Opinion

BC Liberals Owe Us a $65 Million Apology

They blew that much of our money on their failed BC Transmission Corporation privatization, now scuttled.

By Will McMartin, 3 May 2010, TheTyee.ca

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Energy Minister Blair Lekstrom: Not even a teeny bit sorry?

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Blair Lekstrom, B.C.'s minister of energy, mines and petroleum resources, rose in the legislature last Wednesday afternoon and introduced a bill that will send the BC Transmission Corporation back into the folds of BC Hydro and Power Authority, from whence it originated in the spring of 2003.

One might have hoped that Lekstrom had the decency (or courage) to apologize to British Columbians for a misguided, failed and costly experiment that went so horribly wrong, but he did not.

Gordon Campbell's BC Liberals, elected in 2001 with a pledge to protect BC Hydro, the so-called "jewel" among the province's Crown corporations, instead embarked on a campaign to rip apart and hobble the utility giant. A third of BC Hydro's workers (nearly 1,600) were transferred to a private firm, Accenture, while responsibility for the province's 18,000 or so kilometres of electric transmission lines was shifted (along with 276 employees) to the newly-created BC Transmission Corp.

BC Hydro was left with two -- generation and distribution -- of its three traditional areas of operation, somewhat more than half of its employees, and instructed to be a mere bystander as responsiblity for generating new, clean power was shifted to so-called Independent Power Producers (IPPs).

Now, seven years on, many of those early moves have been or are being reversed. But it's not like taking a mulligan on the golf course, and saying "oops" doesn't quite cut it.

What can't be un-done for B.C. taxpayers and BC Hydro ratepayers is the wasteful, unnecessary expenditure of millions of dollars in setting up, operating and dismantling a Crown corporation that proved, in the end (as many predicted at the beginning) to be utterly, completely unnecessary.

According to calculations by The Tyee, the monies flushed down the drain through the BC Transmission Corp. is in the neighbourhood of $65 million, and likely much, much more.

You paid millions for opulent offices

It was in the spring of 2003 that BC Transmission Corporation (BCTC) representatives approached Bentall Real Estate Services to discuss office leases. Newly created after being spun-out from BC Hydro and Power Authority, BCTC needed workspace for its senior executives, mid-level managers and a cadre of secretaries and assistants.

True, Transmission Corp. executives and factotums might have remained working at BC Hydro's capacious digs on Dunsmuir Street in downtown Vancouver, built just a decade earlier and one of the city's finest office buildings. But it was important, apparently, for BCTC to demonstrate its newfound independence, and so the search for office space at some distance from BC Hydro headquarters got underway.

And could there possibly be a better place for re-location than the prestigious Bentall Centre? As Bentall's web-site gushes: "Spanning over 1.5 million square feet, the Bentall Centre offers four office towers and an expansive retail mall, complete with exterior waterfalls, reflecting pools and a multitude of wide, open spaces filled with native foliage and colourful planters."

It was perfect for the transplanted executives, because with "panoramic views over Burrard Inlet, Stanley Park and the North Shore Mountains," the Bentall Centre surely is "the choice for discerning tenants and the measure by which all others are judged."

Situated in the heart of downtown Vancouver, the Bentall Centre also is very expensive. Then again, with the full financial backing of B.C. taxpayers and BC Hydro ratepayers -- BCTC earned the bulk of its revenues by charging BC Hydro for moving electricity from generating facilities to distribution lines -- why shouldn't Transmission Corp. executives and their factotums enjoy all the amenities and creature comforts that money can buy?

So the parties agreed to a 10-year lease that would see BCTC pay Bentall -- which kindly offered a $2 million rebate off the top -- a minimum of $13.4 million before expiration of the contract in 2014.

Unfortunately, even with its panoramic views, exterior waterfalls, reflecting pools, native foliage and colourful planters, the new Bentall digs weren't quite perfect. So the Transmission Corp. ponied up another $1.5 million for lease-hold improvements and the acquisition of "other assets."

Four years left on huge lease

In the first fiscal year of occupancy, 2003/04, the Transmission Corp. paid Bentall $711,000. The next year leasing charges totaled just over $1.5 million. In 2005/06 the rent bill was almost $1.8 million, and in 2006/07, $1.9 million. The numbers jumped even higher in 2007/08, to nearly $2.6 million, and in 2008/09, the latest year for which figures are available, surpassed $2.7 million.

The total after five and a half years: $11,222,885. Moreover, British Columbians may expect something close to $3 million was spent on Bentall for the fiscal year just ended, 2009/10, which brings the total to date to about $14.5 million.

