CPC(M-L) HOME TML Daily Archive Le Marxiste-Léniniste quotidien

October 2, 2012 - No. 123

Monopoly Right No! Public Right Yes!

Necessity to Exercise Control Over Exploitation of Natural Resources

Monopoly Right No! Public Right Yes!
The Canadian P3 "Model" - Barbara Biley
Vancouver Island Town Halls Launch Community Fight to Keep Hospitals Public

Necessity to Exercise Control Over Exploitation of Natural Resources

Joint Review Panel Resumes Hearings on Northern Gateway Pipeline - Peggy Morton
Community Meetings in Prince George and Mackenzie, BC Stand Up for the North

Scientists' Fight to Defend Life Work and Contribute to Society and Public Good
Coalition to Save the Experimental Lakes Area Organizes Tribute in Winnipeg - Mary Joyce


Monopoly Right No! Public Right Yes!

The Canadian P3 "Model"

For several years, Canadians have been opposing what is called the P3 Model -- the so-called public-private partnerships which are said to be the most efficient and cost-effective way to engage in all aspects of delivery of public services in today's world. This "model" has proven to be a major scheme to pay the rich by turning over the state's treasury and decision-making authority to private interests, and destroying the public delivery of social programs. P3s have become one of the Harper government's pet projects promoted by none other than the Governor General appointed by Harper, David Johnston.

During the 2012 Summer Olympic Games in London, Johnston held several meetings with representatives of governments of other countries to promote this "Canadian Model." On July 28, a breakfast meeting was held at the official residence of Canada's High Commissioner to London, the disgraced former Premier of British Columbia Gordon Campbell. The title of the Governor General's speech to the meeting, which was attended by "senior representatives of countries attending the Olympic Games," was "Public-Private Partnerships -- the Canadian Model."

The P3 model promoted by Johnston in London is a feature of the end of the social contract that was part of the 20th century social welfare state. This included a Canadian standard of living and certain social programs such as a national health system, unemployment insurance, public education, pensions, public responsibility for infrastructure, etc. Far from an "innovation" in the sense of renewing, modernizing or improving what exists, the Canadian P3 model is the anti-social contribution of the Canadian government to the international financial oligarchy. It is the method the Government of Canada has found to impose the rule of the monopolies over governments everywhere. Besides signalling the end of the post-war social contract, it also reveals the profound crisis of governance taking place in Canada and internationally as well. The P3 model wrecks the sovereign decision-making power of governments at all levels and makes them subservient to private interests. As such, above all else, the P3 model reveals the profound crisis of governance in which the Harper government and provincial governments have plunged Canada by abdicating their duty to uphold the public good.

What better place for Johnston's sophistry than London, the home of the Thatcher government which notoriously justified its anti-social offensive with the claim that "there is no such thing as society." The Thatcher government launched its Public Finance Initiatives in the '80s as a means of satisfying the claims of the financial oligarchy to everything public as a source of profit. What previously had been considered the responsibility of government as an expression of the collective will to meet the basic needs of the citizens for health care, education, care of the most vulnerable and the public pension funds, was put at the disposal of the financial oligarchy, both as funds to speculate on the stock market and as other schemes to pay the rich by guaranteeing the profits of private monopolies. The term public-private partnership had previously meant, in the evolution of health care in particular, those institutions funded and regulated by government but built and operated by churches, charitable institutions and other non-profits.

