Private to Sandy Collins and Paul Oram

For the benefit of both the VOCM newsroom, and the Terra Nova cell of the Lone Gunmen, here is the full text of three write-thrus of VOCM's story today on the provgov Wabush announcement, complete with Dwight Ball paraphrase:

Premier in Wabush for Third Transmission Line Announcment

Thursday , February 13 2014 | 9:28:20 AM

 

Premier Tom Marshall is optimistic about what the future may hold for Wabush. With the idling of the Scully mine, the town has lost its main employer with 400 people having lost their jobs.

The Premier is in Wabush today, joined by Natural Resources Minister Derrick Dalley and Labrador Affairs Minister and area MHA Nick McGrath for a series of meetings with the town and union to discuss ways the province can help. Marshall wouldn't get into specifics about exactly what the government would consider, but says all options are on the table. Marshall says the first thing is to meet with the stakeholders. Given these are workers with specific skills, he says it is important they are aware of other projects going on in this province and programs available to them to help get them back on their feet.

While Wabush sits idle, another company is pushing government for power to open. Development of the Kami Iron Ore Mine is being held up according to Alderon because there's not enough power available in Lab West. VOCM's Danielle Barron reports.

Sources tell VOCM News an announcement regarding the third transmission line between Churchill Falls and Lab West will be made this afternoon. Alderon Executive Chair Mark Morabito indicated on Twitter that even with the idling at Wabush Mines there isn't enough power to sustain Kami so a third transmission line is still needed. Morabito boasted that Kami has the potential to replace all of the jobs lost at Scully. Negotiations have been ongoing for some time now between government and Alderon on a third transmission line. Premier Tom Marshall would only say yesterday that a decision was imminent.

Marshall says everyone is aware of the power needs of the region and he will be discussing the issue with stakeholders and the community.

Meanwhile, Opposition Leader Dwight Ball says government needs to be working with the community and the union to ease the adjustment period. He says government's top priority should be protecting the future of Wabush Mines, rather than focussing on a third transmission line for Alderon.

He says we have core assets including ore in the ground and a skilled work force. He says power is part of that asset, so future developments requiring power should not be the focus at this time.

NDP Leader Lorraine Michael says the workers laid off from Wabush Mines need to be sure their futures are secured. The union is hoping to meet with government and the company to try to work out an early retirement program to help families through a very tough time. Michael says the circumstances in Labrador West are such that appropriate assistance will be needed.

A news conference to discuss mining developments in Lab West is scheduled for 2 p.m. (Atlantic Time). VOCM News will be there to bring you the news first.

 

 

Premier Announces Third Transmission Line for Labrador West

Thursday , February 13 2014 | 3:04:42 PM

Premier Tom Marshall has confirmed that an agreement has been reached for a third transmission line to Labrador West. The premier, joined by Natural Resources Minister Derek Dalley and area MHA Nick McGrath made the announcement just a few moments ago in Wabush. Marshall says the role of government is to provide support to the industry. He also say governmen will do what it can to help the people of Wabush affected by the closure of the mine. He says over the next few weeks, labour market resources will be provided in the town.

The Premier is in Wabush today, joined by Natural Resources Minister Derrick Dalley and Labrador Affairs Minister and area MHA Nick McGrath for a series of meetings with the town and union to discuss ways the province can help. Marshall wouldn't get into specifics about exactly what the government would consider, but says all options are on the table. Marshall says the first thing is to meet with the stakeholders. Given these are workers with specific skills, he says it is important they are aware of other projects going on in this province and programs available to them to help get them back on their feet.

While Wabush sits idle, another company is pushing government for power to open. Development of the Kami Iron Ore Mine is being held up according to Alderon because there's not enough power available in Lab West. VOCM's Danielle Barron reports.

Sources tell VOCM News an announcement regarding the third transmission line between Churchill Falls and Lab West will be made this afternoon. Alderon Executive Chair Mark Morabito indicated on Twitter that even with the idling at Wabush Mines there isn't enough power to sustain Kami so a third transmission line is still needed. Morabito boasted that Kami has the potential to replace all of the jobs lost at Scully. Negotiations have been ongoing for some time now between government and Alderon on a third transmission line. Premier Tom Marshall would only say yesterday that a decision was imminent.

Marshall says everyone is aware of the power needs of the region and he will be discussing the issue with stakeholders and the community.

Meanwhile, Opposition Leader Dwight Ball says government needs to be working with the community and the union to ease the adjustment period. He says government's top priority should be protecting the future of Wabush Mines, rather than focussing on a third transmission line for Alderon.

He says we have core assets including ore in the ground and a skilled work force. He says power is part of that asset, so future developments requiring power should not be the focus at this time.

NDP Leader Lorraine Michael says the workers laid off from Wabush Mines need to be sure their futures are secured. The union is hoping to meet with government and the company to try to work out an early retirement program to help families through a very tough time. Michael says the circumstances in Labrador West are such that appropriate assistance will be needed.

A news conference to discuss mining developments in Lab West is scheduled for 2 p.m. (Atlantic Time). VOCM News will be there to bring you the news first. 

 

 

Third Transmission Line to Labrador West Announced

Thursday , February 13 2014 | 4:39:42 PM

Premier Tom Marshall has confirmed that an agreement has been reached to bring additional power to Lab West through a third transmission line from Churchill Falls. It comes on the heels of the decision by Cliffs this week to idle the Scully mine. As VOCM's Danielle Barron reports, the power deal was finalized just last night.

