Promises, Promises: One Man's Opinion
By Ben Meisner
Has anyone in the Premier’s office had a look at the deal that the BCUC has just tossed out between BC Hydro and Alcan? That was the deal that would see Alcan receive a 700% mark up on the power it sold to Hydro and then of course on to you the user.
Alcan pays about ten bucks a MWH to produce the power and had a friendly deal with BC Hydro where by BC BC Hydro would purchase the power for $70 bucks a MWH.
Now it won’t come as any surprise just who will end up paying for that high priced power, the consumer at the end of the light switch will pay in the form of rate increases.
So BCUC whacks them on the hand and says , No Sir, this deal is too rich , especially given the fact that Hydro had a deal with Alcan for that same power in a contract that lasts until 2014 for a much lower cost. Under the deal, Alcan could have picked up several, and I mean several, Billion dollars.
What is Alcan offering in return? Well they will build a new smelter that will employ 500 fewer workers. Now Kitimat already has the highest vacancy rate in the province at 44% and Alcan is offering to skin the town for some more and are suggesting that it’s a great deal.
Now let’s examine the deal... So Alcan doesn’t get the rich contract for power, we were told at the BCUC hearings that the province is not, I repeat not, facing a shortage of power, even without Alcan’s contribution.
So what can Alcan do with that power it can no longer sell to BC hydro? Bottle it up and put in on the shelf? This isn’t wine Mr. Premier. Hydro electric power doesn’t get better with age. If you don’t use the water up it simply goes to waste.
So how in the world Richard Prokopanko can come to town and suggest no agreement= no $2 billion dollar upgrade to the Kitimat works is beyond belief, and surely someone in Gordon Campbell’s office must have enough brains to see this.
Unless of course there is a political deal and if there is, let’s all hear about it.
Secondly, if you have this power and no one who will buy it, HMMMM, if you don’t want to manufacture more aluminum, then the water simply goes over the spill way or (heaven forbid) you let it go down the Nechako River.
You don’t have to go to Oslo to get the prize to see that British Columbians have the hammer in this deal, but the way the Premier was talking about the 1,000 jobs you’d hardly think so.
Now the third condition is that the Union will not strike. That’s a dandy Richard, it almost guarantees that you won’t have to build a smelter and as long as you get the Hydro contract before hand that’s all that is needed. You are not going to find a Union who will give you a long term no strike contract when your company has been saying that it wants to double its wealth every five years, and hasn’t been paying any taxes into the Canadian coffers.
So where does that leave us? Well the promises being made about a new smelter are a broken record spinning aimlessly on the turntable. The Folks in Vanderhoof were promised a smelter, they got some red flags instead and no smelter, but Alcan got another power contract. The town of Smithers was going to get a smelter as well. Well that one didn’t pan out either. Then there are the people who supported Alcan when they were trying to jam the Kemano completion project through. They didn’t get any new jobs, as a matter of fact the company did them in by cutting the work force in order to sell more power.
The record is there for anyone to see if they wish to take the time to read it.
Since 1981 I have watched this company promise the moon, but never even deliver up a pizza. Of course we are being bombarded with a flurry of ads by Alcan telling us all what great community minded people they are. The ads have worked at least to some extent, there has been a definite silence from the media dealing with the issue, that raises the question does advertising really work?
In 1981 I was asked to leave a hall in Vanderhoof for saying that Alcan had no intention of ever building a smelter in that community, I said it again at the BCUC hearings when the company was trying to take the final flows of the Nechako River. I said it again when I went to Kitimat and again was told I no longer was welcome in that city. I said it again when I spoke to the Chamber of Commerce in Vanderhoof telling them that Alcan was not about to pony up the money for a cold water release. I recall at the time Henry Klassen standing up to say it’s only a matter of a week or two before an announcement is made in that regard. Well Henry, at least 150 weeks have passed without that announcement as well.
So once again Alcan has come to town and is scattering some money around hoping to make us believe that this time things will be different.
Its easy to spend a few million bucks when you know that at the end of the line there’s a few billion in it for you and I hate to say it Mr. Premier and Richard Prokopanko, but there are fewer and fewer people who believe the pitch.
I’m Meisner and that’s one man’s opinion.
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