Danny Williams: see above.
Flying under the radar this year has been the recent decision of the Province of Newfoundland to expropriate assets from AbitibiBowater. Because the pulp and paper company determined that one of their plants was not viable - well, Danny Williams decided they shouldn't get to keep the assets that they were entitled to in the Province, and passed legislation allowing for expropriation of their assets.
It would appear we have a little Fidel Castro in our midst. In a move worthy of the Cuban dictator, Williams essentially said, "if you don't play the game MY way, I'll take your assets away."
Should we care, here in Alberta, or elsewhere?
Well, seeing as there were rumblings that Barak Obama would try and dismantle NAFTA, it may not be a good idea to now wake the sleeping giant by effectively stealing assets from an American corporation doing business in Canada.
Beyond that - how do you like that message? Business investments in Canada ARE NOT SAFE. WARNING! STAY AWAY! INVEST YOUR DOLLARS ELSEWHERE!
In our economy, it would seem highly suspect to be sending a message that we are not a place to do business. But such is the way of Megalomaniacs. They are blinded by power and delusions of grandeur and the harm that they will bring on their own citizens, well, that is irrelevant to the stroking of one's own ego, isn't it.
How can we be so certain he has lost his mind? Well, when the NDP applauds you, you know you are doing something seriously wrong, witness these comments of NDP Leader Lorraine Michael:
"And what we have before us today is an opportunity to do something that is precedent setting because finally lands that had been ours and had been given away are back. The potential is to have them back in our hands where they belong, in the hands of the people of this province."
Danny Williams is an embarrassment, not only to Conservatives, (can he seriously even use the word without choking?) but an embarrassment to all of Canada.
4 comments:
Hey Rob,
I being a Newfoundland, now working in Ottawa in the Aviation world, have mixed opinions about what has been happening in NL, and I was back last summer.
The problem that I have with Danny Williams, is his inability to at least conduct some gentlemanly discussions with Ottawa. A good example to contrast this is the Liberal Government of NB, (where my family now lives), who just passed the most Conservative budget outside of SK this year, where they are reducing taxes to the 2 class system, verses the 4 class system.
Anyway NB has an open business mentality where despite who is in Ottawa, it will be cooperative to increase investment there. And since it is a provence of primarily farming and forestry, which could only support about 200,000 people, it maintains low tax rates to invite entrepreneurs to grow their tertiary businesses.
As for NL, frankly the rural economy has only been saved by the money coming back from Alberta. I see that with the new subdivions and new houses going up. But everntually in a generation or two, the only population base in NL will be the St. John's area, and minimal community working in the interior and some fishery.
The two good things Premier Williams had done was that he did NOT sell out our petroleum resources, and that deal will be good for the long run. And appropriating Abitibi resource rights was essential to break their monopoly in NL. But his challenge will be to attract new business to manage those resources.
NR.. I have some sympathy with allocating resources to a foreign corporation who chooses not to exploit them.. but I think an expropriation without some negotiation in advance is a bad idea.
That's true, and I have particular sympathy for your situation in Alberta where Stelmach raised the Royalty Rates. But here in NF those lases were allocated in the 1920s (please forgive me I do not have the time to look up the proper references), and since there is a complete drop in the market for pulp and paper, and Abitibi has closed their mills, there is no reason to continue the leases.
As for their hydroelectric infrastructure, I am uncertain on what is happening with that, but it would be inappropriate for D. Williams to nationialize that infrastructure, without proper negotiation. But anyway, NL even with the hydroelectric and petroleum resources, will be an economic waste land, as there will be little economic opportunity outside of St. John's, as it is a very harsh location to run a business.
And even if they drop their tax rates, NL's location may prevent economic opportunity, except for those that want to choose to live or retire there.
I agree - we had the same problem in the early 80's in Alberta with oil companies holding leases and refusing to drill..
Problem is, which Danny Williams sort of either ignores or minimizes the over-all effect upon Canada of sending a message that ownership of assets here is not exactly safe.. it could have short term benefits with long term pain.
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