The 165 m/Wh line will take about two years to construct at an estimated cost of $300-million. It will be up to Newfoundland Hydro as to when construction will begin, but the province has asked the utility to expedite the process. The cost of the line will be bore by those who use it, in this case a combination of industry and residents.

The Public Utilities Board will set power rates and allocation, but Marshall says the planning and design of the line is exempt from PUB review. Marshall says the PUB regulates rates and protects consumers.

Alderon, the company who had been pushing for extra transmission for its Kami Iron Ore project is expected to start construction as early as mid-summer, with an estimated 2,300 jobs at peak and a workforce of 650 once operational.

The fall out from the shutdown of Wabush Mines has far-reaching effects. Not only are 400 employees without work, the town has lost its major employer and small businesses now worry what the closure will mean for their operations. Roger Enault owns four of six hotels in the region, including the Wabush Hotel. He's been operating in the town for some 26 years. Enault says while he doesn't suspect to feel the pinch in terms of occupancy, he says the closure will affect the bottom line of the dining room.

Every day he says the hotel restaurant serves 500 customers, Enault estimates at least 100 of them are workers at Wabush Mines.

Bob Cole runs three restaurants and bars in the Wabush region including Stanley's. He's been doing business in the town for 10 years. The closure of Scully, meant the loss of a contract for Cole, who use to provide meals for workers doing overtime. While it's a big loss, he says he's not going to lie down and die over it.

Cole says he's confident other projects will help prop-up the loss of Scully. He says Labrador people are resilient and while this loss is significant they will survive.

The provincial government will be providing labour market resources to the town and those affected in the coming weeks. Premier Tom Marshall had meetings today with the Steelworkers Union, and members of the town council to discuss ways government can help. The union has suggested an early retirement package for those eligible, an option that is being considered according to the Premier.

Marshall says through the department of advanced Education and Skills a full range of individualized training and transition support programs will be offerred in the weeks to come. Things like career counselling, resume writing workshops and help with interviewing skills.

New deal

An excerpt from a St. John's Telegram report by Jamie Baker, from October 24, 2006:

Premier Danny Williams is rejecting an Iron Ore Company of Canada's (IOC) call for continued access to cheap power, even going as far as to compare the company's proposal to the infamous Upper Churchill contract.

Williams said the company wants to continue a longstanding agreement with the province to buy its power at a rate of .5 cents per kilowatt.

"The half-cent, from our perspective, it's a renewal of a deal that's very similar to the Upper Churchill contract," Williams told The Telegram Monday, suggesting the company is "virtually getting their power for nothing."

The existing contract was struck when Churchill Falls was being built.

IOC agreed to shut down its Twin Falls generating station on the condition that the province would provide an equivalent amount of power for the company at an equivalent price.

That contract expires in 2014.

Williams said the power rates in that deal are outdated and any new deal with IOC would have to be more in line with existing energy markets.

He said the standard industrial rate for the province was about 6.5 cents; the residential rate for island customers is approximately 12 cents; and the rate for recalled power would be some four cents.

Quaere: what price is Alderon looking to pay?

Paul Oram is right

The PC's are back.

In second place.

Per this morning's Abacus poll for VOCM, conducted in the days following Kathy Dunderdale's resignation, here's what the notional electoral map would look like. The Liberal seat count would be at least 25, including one notional win in St. John's, with another eight potential pickups, not including seats which the caucus has already picked up through floor-crossing and a by-election.

The incumbent PCs would struggle to retain a caucus of more than ten, though they would save the furniture in their traditional northeast Avalon chateau-fort.

The NDP, despite the Troubles, and despite being well off their record-breaking polling highs of 2012 and 2013, would notionally hold onto a caucus of at least three.

Dark colours indicate holds. Light red indicates notional Liberal pickups, while light blue indicates narrow PC holds. Grey indicates districts where the forecast models are in disagreement about the notional outcome.

* The models do not take into account changes in party affiliation of the incumbent (St. John's North, St. John's South, Mount Pearl, Straits and White Bay North), nor a seat which has changed hands in a post-2011 by-election (Carbonear–Harbour Grace). It also does not account for the impact of likely pre-election vacancies (Virginia Waters) or incumbents who choose not to re-offer (Humber East).

Money Town

An interesting side-note to last fall's municipal election in St. John's, by way of the unusually-hard-to-find municipal campaign finance disclosures, released on January 21st.

In the mayoral race, the winner in votes wasn't the winner in campaign contributions. Incumbent and winner, Dennis O'Keefe, raised less than $60,000. Runner-up Sheilagh O'Leary raked in over $90,000.

The sources of their respective campaign contributions are strikingly different. The St. John's municipal campaign finance rules require disclosures of all contributions from individuals or businesses of over $250. That is, small individual contributions of under $250 fall under the disclosure threshold, though the aggregate amount of such contributions must be disclosed. O'Leary collected more in such small campaign donations than O'Keefe collected from all sources combined. O'Keefe's campaign was financed mostly by larger contributions from businesses and corporations.

This chart breaks down each candidate's donation totals from personal contributions, business/corporate contributions, and small donations that fall under the reporting limit:

Here's the same data, represented as stacked percentages, rather than dollar totals:

And, restricting ourselves to the reportable contributions, over 90% of O'Keefe's reportables came from business donors. O'Leary's reportable contributions were split almost evenly between businesses and donations from named private individuals.