Premier open to altering proposed deal
Published Saturday October 31st, 2009
FREDERICTON - Premier Shawn Graham has offered a hint of conciliation on the plan to sell NB Power, just as the Liberal premier prepares for the biggest sales job of his career.
On Friday, Graham told reporters he is open to altering the proposed deal, which would see most of New Brunswick's public utility handed over to Hydro-Québec - in exchange for lower power rates and a wiping out of NB Power's $4.75-billion debt.
While many observers are applauding the tentative deal, there is widespread concern about the impact on New Brunswick power rates in the long term.
If approved, the deal would drop local industrial power rates to levels offered in Quebec, while residential power rates would be frozen for five years.
But after five years those residential rates could rise wildly, critics warn.
Conservative leader David Alward said future rate hikes could be "devastating."
Donald Savoie, a public administration and governance expert at the Université de Moncton, has said the proposed deal must be revised before it is approved.
"New Brunswick could not be better served by the electricity rate in the first five years," he said. "However, what happens after five years is considerable cause for concern."
After the initial five-year period, residential power rates in New Brunswick will be tied to annual increases in the Quebec rate - as well as to inflation.
Savoie has contended that New Brunswick, unlike Quebec, will have no protection against skyrocketing inflation rates. So he wants the proposal to ensure New Brunswickers pay no more than five per cent above what Quebec residents pay for their electricity.
"The five per cent cap would provide the necessary protection for New Brunswick to turn a flawed deal into a good one," he said.
On Friday, Graham called Savoie's proposal "interesting" and vowed to evaluate it.
In doing so, Graham revealed a willingness to amend the agreement - perhaps in an effort to quell public unease about selling a Crown corporation to Quebec.
And for Graham, much is at stake, including the next provincial election and the first paragraph of his potential political obituary.
The success or failure of the deal will likely determine if Graham is remembered as the stooge who got swindled out of the family farm, or the saviour who erased nearly half the province's crippling debt.
Coincidently, Friday saw Graham attend a ceremony honouring the legacies of past New Brunswickers premiers.
But he wouldn't predict if his government would ultimately be remembered for NB Power heroics or an NB Power boondoggle.
"You govern to the best of your abilities," he told reporters. "It's far too early to be talking about the legacy of our government. I'm standing here today in the footsteps of giants who led our province. The historians and political pundits will have ample opportunity to dissect our record."
University of New Brunswick political scientist Don Desserud said the NB Power sale is going to follow Graham into next fall's election - perhaps to his detriment.
"His problem is that we won't know if it's a good deal until well after the next election, and probably not until after the five-year power rate freeze," Desserud said.
"He doesn't have a long track record of brilliant moves. He has a long track record of moves he had to back down on - so, of course, people are going to be suspicious. I don't think people are going to give him the benefit of the doubt," he said.
"I think Graham will be punished for what the public thinks is a rash and irresponsible move. History will tell whether the public is right or wrong."
Alward, the Tory Opposition leader, is equally pessimistic about the public's response to the Hydro-Québec takeover.
"I believe this deal will be his downfall," Alward said. "Shawn Graham is leaving a legacy of mistrust, mismanagement and recklessness. This deal should leave every New Brunswicker very concerned."
But Graham insisted the proposed deal will aid the province in the long run - even if it has to be amended.
"We worked diligently to sign an agreement that is going to see every single New Brunswicker benefit from lower rates and the biggest debt payment in the province's history," he said.
"I'm looking forward to receiving input from others."
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This is conclusive that the deal was made hastily without thinking through the consequences or even the true meaning of the MOU. Savoie is no genius in my books just because he can read and think. Clearly those attributes are lacking in Premier Flip-Flop's make-up. The agreement is short-sighted but the short term was the prize the Liberals had their eyes on. They still do. This agreement is bad for the future of New Brunswick. It puts us in the hands of a government with which we will have no electoral power.
Think about the 5 year freeze...he's thinking win an election in 11 months win one 3 or 4 years after that, then when the s**t really hits the fan get a retirement package from NB and a seat on the board of directors of hydro quebec.
What some people label dithering, I call being reasonable and responsive. If Graham is open to adding something like this to the proposal, something that would add even more value to the deal, then why not support it?
Whoever negotiated this deal needs to be fired. NOW.
Shawn “Delusions of Grandeur” Graham!
These two are seriously ill-equipped and incapable of making any decisions that are good for New Brunswick.
Shawn says you need to govern to the best of your abilities! He has certainly demonstrated that he “does not” have the ability to govern.
These guys must go and will go in the next election.
The question is how much more damage can they do before the voters run them out of town.