But still there remain four years on that darn 10-year lease. Will BCTC (or BC Hydro) cancel it, pay a penalty and move immediately to rejoin their former Hydro colleagues in the Dunsmuir Street office building; or, maybe -- shudder -- to the utility's offices in Burnaby or Surrey?

Then again, perhaps they'll simply stay where they are, at the Bentall Centre, surrounded by those panoramic views, reflecting pools and exterior waterfalls, with B.C. taxpayers and BC Hydro ratepayers coughing up millions of dollars each year until the lease expires in 2014.

Either way, it's difficult to see how the total cost of the Transmission Corp.'s ill-fated stay at the Bentall Centre will cost B.C. taxpayers and BC Hydro ratepayers less than $25 million.

You paid over $2 million to duplicate directors

There's more. The decision to re-marry BC Hydro and BCTC means that having two separate and distinct boards of directors at both Crowns over the last seven years was utterly wasteful and unnecessary. The following calculations were made by The Tyee using BCTC's annual filings under the Financial Information Act.

For the first five years or so of its life, the Transmission Corp.'s chair was Robert Reid, a former Westcoast Energy executive. Between 2002/03 and 2008/09, initially as chair and later as a mere director, Reid was paid a total of $459,875. The West Vancouver resident also racked up another $17,849 in expenses.

A quartet of women have served on the Transmission Corp.'s 10-member board since its inception. Like their male colleagues, all four may be considered "friendly" towards the Campbell Liberals, and each was appointed to the position by order-in-council.

Joanne McLeod, like Reid a former Westcoast Energy executive, was paid $163,515 over the five and a half years between the fiscal years 2002/03 and 2008/09. She was topped by Bev Park, chief financial officer at TimberWest, who took home $176,791.

Nicole Byers, a Trail lawyer who previously worked as in-house counsel at one of the biggest financial donors to the BC Liberals, Teck-Cominco, collected $150,500, while Margot Northey, a former dean at Queen's business school in Kingston, received an even $162,000.

The men on the board didn't do too badly, either. Topping the list was Richard Campbell, formerly a chief honcho at the global oil giant, British Petroleum, who drew $172,125 for his labours. He was followed by Gerald Wesley of the Kitsumkalum First Nation at $164,875 (plus $31,914 in expences); Ralph Winter, a UBC commerce professor at $156,875; and John Gill, president of Industrial-Alliance Pacific Life Insurance Co, $154,375.

Norm Laythorpe, a Fort St. John accountant and friend of former B.C. energy minister Richard Neufeld (now a Canadian senator), served on the board from 2004 to 2008. He made a total of $117,000 (and racked up another $18,543 in expenses).

Replacing Laythorpe was O'Brian Blackall, retired from The McElhanney Group land surveyors. He was paid $18,750 in 2008/09 (and incurred surprisingly high expenses of $6,809).

Finally, Reid's replacement as chair of the Transmission Corp. was an ex-federal cabinet minister (for both the Liberal and the Conservative parties), a veteran of the provincial bureaucracy, briefly a bank president and later head of Canfor Ltd -- David Emerson.

In the last five months of fiscal 2008/09, Emerson collected $17,890 as chair of the Transmission Corp., plus another $25,760 as interim CEO.

All told, in just five and a half years, BCTC's board of directors was paid a total of $1,914,571, and had combined expenses of $103,951. The total cost of the board to B.C. taxpayers and BC Hydro ratepayers: $2,018,522.

Of course, on top of that figure will be compensation and expenses paid for fiscal 2009/10, and then for a brief period in 2010/11 before the Crown corporation is wound down. The Transmission Board's total cost: about $2.5 million.

You paid millions more to unneeded officers

Unfortunately, the board of directors was not the only unnecessary and wasteful duplication between BCTC and BC Hydro from 2003 to the present. Looking at the corporation's officers, was it really necessary to have two presidents/CEOs, two chief financial officers, two corporate secretaries, two general counsels, two controllers, and so on?

Over the period 2002/04 to 2008/09, three individuals (Michael Costello, Jane Peverett and Janet Woodruff) who served as the Transmission Corp.'s president and CEO were paid a combined total $2.34 million. (Costello's annual compensation peaked at $424,602; Peverett topped out at $547,942.)

The total paid to three individuals (Peverett, Brian Gabel and Janet Fraser) who were CFOs was $1.37 million, and for two people (Karen Adderley and Diana Stephenson) who served as corporate secretaries, $1.03 million.

