We're Gonna Build a Port... And The Chinese Are Gonna Pay for It!

Joe Ward Follow Me

Posted this 2016-03-20 5:04 PM ADT (updated 2016-08-12 4:40 PM ADT)

It's the easiest thing in the world to make promises. Career politicians make an art of it. Sometimes they even believe it.

But as voters, we have to demand accountability. The economic survival of a region like Cape Breton can't get by on promises alone.

No matter what political party you support... whether it be Trudeau's Liberals like MP Mark Eyking or Harper's Conservatives like Mayor Cecil Clarke... you have a duty as a Cape Bretoner to ask the big questions. But only if you care about this island and the CBRM, and only if you plan for it to be your home for a long time to come. If not, you can afford to ignore all these issues.

If our mayor can't keep the sidewalks cleared or pick up heavy garbage without going short by $2.4 million dollars on our budget... how can we ever expect them to manage a project projected to cost over a billion dollars when all is said and done?

Do you believe the promises?

"If not the port, then what?" - Mayor Cecil Clarke

Posted by Joe Ward
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As the municipal election quickly approaches we have to start asking the big questions as voters: Are we just being lead along with big Trump-like promises?

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Dan Bunbury Follow Me 2016-03-20 5:31 PM ADT Reply 4 0 If not the port, then what? What a false dichotomy. What a bogus choice. I'll just take accountability from my government and let the small business people create jobs under the aegis of agile, transparent, supportive administration. Cecil Clarke knows as much about big business, international trade or offshore plays as you or me. Really. We don't need a faux saviour pretending he's single handedly delivering us to the promised land...we need common sense and a lot less hubris.
Michael MacNeil Follow Me 2016-03-20 6:14 PM ADT Reply 2 0 Lol good job Joe I can not tell if the picture is Clarke, Trump or Harper.I wonder if Trump got his idea of the great wall between its neighbours from the Chinese great wall of China. Wonder if we should build one between all the units of the CBRM? We know Clarke loves the Sydney port, hates North Sydney, not sure how he feels about New Waterford or Glace Bay because he never done anything in either place. He loves Benion.
[comment deleted] Posted 2016-03-20 6:20 PM ADT
Dan Yakimchuk Follow Me 2016-03-21 8:54 AM ADT Reply 1 0 We all know that Dr. StrangeJob is the savior of CB. Seek strong counsel from him, rather than weak council from them. https://capebreton.lokol.me/who-is-dr-strangejob-and-how-will-he-save-the-cb-economy
Christian Murphy Follow Me 2016-03-21 9:10 AM ADT Reply 2 0 So what can we do to save Cape Breton........we need big ideas, but beyond that, we need big ideas that we can execute on. Like many, I don't expect the Port of Sydney to be much beyond what it is today.....yet as it stands, it is likely to be the driver for another term as mayor. I personally don't see it, nor do I endorse it, but the reality seems we have no alternatives to the existing administration. That being said, how can we create success. It's obvious that the current administration is preoccupied with what is in my opinion a "future failed container terminal." So be it! My one vote will easily be drowned by the hoard of seniors who dream of mines and a harbor full of ships.....the cash strapped visionaries that speak up offer little in terms of solutions. Royal Bank had profits of $9 billion in 2014 yet the province Community Economic Development agencies offer $22 million in payroll rebates through NSBI’s Strategic Investment Funds leaving small entrepreneurs to struggle to build businesses. I see this as a wealth transfer from tax payers to those who really don't need the cash. It is indicative of a mindset that looks outward versus inward. I can't start to image what $22 Million could mean to Nova Scotia's startup community. Wayne O'Toole Follow Me 2016-03-21 10:36 AM ADT Reply 3 0 You make a great point. Irving gets 268 million no repayable, oxford 8 million...both rich already. We need new government all around the province. Now, from my background and what I would do if able: 1) built green energy sources, CBRM owned, use a decent investment and tap into fed infrastructure and promise of environmental help. Charge rates at low rates, like Quebec around 6.9 cents per kwh to draw tech, manufacturing and green energy companies. Also make the island more attractive as a place to live. Rates set to be not forprofit and only cover repayment of investment, and operational costs. 2) lower taxation on small and moderate businesses to attract more start ups. The more business,;the tax revenue rises in quantity not overtaxation. 