Paying for NoCOMMENT: At the beginning of October, Rainforest Action Network launched its No New Coal campaign against the rush to new coal-fired generation facilities in the United States. As well as targeting the coal companies and the electricity generation utilities and merchant power companies, RAN is aiming its criticism at big banks – the corporations which lend the money, reap profits, but in the main stay outside of the line of fire. Following RAN’s announcement, Brett Harvey, CEO of Consol Energy, a major US coal producer, whined about his industry being the whipping boy for environmentalists. Awww. Join the dots from projects to the money: you could be standing on a deposit containing all the gold (or oil or uranium or whatever) in the world, but if you couldn’t get financing, you wouldn’t scratch the ground. Track investment dollars back to source and as RAN observes, you often end up at a bank. That’s not always true – sometimes private investment capital is involved, and in the case of the petroleum multinationals, they have so much cash these days that they are beholden to no-one. Money exerts its influence in a number of ways. When an industry feels threatened by tax increases or policy changes that might interfere with profitability and shareholder return, its first reaction is the tiresome “investment withdrawal” threat which it brandishes at whomever is proposing the change. We see this happening right now in Alberta. A royalty review panel in Alberta has recommended increases to the royalties that affect Alberta’s big three commodities – conventional natural gas, conventional oil, and the oilsands. Whining was to be expected, and at the moment the volume is deafening. Just this week Diane Francis of the National Post joined the melee: “oil companies also have the right to not do business in Alberta either.” The oil companies themselves have put numbers on how much investment they’re not going to make: EnCana, $1 billion; Talisman another billion, and just this week, Conoco Phillips: $8.5 billion. Awww. Let ‘em go. Alberta already has a grossly overheated economy, is skewing labour markets across the country, and is siphoning billions of dollars of common property into the pockets of shareholders and lenders to these companies. Leave the stuff in the ground and get out. A cooling earth might thank you for it. Except they're not going anywhere. Even if it implements the new royalties (doubtful), Alberta is still too good to leave. Two interesting related debates are taking place in Oregon right now over two measures to be voted on in a special election on November 6 in the state. Measure 49, if passed, corrects shortcomings in an earlier Measure 37, and would result in protection of farm and forest land, primarily by limiting the number of homes that can be built on such lands. There’s more to the measure than this, but this appears to be where the line in the sand has been drawn. Providing funds on the No side are the forest companies who, (much like Western Forest Products and others forest companies on Vancouver Island,) are looking at real estate sales and development of private forest lands as an easy revenue source. Measure 50 calls for an increase in tobacco taxes. No surprise who is opposing this one. Here’s a great article from the Oregonian about these measures Paying for NoDavid Sarasohn The Oregonian Wednesday, October 03, 2007 The old political rule to "follow the money" never makes more sense than in ballot measure campaigns, since ballot measures never grant interviews. And it's never easier than in this year's campaigns against Measures 49 and 50, where the money is coming from very clear places: timber companies against Measure 49 and tobacco companies against Measure 50. Of course, you do have to follow the money a little distance. That way, you get to what the campaigns are about, instead of what the ads say the campaigns are about. Monday's campaign finance reports show tobacco companies spending $6.6 million to fight Measure 50 and Stimson Lumber of Portland chipping in $200,000 to the campaign against Measure 49, the Legislature's rewriting of the land-use rollback Measure 37. Stimson, it turns out, is also the state's largest claimant under Measure 37, to drop land-use rules on at least 57,000 acres of its holdings. As Eric Mortenson reported in The Oregonian Tuesday, two other timber and wood products companies came up with $100,000 apiece for the campaign, with a forest's worth of other timber and wood products companies contributing. As the ads declare their support of the principles of private property, there's a faint whir of chain saws humming in the background. For the No on 49 campaign, there's a connection between cutting trees and cutting the checks. In this case, it's not likely to dominate the debate; supporters of Measure 49, environmentalists and environmental organizations, are up to now outspending the opponents. But there's still a big difference between what No on 49 sounds like and what No on 49 spends like. Out front, this is an effort of small oppressed property owners, wanting only to build a couple of houses on property they've owned for decades. The Web site for stop49.com shows a tormented young couple, not a frustrated timber company. But apparently, from the campaign's contribution reports, the tormented young couple are agonizing about the status of their 57,000 acres. Opposing Measure 50, a cigarette tax increase to extend health coverage for Oregon kids, the campaign is ostensibly led by a group called Oregonians Against a Blank Check. No one has actually met an Oregonian against a blank check; the organization is organized and funded by Reynolds American, a group that might more accurately be called North Carolinians Against Making It More Expensive to Smoke. The campaign, of course, doesn't feature those folks. Instead, its inescapable TV ad shows another tormented couple -- a little older than the couple tormented by Measure 49 -- who are stunned that Measure 50 amends the Oregon Constitution. Overcome by this, the tormented male finally growls that he's not going to let people mess with the Constitution, and his helpmate nods sorrowfully. It's touching to find North Carolinians so committed to the timeless permanence of the Oregon Constitution. It means that they, like most Oregonians, have never actually looked at it. The Oregon Constitution, which goes on for 50 closely printed pages and includes anything the people of the state have thought about and changed their mind about in the last 150 years, has been amended 24 times just since 1999. Fortunately, when it was proposed in 2004 to remove motor homes from the provisions dealing with taxes and fees on motor vehicles, nobody growled that we shouldn't mess with our constitution. But of course, that's not Reynolds American's concern about Measure 50 at all, any more than Stimson Lumber is worried about Oregonians' rights to build a second house on 40 acres. Following the money consistently leads you to what campaigns are actually about, going behind the terribly concerned-looking hired models to the goal that the people financing the campaigns actually have in mind. Sometimes, following the money leads you to thousands of acres of rural Oregon being legally prepared for subdivision. And sometimes, it leads you to North Carolina. David Sarasohn, associate editor, can be reached at 503-221-8523 or davidsarasohn@news.oregonian.com. Posted by Arthur Caldicott on 06 Oct 2007 |