The Pacific political report Dec. 04 BC Hydro to raise rates by 2013 15.6% over two-year period VOL. 01 ISSUE 14

Eighteen months following Premier ’s famous boast of having “wrestled” down BC Hydro rate increases, her BC Liberal government has unveiled a plan that will boost electricity prices by 15.6 per cent in just two years. The announcement was made on November 26 by Bill Bennett, the Minister of Energy and Mines. Five days earlier, Clark had left the province on a two-week trade mission to China, South Korea and Japan. According to Bennett, the BC Liberal cabinet will order BC Hydro and Power Authority to raise rates for residential, commercial and large industrial customers by nine per cent in 2015, and six per cent in 2016. Those hikes will be followed by three additional annual increases approved by cabinet, for four per cent, 3.5 per cent and three per cent, in the years Energy minister Bill Bennett announces BC Hydro rate hikes. 2017 through 2019. Afterwards, for the five-years Clark’s wrestling boast came in May hike over two years was leaked to the following, BC Hydro’s rates will be 2012, after her government had news media by COPE 378, the union set by the B.C. Utilities Commission, instructed the BCUC to cap BC that represents about two thousand the de-fanged regulatory body that Hydro’s rate increases at 17 per cent Hydro employees. in recent years has been largely over a three-year period. The sidelined by successive BC Liberal commission earlier had recommended Both Clark and Bennett responded administrations. a boost in electricity rates of more with denials, although each confessed than 30 per cent. that some sort of significant rate increase was on the way. “When I became premier, I told INSIDE ... British Columbians that I was going “Those dams that W.A.C. Bennett had to wrestle that rate increase down,” the vision to build and a generation Clark said in a report by the Canadian paid for, I mean, they paid forward to The Coleman Diaries p. 3 Press. “And we spent lots of money make that happen,” Clark told the and many, many months doing a really Vancouver Sun. “This generation is thorough audit of BC Hydro to try to going to have to figure out how we’re In the News p. 8 get that rate increase down.” going to renew them. We do have to renew the infrastructure.” Behind the Scenes p. 10 Three months ago, in September, a BC Hydro proposal for a 26.4 per cent rate Continued on p. 2

www.pacificpoliticalreport.ca Phoenix Strategies Inc. BC Hydro, continued from p. 1 Hydro sales to industrial customers One concern addressed by Bennett on November 26 was Victoria’s on-going slumping in recent years reliance on an annual ‘dividend’ paid by BC Hydro to its sole shareholder. In 2013, that dividend was calculated at $215 million. More troubling, however, appears to be the Crown corporation’s struggling revenue picture, and especially sales to its 172 large industrial customers. (By comparison, Hydro has 200,000 ‘light industrial and commercial’ accounts, and nearly 1.7 million ‘residential’ customers.) Traditionally, all three classes consume about the same amount of electricity annually. In 2000, for example, total consumption by the residential and large industrial classes was 14,600 gigawatt hours apiece, and for commercial customers, 16,000 Gwh.

B.C. Hydro electricity sales - gigawatt hours - to residential, commercial, and industrial users. Last year, however, while commercial Source: BC Hydro Annual Reports and residential accounts took 18,300 and 17,700 Gwh respectively, industrial consumption was a mere 13,500 Gwh. That situation is unlikely to improve Bennett blamed previous B.C. Critics also point to Hydro’s growing anytime soon. According to numbers governments for Hydro’s current purchases from Independent Power released by Bennett, the newly- predicament. Producers, which have increased from announced rate increases will boost $116 million in 2001, to $760 million the average cost for industrial “We are feeling the impact of decades in 2013. customers by $139,000 per month. of difficult decisions by successive governments, Socreds, NDP, BC Liberal, all of us have difficulty looking Industrial power consumption flat-lines the ratepayer directly in the eye,” he said. as overall sales continue to grow Since the BC Liberals first won election to government in 2001, BC Hydro’s debt has more than doubled, rising from $6.7 billion to $14.2 billion. Much of the Crown corporation’s capital spending has been for costly but necessary upgrades to existing generating facilities, including the Mica Dam, the Waneta Dam, the John Hart Generating Station and the Ruskin Dam. More controversial, however, has been the nearly $1 billion spent on the ‘smart’ meter program, as well as the way-over budget Northwest Transmission Line.

