. Attending Murray’s launch (though not extending support for his or anyone else’s candidacy) was George Smitherman, who had been his predecessor as Toronto Centre MPP.  The presence at the launch of RIM mogul Jim Balsillie also created some welcome buzz.

Kathleen O Wynne
The Municipal Affairs minister is second into the contest to which she brings skill, toughness and integrity. She has evidently decided to be critical of Team McGuinty. The renewal card is far easier to pick up than to play safely, and any number of missteps can bring the renewal faction into difficulty. But Wynne is not a timid politician.

She has prepared carefully for the leadership, attracting key operatives — such as the party’s superlative campaign organizer Tom Allison (who was Chief of Staff to TC and U minister Glen Murray until the middle of last month) and highly regarded delegate wrangler Milton Chan. She has also attracted key volunteer activists: Lorna Marsden, former York U president, Senate Member and fundraiser, past OLP nominations supremo Kim Donaldson and event organizer Pam Gutteridge.

Wynne also appears to have been far and away the most active and successful candidate in the crucial task of securing backing from LIB MPPs, with the campaign’s claimed list of announced and not-yet-revealed backers comprising about a quarter of the caucus. Her backers include AG John Gerretsen, former minister Monique Smith and the diligent David Zimmer. MPPs are important because they can exert leadership in the delegate-selection process as well as doing the heavy-lifting in recruiting new members. That fundamental tool of leadership politics is operative for less than two weeks, the deadline to be eligible to vote being November 23.

Seven likely candidates are not running

Chris Bentley
The Energy minister has endured a brutal experience fronting for the gas-plant seat-saver scandal. It was not the tiniest bit surprising that the London lawyer was not willing to carry that can through the race. Thus endeth the most widely expected leadership race.

Laurel Broten
The Education minister was at the centre of the legislative wrangle with the teachers’ federations — which gave her credentials likely to be cherished by right-wing Liberal delegates. But Broten’s prompt decision that she would not run likely reflected the recognition of how much smaller and weaker was Liberal caucus support for the wage freeze course than for the proposition to seek somehow to renew it.

Brad Duguid
Like other middle-rank ministers, the Economic Development and Innovation minister had to decide if entering the race gets him onto the front-bench. He had already worked his way up to a substantial ministerial rank and would likely cover more ground by trading his own support than by bidding to attract backing from others.

Dwight Duncan
The Finance minister was also fairly quick to decide that he won’t run and will instead back his 1996 supporter and fellow Windsorite Sandra Pupatello.

Deb Matthews
The Health minister cut her teeth provincially as OLP president and has fought very strong stakeholders while dragging costly baggage not much of her making. Long talked of as a leadership contender, Matthews has puzzled some observers – and frustrated many supporters – by failing to declare already. Give her credit for being concerned over good public policy, but take off marks for lacking personal ambition. Will she decide to scratch before the gate is open? [Editor’s note: The foregoing is what we wrote this morning at the very time Matthews told a health-care audience that she will not run.]

Yasir Naqvi
The recently acclaimed Ontario Liberal Party prez had been well placed to make a future-considerations run as a fresh new face but decided that he had to recuse himself to avoid any appearance of unfairness. And he very quickly decided that he had better also scratch his planned entry into the leadership race. But he will have plenty of profile as the ranking OLP officer.

George Smitherman
The aggressive and determined former Health minister had been made deputy premier to keep him from running federally. His heavyweight credentials were boosted when he got the Energy portfolio to push through the "Green Energy" file to which Infrastructure was added. But Smitherman defected anyway, to seek the Toronto mayoralty — and lost badly to Rob Ford. Some of his cabinet and caucus colleagues were glad to see him go and a few particular critics said so bluntly. Smitherman had seriously canvassed returning to the pink palace when McGuinty stepped out, but he indicated at the end of October that family obligations to his husband and two small children come first.

Michael Bryant
It is not fair, but the notoriety arising from the August 2009 attack by troubled bike courier Darcy Sheppard seems to block his return to politics. A Bryant candidacy was widely discounted and now one hears nothing.

David Caplan
Still steamed over his firing as Health minister, Caplan was busy seeking support but does not appear to have drawn enough backing to sustain a run.

Dr Eric Hoskins
This bright man came into provincial politics with a big activist following, and was widely celebrated as winner of the St. Paul’s by-election occasioned by Michael Bryant’s departure from Queen’s Park. He very quickly went into the McGuinty cabinet and he is keenly focussed on a leadership run. But Liberal activists report that Hoskins is doing little to sign up supporters, seeming to suppose that his celebrity will allow him to poach delegates from other camps. (Good luck with that, Dr Hoskins.)

