Igniting the Ring of Fire

The recent decision by Cliffs Natural Resources to suspend it's Ring of Fire operations has many up at arms against the Liberal Government.  There is no doubt the government has bungled the file, but that happened under Mr McGuinty and Mr. Bartolucci's watch and that is why they are no longer there.  Now the important point to consider is, what changes are needed to ensure government gets it right?

The opposition would have you believe, all that is necessary is to vote them into power, (with a majority, no less) and they have the plan to bring prosperity to our fair province.  I remain skeptical of any plan that guts the public sector and says we do not need government getting in the way of business.  In this age of competing interests and multi-national companies dictating where jobs will be located, we need an effective government standing squarely in the way of business and ensuring residents and the environment are treated fairly.

That phrase "effective government" is turning into an oxymoron though...and that is where we need to focus our attention.  An effective government would not have negotiated with Cliffs and swayed them from their original opinion  that rail is the preferred option for hauling huge volumes of ore out of the James Bay wetlands.  

When Rick Bartolucci recently stated “I worked very, very hard to make sure the ferrochrome processing facility was located (in Capreol).” it is important to note he did not state he worked hard to make sure it was located where it made the most sense.   When you combine that attitude with his stated responsibility for the divestiture of ONTC, a decision that was made by him alone and without consultation, you begin to get the sense that he may have been influenced by a desire to leave a legacy.  Getting rid of the provincial railroad would make his road a little more sensible with it's toll structure, instead of collecting rail revenue with an existing company.

At the same time one cannot help but remember the passion with which he fought to get Hwy 69 four-laned, only to be sideswiped by a Premier who decided Hwy 11 would be four-laned first.  I would be interested to see the traffic volume studies that indicate either one of them needed the huge expense of four-laning rather than numerous passing lanes, but such is politics. 

And that brings me back to my original topic which is effective government.  If our government is going to be effective and be able to resist calls for its demolition, as currently espoused by Mr. Hudak, it needs a massive overhaul.

Government needs more discipline in its reporting and adherence to standards enforced in the private sector.  The days of pandering to ridings where votes can be bought must end and decisions should be based on open data that everyone can either agree to, or at least see where their opinion was overruled.

In the case of the Ring of Fire, that means transparency in the factors that determine the location of any smelter, and a commitment to getting the most value out of any company seeking to extract our resources.  It also means access and protection of the environment for the people who live there, jobs for as many people, as close to the resources as possible and fair participation by both governments and industry.

If Ms. Wynne can pull that off, the spark may finally hit the mark.

The Fedeli Factor

It looks like our MPP may have inadvertently helped ONTC far more than he, or his public sector bashing boss, Tim Hudak may have ever considered.  The divestment of ONTC originally put forward by Rick Bartolucci, under Dalton McGuinty has stalled out, amid hints of alternatives being preferred by Michael Gravelle under the "new" government of Kathleen Wynne.  

Mr. Fedeli has been instrumental in driving the gas plant scandal to the front pages of the provinces newspapers and keeping it there well beyond the point where Dalton McGuinty's resignation could drag it into obscurity.  The resulting spillover effect to Ms. Wynne has not been well received by the Liberal party and as a result, Mr. Fedeli is seen as a major bump in the road to renewal.

If the Liberals were to roll out the plan for ONTC now and get the ball rolling, the political benefits in this riding would be almost invisible by the next election.  However, if the Liberals delay the decision to support ONTC until the campaign starts, they could very well sway many fringe votes with a promise to keep the company in public hands and even enhance it if they can bring themselves to utilize it for the Ring of Fire.  

Given that Mr. Fedeli's performance has landed him squarely in the sights of the Liberal political strategists, a win in this  riding could be seen as a particularly sweet one and the cost to the provincial treasury would be barely noticeable in the overall picture.  In fact, the $75M hastily dumped into ONTC by the fall economic statement did not even fully drain a contingency fund meant to provide a buffer against incidental variances from the original 2013 budget.

The riding has a solid core of both Liberal and Conservative supporters and it seems the ONTC issue can swing enough of the fringe votes to make a difference in the election results.  This is due to the multiplier effect of the business dealings of the company which makes it an issue for far more residents than just the employees.  Many business people are aware of the effect on their bottom line if purchasing power for the corporation were to be moved from this region to the head office of any railroad or telecommunications company taking over.

The fact that the company has operated for over 110 years in the region has resulted in many area families having relatives that work for, or draw a pension from, the company.  The large number of people affected by the incomes of those who rely on the company gives it a far greater effect in the voting patterns than the size of the workforce would imply.

If the Liberal party is able to convince the voters that they have found a new purpose for ONTC and will fund it properly to maximize the economic development potential of the company, the Conservatives will have to scramble from their current platform.  Luckily, none of the white papers put forward so far, are binding in any fashion, so the PC strategists would be free to modify their current position.

A well funded and overall supported Liberal plan would be seen as far superior to the shell of a commitment currently contemplated by Mr. Hudak et al.  The PC pledge to keep ONTC Rail Freight in public hands, still enables the privatization of the rail operations, in addition to the rest of the corporation. Mr. Hudak seems determined this right wing agenda is the one to bring him a majority government,  but I sense there are a lot of Nipissing residents still wondering why the Common Sense Revolution failed to protect service levels time after time.

If Mr. Fedeli cannot rebuild his platform to correct the right wing slant designed by Mr. Hudak, and shore it up with solid ONTC planks, the Liberals could regain this riding under a suitable candidate.  Mr. Hudak would be guilty of the same crime perpetrated by Mr. Tory when his misstep on school funding cost Bill Vrebosch, the East Ferris Mayor,  his chance at provincial politics in the 2007 election which he lost by less than 400 votes to Monique Smith.

The PC party had better watch the pending battle closely, because Mr. Hudak may not only cost them a riding, he may drag down a potential successor also.