Since Quebec Hydro just stepped away from the deal because the asset value didn't equal cost (3.2 billion), I'm thinking this student should stay in school for a few more years (or at least pay attention instead of making youtube videos). Big difference between 47 Billion and 3.2 Billion and they still walked away ...
NB does need lower power rates to attract manufacturing business here.
A ROYALTIES deal would have put NB in control. Keep NB Power and the assets but allow HQ access to the USA market - we will take 10% off the top. HQ + NBP + tax payers win big all the way around. Surely it is not too late!!!
The gov't certainly has NOT negotiated the best deal for the province. NB Power is grossly mismanaged so I can't say that I agree with the glorification of its over paid CEO in this video.
You have a shortsighted view of industry in NB. Any manufacturing business that we attract here now is just going to end up in China within the decade, because their labour cost is lower and their environmental regulations are much less (companies allowed to pollute).
We need to attract industries OTHER than manufacturing, unless we are manufacturing our own resources. Fat chance now that the forests are all monoculture. Look at PEI... they created a great video game industry. We need NEW.
Selling NB Power will not get us out of debt. The purchase price is less than the value of the assets, and most of NBPs long term debt cannot be sold right now. It carries interest over many years of 5-6% (which HQ is not taking over).
Your facts are a little skewed Malcolmxward. Dunno about the PCs debt (I'll have to look into it) but I DO know that Graham has created $3 billion in debt in the past 4 years. It looks bad, and THAT is why they want to sell NBP.
The government's interference put NB Power in debt.
Selling it will not solve the problem. The Auditor General has already said that selling NB Power is not going to pay down the debt. They want to sell the utility for much less than what it is worth, and this will only create MORE debt for us.
I agree, NB Power is not being managed properly. The solution is to fix the mismanagement and government interference, not sell the utility.
Another important point to consider that is not in this video are FEDERAL TRANSFER PAYMENTS.
Quebec's debt is 40% of its GDP. NB's debt is 25% of our GDP. We get transfer payments from the feds based on our level of debt. So HQ borrows money to buy NBP, and in selling the assets our debt goes down.
Effectively, we are also selling them a chunk of our transfer payments. Amassing huge debt is how Quebec gets the rest of Canada to pay for their social programs, while they spend elsewhere.
@Slinky179 ...you could obviously learn a few things from this person. If you weren't so quick to judge others...you might have had the time to check the spelling of your words. And by the way...pedantic...do you even know how to use the word? There's nothing ostentatious about this individual, who is simply informing the masses and attempting to remove the ignorance that is obviously blocking your ability to see matters of importance. Take a step back and collect yourself.
@Slinky179 thank you for at least being mature enough to admit that your personal attitude towards this individual may have clouded your sense of what is right. Many social changes have been initiated by the likes of Bronwen who dared to speak out instead of remaining silent. Better to be informed...trite or not...it is still valuable knowledge upon which others can base their opinion and stand up for what is right. This is OUR utility...and it should be there for others who will follow.
1) Rates have gone up 27% in the past 7 years because the government keeps taking more and more profits. It started at $20 million by McKenna, and escalated to $420 million in 2009. So rate increases are basically tax increases.
2) NBPs profits WILL go up no matter who owns it. That is how a business works. Better for our rates to go into OUR health care and education, than to go into Quebec's health care through Hydro Quebec.
Yes!! NBP is PROFITABLE and SHOULD show more profits. And it would if the government got its hands out of the piggy bank.
So we need to elect a government who regulates how much money can be taken from NBP every year!!!
NBPs profits WILL go up because that is how businesses are always run. If WE own it, WE have the EUB to control that increase in profit. If HQ owns it, forget it. They will want to make money, and those profits will LEAVE OUR PROVINCE, rather than staying, like they do now
Without this deal, in order for NB Power to remain stable and profitable, it projected an increase of about 15% in the next 5 years, How would the industries react to such a thing?
Actually... One more question, Because NB relies on non-reusable energies (natural gas, oil, etc.) Once NBP's "cheap" deal with the Venezuela comes to an end, Do you expect the rates to escalade?