The Transmission Corp. had one full-time general counsel (John Irving) during the period, whose remuneration added up to $1.21 million between 2004/05 and 2008/09. There also was one controller (Elizabeth Hong) who took home $1.06 million from 2003/04 to 2008/09, and one director of human resources (Scott Boogemans) whose remuneration totaled $790,000 between 2004/05 and 2008/09.

The total remuneration (not including expenses) for these six positions alone between the summer of 2003 and the spring of 2009 was $7.8 million.

Payroll ballooned

It's certain that many other jobs and functions at BCTC were mere duplications of tasks performed simultaneously at BC Hydro. The Transmission Corp., for example, had its own communications department, headed by a director (Moira Chicilo) who took home an average of $212,000 each year between 2005/06 and 2008/09.

In fact, in its short existence, BCTC saw an incredible explosion both in the number of staff and their compensation levels.

At the end of fiscal 2003/04 (which was just eight months for the newly-created Crown corporation), the number of BCTC staff who earned in excess of $75,000 totaled 42. One year later, that number had skyrocketed to 212, and by the end of 2008/09, it was 302.

And it's hard to believe, but in that latter year a stunning 178 Transmission Corp. employees -- out of 401 regular staffers and 47 temporary workers -- had remuneration in excess of $100,000. An even 50 people -- one in every eight regular employees -- topped $150,000 for the year.

Not surprisingly, the Transmission Corp.'s tab for employee compensation exploded over a short period of time. In its first eight months, total remuneration was $16.2 million (with another $616,000 in expenses). At the end of the next full-fiscal year, 2004/05, that figure had nearly doubled to $29.7 million (with expenses of $1.34 million).

And when 2008/09 drew to a close, total annual remuneration had hit $46.4 million (plus expenses of $3.3 million).

Life was very good inside Transmission Corp.

By all accounts, the Transmission Corp. was a real nifty place to work, with not just huge salaries, but great perqs as well. In 2004/05, the Crown started its very own BC Transmission Academy to offer employees courses in technical and business skills, so as "to support the corporate strategy of transforming our business through operational excellence."

And don't forget about the Employee Housing Assistance Program, whereby Transmission Corp. staff can get five-year, low-cost mortgages to buy their own homes. At the end of fiscal 2008/09, seven staffers were in the program, with mortgage rates ranging from 2.8 per cent to 3.6 per cent.

(Sheesh, sky-high salaries and a company-sponsored mortgage program! But, then, probably every Tyee reader works for a company that provides the same benefits, right?)

One neat program that may not get off the ground is an Alumni Program, whereby the company would "keep connected with former BCTC employees, with the goal of providing support, opportunities and information."

Scheduled to begin in 2010, the Alumni Program may be stillborn, with the Campbell Liberals pulling the old 180-degree switcheroo, putting back together BC Hydro years after pulling it apart. It will be a sad blow for BC Tranmission Corp. employees, past and present.

Adding up cost to citizens of failed experiment

The real victims, of course, are ordinary British Columbians. How much has the Campbell government's failed experiment cost us?

There's the 10-year Bentall lease, which should come to at least $25 million, regardless of whether the contract is honoured through 2014 or abrogated sooner. And don't forget those original lease-hold improvements of $1.5 million.

The Crown corporation's financial statements also show "one-time establishment costs" of $4.936 million (which were paid by BC Hydro) back in 2003/04; there certainly will be "one-time dis-establishment costs" when the Transmission Corp. is wound down in 2010/11. Let's put it at a minimum of $6 million.

There's the board of directors at an estimated total cost of $2.5 million between 2003/04 and whenever the Crown is re-merged with BC Hydro.

Plus the cost of BCTC's six most-senior executive posts -- positions which duplicated those over at BC Hydro -- which cost $7.8 million in remuneration (and much more for expenses). Of course, that figure does not include salaries for 2009/10 and however long it takes in 2010/11 to orchestrate the BC Hydro amalgamation. Let's add in another $2 million.

We're now up to $49.7 million, and this doesn't include all the non-executive duplication at the managerial level, plus miscellaneous costs for such items as head-hunting and polling. (Yes, for reasons yet to be explained, BCTC found it necessary to conduct public-opinion surveys.) Let's err on the side of caution and hope that $5 million over the last five and a half years is not unreasonably low.

Finally, the really big item yet to come as a result of the Campbell Liberals' decision to re-join BC Hydro and the Transmission Corp. -- severance payouts for BCTC employees whose services will not be needed after the merger.

When all is said and done, the total is likely to be at least $10 million.

$65 million into thin air

That's close to $65 million in wasteful, stupid expenditures directly attributable to the decision seven years ago by Gordon Campbell's BC Liberal government to hive-off BC Hydro's transmission operations.