Source: BC Hydro Annual Reports

www.pacificpoliticalreport.ca Phoenix - 2 - Strategies Inc. The Coleman Diaries

Many people often have wondered: what it is that members of the Executive Council – cabinet ministers – do when they’re ‘on the job’? Mostly, they attend meetings – with cabinet colleagues, with government bureaucrats and with members of the public who want to learn about (or influence) public policy. Christy Clark’s BC Liberal government has pinned much of its future hopes – fiscal, economic, employment – on the development of a liquified natural gas industry. That initiative is spearheaded by , the veteran BC Liberal MLA for Fort Langley-Aldergrove and long-serving cabinet minister under the Rich Coleman with Premier Christy Clark former Premier, . – Greg Kist, President, and Tessa Gill, 2:30 pm - 3:00 pm On June 7, Coleman was named by Head of Stakeholder Relations. Canadian Energy Pipeline Association Clark as Minister of Natural Gas – Brenda Kenny, President and CEO, Development. (He also is Minister (NOTE: PETRONAS, the Malaysian and Philippe Reicher, Vice-President, responsible for Housing.) government-owned oil and gas giant, External Relations. purchased Progress Energy We thought it would be interesting to see Resources Corp. of Calgary in 2012. July 3 with whom Coleman was meeting as he The two companies earlier had formed 10:30 am - 11:00 am performed his assigned tasks, and so a joint venture to develop shale gas Elmer Derrick. obtained – through a request under assets in B.C.’s Montney region. Pacific B.C.’s Freedom of Information and NorthWest LNG is PETRONAS’s (NOTE: Derrick is a Hereditary Chief Protection of Privacy Act – his working proposal to export liquified natural of the Gitxsan First Nation and, diaries from June 7 to the end of gas from Port Edward, south of Prince notably, one of the few aboriginal October, 2013. Rupert.) leaders to support Enbridge Inc.’s Northern Gateway Pipelines project.) 1:30 pm - 2:00 pm Spectra Energy Corp. – Doug Bloom, 3:00 pm - 3:30 pm June 18 President, Canadian LNG; Rob Natalya Brodie. 11:00 am - 12:00 noon Whitwham, Vice President, Canadian Bazinga! Technologies Inc. – Joseph LNG; and Sarah McCullough, (NOTE: Brodie is a senior analyst at Nakhla, CEO, and Dale Evernden, Director, Government Affairs, the province’s Board Resourcing and Vice-President; with Paulo Aquilini of Canada West. Development Office, which oversees Aquilini Investments. government appointments to about June 26 300 boards, commissions and agencies. (NOTE: Bazinga! is a Vancouver 9:00 am - 9:45 am Those appointments are supposedly software company that provides BG Group – David Keane, Vice- non-partisan. Natalya, a former hotel “a platform that connects owners, President, Policy and Corporate sales manager, is married to David renters, staff, property managers and Affairs. Brodie, a veteran federal Liberal who developers to achieve a common goal: formerly worked in Ottawa for Paul creating smarter buildings, healthier (NOTE: Based in the United Kingdom, Martin.) homes and happier people.” The BG proposes to build a massive LNG Aquilini family, owners of the plant and export-facility at Ridley 3:30 pm - 4:30 pm Vancouver Canucks, also has invested Island, near Prince Rupert. Keane PETRONAS and Progress Energy in Bazinga!) was accompanied at this meeting by Canada Ltd. – Tan Sri Dato’ Shamsul Adam Johnson, a long-time federal Azhar Abbas, President and CEO; June 19 Liberal and a registered lobbyist Datuk Anuar Ahmad, Executive Vice 1:00 pm - 1:30 pm with the Earnscliffe Strategy President, Gas and Power Business; Pacific NorthWest LNG (PETRONAS) Group.) Datuk Manharlal (George) Ratilal, Continued on p. 4 www.pacificpoliticalreport.ca Phoenix Strategies - 3 - Inc. The Coleman Diaries, continued from p. 3 Executive Vice President, Finance; and (NOTE: In the 1990s, Kirk was an July 24 Michael Culbert, President and CEO aide to Gordon Campbell, then the 10:30 am - 11:15 am of Progress Energy Canada. Leader of the official opposition. Chevron Canada Ltd. – Rod Maier, She has since developed a public Manager of Frontier Development; (NOTE: The group was accompanied relations firm, Kirk and Co. Commercial Manager of Kitimat LNG; by Michelle Ward, a registered lobbyist Consulting Ltd., that undertakes a and David Molinski, Policy and with National Public Relations.) considerable amount of work for the External Affairs Lead at Kitimat LNG. provincial government, Crown July 5 corporations and other taxpayer- Apache Corporation – Tim Wall, 11:30 am - 1:00 pm owned entities. Payments to Kirk and President, Kitimat Upstream The First Nations Financial Co. by the province alone in 2012/13 Operations; David Calvert, Vice- Management Board – Harold Calla, were $1,689,899. Also attending the President, KM LNG Operating Executive Chair. meeting was , the Minister General Partnership; and Natalie