The "modern-day" public-private partnership that the Governor General shamelessly promotes as the "Canadian Model" is a full-blown model of how to destroy sovereign public institutions to make sure the interests of the most powerful monopolies and their oligopolies trump all other interests. He does this in the name of the highest ideals, saying that he, in sharing this "Canadian model" with the world, and the state and the monopolies it serves, are engaged in something he calls the "diplomacy of knowledge" which is, he says "our ability and willingness to work together and share the information we uncover and refine -- across disciplines and borders -- to create a smarter, more caring world." He says that governments play an important role in promoting innovation, "by ensuring that all citizens have access to quality schools; by creating solid organizations that encourage people to work together and share; and by nurturing a national economic climate that rewards people for producing innovative methods, products and practices." Innovation, which the Oxford Dictionary defines as "bring in novelties, make new, make changes in, alter" Johnston explains in a self-serving manner, as "changing something that is already established; it is taking an existing idea or concept and approaching it from a different perspective, or combing it with a seemingly unrelated idea or concept to improve it or create something wholly, radically new."

There are two things about the Canadian P3 model that Johnston puts forward for the world to emulate. The first follows his self-serving definition of innovation and assertion that governments cannot act alone: "The Canadian model works because private-sector experts from a variety of sectors are actively and heavily involved throughout project development. It postulates that private-sector capital is at risk and therefore harnesses the incentives and discipline of capital markets," Johnston said.

He claims that the second and most "innovative" feature of the Canadian P3 model is that "The model takes the entire lifecycle of projects into consideration -- from design, to construction, operation and maintenance -- providing governments with a complete picture of project costs and risks. It also enables public-sector organizations to focus on their core business -- defining their desired outputs -- making private-sector partners responsible for coming up with the most sensible solution to produce those outputs."

The Canadian P3 experience is one of governments imposing thinly veiled privatization. This is not a mere divestment of responsibility for social programs to the "private sector" which is also taking place, particularly in education and seniors' care, but a broad politicization of private monopoly interests. The P3 infrastructure projects including hospitals, bridges, municipal services in particular, don't end up in the hands of some local entrepreneur. They end up under the control of multinationals based in the UK, Europe, Australia or elsewhere which form consortia to take on specific projects or a series of projects. Where originally what was most lucrative was the financing, design and construction of a project like a hospital, the "innovation" presented by the "Canadian model" is that the consortia now take on a 30-year project in which their profits are guaranteed by a contract which commits governments to hand over vast amounts of public funds in an arrangement which gives little or no control to the government or the public.

Return to top


Vancouver Island Town Halls Launch
Community Fight to Keep Hospitals Public

At Town Hall meetings in Campbell River on September 26 and in Courtenay on September 27 more than 200 people came out to learn about the plans to build new hospitals in these Vancouver Island communities as public-private partnerships (P3s). Since the Premier announced on April 26 that the provincial government had approved the plan to replace the two existing hospitals in both communities with new hospitals, there has been a deafening silence about what exactly that plan is.

P3s are a method of privatization in which governments hand over investment and control in public enterprises and public services to some of the biggest monopolies on the planet. In the case of the North Island Hospitals Project, this $600 million dollar undertaking is being put to tender and of the eight consortia that submitted proposals in response to the Request for Qualifications which closed in August, a maximum of three will be short-listed to bid on the Request for Qualifications which is expected to be issued in the near future.

Use of P3s as the model for health care, education, infrastructure and government services, originated with the Thatcher government in Britain. It has been adopted by the federal government which has attempted to impose it on municipalities for community centres, bridges, roads, water systems and sewage treatment plants, among others. P3s differ from outright privatization in that the government guarantees the profits of the private "partners" from the public treasury, while the private partners benefit from contracts lasting, in the case of BC hospitals, up to 33 years.

The Town Hall meetings were held to inform the communities about the privatization agenda in health care that is being pursued by governments at all levels, the particularities of the "P3 Model" and the practical problem of the North Island Hospitals, the stage of the project and what to do about it. Dr. Vanessa Brcic of Doctors for Medicare, Stephen Elliott-Buckley, a researcher and writer with CUPE and the Hospital Employees Union, and local activists Lois Jarvis and Barb Biley, addressed the Town Halls to provide information, expose some of the mythology that has been carefully crafted around P3s and initiate a campaign to hold the government and the Health Authority to account. The information presented clearly demonstrated that P3s result in the destruction of public services and enterprises, and are a method of undermining public right to satisfy the demands of the monopolies -- from the pharmaceutical companies to the multinationals that are demanding control of the design, financing, building and operation of our hospitals with the consequent destruction of the level of coherence and care that exists in the public system

The aim of the Town Hall meetings was to inform and organize. Organizers, panellists and participants all agreed that they were a successful launch of what will become a broad campaign of health care workers and the entire community to keep the new North Island Hospitals public.