NBP needs an increase of 15% over the next 5 years to keep up with Shawn Graham's unnecessary spending habits.
Graham has racked up $3 billion in debt for this province in 4 short years by spending money where it didn't need to be spent (a private jet, for example)
So... fire Graham, and get the spending under control, NBP will not need to increase rates by 15%. The more money NBP is allowed to keep to pay off its own debt, the more rates will go down. With HQ, they will ALWAYS go up.
@TheRealBronweN Again... HEALTH alone costs over $1 BILLION every year.. You really think a Company such as, NB Power, who hasn't been profitable for the last 15 years will help us?
Listen, NBP, as you said, has made over $700 Million? You really think this number is better to stay in NBP's balance sheet rather than NB's. What else you want to do with that money? The province has to fund something.
Why is QC able to provide so many social services? Because HQ makes $3.3 Billion a year!
QC is able to provide so many social services because of its TRANSFER PAYMENTS. These are calculated based on the province's debt, specifically on the GDP to debt ratio.
Quebec's debt is 40% of its GDP. NB's is 25%. By borrowing more money to buy NBP, QCs debt will increase, making them eligible for more transfer payments.
NBP making $0 per year means that they will be able to help with 0% of our social services. You have totally PROVEN MY POINT.
Alright... Since you seem to know a lot.. Let me ask you some questions.. (In order to have better chance reaching you, I will post this message in Both Part 1 and 2, Just answer one or the other)
You have mentioned NB Power being a healthy company, How can you associate the fact that the rates have increased by 27% in the past 7 years?
You have been stating NB Power's value over the next 50 years, How is this relevant since NBP Profits could decrease or increase?
@MrZooLoo this deal is also going to restrict the investment of wind and tidal power. NB is one of the worlds best places for wind and tidal power. Quebec only wants the transmission lines to make a profit on their excess hydro production. We could sell our own power to the US. Forign investors are just starting to build windmills here. One windmill equals 200million profit over its lifetime. We would get a nice chunk of that , not to mention the jobs it would create.
@TheRealBronweN That is why this is a national issue too. Destroying the green energy potential for NB hurts us all, it will also restrict green energy developments for NS too as they would send that energy south through our transmission lines. Quebec has no incentive to develop new generation here due to their abundance of Hydro.
@oxjr Wind has some potential here in NB. But TIDAL isn't full proof technology and costs TONES of money. Experts have said that in order for the tidal technology to supply just as much power as good ol' Power Plant, the entire bay of Fundy would need to be surrounded with them. There is hardly any future for technology anywhere on this planet, unless it becomes "full Proof" and more efficient.
@MrZooLoo Wind isn't just "good" here ..it is considered one of the best in the world, and our placement above the eastern seaboard makes private investment inevitable. Also you are referring to the old turbine based concept of tidal power... there is a new way to harvest wave power (vibration) that is finishing its testing now and is only a few years away from its first commercial trials.
Since Quebec Hydro just stepped away from the deal because the asset value didn't equal cost (3.2 billion), I'm thinking this student should stay in school for a few more years (or at least pay attention instead of making youtube videos). Big difference between 47 Billion and 3.2 Billion and they still walked away ...
naomijful 1 year ago
Hey this is a good deal for the Irvings, who cares if it is giving wealth away from the citizens of New Brunswick? Not Shawn Graham that is for sure.
JohnnySemor 2 years ago
NB does need lower power rates to attract manufacturing business here.
A ROYALTIES deal would have put NB in control. Keep NB Power and the assets but allow HQ access to the USA market - we will take 10% off the top. HQ + NBP + tax payers win big all the way around. Surely it is not too late!!!
The gov't certainly has NOT negotiated the best deal for the province. NB Power is grossly mismanaged so I can't say that I agree with the glorification of its over paid CEO in this video.
mitchie0111 2 years ago
I was not glorifying the CEO. I agree that NBP is totally mismanaged. Please tell me what statement I made that "glorifies" David Hay.