3) begin promoting through grants more local farming, and grassroots things that can make money locally and reduce pricing of shipped foods. Go bon GMO and healthy. Add manufacturing, maybe solar panels and new tech. Be completely transparent and ask and use valuable community input in all endeavors. Once industry starts succeeding then spin offs grow...housing, restaurants, shops. We have a populstion in CBRM of less then 100k...at 20% unemployment, minus seniirs,;retiree and kids say 40,000 in the workforce...so 8,000 unemployed. Thats not a big number. Green energy alone could employ 500, spin off from thar at a standard 2 to 1 is 1000...you get my point. These numbers are just guesses and for example. If we had 15 moderate businesses at 100 per company, 50 small business with 10 per company...that alone is 2000 direct jobs. With lower taxation, and cheaper power rates as well more money becomes disposible. This port is suppost to cost 1.2 billion....imagine how we could fix our island with 1.2 billion used the right way! Michael MacNeil Follow Me 2016-03-21 10:53 AM ADT Reply 0 0 I think Wanye brings up some great ideas and Ideas that the new federal government wants to hear. Well done Wanye Wayne O'Toole Follow Me 2016-03-21 12:27 PM ADT Reply 2 0 the ideas are, in general, to remove some of the burdens that make CBRM unattractive to new business, and people migrating here, while at the same time creating sustainable employment. We need to begin manufacturing, and I include tech here as well...we need product to sell locally and abroad. If you remember the older article, where it shows if we only consume from off island our cash pool gets smaller and smaller. If we begin creating product for local sale, it keeps cash stagnant, and any selling off island grows the cash pool. A lower unemployed populous also lowers dependance on social services, so that those who need it can be given more...seniors, disabled and so on Wayne O'Toole Follow Me 2016-03-21 12:30 PM ADT Reply 1 0 and I think the thinking we need big ideas is right OR many successful smaller ideas that can grow and expand. We are in such a state now that we need to think of plans to remove the barriers that make us unattractive. Nepotism being one and lack of transparency another to add to high power and high taxation Christian Murphy Follow Me 2016-03-21 8:09 PM ADT Reply 2 0 I should say that when I say big ideas, I don't mean capital intensive. Albeit, availability of investment capital will always be an issue under the current circumstances. I will say that I like what you are saying Wayne and the movement is catching on. For example there is a CEDIF for sustainable farming that I was made me aware of. Here's the link. http://farmworks.ca/home/ So good points Wayne! Wayne O'Toole Follow Me 2016-03-21 8:37 PM ADT Reply 0 0 Oh no, completely understood your meanung but just expanding for readers who may think "port" style big. If something takes decades of constant gov funding, so far well over $100 million then you have to weigh all those costs in with how long before you reach out of red and into black. We (CBRM) are not even the profit potential, we will only get lease payments. So if 1 million per year...its well over 100 years to see daylight...not including future investmentstoward the 1.2 billion cost...2 mil lease payment...50 years. Will there be spinoffs if successful....some but an automated terminal doesn't take tons of manpower. Construction would generate jobs for short term...will Kehoes company automaticaaly win the bid as well is a question. Does he own a big contracting business....sorry all over the board. point being if we inject 500 million gov funding say...add the prior 100 plus million and figure lease payments (if successful) and see how long it takes to catch up. Now on the other hand, if they provided 600 million into 600 million dollar startups, say 50 thrive 50 fail...the average employee base 10 jobs to stay on the low side....you get 3000 jobs...20 per company 6000...its not rocket science, its simple economics really Joe Ward My Post Follow Me 2016-03-21 9:22 PM ADT Reply 1 0 We have to stop the bleeding. I would love to know if anyone in the CBRM or any related econdev agency has ever tried to implement any strategy to keep Western workers from moving away from Cape Breton? Has there ever been any attempt at intervention? I think we can actually bring those who have left back home, and I think they can take some of their fellow workers from other parts of the country with them. Rob Calabrese did more good for Cape Breton Tourism... with a day's worth of effort, powered by his creativity, sharp wit, nuanced sense of humor, and great timing... than perhaps the last 20+ years of efforts combined. He got them CNN and they took them to Smitty's. 10-year 100% tax rebate on new builds, home occupied by