NB Power sold off to Quebec: what’s your take?

NB power.jpg
Andrew Meade / The Brunswickan  

For those of you who may not know, the Graham government plans to sell NB Power to Quebec.

Shawn Graham and Quebec’s Premier, Jean Charest, have recently struck a deal which will sell most of NB Power’s assets to Hydro-Quebec for $4.75 billion.

That $4.75 billion makes up the entirety of NB Power’s debt and 40 per cent of the entire province of New Brunswick’s debt.

Rather than coming down for or against the proposed deal, the editors here at The Brunswickan would like to reveal the real problem.

The people of New Brunswick were not consulted about this province-altering decision. Shawn Graham went ahead and made a deal with Quebec. He did not check with New Brunswickers to see what they thought of the deal, and as a result there has been widespread mistrust and anger surrounding the issue.

The unrest has reached such a point that the Opposition has demanded an election.

Power is something that affects each of our lives and our world, each day, and in countless ways. Worrying about bills may seem like something for your parents to be doing, but all students pay a power bill. If you have your own place with friends, you all chip in and pay your power bill, or if your bills are included in your rent, the cost of rent usually reflects that. If you live in res, you pay your bill indirectly through residence fees.

As a customer, you should care about where your services are coming from. The government has given you no opportunity to voice your concerns. As of right now, there is a number you can call to give feedback. There is also an email address you can send comments to: feedback@lowerratesnb.ca.

“We may not respond to all emails,” it says beneath.

This is the only opportunity the public has been given to comment. Our government seems to pick and choose when it will involve the public in its decision making process, and this needs to stop.

The government has created a precedent of transparency and citizen input with their recent Poverty Reduction Initiative, for example.

The first phase of the project included months of citizen consultations which included thousands of New Brunswickers in community meetings scheduled around the province.

The reaction to this high level of citizen engagement has been overwhelmingly positive, if a little skeptical.

However, the government decided to ignore public kudos for this transparency, and it has moved backwards into backroom dealing with their treatment of the deal with Hydro Quebec.

The first whiff of the deal was picked up by New Brunswick papers on Oct. 23, 2009 in the form of rumours which were neither confirmed nor denied by the Premier’s office.

The deal had been in the works for three months or more.

If this were an acquisition deal in the private sector, confidentiality from the general public would make sense; or, at least, it would be business-as-usual. However, both NB Power and Hydro Quebec are Crown Corporations (state enterprises). The only shareholders are tax-payers, and shareholders are the people to whom a corporation must answer. Any acquisition deal, or any deal that presents a significant change from what shareholders signed on for, should be voted on.

An election probably isn’t the answer, as the opposition inevitably thinks it is. However, we have yet to hear of a referendum in either New Brunswick or Quebec. The problem, then, is not necessarily the deal itself, but rather the dictatorial actions of our provincial government.

Not only this, but the Liberals are investing $1 million in advertising to convince the public that its “lower rates” plan is the best route. This might be useful if followed by a referendum, but without one it’s just propaganda.

Whether you care about politics or not, you need to make your voice heard on this issue. Write a letter to the editor, write to Shawn Graham, protest. Do whatever it is you need to do to feel heard, because we are supposed to be living in a democracy, not a dictatorship.

Click the images below for larger versions:
NB power.jpg
   Tags: NB Power hydro quebec

My first question to the Government of the day is, How did we get to this point in the first place? How can a company like NB Power, the only game in town, selling a product that everyone needs be in such dire financial circumstance. Actually their is an easy answer. GOVERNMENT, they are all alike, they have raped and pillaged NB Power to the point of no return, sheer Genius.