of Health.) Poole-Moffatt, Head of Public and (NOTE: The First Nations Financial Government Affairs. Management Board was established July 22 by Ottawa in 2006 under the First 12:00 noon - 1:00 pm (NOTE: Kitimat LNG is a 50-50 Nations Fiscal Management Act. It Port Alberni Port Authority – Zoran partnership between Chevron offers “a suite of financial management Knezevic, CEO; Darren Deluca, Canada – which will market the tools and services to First Nations Director; and Ken McRae, Director. liquified natural gas, as well as governments seeking to strengthen operate the plant and pipeline – and their fiscal stewardship and (NOTE: Also attending the meeting Apache Canada, which is responsible accountability.” Also attending the were Gillian Trumper, a former BC for developing shale gas assets in the meeting were Gerry St. Germain, Liberal MLA for Port Alberni, and Jeff Horn River and Liard fields. the former Progressive Conservative Cook, Chief Councillor of the Hu ay Controversially, Molinski and MP and Canadian Senator, and Niilo aht First Nation.) Poole-Moffatt left government Edwards, St. Germain’s former employment to join the energy giants: Executive Assistant who now heads July 23 he was an Assistant Deputy Minister up a company called Quercus 9:00 am - 9:30 am in the Ministry of Energy, Mines and Strategies.) Coastal Gas Link Pipeline Project – Petroleum Resources; she was a BC Rick Gateman, President; John Dunn, Liberal staffer to former Energy July 8 Vice-President of the Prince Rupert minister – now Canadian Senator – 10:00 am - 10:30 am Gas Transmission Project; and Trevor .) Woodside Petroleum Ltd. – Greg Halford. Roder, Executive Vice President of July 26 Corporate Strategy and Planning. (NOTE: A wholly-owned subsidiary 9:30 am - 10:00 am of TransCanada PipeLines Limited, Japanese Consul General – Seiji (NOTE: Woodside is an Australian Coastal GasLink is proposing to build Okada, Ryo Minami, Keisuke (Kay) energy company that has expressed a new natural gas pipeline from Tsujimoto, and Tatsuichiro Nishimura. interest in constructing a LNG facility B.C.’s Peace region to the Pacific coast. on Crown-owned land at Grassy Point, TransCanada also owns the Prince July 30 north of Prince Rupert.) Rupert Gas Transmission Project. 9:30 am - 10:00 am Also attending the meeting BG Group – Sir John Grant, Executive 3:30 pm - 4:30 pm was , formerly a Vice President, Policy and Corporate FortisBC Inc. – John Walker, President communications coordinator in the Affairs; David Keane, Vice President, and CEO, and Roger Dall’Antonia, Premier’s office. Now a Senior Advisor Policy and Corporate Affairs for the Vice-President of Strategic Planning, for Government Affairs at Trans- Americas; Steve Swaffield, Acting Corporate Development and Canada, he was named as one of the President, BG Group Canada; and Regulatory Affairs. BC Liberal staffers who used personal Robert Booker, Executive Vice email accounts to circumvent the President and Head of Human (NOTE: Also attending the meeting province’s Freedom of Information Resources. was Bill Bennett, the Minister of legislation.) Energy and Mines.) 10:00 am - 10:30 am 7:00 pm - 9:00 pm Construction Labour Relations July 11 China Development Bank – Ms. Feng Association of B.C.– Jim Bromley, 11:00 am - 11:30 am and Mr. Van. Chair, and Clyde Scollan, President Enbridge Inc. – Al Monaco, President and CEO. and CEO, and Cory Paterson, Senior (NOTE: David Black, Chair and Manager, Public and Government Founder of Black Press, also attended 10:30 am - 11:00 am Relations. the meeting. Black is proposing to B.C. Sustainable Energy Association – build a $13 billion-plus oil refinery Nigel Protter, Executive Director, and July 16 near Kitimat, and has reportedly Tom Hackney, Policy Director. 4:00 pm - 5:00 pm secured Chinese financing for the Judy Kirk. project.) Continued on p. 5

www.pacificpoliticalreport.ca Phoenix Strategies - 4 - Inc. The Coleman Diaries, continued from p. 4 11:00 am - 11:30 am Canadian Natural Resources Ltd.– William Clapperton, Vice-President, Regulatory, Stakeholder and Environmental Affairs, and Julie Woo, Public Affairs Adviser. 3:00 pm - 3:30 pm Petroleum Services Association of Canada – Mark Salkeld, President, and Elizabeth Aquin, Senior Vice President. 