TheRealBronweN 2 years ago
You have a shortsighted view of industry in NB. Any manufacturing business that we attract here now is just going to end up in China within the decade, because their labour cost is lower and their environmental regulations are much less (companies allowed to pollute).
We need to attract industries OTHER than manufacturing, unless we are manufacturing our own resources. Fat chance now that the forests are all monoculture. Look at PEI... they created a great video game industry. We need NEW.
TheRealBronweN 2 years ago
However, I do totally agree with your assessment of how to make NBP profitable. That is the same kind of sentiment that I have on the issue.
We need people like you as part of a think tank to come up with our next-gen of strategy for our energy policy.
TheRealBronweN 2 years ago
Comment removed
malcolmxward 2 years ago
Selling NB Power will not get us out of debt. The purchase price is less than the value of the assets, and most of NBPs long term debt cannot be sold right now. It carries interest over many years of 5-6% (which HQ is not taking over).
Your facts are a little skewed Malcolmxward. Dunno about the PCs debt (I'll have to look into it) but I DO know that Graham has created $3 billion in debt in the past 4 years. It looks bad, and THAT is why they want to sell NBP.
TheRealBronweN 2 years ago
Comment removed
malcolmxward 2 years ago
Comment removed
malcolmxward 2 years ago
The government's interference put NB Power in debt.
Selling it will not solve the problem. The Auditor General has already said that selling NB Power is not going to pay down the debt. They want to sell the utility for much less than what it is worth, and this will only create MORE debt for us.
I agree, NB Power is not being managed properly. The solution is to fix the mismanagement and government interference, not sell the utility.
TheRealBronweN 2 years ago
Another important point to consider that is not in this video are FEDERAL TRANSFER PAYMENTS.
Quebec's debt is 40% of its GDP. NB's debt is 25% of our GDP. We get transfer payments from the feds based on our level of debt. So HQ borrows money to buy NBP, and in selling the assets our debt goes down.
Effectively, we are also selling them a chunk of our transfer payments. Amassing huge debt is how Quebec gets the rest of Canada to pay for their social programs, while they spend elsewhere.
TheRealBronweN 2 years ago
Comment removed
Slinky179 2 years ago
@Slinky179 ...you could obviously learn a few things from this person. If you weren't so quick to judge others...you might have had the time to check the spelling of your words. And by the way...pedantic...do you even know how to use the word? There's nothing ostentatious about this individual, who is simply informing the masses and attempting to remove the ignorance that is obviously blocking your ability to see matters of importance. Take a step back and collect yourself.
jmboudreault 2 years ago
Comment removed
Slinky179 2 years ago
@Slinky179 thank you for at least being mature enough to admit that your personal attitude towards this individual may have clouded your sense of what is right. Many social changes have been initiated by the likes of Bronwen who dared to speak out instead of remaining silent. Better to be informed...trite or not...it is still valuable knowledge upon which others can base their opinion and stand up for what is right. This is OUR utility...and it should be there for others who will follow.
jmboudreault 2 years ago
She should get tenure as a professor for this.
david123429 2 years ago
1) Rates have gone up 27% in the past 7 years because the government keeps taking more and more profits. It started at $20 million by McKenna, and escalated to $420 million in 2009. So rate increases are basically tax increases.
2) NBPs profits WILL go up no matter who owns it. That is how a business works. Better for our rates to go into OUR health care and education, than to go into Quebec's health care through Hydro Quebec.
TheRealBronweN 2 years ago
@TheRealBronweN "Rates have gone up 27% in the past 7 years because the government keeps taking more and more profits."
-Such a crown company ought to make profits... (HQ Makes 3.3 Billion Each Year..) It costs over $1 Billion yearly for the health.
"NBPs profits WILL go up no matter who owns it. "
-Speculations?
MrZooLoo 2 years ago 4
Yes!! NBP is PROFITABLE and SHOULD show more profits. And it would if the government got its hands out of the piggy bank.
So we need to elect a government who regulates how much money can be taken from NBP every year!!!
