Photo by Whitehorse Star
Independent MLA Brad Cathers
Photo by Whitehorse Star
Independent MLA Brad Cathers
The scandal over Premier Dennis Fentie's attempts to privatize the Yukon Energy Corp.(YEC) again took centre stage
The scandal over Premier Dennis Fentie's attempts to privatize the Yukon Energy Corp.(YEC) again took centre stage in the legislative assembly last Thursday with independent MLA Brad Cathers reiterating his call for a judicial inquiry into the matter.
But before Cathers spoke, MLAs treated the assembly to a rich display of partisanship and rhetoric, squabbling over an hour's worth of time David Morrison, the YEC president, and Ray Hayes, the latest chair of the Yukon Development Corp. (YDC), would testify this afternoon before the assembly.
The debate was sparked over government house leader Elaine Taylor's remark on a motion that Hayes and Morrison appear as witnesses before committee of the whole from 3:30 to 5:30 p.m. today.
Taylor said the motion was "really, effectively, of a housekeeping nature” as her government commits each year to have such officials answer questions from MLAs.
But Gary McRobb, the Liberal critic for the energy corporation, called the government's stalling by more than three months to permit Hayes' and Morrison's testimony, intended last fall, an outrage.
"What we do know is there was a lot of public ... controversy, including discussion in this assembly about the premier's secret parallel negotiating process to sell Yukon Energy assets to private interests in Alberta,” charged McRobb. "At the time, we asked for investigations. We asked for testimony.”
In June 2009, four development corporation board directors, led by then-chair Willard Phelps, resigned from the YDC board and its parallel board with the YEC. Amidst the highly publicized exodus, Phelps accused the premier of trying to privatize the public utility YEC in a merger with Yukon Electrical Co. Ltd. (YECL), a subsidiary of Alberta energy-giant ATCO.
Fentie denied the accusations, so Phelps produced a seven-page "joint position paper” produced by Department of Energy, Mines and Resources officials and consultants, hired by the government to negotiate such a deal.
The document outlines a merger of the energy corporation's $200 million worth of assets with ATCO's YECL assets, valued at $63 million, to create "OPCO”. The new entity would be owned 50/50 by the Yukon government and ATCO.
Fentie continued to reject the idea his government was negotiating any such deal, then put three high-level bureaucrats in the firing line to explain the government's actions. Cathers, then the Energy, Mines and Resources minister, quit his cabinet post, levelling similar allegations as Phelps.
At an Aug. 28, 2009 press conference, Cathers announced he could no longer serve under Fentie after the premier lied to caucus and then to the public, denying there were negotiations with ATCO to privatize the territory's public utility.
"The premier was a lot more involved in the discussions with ATCO than he had indicated ... and the government did in fact consider the sale of public hydro assets and privatization,” Cathers said.
In addition to what exactly transpired between the government and ATCO, the territory is about to embark on a $160 million, five-megawatt hydro expansion at Mayo and a north-south grid connection that critics say doesn't provide enough bang for the buck.
Supporters of the project argue it has been part of the YEC's overall plan for years, and if it isn't built soon, the territory will lose out on $71 million in federal stimulus spending set to expire in March 2012.
Speaking to the government's motion Thursday, Todd Hardy, who leads the New Democrats in the house, suggested extending the two-hour time allotted for today.
"It's not just about Mayo B. It's not about secret deals. It's about the future of the territory. Two hours will not be sufficient,” Hardy said.
Rising to speak to the original motion was Fentie, who matched wits with official Opposition Leader Arthur Mitchell, who followed the premier. In extended diatribes, both men accused the other's party of using public officials and bureaucrats as scapegoats or ornaments to suit their own agendas.
"It wasn't that long ago that the official Opposition was vilifying the former chair of the Yukon Development Corporation and making accusations of double-dipping. Now they pack that former chair around on their shoulders,” said Fentie
"It just demonstrates, again, (the Liberal Party's) inability to grasp fact and to present themselves as a reasonable alternative to anything, never mind a reasonable alternative to government.”
In an equally rambling response, Mitchell chastised Fentie for failing to "refute a single point that was made by either (McRobb or Hardy)” before noting his party would support extending the planned two-hour session.
Referring to it as a "friendly amendment,” Hardy's NDP colleague, Mount Lorne MLA Steve Cardiff, proposed Hayes and Morrison begin their appearance at 2:30 p.m. today instead of 3:30 p.m.
Cardiff's proposal reopened the floor for all MLAs to speak to the amendment. Fentie insisted his government would "not change on the fly” because it would do a "disservice” to Morrison and Hayes.
The moment before the Yukon Party government MLAs voted to defeat Cardiff's amendment, Cathers took an opportunity to hammer his former boss.
"In suggesting that the only reason to vote against the amendment was out of respect for officials, does not reflect past practice or modern technology. We have something called a telephone,” Cathers said.
"In the past, the premier, when it suited his interests, has had staff demand that the chair and the president report to his office immediately, without any notice.”
The independent MLA for Lake Laberge then said today's appearance of Morrison and Hayes before the legislature would offer the public nothing more on the ATCO affair than what is already available.
"The questions that really exist in the public's minds regarding the ATCO situation – the freedom of officials to testify without fear of repercussion – can best be provided through judicial inquiry, not the floor of this assembly,” Cathers said.
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