4:00 pm - 4:30 pm Rio Tinto Alcan – Paul Henning, Vice-President, Strategic Projects Western Canada; Kevin Dobbin, Manager Economic Development for B.C.; and Richard Prokopanko, Director, Government Rich Coleman at the World Energy Congress, in Daegu, South Korea. Relations. (NOTE: Korea Gas Corporation – 1:00 pm - 1:45 pm August 1 KOGAS – Mitsubishi Corporation and Rental Housing Council – Andrew 10:00 am - 10:45 am PetroChina Company Limited have Bekes, Chair; Paul Sander, Director; Applied Science Technologists & formed a joint venture with Shell and Amy Spencer, President. Technicians of B.C. – John Leech, Canada Ltd., called LNG Canada. Executive Director. The consortium is proposing to 3:00 pm - 3:45 am build and operate a LNG plant at BC Safety Authority – Peter Cook, 11:00 am - 11:30 am Kitimat.) Chair, Board of Directors; Catherine AMEC Natural Resources Americas – Roome, President and CEO; and Ken Wiecke, Operations Manager, 12:00 noon - 12:30 pm Richard Ballantyne, Chair, Strategic and Erik Cordua-von Specht, Shell Canada – Andy Calitz, Vice- Advisory Committee. Manager, Engineering & Services. President, LNG Canada, and Jared Kuehl, Deputy Head, Government September 3 1:00 pm - 1:30 pm Relations. Travel to Prince Rupert. City of Coquitlam – Mayor Richard Stewart. August 25 10:00 am - 12:45 pm Travel to Yellowknife, Northwest Tour: Prince Rupert and Port (NOTE: Stewart is a former BC Liberal Territories, for the 2013 Federal- Authority of Prince Rupert. MLA for Coquitlam-Maillardville, Provincial Energy and Mines Ministers 2001-2005.) Conference. 1:00 pm - 2:30 pm Tour: Pacific Northwest LNG, Grassy 3:00 pm - 3:30 pm August 26 Point Crown Land location. Judy Rogers. 9:00 am - 10:00 am Province of Alberta – Ken Hughes, 3:30 pm - 4:30 pm (NOTE: Rogers was City Manager Minister of Energy. City of Prince Rupert – Jack for the City of Vancouver from 1999 Mussallem, Mayor, and Robert Long, to 2008. She’s been appointed by the 10:00 am - 11:00 am City Manager. provincial government to two board Government of Canada – Joe Oliver, positions, at the BC Assessment Minister of Natural Resources. September 4 Authority and the BC Housing Province of Alberta – Ken Hughes. 11:00 am - 12:00 noon Management Commission. In April, City of Kitimat – Joanne Monaghan, during the provincial general election, August 27 Mayor, and Ron Poole, Municipal Rogers’ husband, Grant Close, Return to Vancouver. Manager. appeared as an “average citizen” in a BC Liberal television infomercial August 29 1:30 pm - 3:15 pm extolling Christy Clark’s leadership 12:30 pm - 1:00 pm Haisla First Nation. abilities.) Business Council of B.C. – Greg D’Avignon, President and CEO, and 3:30 pm - 4:30 pm August 15 Tom Syer, Vice President, Policy and Tour: LNG Canada. 10:00 am - 11:30 am Communications. KOGAS – Jong-Jin Kim and Won Cho. 4:45 pm - 6:00 pm Mitsubishi – Shinya Miyazaki. (NOTE: Syer once worked as Deputy Heli-tour: Kitimat LNG – Apache/ PetroChina – Peng Guo and Chief of Staff to former BC Liberal Chevron. Bi Jiangshuang. Premier, Gordon Campbell.) Continued on p. 6 www.pacificpoliticalreport.ca Phoenix Strategies - 5 - Inc. The Coleman Diaries, continued from p. 5 September 5 11:15 am - 11:45 am Cenovus Energy Inc. – Brian Ferguson, 11:00 am - 12:00 noon Pacific Northern Gas – Greg Weeres, President & CEO. City of Terrace – Brian Downie, President; Kevin Teitge, Vice- Deputy Mayor; Heather Avison, Chief President, Finance and Business MEG Energy Corp. – Bill McCaffrey, Administrative Officer; and Evan Van Development; and Graeme Doak, President & CEO. Dyck, Economic Development Officer. Vice-President, Human Resources and Government Relations. Suncor Energy Inc. – Bart Demosky, Return to Vancouver. Chief Financial Officer. (NOTE: PNG, a natural gas September 10 transmission and distribution September 20 Travel to Squamish. company operating in northern B.C. 9:30 am - 10:15 am since the 1960s, is a wholly-owned First Nations Energy and Mining 10:30 am - 11:15 am subsidiary of AltaGas Ltd. of Calgary.) Council – Dave Porter, CEO; Joanna Pacific Oil and Gas Ltd. – Ratnesh Prince, Coordinator; and Paul Blom, Bedi, President. 12:45 pm - 1:30 pm Policy Adviser. Quicksilver Resources Canada Inc. – Fortis BC – Douglas Stout, Vice Dave Rushford, Senior Vice- B.C. First Nations– Ed John, President, Energy Solutions and President and COO; Dave Haugen, Grand Chief, First Nations Summit; External Relations; David Bennett, Vice-President, Operations and Terry Teegee, Tribal Chief, Director, External Relations; Joe Engineering; Walt Madro, Managing Carrier-Sekani Tribal Council, and Mazza, Director, Resource Develop- Director, Discovery LNG; and Paula Chiefs Albert Gerow, Martin Louie, ment; and Vanessa Connolly, Manager, Barrett, Director, Planning and Fred Sam, Archie Patrick and Anita Government Relations and Public Operations. Williams. Affairs. (NOTE: Quicksilver is a Calgary-based (NOTE: Also attending the meeting Woodfibre Natural Gas Ltd. – Byng oil and gas exploration company that were Merle Alexander, an aboriginal Giraud, Vice President, Corporate is looking to build and operate a LNG lawyer and partner at the Vancouver Affairs, and Laura Letourneau, Vice facility on Vancouver Island, north of office of Gowlings; Allen Edzerza, President, Legal. Campbell River.) a First Nations adviser/negotiator; and , the Minister of (NOTE: Pacific Oil and Gas Ltd. is a September 17-19 Aboriginal Relations and Singapore-based energy company UBCM Convention in