Anonymous

here is the facts as i see it,I believe we will see a major increase in power rates after a five year freeze this will allow the rates in Quebec to stay low, all the workers at N.B, Power to be replaced by Ouebecers, I am a holder of a interprovincial ticket which is reconized in every province except Quebec; while Quebec workers are allowed to work in this province at any time. The problem in this province is the tax freeze on commercial properties such as the Irving refinery which has increased in size by three times since the freeze.The provincial goverment had Quebec shipyard build a new ferry with our tax doller instead of building it in this province. HAY.MAYBE WE SHOULD TRY TO SEPERATE FROM CANADA. QH WAIT JUST GIVE IT TIME THE PROVINCIAL GOVERNMENT WILL MORE THAN LIKELY SELL YOU AND ME TO quebec if it will pay off the governments missuse of of our tax doller.

Anonymous

This sale will effectively allow Quebec to divide the Country down the middle as far as power supply is concerned.

They will effectively control the distribution grid required for export of power from 5 of the provinces (including Quebec) to the other 5 (Ontario and west).

There is more at stake here than how much one can save on their monthly power bill.

Myles Higgins

Sounds like a great idea to me. The only tax dollars that I can see being lost are from excutive salary expenditures. Our power company would be put under the umbrella of the screw Canada, screw green mandate of the BQ. HQ can't do anything illegal like overcharge us. Plus we get a bunch of cash to pay off our debt coming out of this recession.

Anonymous

Why was there no public knowledge of this MAJOR deal before now ??!!
If it is some sort of plan by Mr. Graham and his Liberal Party to artificially reduce the provincial debt to charm the public and buy votes , I have a funny feeling that the end result may just be DEFEAT !!
(ps I wonder what Frank McKenna 's opinion is ?? ) toll highways RIP !

bleepbleep61

You say "Rather than coming down for or against the proposed deal" in your article and then you come down against it. You are nothing more then a hypocrite. You have absolutely no journalistic integrity. The fact that I just referred to anyone at the Bruns as a journalist makes me sick to my stomach. I have never once read an article in the Bruns that makes me feel well informed, not once.

You say that the government is publishing propaganda in favor of the NB Power deal, what about the garbage that is spewing from your mouth? I can't believe that I have to pay a fee for this dribble to exist.

I am making a suggestion here and now, every student on campus should demand that the Bruns have its funding revoked until such a time as there are competent individuals in place to run it. Remove these self proclaimed, but obviously delusional, intellectual beings. Because lets face the true facts here, the Bruns is made up of useless hacks. People who wish their twisted, biased opinions be force fed to us guised as so called "news".

There is only one other place in heaven or hell where a writer for the Bruns could publish any and all of the "thought provoking articles", and I use that term ever so lightly, Fox News. Let's face it folks, the only thing that is different between something read in the Bruns and the food on your plate, is that the food is crap after you digest it.

Anonymous

I am going to completely agree with this point of view regarding the Brunswickan. I have been at UNB for 3yrs and have noticed that all of their stories are very biased, both editorials and news.

Anonymous

did you just bottle that up for months and spew it out? did you even read the editorial? did you even realize it was an editorial and not a news story? do you even know the section you clicked on? or did you just want to attack the bruns for asking you to think about something? the power of the internet. ohhh boy.

Anonymous

While this is off-topic from the article I felt I should point out one thing. The Bruns's content comes in large part from volunteers. If you have such strong objections to what's being included in the paper now why not just submit something yourself? Or even just write a letter to the editor to be included. All opinions are welcome and the editor is always looking for people's constructive opinions on the Bruns's content.

Alison

It breaks my heart to think that this spoiled brat thinks so little of the individuality of new brunswick people. Shawn graham, should at least hang his head in shame. But i fear his arrogance, and his lack of integrity have complete hold over him, and the the potential for great personal wealth is all that he can see. There will come when he will regret this great sin, if there is any real worth to this shell of a man.

philip lewis

We gave it away for years, and now it may be a thing of the past for NL. New Brunswick you must be mad, to even thing about selling NB Power. Not to anyone!

