What sort of win-win situation is this deal?
Published Saturday November 7th, 2009
Letters to the editor
Re: Sale of NB Power
When one assesses who got the better deal, look at what was sold and what was not.
What was sold: the transmission and distribution systems, hydro and nuclear generation, i.e. the components that make most money.
What is left: Coleson Cove, a 36-year-old oil-fired thermal plant, which recently had a $750,000 upgrade;
Belledune, a coal-fired plant with questionable need and a cost of $1 million;
And Dalhousie, a 40-year-old oil-fired plant, costing $300,000 to burn orimulsion, and to be shut down.
It is evident that these large plant expenditures do not have much value to Hydro-Quebec. What value, then, are they to New Brunswick?
It is evident Hydro-Quebec has taken the cream. What sort of a win-win situation is this?
Rod Pickles
Fredericton
Just because it's legal doesn't mean it's right
Re: Abortion
Abortion was portrayed quite fairly (for once) in a recent riveting episode of Law & Order, fictionalizing the murder of abortion doctor George Tiller.
Early in the program, Detectives Lupo and Bernard argue with each other over the legality of abortion. Lupo`s point was that abortion, being legal, shouldn't be opposed.
This happens to be a foundational argument of the New Brunswick Advisory Council on the Status of Women - an unsustainable one that unravels after a quick recall of history.
It was legal, by Roman law, to feed Christian children to wild animals in the Roman circuses, and for infants to be placed by the side of the road and eaten by animals or die from exposure or starvation.
It was legal, by German law, for Hitler to exterminate six million Jews and for his favourite physician, Josef Mengele, and his Nazi colleagues to perform lethal experiments on children, from which countless thousands died.
It was legal, by Iraqi law, under Saddam Hussein, to summarily shoot political dissenters in front of their families.
It was legal, by American law, to have the power of life and death over a black slave.
Even as late as a few years ago, it was legal, by American law, to allow a baby surviving a botched abortion to die from shock or starvation, denied any medical help or pain medication.
An interesting exchange in the program was when Lupo said that forcing an 11-year-old rape victim to give birth is unthinkable, to which Bernard responds: "You got it backwards, man! The horrible thing is the rape! Not the bringing of a life into the world."
Thaddée Renault
Fredericton
The alternative to the deal with Hydro-Quebec is rising energy rates
Re: Sale of NB Power
Last week the government of New Brunswick announced the sale of NB Power to Hydro-Québec.
This transaction has my full support. Here's why:
* It provides long-term certainty for lower cost, competitive power to everyone in New Brunswick, from the residential user to the large industrial user, including Fraser Papers;
* It eliminates a $4.8 billion debt that is unsustainable today and would only grow in the future;
* It reduces the substantial risk associated with owning and operating NB Power, not only the capital risk associated with future refurbishments of the nuclear facilities, but also future price risk associated with burning coal and oil;
* It should have a positive impact on the environment, as it will enable the closure of higher cost, fossil fuel-dependent power plants.
For all of us who work at Fraser Papers, the announcement is significant. We are in bankruptcy protection, fighting for our livelihoods after the closure of other New Brunswick mills, including Dalhousie and Miramichi.
Energy is a significant cost to the forest products industry, and I believe this deal could help save and restore what remains of the industry in New Brunswick by giving us access to power rates in line with those enjoyed by our competitors in Québec, British Columbia and many parts of the United States.
The direct benefit to Fraser Papers is approximately $8 million per year on a power bill of about $30 million.
I understand there will be opposition and anxiety - there always is when there is bold change.
However, we cannot ignore the long-term consequences of not addressing New Brunswick's energy situation. The alternative is continued increases in power rates that we have seen over the past few years.
This is a good deal. Let's get behind it.
Peter Gordon, CEO
Fraser Papers Inc.
Toronto, Ont
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Times change. It wasn't that long ago that it was that only a man could vote, that you could be married at 12, that children could be put to work in coal mines, that women couldn't become doctors, etc.
Abortion is legal in Canada. Every woman has the right to choose. Everyone has the right to have an opinion on the subject, but no one has the right to force their opinion on anyone else.
There are over 600 children in foster care in this province in need of permanent homes. I wish people would concentrate on these children, rather than focus on the abortion issue.
Fraser Papers Inc.
Toronto, Ont
It is the Long term consequences of this deal with Hydro Quebec that in fact does concern the citizens of this province. Something that you seem to be ignoring. But then again that is understandable for as you state here yourself this deal is really only a "direct benefit to Fraser Papers"...and a few other large and powerful stakeholders. The truth is Mr. Gorden there is precious little information available to reassure anyone about the long term benefits of this deal and that includes you and yours.
Are you certain that the power rates to the NB Industry will be the same as that to Quebec Industry in future (that is after intial 5 years)?
How does HQ recover the 10 billion it is investing? What is the cost of mothballing the assets (that HQ did not buy)to NB? Who will bear this cost?
Are you thinking long term say 30 40 years or are you just thinking the term you have a job with Frasers. Please think long term.
But more to the point, regardless if it is NB Powers debt or Hydro Quebec just who do you think will be paying it off in the end? Do you actually think Hydro Quebec is just going to absorb that 4.7 billion out of the goodness of it's heart? Do you think the people in the province of Quebec are willing to pay for it with their hydro bills?
Of course not. It is the people of New Brunswick that will pay the debt off. The simple fact as we are not getting rid of a debt at all were simply giving it to someone else to collect and as a bonus they get to keep all the toys when we are done and a province full of customers to do with as they please to boot. Its not Quebec per se but the deal that is flawed.
Sad.
And interesting that he doesn't take the time in his post to even passingly condemn the barbaric real-life murder of Dr. Tiller. I wonder why he doesn't?