Vancouver. Reconciliation.) that is proposing to build a “small- scale” LNG processing and export September 19 September 23 facility on the site of a former pulp 2:30 pm - 2:55 pm 10:00 am - 10:45 am mill at Woodfibre, on Howe Sound. Cement Association of Canada – Husky Energy Inc. – Travis Davies, Fortis is conducting a feasibility study Michael McSweeney, President and Senior Advisor Government Relations. for the project. Giraud is a veteran CEO. federal Conservative organizer, 1:30 pm - 2:00 pm while Connolly over the last two 3:30 pm - 4:15 pm Building Officials Association of B.C. years has made numerous and Enbridge Inc. – Al Monaco, President – Richard Bushey, Executive Director, generous financial donations to both and CEO; Janet Holder, Head of the and Manjit Sohi, President. the BC Liberals – a total of $7,500 Northern Gateway Project; and Cory – and the New Democratic Party – Paterson, Senior Manager, Public and 2:15 pm - 2:45 pm $3,850.) Government Affairs. B.C. Construction Association – Manley McLachlan, President, and Abigail Fulton, Vice-President, Construction. 3:00 pm - 3:30 pm Resource Training Organization of – Doug MacLaren, CEO, and Geoff Stevens, Chair, B.C. Natural Gas Workforce Strategy. 4:00 pm - 4:45 pm , Dalton Larson and John Sanderson. (NOTE: Oppal is a former BC Liberal MLA and Attorney General; Larson and Sanderson are Vancouver lawyers.)

Continued on p. 7 Rich Coleman tours Northwest LNG sites.

www.pacificpoliticalreport.ca Phoenix Strategies - 6 - Inc. The Coleman Diaries, continued from p. 6 September 24 October 11-12 8:00 am - 9:00 am Travel to Seoul for the World Energy Ledcor Resources and Transportation Congress, to be held in Daegu, South – Paul J. McElligott, President. Korea. September 28-29 October 13 Travel to Washington, D.C. for the Seoul, Korea North American Gas Forum. Government of Canada – Joe Oliver, Minister of Natural Resources. September 30 Province of Alberta – Ken Hughes, Washington, D.C. Minister of Energy. Chevron Corporation – Gregory M. Vesey, Vice President, Gas Supply and Seoul, Korea Trading. Government of Canada – David Chatterson, Ambassador to the October 2 Republic of Korea. Return to Vancouver. October 14 October 3 Daegu, Korea 2:00 pm - 2:30 pm Exxon Mobile – Richard Guerrant, BC Centre for Excellence in HIV / Global Vice-President for LNG. AIDS – Dr. Julio Montaner and Irene Day. Daegu, Korea Rich Coleman on a tour at the Petronas LNG Visit to South Korea Gas LPG Plant complex in Bintulu, Sarawak, Malaysia. October 8 with un-named CEO and two 10:00 am - 10:30 am vice-presidents. and Meng Xianlong, Assistant to the Japanese Embassy – His Excellency President. Norihiro Okuda, Ambassador of Daegu, Korea Japan; Seiji Okada, Consul General Woodside Energy – Peter Coleman, Beijing, China of Japan to Vancouver; Satomi Okgaki, CEO and Managing Director, and Keynote Speech – Seizing the LNG First Secretary, Embassy of Japan, Dan Clery, Senior Corporate Affairs Opportunity. Ottawa; and Naomi Namatame, Adviser. Consul, Consul General of Japan to Beijing, China Vancouver. Daegu, Korea CNOOC Gas and Power Group – Visit to South Korea E&S LNG Yang Hua, President, CNOOC Group. 11:00 am - 12:00 noon Project with un-named Executive Canadian Association of Home and Vice-President and two vice- October 18 Property Inspectors (BC) – Craig presidents. Beijing, China Hostland, President; Helene Barton, Sinopec International Petroleum Executive Director; Charles Joyner, October 15 Exploration and Production Registrar; Peter Link, Manager, Daegu, Korea Corporation (SIPC) – Dr. Geng Property Inspection Registrations; Seok-hyo Jang, President & CEO, Xianliang, President; Feng Zhiqiang, and Bill Mullen, Past President. Korea Gas Corporation. Executive Vice-President; Rui Handong, Director of Business (NOTE: Also attending the meeting October 16 Development; Pei Jianwu, Director were Claude Lawrenson of The Travel from Seoul to Beijing, People’s of Public Relations; and Wang Juan, National Home Inspector Republic of China. Senior Coordinator. Certification Council; Allen Cavdek of The Canadian National October 17 October 18-19 Association of Certified Home Beijing, China Travel from Beijing to Kuala Lampur, Inspectors; and John Leech of the CNPC International Ltd. – Song Yiwu, Malaysia. Applied Science Technologists and Vice-President. Technicians of BC.) October 19 Beijing, China Kuala Lumpur, Malaysia 3:30 pm - 4:15 pm National Energy Administration of Meetings and tours – Petronas LNG Coastal First Nations and Coast China – Zhang Guobao, Chairman of Complex. Opportunity Funds – Art Sterritt, NEA Advisory Committee. Executive Director; Gary Wouters, October 20 Policy Analyst; and Lorne Brownsey, (NOTE: Joe Oliver and Ken Hughes Kuala Lampur, Malaysia Adviser. also attended the meeting.) Visit Petronas Twin Towers – Tan Sri; Dato Wee; Datuk Anuar and Greg Kist. (NOTE: Wouters and Brownsey Beijing, China are both former B.C. deputy China Huadian Engineering Co Ltd. October 21-22 ministers.) – Xie Chunwang, Vice-President, Return to Vancouver.