Return to top


Necessity to Exercise Control Over Exploitation of Natural Resources

Joint Review Panel Resumes Hearings on
Northern Gateway Pipeline


Protest against Enbridge and other pipelines, Ottawa, September 26, 2011.

The Joint Review Panel Hearings into the Enbridge Northern Gateway Pipeline resumed in Edmonton on September 4. This phase of the hearings is called the questioning phase where Northern Gateway and interveners can be asked questions about their evidence. Hearings continued until the end of September in Edmonton, and now move to Prince George, BC (October 9 to 19 and October 29 to November 9) and Prince Rupert, BC (November 22 to 30 and December 10 to 18).

The chair stated that in Edmonton the panel would consider "economic need of the project, the potential impacts of the proposed project on commercial interests, and financial and tolling matters."

Both Enbridge and the Harper dictatorship have claimed that the pipeline will bring enormous economic benefits to Canada, including many thousands of jobs. Harper has also stated that he will use his arbitrary executive powers to decide whether to approve or not approve the Northern Gateway pipeline, but added the decision would be based on science.

From September 4 to 6, legal counsel for the Alberta Federation of Labour (AFL) questioned the experts who were testifying on behalf of Enbridge. The AFL posed questions to find out the science behind the claims that the pipeline will bring jobs and economic prosperity. The AFL counsel demanded to know who would benefit from the pipeline. She pointed out many times during her three days of questioning that economic benefit to Enbridge and the oil monopolies is not the same thing as benefit to Canadians and the public good.

Enbridge claims both short-term and long-term economic benefits to Canadians in building the Northern Gateway pipeline to ship about 500,000 barrels per day (B/D) of diluted bitumen to Asia.

Economic Benefit for Whom

Short-term benefits relate to the construction phase, which is estimated to involve about 1,850 construction jobs. Enbridge contends that all steel pipe used would be manufactured in Canada. The potential supplier would be the Evraz mini-mill in Regina, Saskatchewan, which produces large diameter pipe from recycled scrap steel using an electric arc furnace. The Regina mill is the former Interprovincial Steel Company (IPSCO), controlled since 2008 by Evraz. Evraz is a global steel monopoly based in Russia and one of the largest vertically integrated steel and mining corporations in the world employing 110,000 workers.

No actual commitment exists to source steel from Evraz or to require it to use pipe from the Regina mill. Pipeline workers say that Canadian-made pipe is seldom seen, especially in the large diameter variety. Even when written promises are undertaken, the examples of broken obligations at U.S. Steel in Ontario, Vale Inco and many other global monopolies reveal that such commitments are worthless so long as the federal and provincial governments permit the monopolies to act with impunity.

The permanent operation of the line involves 224 permanent jobs. All other long-term economic benefit claimed would be based on a projected "price lift" for bitumen and oil from Alberta. This "price lift" is predicted when Alberta no longer has only one buyer for its oil. Enbridge contends that this "price lift" will have far-reaching economic benefits, projecting these for many years. Considering that from 2005 to the present, the price of oil (New York Mercantile Exchange) ranged from U.S.$58/barrel to U.S.$145/barrel, making long-term predictions about the precise "price lift" for oil is something that exists in the realm of fantasy. But even leaving that aside, the benefit from "price lift" leads mostly to higher profits for the oil monopolies and does not benefit the broad interests of the Canadian socialized economy. Many experts contend that a "price lift," if it materializes, will lift oil and gas prices across Canada where Alberta oil is used, and make permanent higher oil and gas prices where imported oil is used, passing on yet another burden to the manufacturing sector and people.