One might be tempted to compare this fiasco to the cost over-runs with the BC Fastcat Ferries (under the NDP) and the new Vancouver Convention Centre (under the BC Liberals).

But that comparison would be wrong, for with those projects the long-suffering taxpayers of British actually received physical goods that had some value -- three ferries and one convention centre.

But with the seven-year life-span of the BC Transmission Corporation, what, exactly did British Columbians receive for their $65 million?

Nothing.

Not even an apology from Blair Lekstrom. [Tyee]

Tyee contributing editor Will McMartin is a veteran political advisor and analyst.

46 Comments:

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  • rstillwell

    2 years ago

    All Friggin BC Governments Owe the Taxpayer an Apology

    The LIEberals owe the BC taxpayer an apology for this $65 million BC Hydro mess, with their friends sucking at the public teet.

    The NDP owes the BC taxpayer an apology for BC Hydro's $120 million boondoggle with the Duke Point Generating Station.

    $185 million right there that could have been spent on social programs for the public but has been lost forever.

    Both political parties in BC do nothing but screw the taxpayer and suck at their teet. Just like the federal Cons and Libs. Nothing new there.

    BC taxpayers are fed up with the HST and the two main political parties screwing up BC's finances. We need the BC version of the Alberta Wildrose Alliance Party - NOW!!!!!!!!!!!!!

  • samuidave (not verified)

    2 years ago

    Alberta Wildrose Alliance Party???

    Yeah, like it isn't bad enough already! BC does not need any more inroads made by paternal, conservative political know-bests on the right of centre.

    Let's try something founded on the principle of true democracy where there is honest leadership for the people by the people.

    How about a party that puts in quick and effective recall legislation, free votes in the house on all issues to ensure representative is acting on behalf of the people, proportional representation, and a full independent review of all criminal or conflict-of-interest claims of any MLA or Premier whom must step aside immediately if facing a criminal charge.

    The next step we take if the democratic entrails we do have are shredded much more, and the void is not filled by the people, may be fascism.

  • Hugh

    2 years ago

    What's going on here? I

    What's going on here? I thought the idea of having BCTC separated was to enable IPPs better access to the grid, for export. So why are they rejoining BCTC to BC Hydro?

  • Hugh

    2 years ago

    Also,

    the $65 million looks kind of small compared to the $billions BC Hydro is forced to pay for all that unnecessary, unreliable, expensive IPP power, over the next 30-40 years.

  • Grania

    2 years ago

    RECALL

    Just more of the same manipulation and deceit. Get those petitions ready to roll!

  • sunshine coast girl

    2 years ago

    Yup.....

    They definitely need to pay exhorbitant salaries to attract the "brightest and the best". Who said these people were good financial managers anyway? Oh yeah. It was themselves.

  • Ronald Pagan

    2 years ago

    The reason

    The BCTC was created was to align with FERC guidelines to be able to export power to the U.S.

    So BCTC cost $65 million since 2003. How much has Powerex made for BC Hydro since 2003? That data isn't readily available but guess is that it's alot more than $65 million.

  • blackie

    2 years ago

    revisionist history

    "So BCTC cost $65 million since 2003. How much has Powerex made for BC Hydro since 2003? That data isn't readily available but guess is that it's alot more than $65 million."

    Don't muddy the waters here with facts, it detracts from the mantra. It was pre-2003, but doesn't California still owe us more than $300 million for Powerex sales?

    And if BCTC was done to meet FERC guidelines, what has changed down there that would allow BC to put the two back together?

  • telus employee

    2 years ago

    BCTC/Powerex connection?

    Ronald Pagan

    What is the connection between BCTC being spunoff from BC Hydro and Powerex making money. If the whole BCTC thing never happened Powerex (est 1988) would have made the same profit. $65 million down the drain is $65 million down the drain and Powerex profits are do not excuse the waste.

    Hugh,

    You are right when you point out that the real elephant in the room is the $60+ billion in Long Term Purchases by Hydro for power from private producers. Think of the tens of billions ratepayers are subsidizing to the parasitic private producers.

  • Illahie

    2 years ago

    Great article Will

    It looks like you did a great job researching this piece. Congratulations on a job well done.

  • cboo44

    2 years ago

    "What's Going On Here?"

    "So why are they rejoining BCTC to BC Hydro?"

    With the Site "C" development, the "golden goose" of IPP's has just laid a rock. IPP's will only be built if they can sell the high-priced power for export and competing against BC Hydro's lower cost competition.