www.pacificpoliticalreport.ca Phoenix Strategies - 7 - Inc. VANCOUVER – The Attorney After drawing-down $50 million “Employment growth in B.C. has been General and Minister of Justice, from the Forecast Allowance, the nearly flat during the first ten months , on November 25 government is forecasting that the of 2013, as year-to-date data show a 0.1 received a report from her current fiscal year will end with a per cent contraction compared to the Parliamentary Secretary for Liquor razor-thin surplus of $165 million same period last year,” the fiscal report Review, . from revenues of $44.3 Billion. states. That report, which apparently contains If achieved, the surplus will mark the “This decline translates into about more than 70 recommendations for first time since 2008/09 that B.C. has 2,600 fewer jobs ....” changing the province’s liquor laws, recorded a ‘balanced’ budget. has not been released to the public. What the report failed to acknowledge Mike de Jong, the Finance minister, is that the loss of several thousands of Yap has floated a ‘trial balloon,’ made news with a number of jobs occurred at the same time as the however, on the possible sale of liquor observations during the news province’s population grew by in grocery stores, saying that he conference to release the quarterly approximately 35,000 residents. endorsed such a move. report. The Finance minister rejected an The Parliamentary Secretary has * The government will propose a assertion that the numbers showed apparently recommended that the total “growth-sharing” framework in that Premier Clark’s much-advertised number of retail outlets selling liquor up-coming contract negotiations with BC Jobs Plan was a failure, although in the province be capped at its unions representing public sector he did admit: “The numbers you see current number, and that sales in workers. for 2013 so far fall short of where we grocery stores be ‘phased in’ over time. would like to be.” Under the arrangement, salary and Additionally, Yap’s report says that wage increases will be linked to B.C.’s *** grocery stores newly-licensed to sell expected rate of real economic growth. alcohol should be required to keep That is, GDP projections by the VICTORIA – One week after publicly separate their liquor products from province’s Economic Forecast Council unveiling a new “growth sharing” grocery operations to restrict access to would guide the annual pay rates for framework for public-sector contract minors. public sector workers. negotiations, the province announced that three tentative agreements are In response to those recommend- In the event that actual economic awaiting ratification with about 51,000 ations, an industry lobby organization growth in a given year exceeds the employees. that represents private stores already council’s forecast, public employees licenced to sell liquor has begun an could receive additional compensation. All three agreements are for five-year advertising campaign to prevent the terms, lasting from April 1, 2014 proposed changes. “If collectively we can do better, then through March 31, 2019. government is saying we want to share The Alliance of Beverage Licensees – the benefits of that growth with the The agreements – plus another ABLE BC – claims that allowing liquor people that helped to get us there,” said announced earlier between the Health sales in grocery stores represents an de Jong. Employers’ Association of B.C. and the unacceptable risk to government 16,000-member Health Science revenues, as well as to the jobs and A significant number of public-sector Association – provide “modest” fixed financial investment associated with union contracts are scheduled to wage increases over the life of the small businesses. expire in 2014. contracts. There is, at present, a combined total The province estimates that a one-per However, there also is a possibility of more than 1,100 government liquor cent increase in public-sector salaries of an “economic growth-sharing stores and private-liquor store and wages costs about $200 million dividend” that will be paid to licensees in British Columbia. annually. unionized public-sector workers if B.C.’s real GDP growth exceeds *** * The province’s deteriorating jobs projections by the province’s picture (see the September 11, 2013 Economic Forecast Council. VICTORIA – The provincial govern- issue of The Pacific Political Report) ment has released its second quarterly was clearly illustrated in the second The three tentative agreements are report for 2013/14. quarterly report. with: Continued on p. 9 www.pacificpoliticalreport.ca Phoenix Strategies - 8 - Inc. In the News, continued from p. 8 * approximately 25,000 BCGEU The