Other experts suggest that a "price lift" would also lift the value of the Canadian dollar making all Canadian exports more expensive and less competitive, and under the present regime of free trade would flood the country with cheap imports generating yet more havoc for the Canadian manufacturing sector, all of which would cause unemployment to rise making the 224 permanent Enbridge pipeline jobs appear irrational and ridiculous.

Enbridge constructs an elaborate mental model based on "all else being equal" when everyone knows that all else is never equal. Even since Enbridge first launched its proposal, new oil and gas drilling techniques (fracking) and additional global discoveries of oil have thrown all predictions of oil supply out the window. U.S. experts now predict that the country will soon become a net exporter of oil.

An Enbridge mental construct includes the assumption that production from the oilsands will not increase and no additional bitumen will need to find a market. However, even the Canadian Association of Petroleum Producers forecasts that oilsands production will increase from 1.6 million B/D in 2011 to 5 million B/D in 2030. Global monopolies are scrambling to grab a piece of the oilsands with new takeover proposals regularly in the news. Forecasts of the level of exploitation by 2030 show that the number of projects planned or in development is already at an unsustainable level. The AFL counsel asked a simple question -- if the supply of bitumen increases, will Enbridge's projections on "price lift," a ready market for exported bitumen and huge benefits to Canada still hold true? And the answer was well not really, no they won't but....

Reinvestment of Profits

The Enbridge experts argue that the monopolies will reinvest their profits and increase production in Canada, and that this will benefit the Canadian socialized economy, the workers who produce and transport the oil and Canadians as a whole. Since when do Exxon, Shell, Total and all the global cartels have some rule or outlook that they reinvest their profits in Canada, especially in projects in the broad public interest that do not necessarily benefit the narrow interests of the monopolies? Free movement of their capital to wherever the monopolies' want, as they strive to dominate the world, controls their thinking and actions. The contention that what benefits the global monopolies is good for Canada is simply a self-serving argument without merit in science or practice.

The Governor of the Bank of Canada has pointed out that the monopolies based in Canada are awash with capital, beset with a problem of no place to invest at a guaranteed rate of return. Why would they invest the billions they control in Canadian social programs, public services, infrastructure and manufacturing unless of course governments would guarantee them a rate of return high enough to satisfy their greed?

Enbridge and their political and other sponsors declare that the Canadian economy faces the necessity for the oil monopolies to increase their profits so they will "reinvest in Canada" and dig up and drill even more bitumen. They refuse to address a very real problem that shipping raw resources and specifically bitumen out of the country necessarily leads to the destruction of actual and potential manufacturing. The one precludes the other. Once workers have built the pipeline and facilities to export bitumen, why would investors want to divert the crude into manufacturing facilities near where it is mined? They want as much bitumen flowing through "their" pipeline as possible. The Enbridge experts made it clear that the company and global investors have no plans to upgrade and refine the bitumen in Canada unless they are given large subsidies and handouts by the state to do so.

Based on evidence submitted to the Joint Review Panel, the AFL estimates that if the Northern Gateway pipeline is built, in addition to all the other bitumen pipelines that have already been approved, Alberta will only be upgrading 26 percent of its bitumen in 2025, down from about 60 percent today. The overall impact of this according to the AFL amounts to a loss of 26,000 permanent, long-term jobs and that does not include any projections of using refined oil in a Canadian petro-chemical industry or fuelling a vibrant diverse manufacturing base.

Even within the pipeline hearings, the exposure of the narrow interests that are driving Enbridge and its backers puts the focus squarely on the issues of who benefits, who decides and who controls the decision-making process. The attempts to pit the workers of BC and Alberta against each other and to isolate the First Nations and Métis fall apart in the face of the relentless exposure of the narrow monopoly interests driving this project.