  • Ronald Pagan

    2 years ago

    FERC

    I can tell you that the reason BCTC was spun out was because the province wanted to make sure they could still export power to the U.S. thanks to FERC regulations against vertically integrated utilities.

    In 2008 FERC rescinded those standards due to problems with segregated generation and transmission utilities.

    This is why BCTC is being re-incorporated back in BC Hydro.

    But don't kid yourself, FERC was the primary motivation for spinning out BCTC and the continued exports to the U.S. has more than paid for the $65 million that the BCTC costed.

  • wssides

    2 years ago

    So FERC guidelines

    have changed recently and a separate transmission corp is no longer needed to rip off our neighbours by selling them the power we need ourselves? Please explain.

  • freebear

    2 years ago

    a $65 Million Apology

    Is that all!

    More than one apology by the Fiberals needed!

  • onthebay

    2 years ago

    Opportunities

    Call me a cynic, but.... It could be the government is so far in debt that amalgamating BC Hydro and BCTC is strictly a money saving move, but this would be contingent upon there being no difference to the government’s long term agenda. If keeping them together served the government’s agenda they wouldn’t care about the cost of the duplications, or the salaries, or the rent, etc. However, knowing this government’s track record I suspect the government has something in mind where BC Hydro and BCTC being together serves their agenda better, and also knowing their track record, it has something to do with privatization or providing opportunities for corporations. There is so much more to this than meets the eye. I can’t see this government turning on their IPP friends, there’s got to be something going on that ultimately benefits these corporations.

    I'd also like to hear more about FERC guidelines.

  • Ronald Pagan

    2 years ago

    telus employee

    The reason BCTC was created was because of very real fears that FERC guidelines against vertically integrated utilities would inhibit Powerex's ability to export power to the U.S.

    So no, Powerex would not have made the same profit if FERC found that BC Hydro was in contradition to their regulations.

  • Skywalker

    2 years ago

    Thanks Will.

    Another excellent work. As for Ron, stop making excuses for a bunch of clowns that couldn't run a peanut stand.

  • Marysue52

    2 years ago

    effective wording required

    Yes, this is a good piece of investigative writing, indeed! This may sound trite, but when is the Left (or even the pseudo-left like Carole James) going to drop that ineffective, calorie-less word "failed"? Why not substitute "rotten"? Or "corrupt?" Or some other exciting adjective which hasn't been used yet? 'Failed' has failed. Carole used it to death during the "failed" election campaign, then Adrian Dix used it to describe, of all things, HST (which wasn't even in effect yet)and now McMartin uses it here. There are better words -- more relevant and effective words. Let's hope Tyee's writers (and the NDP speech-writers) find them soon. A thesaurus would be a good place to look;). Otherwise, GREAT article! Should be required reading for all those people who didn't vote in the last election.

  • Takuan

    2 years ago

    failure?

    no failure here. As intended, $65,000,000.00 found its way into the "right" pockets. Follow the money.

  • refedmel

    2 years ago

    $65 million apology

    Samui Dave said; How about a party that puts in quick and effective recall legislation, free votes in the house on all issues to ensure representative is acting on behalf of the people, proportional representation, and a full independent review of all criminal or conflict-of-interest claims of any MLA or Premier whom must step aside immediately if facing a criminal charge.

    Already in the wings, BC Refederation Party

  • Running Frog

    2 years ago

    Apologies Not Acceptable

    So how much for each taxpayer refund must that be?

  • Running Frog

    2 years ago

    (whoops; meant to add) ~

    Wow.

    And are we all still wagging our fingers at Glen Clark's back deck?! And wondering where is Carol James penis is at?!

    HELL-O.

    Once a crown corp. is sold off; so are our good Canadian jobs. They cannot be recovered.

    Please conduct yourselves accordingly kids! Canada is an independant country; and for very obvious good reasons too. It's our global Human Rights refuge.

    When we 'choose' to break that, where is left to go?

    REAL POVERTY / REAL WAR / REAL SUFFERING

    Think about it; it's in your hands.

    www.populationconnection.org

  • Running Frog

    2 years ago

    One Life; it's not a Game.. Contrary to popular belief!

    Marysue52: That is what happens when we vote in a polarized state. The NDP do not hold enough seats to provide an effective opposition.. Which is very obvious when there is a static vote (stable population or not spiking in increased populations)..

    The right has dropped this in education. In media. Everywhere. Our elders are very aware that unless there is the 3rd party in force; with significant seats in parliment, there is no effective opposition!

    That is the very dirty secret of the NeoCons. Vote for anyone except the NDP! or the CONS! or the LIBS!(translation: Please let US the CONS and LIBS run WILD!)..