administrative change is expected stated-owned energy company in the members working in occupations such to streamline compliance and People’s Republic of China. as health care, public safety, social enforcement activities in British services, and environmental Columbia’s natural resource sector, In July 2012, CNOOC purchased management. through increased cooperation between Nexen Inc. of Calgary for more than Forests ministry staff and officials $15 billion. * about 11,000 community social working in the Environmental services employees, including workers Assessment Office. Through Nexen, CNOOC owns 60 per in Community Living Services, cent of Aurora LNG. The remaining 40 General Services and Aboriginal It is hoped that by allowing both per cent is jointly owned by two Services. Unions representing the Natural Resource Officers and Japanese interests, INPEX Corporation employees include the BCGEU, CUPE, Environmental Assessment Office and JGC Corporation. HEU, HSA and the Canadian Labour enforcement staff to conduct Association of Canada. inspections, government officials will The National Energy Board so far have greater operational flexibility, and has issued three LNG export licenses, * more than 15,000 community-health use scarce resources more efficiently. and is considering six more employees represented by the BCGEU, applications. UFCW, HEU, CUPE and the HSA. The Compliance and Enforcement Workers include home-support Branch is the law enforcement arm of The three successful applicants to date workers, alcohol and drug counsellors, the Ministry of Forests, Lands and are: staff at adult-day centres, and child- Natural Resource Operations, development centres and those working overseeing as many as 46 different * Kitimat LNG – a joint venture in mental-health group homes. resource management laws and between Chevron Canada and Apache regulations. Corp. *** The Environmental Assessment * LNG Canada – which partners Shell BEIJING – The Bank of China Office evaluates proposed development Canada, Korea Gas Corporation, (Canada) has announced that it is projects that are reviewable under B.C.’s Mitsubishi Corporation and Petro- consolidating its Canadian trade Environmental Assessment Act. China Company Limited. finance services in Vancouver at the International Business Centre. *** * Douglas Channel LNG Project – a joint venture with Golar LNG Limited The bank is a wholly-owned subsidiary VANCOUVER – Ottawa and Victoria (a Bermuda-based company), LNG of the Bank of China, headquartered in will jointly contribute a rather paltry Partners LLC (of Houston, Texas), and the People’s Republic of China. $4.3 million to support export the HN LNG GP – in which the Haisla initiatives by B.C. agrifoods producers. Nation is a limited partner. In a provincial government news release issued in Beijing, a bank official, The funds, which must be matched The Aurora project would see shale gas Jacqueline Yam, based in Vancouver, by the private sector, will be used shipped from the Liard, Horn River and explained that “Bank of China to support industry participation at Cordova fields in B.C.’s Peace region envisions further growth for its international tradeshows, promotional to a proposed LNG terminal at Grassy Canadian operations ... and British events and trade missions, as well as the Point. Columbia has always been the prime creation of marketing materials. choice when Asian enterprises establish The latter site would include a natural their Canadian subsidiaries.” Monies will be provided through the gas liquefaction plant, a storage facility five-year, federal-provincial Growing and a marine loading terminal. Premier Christy Clark and Forward 2 agreement. International Trade minister, Teresa In addition to Aurora’s application, the Wat, in Beijing on a trade mission, *** NEB currently is considering five other recently met with Tian Guoli, chairman LNG export proposals: of the Bank of China. VICTORIA – Aurora LNG – two weeks after the company signed a sole * Pacific NorthWest LNG (PETRONAS/ *** proponent agreement with the Progress Energy); provincial government for the exclusive VICTORIA – Natural Resource right to acquire long-term Crown land * Prince Rupert LNG (BG Group); Officers working in the Compliance tenure at Grassy Point, north of Prince and Enforcement Branch of the Rupert – has filed an application with * Woodfibre LNG (Pacific Oil and Gas Ministry of Forests, Lands and Natural the federal National Energy Board for Ltd.); Resource Operations henceforth will the export of liquified natural gas. be authorized to enter and inspect any * Imperial Oil and ExxonMobil Canada; development project that is subject Aurora LNG is a joint venture to review under B.C.’s Environmental spear-headed by the China National * Triton LNG (AltaGas Ltd. and Assessment Act. Offshore Oil Corporation (CNOOC) a Idemitsu Canada Corporation).