owner, rental prohibited. That will be a single bold economic factor that will impact the decision to stay living here or not, to build here or not, and even allow us to do a national recruitment campaign to encourage people to live here. As the growing culture of digital workers with high incomes grows, why do they have to surrender all those funds in Toronto or Vancouver? That's just a simple example. And it has almost no cost short term, and clear ROI long term. Homes that aren't getting built aren't getting any revenue. Homes that are emptying and going into tax arrears are accounts payable, not revenue to the CBRM. Sure, there are people in gov that would dismiss that idea as naive. Then they'll get back to work on re-dredging; building a base for a shipping port on unstable harbour sand; fighting to secure and then spend $50+ million to upgrade a rail line; then spend $500 Million+ to build an automated port; they'll successfully convince shippers to come; and successfully convince pension funds to pay for it; and figure out how to automate it all and still create jobs while getting labour union buy in; and coordinate a company banned by the World Bank to do the work; and they'll get it all done in a couple of years. Wayne O'Toole Follow Me 2016-03-22 7:52 AM ADT Reply 0 0 Your tech idea Joe...again lets simplify my approach to just tech (which I would just do in theory as diversity is key but for example only). Say again, we have put over 100 million into the port and lets estimate another 500 mil just for example sake. So 600 million, divided in 600 x1 mil tech start ups. Each providing 20 jobs at say 50k per year average...again small estimates but just for fun. Again factor 50% success long term...so 6000jobs at average 50k salary. 300,000,000 in salaries per year. Say an estimated tax provincially of $2000...12 million is provincial income tax alone. Add 6000 new people with disposible income...spin offs huge. Add a housing tax break of even 50%...construction of new homes and reno of old for 6000 people plus spin offs (usually 2 to 1 up to 3 to 1) so 18,000 to 24,000 new sources of disposible income. Problem solved in unemployment, so much so that recruitment is needed....which grows population and tax base all around. Now with the new found tax base and lowrr dependence on social programs the extra tax revenue, invest 25% each year to more start ups...get to a point where we are "safe" and have a much bigger pool of tax pool so business and personal income tax can be lowered to the rate of whatever the lowest province is. When green energy is as well incorporated as a CBRM run not for profit we could have lowest power rates, lowest taxes municipally (we would have to fight NS for provincial reductions as likely if we were successful we become a cash cow for Halifax...or really push to become our own province). We would attract tons of people migrating here with these offerings plus high employment. It truly is not difficult to obtain with the right management. Wayne O'Toole Follow Me 2016-03-22 10:45 AM ADT Reply 2 0 another idea, and no joke, medical marijuana. The company I use in BC is a $26,000,000 per year profit company, who employs scientists, botanists, researchers, and 100s of staff from all functions. They have a call center to help patients with product selection, doctors on staff, many high paying jobs. This company grows hydroponic, their electric bill per year is $2 million dollars, if you added a green energy (cbrm owned) to that, you could generate an additional automatic income of gross $2,000,000, and add more jobs. Hydroponic does not depend on weather, or climate factors as its all indoors. In BC and Ontario, the medical grow ops are multi billion dollar combined companies. They are involved in research studies for Health Canada currently as well. Not a brand new industry but its growing (no pun intended) very fast. Add that will potential for legalization, the market will expand very fast. New Brunswick already has one. Peter Sheehan Follow Me 2016-03-22 5:25 AM ADT Reply 1 0 we really need to work on marketing what ever we have that attracts investors . Here we had all that Trump Bump media attention for a few weeks and we didn't have one single economic development ad campaign pick up and jump into the media . We think we have things organized at the Island level as though we function as a single entity , but really we don't.