    When we do not vote; it's exactly like a freebie vote for the WRONG PARTY.

    No opposition means NO OPPOSITION!

    That is WHY it is ESSENTIAL that everybody votes.

    You and your kids' educated vote is essential that the system 'works' for everybody. Otherwise, we can all expect very undesireable or unexpected results.

    When you have not also been accounted for in the system.

    That is how it was designed; and that is how it works. And especially in cut-throat today; every single last vote counts.

    And further; Carol James will not resort to cat calling or scandal, she is a professional; and is acting our very best behalf ~ legally.

    WHAT A REFRESHING WORD.

    HATS OFF TO YOU CAROL JAMES. AND THANK YOU FOR GIVING THE REST OF US *HOPE*.

  • Skywalker

    2 years ago

    Yes Running frog

    Faint hope indeed.

  • Luck

    2 years ago

    65 million dollars+

    I hope all you ice holes who voted for your Liberals Party of BC get a good look at how not to run a province ion Canada.

    See what happens when only 37% of us vote. We need 2 more opposition parties and lets rumble man.

    Every time your Liberals do another dumb thing with money I send it off to Europe so they can see we are as dumb as them. Dumbness yrun in all political genes all over the world eh.

    We need impeachment laws in Canada and we need these politicians to pay back the money they used like drunken pirates.

    First we need to take all their money away like they did to us and stick em in jail.

    Impeachment would definitely put them in jail for life with no federal pension either.

    People of BC get a conscience and stand up and fight these useless ice holes and take back our wonderful province.

    Remember the old war song, Come on people lets stand together and just do it.

  • Machiatto

    2 years ago

    Gee

    So thats what Mr Penner was doing down at Bentall Center with the nefarious looking types! Oh no couldnt be, isnt he with the Environment Ministry? Oh well with "this government" and its rotating chairs and operatic musical numbers its doesnt even hardly matter anymore.

  • morechatter

    2 years ago

    And the BC Liberals will keep on costing the taxpayer

    In more ways than one as even the youngest of BC feel the blundering of the taxpayer for voting in a no brainer. BC youngest members of society are going to feel it for years to come and for some their futures are already pretty bleak.
    And talk about taxes and so Campbell did as the premier promised no more of that. And first things first the Premier ensures wealthly supporters all get healtly tax breaks along with the best of health care. It helped get Campbell into office telling taxpayers they pay to many taxes and their government spends to much under the present NDP and his Liberal government was going to reduce taxes and make this a better province to live in for the rich anywAYS. Only problem it was cheaper for the taxpayer when they were looking after the poor instead of looking after the rich because the rich will leave them poor. Another no brainer.

  • onthebay

    2 years ago

    How Rich!

    Good point, morechatter, that it costs less to take care of the poor than it does the rich.

  • morechatter

    2 years ago

    And yes Running Frog

    In order to have an effective government you need a healthy opposition IE healthy enough of an opposition to give the governing party a jolt, Voters certainly did it to themselves by giving the Liberals majority under Canmpbell's rule. Campbell is not a fine, upstanding citizen but a shrewd business man that will go to any lengths to get what he desires. And this is the guy voters put all their trust in.

  • dave49

    2 years ago

    It's not "easy come, easy go"

    It's not "easy come, easy go" when it is OUR tax dollars these clowns are squandering!

    Election time! Recall time, whatever!!!

  • vegguy

    2 years ago

    Apology won't do.

    Your 65million is small potatoes.
    BCTC spent much more building free transmission lines to allow the IPP carpetbaggers to ship their overpriced electrons to the BCH grid.
    Nowhere but in BC would the utility build the lines for the IPPs.
    The graft and deceit that was perpetrated by BCTC under the direction of Campbell and cronies should result in charges and jail terms.

  • off-the-radar

    2 years ago

    great investigative journalism

    thank you Will McMartin and the Tyee; keep it coming!

  • Dungeness_Crab

    2 years ago

    BC Liberals Owe Us a $65 Million Apology

    Will we get it? Of course not. Contempt is what we shall receive, as usual.

    Great article, Will.

  • Reness

    2 years ago

    65 M Blown In The Wind.

    As always, when reading the comments of people to yet another financial blow-out by this nation's 'elected' officialdom, one ponders the question, "who elected the thugs in the first place?'. Or is it, the cons, the 'justifiably angry' people here, and in other media places, are the vociferous minority, while the silent majority, the pros of 'thugs incorporated', are just too damn busy for comment, shovelling all the dough coming their way, with gratitude from their personal godfathers?