www.pacificpoliticalreport.ca Phoenix - 9 - Strategies Inc. Slowly – quietly – the Clark govern- and operates the new Port Mann Transmission Line, which will extend ment has been reappointing incumbent Bridge. the province’s power grid from the directors to the board at BC Hydro and Skeena substation outside Terrace, to a Power Authority. On top of all that, Blain gets another new substation near Bob Quinn Lake. $50,000-plus each year from BC Hydro As reported in The Pacific Political – and its subsidiary, Powerex – for such Originally budgeted at $395 million, the Report on October 23, Stephen things as ‘retainers’ and ‘meeting fees.’ cost of the new transmission line has Bellringer and Jamie Brown – two ballooned to an expected $746 million. long-time BC Liberal supporters and Knappett is a civil engineer who, generous financial donors – earlier three decades ago, started his own *** this Fall had their order-in-council eponymously-named construction appointments extended until the end company in Victoria. Since then, the Pamela Martin’s entrance into the world of 2014. Knappett Group of Companies have of provincial politics on January 5, 2011 completed some 450 undertakings, was deemed so important that More recently, Larry Blain and John including commercial, civil and Christy Clark – then a candidate for the Knappett had their terms on the Hydro industrial projects. leadership of the BC Liberal Party – board extended by three years, to the held a news conference to announce it. end of 2016. *** Martin’s recent departure from the Blain is well-known to British The Hydro board also gets a newcomer, public service, on the other hand, was Columbians for his out-sized Bill Adsit, who’s been appointed for a devoid of fanfare or notice. remuneration while President and one-year term. CEO at Partnerships BC, the The long-time television news-reader provincial agency charged with Adsit recently retired as President – on BCTV from 1977 until 2001, and promoting private-public partnerships. and CEO of the Tahltan Nation on CTV from 2001 to 2010 – publicly In 2005/06, Blain took home more than Development Corporation, an endorsed Clark’s leadership candidacy $519,000, and two years later he was organization he headed for much of mere weeks after she and Bill Good paid in excess of $545,000. the last decade. had abruptly ‘retired’ as anchors of Vancouver’s CTV News at Six A former investment banker with RBC Based at Dease Lake, the TNDC was broadcast. Capital Markets – and friend of the formed in the 1980s to promote ex-Premier, Gordon Campbell – Blain economic development opportunities “I think it’s time for us to have a woman ‘retired’ from Partnerships BC in for the Tahltan First Nation. The as the Premier of the province,” Martin October 2010, but soon returned early days focussed on earthwork, said, standing alongside a beaming as Chair of the agency’s board of road-building and home construction, Clark. “I think she’s the right candidate.” directors – a gig for which he receives and today the corporation has about $40,000 per annum. expanded to almost two-dozen Six months later, after Clark had been entities that handle everything from elected Leader and was sworn in as Blain also earns about $18,000 annually bridge-building to environmental Premier, Martin received an order- from his government appointment to consulting, and catering and camp in-council appointment as Director of the board at the Transportation operation services. Outreach in the Premier’s office – a job Investment Corporation, which owns for which taxpayers in 2012/13 B.C.’s Northwest has seen a boom in provided her with $127,064. economic development initiatives in Photo Credits: recent years, including construction of Sometime in the early Fall, however, P.: 1: Bennett: Govenment of B.C. AltaGas’s Forrest Kerr hydro-electric Martin left government employment P.: 3, 5, 6, 7: Coleman: Govenment of B.C. generating facility, and a number of and reportedly took an unspecified mine development projects, including job at BC Liberal Party headquarters The Pacific Political Report Imperial Metals’ Red Chris, Nova in Vancouver. Her new role apparently publishes 24 issues per year. Gold’s Galore Creek, and the joint- allows some moonlighting as an venture between Teck and Copper Fox event hostess, however – on Publisher: Phoenix Strategies Inc. at Schaft Creek. November 14, Martin, now 60, served Editor: Kristy Fredericks, BSc. as the Master of Ceremonies at the Of course, one of the biggest is BC Surrey Board of Trade Business © The Pacific Political Report. Hydro’s own 344-kilometre Northwest Excellence Awards. www.pacificpoliticalreport.ca Phoenix - 10 - Strategies Inc. YES... I want to subscribe to The Pacific Political Report

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