Martin MacLellan Follow Me 2016-03-21 1:46 PM ADT Reply 4 0 Funny thing...this port barrel business. It flies in the face of common sense which seems to be in short supply. It's hard to imagine let alone believe that the Chinese will build a transhipment port here. Where's the billion plus going to come from to fund it. Not only that, once the the world wakes up and these super tankers start being charged a "carbon tax" for transporting for much of what is poorly built, inexpensive stuff thousands of miles from nowhere. Will that not significantly add to the cost and diminish any cost advantages on this import model. This stuff adds little to the value of our lives, just look at our lakes, streams and roadways, they are full of discarded, short lifespan junk. Cape Breton again is 20 years out of the play on this one. Want to be successful in life and in business, look at what everyone else is doing and do something different. And that's not another PORT. Joe Ward My Post Follow Me 2016-03-21 9:02 PM ADT Reply 1 0 Global commerce and exchange of goods is going to continue growing, including the frivolous junk. The volume will vary with International market ups and downs, but the long term trajectory is always upwards. Sheehy of HPDP at one point mentioned "pension funds", so that may be one source of financing that they're looking at, or at least using as speaking points. However, I think they're being far too overly generous in their assessment of it all. They need commitment of a shipping company before any investor wants to bring their money in. And a shipping companies aren't going to want to commit when seemingly every piece of the puzzle is a high risk initiative. It's a very challenging catch-22 situation. And it takes more than a 5-day "port executive" training course to get it done. Who among the current team has any shipping industry experience? It's going to take more than a tugboat parked in the harbour and a feasibility report that says "yep, it will work" from a Chinese contractor that wants to get paid to build it. If they can secure a billion dollars in funding, I'll build it too. Michael MacNeil Follow Me 2016-03-21 9:44 PM ADT Reply 1 0 Speaking of tugboats. Has the CBRM collected any revenue yet from McKiel Marine, I ask because I know the wharf the CBRM bought at Sydport was condemned and also I see that a tugboat has been tied up at CME all winter. Just wondering how there making their money and I never noticed that revenue discussed at the big port day meeting.I think this is a job for Mary. Have McKiel Marine made any payments yet? Also has construction on the new paint shop started? I also notice not a lot of activity happening at CME. You would think that this was the time of year to do work on your vessel in the off season. Anybody know how many people that CME have employed now? It has been over a year Joe Ward My Post Follow Me 2016-03-21 9:48 PM ADT Reply 0 0 I guess if they (McKeil) are the ones tied up at Archibald's Wharf, CME is collecting any fees. That whole deal just seemed like a convenient way to get a ~million dollars to an ole boy. CBRM will pay the interest on the loan, and the owner moves an otherwise highly difficult piece of property to sell very easily. TBD. Michael MacNeil Follow Me 2016-03-21 9:57 PM ADT Reply 1 0 Just a reminder folks, the Ombudsman office called me today and we need more complaints to pour in to get them to start an investigation, so in case you forgot here is the info I hope everyone commenting here has emailed the ombudsman, because i have They will investigate with enough complaints, we can comment and complain on here all we want but the ombudsman needs to know if you want an investigation. An investigation might trim down the undesirables from running again. So please complain. [email protected] [email protected] [email protected] [email protected] [email protected] If you pay too much Tax and you want some accountability, I would suggest that you copy the link to this article and sent it to the above email addresses Michael MacNeil Follow Me 2016-03-21 10:08 PM ADT Reply 1 0 Sorry I forgot this one, he was a recent add on, just thought he should know what is happening in Cape Breton. Please add him to keep him up to date. After all the president of the United States just thanked us at the prime minister's recent visit to Washington, so I'm sure he wants to be kept informed on what's happening [email protected] Dan Yakimchuk Follow Me 2016-03-22 10:16 AM ADT Reply 1 0 My email was just added to the list. Please add my name to the list of CBRM taxpayers that are concerned with the lack of transparency, potential misuse of tax funds, and apparent disregard for taxpayers of CBRM by CBRM Council and all things Port related. I request that your office step in to address the many concerns raised by local CBRM citizens. I point to the article written by Mary Campbell at https://capebreton.lokol.me/whatever-happened-to-the-cbrm-council as a summary of the concerns that many have about what is transpiring here in Cape Breton. I also point to https://capebreton.lokol.me/port-of-sydney---the-unfolding-story as an excellent source of background on the issues of concern. Wayne O'Toole Follow Me 2016-03-22 10:37 AM ADT Reply 2 0 Hope you don't mind Dan, I used the bulk of your pst to send to the above emails as well. Just seemed appropriately written as an add to whomever already sent to them. I had previously sent to all the above and Eyking and Ciuzner pretty much said "not our problem" But with enough pressure someone will jump on board Peter Sheehan Follow Me 2016-03-22 5:21 AM ADT Reply 1 0 Sure as hell don't want our CPP pension fund investing in any container port in NS .