The public interests of workers, First Nations and society cannot be served without the ability to control the decision-making process and without making the broad general interest of all and their socialized economy as the centre of such projects, not the narrow private interests of the global monopolies.

Through the work to organize the opposition to the Harper dictatorship and the actions and plans of the global monopolies, the people can find their bearings within an independent political movement that can chart a new direction for the economy that upholds public right to decide and to control the decision-making process.

Return to top


Community Meetings in Prince George and Mackenzie, BC Stand Up for the North


Economic Challenges of the Enbridge Pipeline

Prince George Meeting

Tuesday, October 2 -- 7:00 pm

Canfor Theatre, UNBC

Mackenzie Meeting
Wednesday, October 3 -- 8:00 pm

Mackenzie Recreation Centre and Library
Featured speaker: Robyn Allan, distinguished Canadian economist and former head of the Insurance Corporation of British Columbia. She has written a number of well-publicized articles and research papers about the proposed Enbridge pipeline. She shows that, contrary to what Enbridge is claiming, the export of raw bitumen via this pipeline would have negative effects, not only on the environment, but also on the economy, in terms of fuel price increases, job losses and other factors.

Organized by: Stand Up for the North Committee

Upcoming Meetings on Adding Value to Raw Logs, Crude Oil and
Other Natural Resources

The Stand Up for the North Committee is organizing meetings to highlight the need to refine crude oil and process raw logs and other natural resources in Canada so as to create more jobs and add longer value chains to the provincial and national economy in an environmentally responsible way. A second set of meetings will focus on presentations from workers and unions in the oil sands, forestry and other sectors who are concerned about the increasing export of raw materials and who want more processing carried out within Canada.

Sponsored/endorsed by: CUPE BC, PPWC Local 9, Steelworkers Local 1-424, Faculty Association of CNC, Carrier Sekani Tribal Council, North Labour Law Corporation, Citizens' Environmental Advocacy Group, Sea to Sands Conservation Alliance (and other organizations TBA).

For further information, phone: (250) 562-0015 or email: peter.ewart@shaw.ca

Return to top


Scientists' Fight to Defend Life Work and
Contribute to Society and Public Good

Coalition to Save the Experimental Lakes Area Organizes Tribute in Winnipeg

On Sunday, September 16, a tribute to the Experimental Lakes Area (ELA) organized by the Coalition to Save ELA was held at the Forks in Winnipeg. Besides Save ELA signs, informative presentations about what goes on at ELA held the interest of those who came by. People could view water insects through a microscope, see a selection of critters from freshwater lakes, hear scientists describing their research and listen to folk music.

ELA is a freshwater research site unique in the world. It is a giant outdoor laboratory, including 58 pristine lakes and 19 buildings, allowing researchers to understand interactions in whole ecosystems. Whole lakes are manipulated while others act as controls for comparisons. It was set up in 1968; 44 years of continuous research and monitoring of lakes will be wiped out when the Harper government closes it on March 31, 2013 as part its attack on the public service and institutions that uphold the public interest. Closing it is a huge loss not just to Canada but to aquatic science and the development of the human factor/social consciousness in prevention and remediation of the pollution of fresh water. All areas of ELA must be returned to their pristine state if and when it is closed; the costs of that will far outweigh the trivial "savings" of $2 million federal annually. This alone points to the fact that the closure of the ELA is not about "saving money" but destruction of everything which stands in the way of the reckless drive to exploit Canada's resources without regard for the public good.

Diane Orihel, a scientist and organizer of the Coalition to Save ELA, paid tribute to ELA for putting Canada in the forefront of aquatic science in the world. She spoke of its work to serve Canadians, to conduct science in the public interest, to guide public policy, and to provide stewardship for the ecosystem. Fundamental research done at ELA can and has been applied to lakes worldwide, she explained, adding that this has been essential for the health of our lakes and our water. "We must be good stewards of water; without ELA science we will not know how," she said and called on people who care about ELA to fight to keep it alive.

