Wednesday, March 20, 2013

Ms. Clark's Prosperity Fund Delusion.


The Vancouver Sun printed a 'special' (their word, not mine) OpEd from Christy Clark this morning telling us about the sparkle ponies and unicorns all over again.

Here is Ms. Clark's 'lede', such as it is:

Recently, in the pages of this newspaper, I read with interest David Emerson’s views on how British Columbia can ensure a lasting legacy for future generations by protecting non-renewable resource revenues. I agree that this generation has a moral obligation to protect and share the benefits of a resource that belongs to all British Columbians, current and future.

That’s why on February 12, we introduced a visionary idea – a B.C. Prosperity Fund that would secure the wealth from our natural gas revenues, and protect it for future generations. It could be in excess of $100 billion over the next 30 years...

Leaving aside the almost clever use of the weasel wording (see, for example, 'could be') for the moment, perhaps Ms. Clark could tell us, specifically, how this revenue will be generated given that we have already seen natural gas revenues fall through the floor since the 'Frack Gas Glut' began and prices fell dramatically over the last five years.

Norm Farrell, not Ms. Clark or her minionish ministerial minstrels, had those (real, not imaginary 'could be') numbers up yesterday.

Here is the graphical representation of said numbers as constructed by Mr. Farrell:

And please realize that those revenue numbers fell dramatically as production actually went...




The massive revenue delusion from Ms. Clark is one thing.

But what the heckfire is this, from the closing paragraph of her special (ed?) piece for the VSun...

...LNG is a key part of The B.C. Jobs Plan. Built on our strategic advantages, the plan is the foundation for success in eight sectors in our resource industries and beyond, such as tourism, technology, agriculture and advanced education. We can unlock the potential of every sector by securing the LNG opportunity today, and protecting that wealth for future generations in the B.C. Prosperity Fund.

So we are now being told that success in LNG production kinda/sorta/maybe equals success in advanced education?


That sure is some math, that New Christy Minstrel Math.

Especially given that Ms. Clark and her Minstrels cut almost $50 million out of advanced education in their last faux prosperity non-budget.




Hugh said...

This comes from the same geniuses who thought BC Hydro would make huge profits selling 'green' IPP power to California.

Grant G said...

I don`t think it really matters Ross.

Christy Clark`s LNG scheme was floated in the throne speech, some media ran hard with the story, it fell on deaf ears..

Many writers, bloggers and honest media have already shredded the BC liberal`s prosperity scheme.

The NDP have said yes to LNG, John Horgan has also committed to a indepth study on fracking and fracking pitfalls.

This won`t be an election issue, either will David Black`s ponzi scheme refinery.

Keith Baldrey, Vaughn Palmer, even Bill Good have all said, and said it recently(last Friday) that the throne speech, the LNG scheme, the prosperity fund and the budget were all colossal failures.

Whatever happens with LNG, with refineries, with future budgets, at least for the next 4 1/2 years will be happening under an NDP Government.


RossK said...

Good point Hugh--



Fair comment, but...

Not sure it is the reality that is at issue here...Point is, the VSun keeps offering up its OpEd page for people to fling this prop into the wurlitzer...Interestingly, usually the flinging is done by a surrogate...


Grant G said...

One more thing Ross K..

There is no one stopping LNG projects, there have been 3 export licenses granted, one license last month and 2 export licenses 2 years ago.

Why nothing is happening is because no LNG company has been able to sign longterm energy buying contracts at lucrative prices.

That is the angle no one is talking about.

Also, Geoff Morrrison of CAPP(Canadian Association of Petroleum Producers)..

CAPP has been lobbying the Federal Government to change the classification of LNG companies to manufacturer status, this would bring a 30% capital cost tax break/subsidy.

So it seems to me...

Christy Clark needs to lobby Stephen Harper and the Cons to allow the change to manufacturer status and allow the massive subsidy.

But therin lies the problem, CAPP claims without the massive subsidy they can`t compete with other countries..

CAPP needs a subsidy..Christy Clark proposed a "new LNG tax" to fund her prosperity fund..

Ironic?...CAPP needs a subsidy to go forward(and customers) while Christy Clark wants to put a shackle around their ankle..

Do you really think Harper will allow this Federal subsidy and let Christy Clark slap an equivalent tax back on the LNG companies, a tax that benefits BC solely?


Grant G said...

You are right Ross K..But did you really expect anything else from the Vancouver Sun, or Global, or CKNW?

We all knew this was coming.

I guess we will soon find out who has more sway, bloggers, truth tellers, alternate media, social media..Or partisan pimping from the big dailies..

Ross K..

Remember the HST debate..

We had to fight the big media, big radio, big lies, big advertising budget of the BC Liberal Government and the corporate advertising, from mining, forestry, exporters, even the movie industry, all pimping for the HST..

And Michael Campbell fought tooth and nail for the HST..

It wasn`t close, the HST vanishes on April 1st..


paul said...

The other problem is that Clark and the Liberals had the chance to create such a fund for a share of non-renwable resource revenues long ago. (I made the case back 2004 here - )
Instead, they chose to spend the money as it came in. And, arguably, to sell the resources too cheaply in order to get quick cash.
The discovery of the policy months before an election looks obviously opportunistic.

cfvua said...

Another overlooked failure of the liberals is the incentive/subsidy/royalty credit scheme that was touted to create jobs. Any jobs created went out of province. Dismal failure or income tax numbers would prove otherwise. Now this already highly subsidized industry wants more and continually tries to sway opinion with taxpayer "credited" money. Are they really free enterprisers or free lunchers?

scotty on Denman said...

Up until Sterk announced Greens won't run a full slate, BC Liberals had been counting on them to split the anti-neo-right vote like they did in thirteen ridings 2009. Christy's LNG budget was intended to provoke, by its very preposterousness, response from the NDP on an issue with which it contends with its Green rival in hopes of exacerbating the traditional split. Now with Greens mostly withdrawn, that tactic is unviable. All that remains of LNG for Christy is criticism and ridicule;
Expect her to restrict LNG articulation to rote repetition in print, safe from engaged rebuttal since the NDP can now drop the gloves and punch back with any better LNG policy.

Greens never did have many political cards to begin with; now, as they start to fold, all Dix has to do is look at his own hand to see he can call Christy's bluff at any time. Yet Christy keeps on raising the stakes (like endorsement of Kitimat refinery)---soon she'll be "all in."

scotty on Denman said...

Oops! Please forgive my redundant "with which...with."

Anonymous said...

You can go to this site to see the BC NDP's policy on the environment.

Grant G said...

The Kits coastguard station is closed, dock removed, infrastructure dismantled..

A little late, don`t you thin that ultimatum should have been made before the station closed, like say 10 months ago?

Anonymous said...

Delusional you bout IPP energy companies not paying their contractors... you bet happening to a number of Terrace BC contracted companies by an alberta Energy Company...

IPP how do you off as many in B as you can...another government "project" brought to you by the BC Liberals...the most corrupt government in BC history!