Gerard Kennedy
The former Education minister came to grief federally and now would have to face a very tough NDP incumbent on what once was his own turf. He argues that he departed before the gloss went off the McGuinty government. No baggage, perhaps, but lots of attitude — for which many in the pink palace caucus tend to dislike him. Kennedy came first, with 22 percent, in the late January Forum Research poll on vote intentions in the next election (compared to five other possible leaders. But Kennedy’s team of yore is mostly in the Trudeau federal campaign, so he’ll be hard pressed to put together a team that fits. Might he bow out or be an early scratch?

Sandra Pupatello
(announced, November 7) The lively and energetic Pupatello was often the key to McGuinty’s ministerial shuffles but carried no baggage when she left for Bay Street. Her centre-right campaign will be managed by the very able Christine Bomé. And CBC tells that it will be launched tomorrow, Nov. 8. In addition to heavyweight backer Dwight Duncan, look for her to draw Italian support — from Bob Chiarelli, for example — and to benefit down the line from the south Asians signed up by Harinder Takhar.

Charles Sousa
Able and amiable as well as altogether presentable, Sousa is the classic junior minister seeking to bolster his leadership prospects in the next leadership race. But in the event of a deadlock he just might make it all the way. Managing his campaign is Bob Richardson, who deftly guided Lyn McLeod into the leadership following the departure of David Peterson. Campaign kicks off on Saturday.

John Wilkinson
Wilkinson did a superlative job of selling the HST, but it is surely very risky to remind voters of any unpopular tax increase. The lack of a seat is a problem. But members of the McGuinty inner circle are looking past that to Wilkinson’s political skill and personal appeal.

And they're all in their Fifties
 
Given that our announced or likely leadership contenders got into the politics racket from 1995 through 2010, it’s striking that they are all in their 50s:  Pupatello, 50; Hoskins, 52; Kennedy, 52; Wilkinson, 53; Sousa, 54; Murray, 55; Wynne, 59; and Mathews, 59. And it’s interesting that the most ‘senior’ expected candidate –Sandra Pupatello, first elected as an MPP in 1995 — is the youngest, at 50.

Nov 052012
 

New report highlights dangers and causes of rapidly growing disparity in the province.

from the Parkland Institute

A new report from the University of Alberta’s Parkland Institute and the Alberta College of Social Workers says that despite Alberta’s obvious wealth, inequality and disparity in the province are growing faster than almost anywhere else in the country.

The report, titled A social policy framework for Alberta: Fairness and justice for all, comes as the Alberta government continues to consult on what it says will be a comprehensive social policy framework for the province.

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Nov 052012
 

The reality is that junior hockey players haven’t had a raise in years.

by Stephen Kimber

Forget the Byzantine balls-up the attempt to unionize Canada’s junior hockey players became — league-hired private investigators snooping on union staff, falsely (maybe) intimating one was a felon; union (dis)organizers scheduling, then canceling votes — and ask ourselves two simple questions: First, do run-of-the-litter junior hockey players, the ones least likely to lose millions in the next NHL lockout, have legitimate grievances? And, second, what the hell was Jamie Baillie thinking?

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Oct 312012
 
CoalMine

Cheaper Foreign Temporary Workers get preference.

by Bill Tieleman

“We are replacing people with 25-to-45-years experience with people that have zero days of experience.” – Jimmy Brock of US coal mining firm Consol Energy Inc

If you don’t think Chinese coal miners should be coming to BC as temporary foreign workers in new mines get ready to be really angry. That’s because the federal Conservative government will this week ratify a foreign-investment agreement, ensuring even more Chinese takeovers of Canada’s natural resources — and jobs.

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Oct 292012
 

Dalhousie law students decide to study Charter of Rights, not the War of 1812.

by Allison Smith

One effect of the Harper government’s decision to allot nearly the entire Heritage Ministry budget for 2012 (more than $28 million) to commemorating the bicentennial of the war of 1812 is that no funds were allotted to celebrating the 30th anniversary of the Canadian Charter of Rights and Freedoms.

Some Canadians think the Charter is essential to Canadian law and policy, and deserves a good airing on important anniversaries. They say the Canadian government's silence about the 30th anniversary of the Canadian Charter of Rights and Freedoms is a statement.

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