Ian Davies, a scientist who has worked 44 years at ELA, pointed out that limnology, the study in-land waters, is a new field and that ELA has been there for half of its lifetime. In 1928 the first studies began in Prince Albert National Park in Saskatchewan. In 1956 the first books on ecology and limnology were published; by 1966 Lake Erie was eutrophic, i.e., full of algal blooms which when they decay deplete the water of oxygen needed by fish and other organisms. Lake Erie has since recovered, due to the ELA studies. The freshwater scientists at University of Manitoba wondered how to sort the situation in Lake Erie out and needed pristine, small lakes provided by ELA: "They tell us what is going on. One thousand or so publications [on the work done with these lakes] have told us much," he stated.

Young scientists involved with research at ELA gave brief reports on significant studies such as:

- "Why Aren't Fish Having Babies?" This study investigates remnants from hormone replacement therapy in urban sewage moving into water systems.

- "Do Fish Farms Harm the Environment?" These experiments are unfinished.

- "What Is the Toxicity of Nanosilver in the Environment?" This is urgently needed work that will not be completed, presently conducted by Trent University and University of Manitoba.

- "Remember Acid Rain?" Small lab studies denied acidification from coal-fired power plants but the whole-lake ELA experiments proved it. Sulfur dioxide emissions were stopped.

- "Reservoirs and Greenhouse Gases and Why Flooding of Peatlands Should Be Avoided"

- "What Causes Algae?" ELA scientists discovered that nitrogen is not the culprit, only phosphorus, and so millions of dollars formerly spent to treat nitrogen in large municipal sewage treatment is saved. Removing phosphorus is cheaper and is still done.

Retired scientists elaborated on why ELA must be saved. One explained the complex method used in the 1990s to figure out where mercury in fish was coming from, as there are three delivery systems and some of the mercury comes from pollution while some is from natural processes.

The unique long-term data set established by monitoring of pristine lakes is a treasure second to none in the world. It started about 1959 near a weather station; there are now 44 years of high quality data, with frequency of measurement, completeness of data, seasonal measuring, covering a range of lakes. It is collected by the same scientists or ones they trained, using the same methodology. with cross linkages. There is nothing like it anywhere else. Researchers request access to this long-term data set world-wide and come to ELA to "look forward by looking backward." It costs next to nothing to maintain, but is at risk of being lost.

A speaker from the Lake Winnipeg Foundation spoke of the ironic, irrational and unacceptable dismantling of ELA at a time when to discover what is polluting Lake Winnipeg is a crucial matter. She also pointed out that a whole list of new chemicals from emerging technologies can only be studied in small lakes. Nanosilver is an example. Winnipeg is enlivened by the experts, students, companies and money all drawn by ELA. She paid tribute to the scientist's work to preserve and protect our lakes for future generations.

Jon Gerrard, MLA for River Heights and the Leader of the Manitoba Liberal Party, stated that it would cost hundreds of millions to build a substitute for ELA, its "natural capital and knowledge base.... [We] must find a way, there must be a way to save ELA, save us and save the planet."

Nikki Ashton, NDP MP for Churchill, referred to "real Canadian values" such as a clean environment, respect for science and the rights of indigenous peoples, which are at risk under the current political climate where evidence-based knowledge and science is devalued. Her message to the Harper government was: "Save ELA; if you don't we will."

All out to support the scientists' fight to defend their life work which has made an important contribution to society and the public good!


On September 27, petitions to save Canada’s world renowned Experimental Lakes Area (ELA) signed by more than 23,000 Canadians were delivered to Members of Parliament on the steps of Parliament Hill in Ottawa. (SaveELA.org)

Return to top


Read The Marxist-Leninist Daily
Website:  www.cpcml.ca   Email:  editor@cpcml.ca