Assess NB Power deal dispassionately
Published Monday November 2nd, 2009
Many critics have leapt to their feet and pronounced the proposed sale of NB Power a 'bad deal.' They are offering a variety of reasons, but many of the reasons display the hallmark of knee-jerk reactions based on emotion or lack of understanding rather than logical, fact-based argument.
We urge all New Brunswickers to take the time to educate themselves on the facts and to think through the implications carefully. If, after doing so, they still think it is a bad deal, so be it, that's their democratic right.
It would be foolish, however, to reject a deal that could be tremendously positive for us all based on misinformation, scare-mongering and beliefs not supported by evidence.
We have heard many who sympathize with Newfoundland over the bad deal Joey Smallwood made with Quebec on Churchill Falls, and who clearly have taken Newfoundland Premier Danny Williams' rhetoric to heart. Yet these are two entirely different situations and deals. Premier Williams is not protecting anybody's best interest but his own; certainly not New Brunswick's.
Is New Brunswick selling its valuable assets for short-term gain? They are assets, even though many of them are aging, but what's their worth? Virtually the same as what Quebec Hydro is paying us. We are getting fair market price and it eliminates a massive unsustainable debt.
Is the province somehow 'losing control' of its essential resource and service. How? Quebec Hydro still has to justify future rate increases to the Energy and Utilities Board; the province has the constitutional right to regulate energy companies and will continue to do so. We regulate natural gas without owning Enbridge; gasoline prices without owning the oil companies. Electricity is no different.
What has provincial 'control' over NB Power got us? Debt and costly decisions! Business decisions made for political rather than good business reasons, a management bloated with blatant patronage hirings and even incestuous political relationships related to federal nuclear power agencies. And many costly decisions. We've little hope of this changing without a sale.
Such arguments need to be carefully considered. It isn't likely a better deal, or another buyer at all, will come along to help us out of the mess if we don't accept this proposal. The proposal is much better than the alternatives.
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Where's our benefit?
In this province only the CBC, among media outlets has the unfettered ability to "assess dispassionately" this deal.
Who benefits more from this sale to Quebec than the owners of most of the provincial media outlets, as well as most of everything else???
Many times this "newspaper" has sung the praises of U of M ecconomist/guru Donald Savoie. Now that he has valid questions about this deal, he is mentioned in passing. Every story/ editorial on the subject should carry the disclaimer that the newspaper is owned by the company that stands to gain the most from the proposed sale.
Not small businesses. Small business rates are only "frozen", yet massive industrial users get a big rate cut.
Why shouldn't an entrepreneur opening a small store or business enjoy the same low rates as Irving or McCains?
If you didn't know that then no wonder your signing the praises of the NDP.
This sale in for short term gain only. We will be kicking ourselves and counting the years before we can get out of this deal, just like N&L is. We must learn a lesson by what Quebec has done to N&L and the Upper Churchill and not sell NB Power.
We want an election on the sale on NB Power. If the Liberals think this is such a great deal for NB, they should be happy to put it to a vote!
Past experience has led us to believe that this utility cannot possibly be managed in a cost-effective manner. But the errors made have been huge - just the oversights of both the orimulsion and the AECL contracts - and could have been avoided with more foresight and expertise. Similar to what Efficiency NB could use instead of being another knowledge-deficient top-heavy dept that drastically failed to prepare itself before Shawn okayed the money. A real shame with alot of newer homes getting unnecessary, prettier windows and air-conditioning.
I cannot believe an intelligent person can't be found to run NB Power utilizing its assets to plan for its future.