Strategic Thoughts

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April 21, 2004

Year 2994

The leak that the Campbell government has entered into a 990 year contract with CN for BC Rail opens new insight into how that government works. Many thought that 90 years was a long time (60 years with an option to renew for 30), but Transportation Minister Kevin Falcon has confirmed that the contract provides 15 opportunities to renew for 60 years each.

In order to get an idea of what kind of changes may occur over the next 990 years, it is useful to consider what the world looked like 990 years ago, in the year 1014. That was 200 years before the Magna Carta. It was 50 years before the Norman conquest. Around year 1014, Europe saw the early development of cities, and the formalization of a feudal system which provided more security to the population. The modern state was still hundreds of years away. In the late middle ages people didn't wake up to a hot shower, radio, TV, the Internet, electricity, planes, cars, or even the power loom. The year 1014 came over 700 years before the industrial revolution. With a time span of 990 years, imagine what the planning documents must look like in the secret recesses of the Campbell government where they no doubt do due diligence before signing a 990 year contract! The consequences of global warming will be more evident within the next century. What do you suppose the Campbell government has projected for year 2994?

The latest spin out of Campbell land is that each of the 60 year options for extension are up to the government of the day, not CN or its successors. There is a slight catch-22 for those who have been listening carefully to government spin. At each 60 year point government can exercise its option only if it chooses to buy back the railway. In other words, government rhetoric about the renewals being solely up to government is nonsense. Having the option to re-purchase is fundamentally different from having the railway revert to the crown.

As they struggle to regain control of the runaway story, Campbell's sleuths must be looking at how Province columnist Michael Smyth obtained a copy of the secret 1,500 page contract. Can Smyth expect his hard drive to be seized during a midnight raid in an effort to expose the leak? Open, transparent and honest are not terms easily applied to a government that gives one of its major campaign donors a prime asset and then tells the public they can wait to see what information will be made public after it is too late to change course. Then again, by Stardate 2994 maybe they will have time travel.


April 20, 2004

Inconsistencies in the BC Rail Story

On Sunday, April 18th, Province columnist Mike Smyth broke the story that the Campbell government's contract with CN, with respect to BC Rail, allows 15 extensions of 60 years each - in other words it is a 990 year deal, not the 90 year deal government claimed. Smyth also reported that the deal contains a provision where the land under abandoned track can be sold to CN for just one dollar. As expected, opposition members Joy MacPhail and Jenny Kwan focused on BC Rail in Monday's questions period, and Transportation Minister Kevin Falcon confirmed Smyth's report, although he attempted to minimize the importance of the provisions.

In answer to Kwan's question on the provision for selling land, Falcon said "The reason we did that is because we wanted to ensure that if there was a case where track in which they were operating had, for example, significant environmental remediation costs associated with it, we wanted to ensure that we had the right to make sure that the operator could not discontinue that section of the track and turn it over to a taxpayer obligation." The government didn't have its choreography working very well on Monday, as demonstrated by the first bill called for debate following question period, the Environmental Management Amendment Act, 2004. MacPhail immediately used the opportunity to say:

"The government's saying: "Oh, we're gonna force CN to take land for a buck, because if it's contaminated, then they'll have to clean it up. We're going to give them billions of dollars of land, because if it's contaminated, then they'll have to clean it up." Why not just make a law or enforce the law that was on the books that the owner had to clean it up regardless?"

Bill Barsioff, the Minister of Water, Land and Air Protection, had trouble answering any of MacPhail's questions. He made no attempt to explain why the government has a provision in its contract with CN that would allow the giveaway of crown land rather than requiring that CN clean up anything that is environmentally damaged. It looks like the Campbell government can't keep its story straight, and it can't explain what it is doing. Giving land away for a buck, and extending a lease for 990 years is contrary to everything Campbell said about the BC Rail deal, the deal he still refuses to call a sale.

 

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