John Cochrane,
NL, Canada

John Cochrane

When I first heard about this proposed deal between HQ and NB Power, I knew that the contract signed by NL and HQ would come back to haunt us. Without HQ, Mr Cochrane, there would be NO dam on the Churchill River. In fact, as far as I know, there was absolutely no way NL could have financed this giant project when it was built. A long term contract was then signed in good faith by Joey Smallwood and eventually, the dam is going to be yours free and gratis for NL to profit from. Why don't you stop the moaning? The proposed deal between NB Power and HQ is, in my view a win-win situation and NL citizens are certainly NOT going to be richer or poorer because of it.

Bertin Plante

wow! win win. Yes Irving interest win about 5 Billion at what cost. The power rates can't be raised by HQ for 5 years. Did you know NB government can raise them. It's a clause in the MOU.
also after the 5 Years Quebec Hydro can increase the rate by the % every and each Year plus a % to cover interest on lost revenue. Could be anywhere between 16 to 35 %. Nice deal.
NB loses all control over our Hydro. Do you realize what the grid is? The way we send our power around the province. This was built up during a period of over 100 years. What is that worth? Does this puny premier have the right to sell this?
Also QH decides what plants such as beldune get closed and NB has to pay for the closures. This cost can be recouped by government by guess what? Raising hydro rates. (Yes a clause says they can)
Why do you think HQ wants NB Power in the first place?
The debt % to asset ratio of NB Power is about the same as HQ. So why would we sell it? why don't we buy HQ? Oh it's profitable and they would never think of selling their cash cow.
Only stupid people would ever think of selling their power grid.
Do I think Shawn Graham is stupid. Yes like a fox. He will be the only New Brunswick er who benefits by it. Oh and Frank McKenna also is in on the deal along with other former political back room boys. Selling out your province is really a good thing to do in their mind. The big players will reward them if the get away with this.
Shawn Graham will not call an election on this matter or have a referendum. He couldn't get elected as a dog catcher in this province in my humble opinion.

Ken Flecknell B.Ed.

You're absolutely right, except for one thing. Joey didn't even sign the deal as shown by this picture shown on Edward Hollett's blog, down in Newfoundland.

ClaudeB

I stand corrected and I must say I'm very surprised by your link. Thanks, I'll go back and redo my homework.

Bertin Plante

I can't figure out why people are so up in arms about not being consulted on the deal. Really.
This isn't a direct democracy. The whole point of voting is to elect representatives to make these tough decisions.
Secondly, it's going to be debated in the legislature, this isn't just happening overnight.
Calm down.
You say, "rather than come down for or against the deal..."
But in reality, upon reading this, you did in fact come down against it, so why say you're not?
I'm in full support of newspaper taking a stance, but at least have the balls to call it like you see it.
Instead of taking a more than predictable stance on this issue, you should all take a closer look at it, because to me, this editorial only adds to the spin that's been put on this deal, without actually understanding it.
If you give it time, I'm sure the gov't (they should) let people give their two cents. But right now, they've only signed a MOU. Calm down.

Anonymous

I appreciate the article and the call out to students to voice their opinion. I also want to say thanks to this anon. commenter and to others who have provided useful feedback - at least relative to the first comment. To that commenter: Why bother with such a ridiculous comment!??! YOU DON'T SAY ANYTHING! I can summarize your article thusly: "the brunswickan is stupid". Are you stuck in your primary years? Has university not taught you yet that evidence and a real argument is important if you want to be taken seriously.

In any case, the real point of this comment is to agree and disagree with the previous commenter. You're right, Canada is not a direct democracy - but that was not our choice. It was a choice made by a bunch of white british dudes a long time ago. This may not be the write issue through which to voice concern over the format of our democracy, but I get what they're saying - we are no longer willing to accept the conventional from our politicians.
Also, even if the stance is predictable, does that make it any less worthwhile? I also don't think they are coming down on any side of the issue, but pointing out that our less-than-direct democracy is not cool in business deals (and yes, they were perhaps a little too forceful, I'll give you that).

Anonymous

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