Christian Murphy Follow Me 2016-03-22 8:32 AM ADT Reply 0 0 IRONY! That profound realization that I am no different than those who I complain! Yes, I am indicative of that statement. I have been struggling for more than a year now to get my Startup moving. Issues both personal and financial with no help in sight. What I find truly disheartening is the total lack of support for good ideas, with traction but no capital. This is my point of frustration, the only way to access capital is to have capital. It doesn't matter which agency you speak with, which government department. The idea here is what's called "having skin in the game!" Hard work and time "sweat equity" has little to do with this. It's all about the cash you have in the bank. We have all read why startups fail, fail to acquire customers, fail to get to market fast enough, fail, fail fail. Why is this? Because the system is not designed to help entrepreneurs to succeed during startup especially if you're cash strapped. That's why it is easier for a $9 Billion Royal Bank to get support than a small entrepreneur. The point is, the process is fundamentally broken. I want to do something about that, but I can't do it alone. There's the first realization. The second realization is this, there is no help. If we want to accurately gauge the success of an economy, we need to place business starts above housing starts. We need to embrace and support. That my friends is difficult to achieve. Apathy and Ignorance - I don't know and I don't care! That is the prevailing wisdom in our community. Why does a person on pension care? Why does an oil worker care? Why does a Lobster fisherman care? They are focused on their personal existence. Afforded the right to complain, but few of us, if any truly act beyond our personal gain. That begs to question how we communicate a new definition of gain.
Wayne O'Toole Follow Me 2016-03-22 1:41 PM ADT Reply 1 0 First response:Thank you for your email of March 22, 2016 relating to the Cape Breton Regional Municipality (CBRM) and Port of Sydney. This correspondence also provides links to media reports. The Office of the Ombudsman has the authority to investigate matters involving provincial and municipal government, including agencies, boards and commissions. Investigations conducted by Ombudsman Representatives focus on the administration of legislation, regulations, policies and procedures. This Office is aware of media reports relating to CBRM and the Port of Sydney. Should you have any specific concerns or further information in this regard, please forward to the attention of Ombudsman Representative Caleb Toombs. This information may assist in determining whether there are administrative issues warranting investigation by this Office. Mr. Toombs may be contacted toll-free at 1-800-670-1111 [email protected]. [comment deleted] Posted 2016-03-22 5:49 PM ADT Peter Sheehan Follow Me 2016-03-22 5:57 PM ADT Reply 0 0 Can you repost the Mary article here that you refer to ?? Michael MacNeil Follow Me 2016-03-22 6:05 PM ADT Reply 0 0 Wow Which one? I sent a few. Best bet is to look up Mary Campbell and look at the list of her posts and pick one that you think they might be interested in.I sent recents ones along with Who's Port is it Anyways.That one is excellent reading especially around Tax Time. It sort of lowers the blood pressure when you write out your cheque. Peter Sheehan Follow Me 2016-03-22 6:14 PM ADT Reply 0 0 The Who's Port article link I keep finding is a CB Post article and is always blocked by their paywall . Michael MacNeil Follow Me 2016-03-22 6:17 PM ADT Reply 0 0 Here you go Peter http://www.capebretonpost.com/Opinion/Columnists/2016-01-01/article-4391615/Whose-port-is-it%2C-anyway%3F/1 Wayne O'Toole Follow Me 2016-03-22 6:26 PM ADT Reply 0 0 If CB post is blockee by a paywall just clear cookies and history and you will getmore "free" looks... Shauna Winters Follow Me 2016-03-24 2:45 PM ADT Reply 0 0 I've sent an email to mr. Toombs.
[comment deleted] Posted 2016-05-17 3:07 PM ADT
Joe Ward My Post Follow Me 2016-07-21 9:32 PM ADT Reply 1 0 For those of you following this topic, here is some absolutely essential reading. Many people don't follow the events of the port closely enough to understand the scrutiny. Now the goCB team has put together a comprehensive resource to put everything in perspective: https://capebreton.lokol.me/serious-questions-and-observations-about-the-port-of-sydney