NBPs profits WILL go up because that is how businesses are always run. If WE own it, WE have the EUB to control that increase in profit. If HQ owns it, forget it. They will want to make money, and those profits will LEAVE OUR PROVINCE, rather than staying, like they do now
TheRealBronweN 2 years ago
Without this deal, in order for NB Power to remain stable and profitable, it projected an increase of about 15% in the next 5 years, How would the industries react to such a thing?
Actually... One more question, Because NB relies on non-reusable energies (natural gas, oil, etc.) Once NBP's "cheap" deal with the Venezuela comes to an end, Do you expect the rates to escalade?
MrZooLoo 2 years ago
NBP needs an increase of 15% over the next 5 years to keep up with Shawn Graham's unnecessary spending habits.
Graham has racked up $3 billion in debt for this province in 4 short years by spending money where it didn't need to be spent (a private jet, for example)
So... fire Graham, and get the spending under control, NBP will not need to increase rates by 15%. The more money NBP is allowed to keep to pay off its own debt, the more rates will go down. With HQ, they will ALWAYS go up.
TheRealBronweN 2 years ago
Comment removed
MrZooLoo 2 years ago
@TheRealBronweN Again... HEALTH alone costs over $1 BILLION every year.. You really think a Company such as, NB Power, who hasn't been profitable for the last 15 years will help us?
Listen, NBP, as you said, has made over $700 Million? You really think this number is better to stay in NBP's balance sheet rather than NB's. What else you want to do with that money? The province has to fund something.
Why is QC able to provide so many social services? Because HQ makes $3.3 Billion a year!
MrZooLoo 2 years ago
QC is able to provide so many social services because of its TRANSFER PAYMENTS. These are calculated based on the province's debt, specifically on the GDP to debt ratio.
Quebec's debt is 40% of its GDP. NB's is 25%. By borrowing more money to buy NBP, QCs debt will increase, making them eligible for more transfer payments.
NBP making $0 per year means that they will be able to help with 0% of our social services. You have totally PROVEN MY POINT.
Thanks.
TheRealBronweN 2 years ago
NBP HAS BEEN PROFITABLE FOR THE PAST 7 YEARS... just not on the "books" because the government keeps taking money out of their piggybank.
Where do you propose that shortfall should come from if we sell NBP? Hmmm? Any big plans?
TheRealBronweN 2 years ago
Alright... Since you seem to know a lot.. Let me ask you some questions.. (In order to have better chance reaching you, I will post this message in Both Part 1 and 2, Just answer one or the other)
You have mentioned NB Power being a healthy company, How can you associate the fact that the rates have increased by 27% in the past 7 years?
You have been stating NB Power's value over the next 50 years, How is this relevant since NBP Profits could decrease or increase?
Lastly, (Next Post)
MrZooLoo 2 years ago
@MrZooLoo this deal is also going to restrict the investment of wind and tidal power. NB is one of the worlds best places for wind and tidal power. Quebec only wants the transmission lines to make a profit on their excess hydro production. We could sell our own power to the US. Forign investors are just starting to build windmills here. One windmill equals 200million profit over its lifetime. We would get a nice chunk of that , not to mention the jobs it would create.
oxjr 2 years ago
Excellent points oxjr.
TheRealBronweN 2 years ago
@TheRealBronweN That is why this is a national issue too. Destroying the green energy potential for NB hurts us all, it will also restrict green energy developments for NS too as they would send that energy south through our transmission lines. Quebec has no incentive to develop new generation here due to their abundance of Hydro.
oxjr 2 years ago
@oxjr Wind has some potential here in NB. But TIDAL isn't full proof technology and costs TONES of money. Experts have said that in order for the tidal technology to supply just as much power as good ol' Power Plant, the entire bay of Fundy would need to be surrounded with them. There is hardly any future for technology anywhere on this planet, unless it becomes "full Proof" and more efficient.
MrZooLoo 2 years ago
@MrZooLoo Wind isn't just "good" here ..it is considered one of the best in the world, and our placement above the eastern seaboard makes private investment inevitable. Also you are referring to the old turbine based concept of tidal power... there is a new way to harvest wave power (vibration) that is finishing its testing now and is only a few years away from its first commercial trials.
oxjr 2 years ago