Whitehorse Daily Star

'Cease and desist' YEC plans, premier warned

Premier Dennis Fentie does not have any mandate to negotiate private-sector involvement in Yukon Energy, insist the territory's two opposition leaders.

By Chuck Tobin on June 17, 2009

Premier Dennis Fentie does not have any mandate to negotiate private-sector involvement in Yukon Energy, insist the territory's two opposition leaders.

Liberal Leader Arthur Mitchell said it's clear from recent comments made by Willard Phelps, who resigned as the chair of Yukon Energy last week, that Fentie has something up his sleeve which Yukoners know nothing about.

"I am asking him to cease and desist unless he is prepared to take this to the people in an election," Mitchell told reporters during a press conference Tuesday.

In an open letter to Fentie, Mitchell writes:

"Yukoners are astounded by the revelation from former YEC/YDC chair Willard Phelps that you have interfered with the independent Crown corporations by demanding officials carry out your secret agenda of privatizing the publicly owned Yukon Energy Corporation.

"YEC is the largest asset owned by the people of our territory. Selling this asset in whole or in part, or handing over its management to a private company resulting in a similar conclusion, must not be done without a mandate from the voters."

Mitchell said it appears as though Fentie is trying to bring ATCO, the Alberta-based parent company of Yukon Electrical Co. Ltd., back into the picture in some form or another.

That, he suggested, can only lead - at some point - to private control, and eventually ownership of what should be public assets.

Liberal energy critic Gary McRobb added that if ATCO is given room at the management table, it could be at the expense of Yukon Energy jobs.

Phelps and three other senior members of Yukon Energy's board of directors resigned suddenly last week, over what was generally described as political interference into the affairs of the board.

In an interview with the Star, Phelps indicated he has no problem living with his decisions - good or bad - but would not stand by as a puppet and take responsibility for decisions made by politicians.

The four board members, representing half of the board, emphasized they could not discuss details because they were bound by confidentiality provisions attached to their positions as former board members.

They declared, however, that if the government cared to lift the veil of confidentiality by discussing its differences with board members, they would respond freely.

Fentie has declined to discuss specifics, other than to say it is government's responsibility to provide some direction to publicly owned Crown corporations.

But the premier did come out swinging again Tuesday with an outright and terse rejection of any suggestion by the opposition leaders that he is attempting to privatize public assets.

"When it comes to Mr. Mitchell and Mr. Hardy and their position, the old adage is: never argue with a fool - people will not know the difference."

Fentie insisted his government is not having any discussions about privatizing Yukon Energy assets. Nor does it have any plans to move in that direction, he emphasized.

Fentie pointed out that private involvement in management of the publicly owned Yukon Energy ended 10 years ago when the government severed its management ties with Yukon Electrical.

"We are not going backwards, we are going forward," the premier said.

The government, Fentie said, is in discussions to "rationalize" delivery of electrical service, to provide efficient, consistent and affordable energy to Yukoners.

"I am quite frankly, mezmerized by Mr. Mitchell's approach to this, and Mr. Hardy's approach to this, because nothing of the sort is going on."

The NDP leader, however, suggested Tuesday that Fentie has his own definition of rationalization.

And it was on solid information that he first asked the premier in the legislature on April 27 if the government was in discussions about the privatization of Yukon Energy assets.

"It's this government that has embarked on rationalization," he told the assembly fewer than two months ago.

"We have a strategy before us that clearly references roles and responsibilities in structural matters, options to meet our energy needs on the demand side and into the future."

Hardy, however, said the premier is playing a shell game with words.

The premier, he said, is not willing to call it what it is, because he knows how much Yukoners value the assets they have.

In his open letter to Fentie on Tuesday and published in today's Star, Hardy directly accuses the premier of courting ATCO back into the management fold of Yukon Energy assets.

The NDP leader said he recently requested minutes from board meetings of Yukon Energy through the Access to Information and Protection of Privacy Act.

Hardy said he believes the minutes will be revealing, in terms of showing how half of the board of directors could not live with Fentie's approach to, or definition of, "rationalization."

In addition to Phelps, resignations were submitted by Paul Hunter of Whitehorse, Martin Allen of Tagish and Greg Hakonson.

All four were nominated by the Yukon government.

Former vice-chair Pat Irvin of Watson Lake, also nominated by the Yukon government, has taken over as chair of the board. Paul Birckel, Barb Joe, and Luke Johnson; all nominated by the Council of Yukon First Nations, also remain on the board.

Under legislation, the board can function with as few as three members.

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