    I note again, - as many times from many sources -, the admonishment for everyone to participate in an election. Folks, that's easier said than done. Fact is, I have given up voting on, for, or against anything a long time ago, -once, so young, and so 'naively' proud of it-. I gave up because I just couldn't bear anymore to force my participation in an event where the runners up have been, are, and will forever be so long as this system exists: Joseph Stalin, Adolf Hitler, All Capone, and Michael Corleone (under different names: so what). For reasons too involved to get into here, I do not believe (human history to wit) the addition of one or more political parties will clear the air. Search your inner self: If you are now loudly fighting for and, given the people's mandate, proclaiming to enforce, with your very life, all the principles of this 'dream' of 'True Democracy', once in that Penthouse Tower with 007 status, your principles will disappear one after the other, and pretty soon you are nothing more than one of de usual Carpetbaggers you so bitterly condemned not so long ago when you were merely Joe Doe, from Nowhere. Perhaps, with the latter in mind, one may remember President Clinton's remark in an CNN interview: "... I have no power... " (I firmly believe he was not lying, at least not there). The moral is: there is no such a thing as a benevolent dictator; not if he is a human.

    The short answer is this: Scrap this political party system that has provided, on all fronts, only tears and trauma. In all its history, for the people's trust, it has returned nothing but exploitation, manipulation, lies, corruption, and, yes indeed, 'treason', The way Man is, for every force in existence, a force of equal power must stand opposed to it, or there will be abuse. That does not only go for the 'executives', the upper realm of things, but right down to all the brass buttons of lower ranks, and most certainly including the police.

    It is really not hard to do; only thing it takes, is the will to do it. Mind you all, while the atomic doomsday clock may have taken a step back, the clock ticking away the seconds to the extinction of mankind by self (mainly selfishness and ignorance), is happily striding forward.

    Cheers!

  • damngrumpy

    2 years ago

    apology

    If the Liberal Government were to say sorry for everything they have done it would take them until the next election to explain themselves. Almost everything has either been a social or economic failure in the long run. The Olympics billions in debt, the Convention Center, this BC Hydro failure,
    the HST the damage they have done to the agricultural industry and the list goes on. The Liberals, who are really in costume, as they are in
    fact the old Socred Party pretending to be Liberal,
    come around every fifty years like locusts and destroy only to go back into the wilderness.

  • SharingIsGood

    2 years ago

    Yea, thanks

    Yea, thanks again, Will McMartin... I guess. Though I really don't know how much more of this slime I can handle without it effecting me in very negative ways.

    I am beginning to understand how Basho came to this in the end:

    Ill on a journey;
    my dreams wander
    over a withered moor. --- Matsuo Basho

  • crankypants

    2 years ago

    Once again

    Once again Will McMartin hits it out of the park. The incompetence shown by Campbell and Co.will one day be compared to such successes as the Edsel, Betamax, Eight-track tapes etc.

    They have succeeded in pissing away more taxpayers money on ideologies than any unbiased person could ever attribute to the Fast Ferry Fiasco.

    The real scary part about all of this is how the business community continues to play the role of the lackey to this administration. Inevitably it will be they and their cohorts that will suffer.

  • cfvua

    2 years ago

    Motives

    I agree that cost cutting or revenue producing are not part of the plan if the ideology of this government comes into play.

    Watch for a windfall agreement similar to the IPP deals of late for contract to build the NW Transmission line to nowhere. After all we can't have a public entity possibly look after a project like that. Unless it is Site C and no company can raise the money. Think Port Mann Bridge. Follow the money on this one.Great pice of investigation Mr. McMartin. Now it is up to the rest of us to keep these folks honest. November can't come too soon.

  • John Hunter

    2 years ago

    BC Liberals owe us $65 MM

    The fast ferries gave us something of "value". Right - budget over run 100%, never a business case for the ferries, were unusable so they were mothballed, $500 MM spent (excluding interest on debt), sold all three for $25 MM.

    Some value.

  • Ronald Pagan

    2 years ago

    Does anyone read?

    For this to be an issue Will McMartin would have to write a real article looking at both sides of the ledger. Think of the $65 million as the licensing fee to export power to the U.S. In the years since 2003 BC Hydro had net earnings in the range of $300 million every year, with a percentage of that being power exports.

    Can no one get that through their head? That the citizens of BC actually came out further ahead thanks to the BCTC and that this is a complete NON-ISSUE?

  • cfvua

    2 years ago

    Boats and Bobbleheads

    The recent sale of a large yacht in the Grand Caymans by the same auctioneer proves that perhaps the wrong sale method was used for the fastcats when the public owned them. Note that the latest seller of the fastcats didn't auction them to the new Arab owners.

