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"
- Barbara Biley -
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.
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.
Necessity to Exercise Control Over
Exploitation of Natural Resources
Joint Review Panel Resumes Hearings on
Northern Gateway Pipeline
- Peggy Morton -
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.
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
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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
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 -
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)
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Website: www.cpcml.ca
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