    What bobblehead thinks we need a "licensing fee" of $65 MIllion to sell electricity. How did we do it prior to BCTC. Why would we spend that much to export any power. They are the people who needed the power not us. And at least that cleared up the net importer thing for me, so really I guess we don't need Site Campbell!!! The only people that came out ahead were those liberal friends lucky enough to sample the gravy train at BCTC. Thank you Gordon Campbell and Richard Neufeld. Who owns the Bentall Centre anyway????

  • No_C.A.V.E.

    2 years ago

    Let's Look A Little Closer...

    I have to ask everyone who's been congratulating the authors on their 'great research': Really?

    As the article says, all the data is publicly available, so this just seems like copying and pasting to me, with some light use of a calculator.

    What would have been good journalism would be to tell us readers what the same positions at other companies make. Are the executives and various managers at BCTC overpaid? The numbers don't really seem that high over the period of years we're talking about, but there's no context for me to make an assessment. Looking at the organization chart on BCTC's website (which I found through Google), there seem to be a lot of managers, coordinators, techs, etc. I would guess they are probably business types or engineers. What should they make? Should they make competitive wages, or less because they are government (sort of)? That would be a good argument for an editorial such as this.

    Also, I'm a bit confused by the IPP part... you suggest that private power is a threat to the province, but also having the taxpayers pay for crown corporations to run things is bad. Is there a third option? Also not clear from this article - how do IPPs relate to BCTC being separate from Hydro or not? I would think that the Liberal agenda for bringing in IPPs would not be affected by who runs the power lines.

    Finally, you talk about BCTC having been a move towards privatization. I tend to agree with Mr. Pagan's post above and not your hypothesis. You - as a paid 'journalist' - don't provide nearly as much supporting information as the commenter writing in for free. What part of having BCTC be separate would indicate it was going private? Wouldn't Gordo have done that by now?

    Basically, I'm not sure - other than from the tone of outrage in the writing- what the writers are unhappy about: is it that the public paid too much for something, or that they almost didn't?

    Back to FERC and vertical integration: I don't think BC was alone here. Ontario and Quebec also changed up their public utilities after Enron, too.

    Overall, this was a bit of a disappointing rant of an article.

  • Frank

    2 years ago

    No CAVE

    What the executives at other companies make is immaterial. The point is we didn't need them at all. Even paying them the $6 an hour Campbell wants non-Liberals to make would have been too much.

    Also, their fancy digs were completely unnecessary as well.

    "Also, I'm a bit confused by the IPP part... you suggest that private power is a threat to the province, but also having the taxpayers pay for crown corporations to run things is bad. Is there a third option? "

    Yes, a crown corporation that makes money for the people of BC and delivers to them good service at better rates than if we allowed a US corporation to own it.

    "Basically, I'm not sure what the writers are unhappy about: is it that the public paid too much for something, or that they almost didn't?"

    You mean we almost didn't pay for their salaries and their lease at the Bentall Centre? Because some seem to believe it already happened.

  • samuidave (not verified)

    2 years ago

    thanks...I am checking out the site

    refedmel -- Already in the wings, BC Refederation Party

    http://refedbc.com/siteA/

  • pneves

    2 years ago

    I would say they owe BC the $65 million dollars.

    They don't just owe BC just an apology. They owe BC $65 Million Dollars. If they are pissing away money like that and then turn around and give us all tax increases then I feel we should demand they pay us our money back. Especially since they were elected under false pretenses and under a veil of a lie.

  • Ncoastmtn

    2 years ago

    U.S. FERC Requirements

    Whether you agree on not, BC sells energy into the United States at highly profitable rates during a period when the demand is highest in the summer. Then at night when demand for energy is low, the BC Hydro system turns down its turbines to fill the reservoirs.BC then purchases low cost power from the U.S. and Alberta and fills the reservoirs.

    This creates a very profitable circumstance for BC Hydro and ratepayers - the profits have held down energy costs in BC. U.S. Federal Energy Regulatory Commission "FERC" rules at the time seemed to mandate a separation of transmission from generation

    The separation of transmission was done as a means to avoid being closed out of the U.S. market. This might have been very costly for BC Hydro and the BC ratepayers.

    Either some law or regulation has changed, or FERC has signaled that separation isn't necessary. In either instance there was a relatively small price to pay in avoiding being frozen out of a market which has been very lucrative to both BC Hydro and its ratepayers.

    The only guess is that the decision was made to preclude the loss of revenue in the event that FERC might rule BC ineligible to sell into the U.S. market.

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