All posts by Karen Henderson

BC government on slippery slope with oil spill recovery costs

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The BC government has shelled out almost $2.5 million dollars to clean up several large spills in the last decade – and it’s due to pay out more.

In documents obtained through an access to information request to the Ministry of Environment, a listing of six major spills revealed that the government only recovered $500,000 of $3 million spent to restore affected areas.

In the case of the Robson Bight incident in 2007, the government had to pay the entire bill after the trucking company that caused the spill went into bankruptcy – a whopping $1.5 million. Ted Leroy Trucking was transporting a fuel truck by barge when it tipped over into the ocean. Although the owner was convicted of pollution charges, he didn’t have to pay a cent.

During a legislature session on Mar. 2, 2015 opposition critic Spencer Chandra-Herbert questioned the ministry’s response to a more recent spill. The Mount Polley accident in August 2014 released tailings pond water into nearby lakes.

He said that the opposition was worried that the ministry couldn’t “ensure that the polluter pays every last penny” and that the cost would be put on “the backs of British Columbians”.

Environment minister Mary Polak revealed that the current cost to government for the Mount Polley breach was around $2-million dollars.

Chandra-Herbert said, “I don’t think that British Columbians should have to subsidize the clean-up of oil or other materials that corporations spill into our environment. It’s just wrong.”

Graham Knox, director of the environmental emergency program, said that the government is aware of the failings of the current cost-recovery model.

He said that when spillers are bankrupt, unidentified, or want to contest responsibility for the spill, the government can end up eating the costs.

Knox said some members of industry argue that because they pay taxes in the province, they shouldn’t have to cover all the costs of spills. “Spills aren’t a legal activity,” said Knox, “your operation doesn’t get three free spills because you pay taxes.”

There are avenues that exist for the government to recoup its losses, such as declaring an environmental emergency through the Provincial Emergency Program or applying to the federal Ship Source Oil Pollution Fund. The fund can compensate claimants for marine oil spills, while the emergency program has millions of dollars at its disposal.

However, there are limitations to each of these funding sources. For example, most of the emergency funds are earmarked for disasters that threaten public safety, said Knox.

In the Robson Bight spill, the oil pollution fund refused to pay for recovery costs of the submerged vehicles, stating in their annual report that “the measures taken were out of proportion to the threat posed.”

Over the past few years the government has been crafting a new spill preparedness and response approach using public input. Knox said it is likely that their department will bring the new approach in front of the legislature this spring.

One remedy that could stop taxpayers from paying for spill clean-ups would be a requirement that “risk-bringers” (companies that transport oil or other hazardous materials) pay into a fund that would be used in cases where the government can’t receive payment from the offending company.

However, citizens are concerned about more than just their tax dollar. They want to hold offending companies to account.

Megan Rowe, a Victoria resident, supports the government enforcing the “polluter pays” policy more effectively. “Without the threat of having to clean up a spill, and be financially responsible for that operation,” she said, “there is nothing to hold them responsible for the damages caused.”

Ministry of Environment Information Request 

Informal Request 1

Informal Request 2 & 3

Municipal Request

Provincial Request

Federal Request

Sleeping Ruff: Strays and Abandoned Animals High on List of Animal Complaint Calls to 311

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The strangest thing that Sharon MacKeil has seen turn up on her doorstep was a couple holding a milk pail full of puppies. They had discovered the eight two-week old animals abandoned in a forested area in Ottawa. “We called them ‘the bucket puppies’,” MacKeil said, “It was just sheer luck that they were out walking and found them”.

MacKeil is the president of the Bytown Association for Rescued Kanines (or B.A.R.K, for short), a registered charity and rescue foundation in Ottawa that helps find foster homes for abandoned or stray animals. She said that the ‘bucket puppies’ are one of the rarer rescues that has been brought to the shelter, but certainly not one of the first.

Stray or abandoned animals are one of the many reasons Ottawa bylaw officers get calls to go out into the field. According to 311 Service Request data from the City of Ottawa, the number of animal complaints in the city averaged almost 3000 in the June to August period of 2013 and 2014.

Source: City of Ottawa 311 Service Request data June-August 2013

Source: City of Ottawa 311 Service Request data June-August 2014

“We also often get complaints for dogs at large, people not picking up feces and dog bites,” said Eric Boivin, a bylaw enforcement supervisor at the City of Ottawa. He said that the busiest period is between April and October, when the weather is warm and more people are outside with their pets.

Rideau-Vanier was the ward with the highest number of complaints, with 226 complaints in the summer of 2013 and 214 for the same time period in 2014.

Rideau-Vanier Coun. Mathieu Fleury had one idea why his ward might have higher animal complaints. Last summer, Riverain and Richelieu Parks adopted an off-leash policy. “Some residents aren’t used to the new policy yet, and they call 311 to complain about dogs roaming,” said Fleury.

The warm nights of summer can result in another problem.

Frisky, unsterilized pets increase the chance of animal complaints as they are more likely to roam and have multiple litters. This increases the number of stray animals and abandoned litters in the city.

“We have a bit of a problem with education and people not spaying or neutering their pets,” Mackeil said, often due to the price tag. In its 2013 report, The Canadian Federation of Humane Societies stated that the number of unsterilized animals taken into shelters can indicate the trend in society. Only three to five per cent of strays had been spayed or neutered, according to the report.

B.A.R.K helps foster over 100 dogs per year. The website for the Ottawa Humane Society (OHS) says it takes in over 10,000 animals per year.

OHS is the main partner with the City of Ottawa in dealing with complaints of a stray, abandoned or mistreated animal. If the animal appears abandoned or lost, the society’s “Lost and Found” team attempts to contact the owner. If the owner can’t be found or doesn’t want to pick up their pet, the society holds the animal for three days and then puts them up for adoption.

Ontario has the highest number of humane society and SPCA shelters in Canada, according to the CFHS report. Over 85 per cent of animals in shelters are strays or animals that have been given up by their owner.

The northern spotted owl: after 25 years, has the Northwest Forest Plan saved the species?

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"Northern Spotted Owl" photo by Hollingsworth, John and Karen - US Fish and Wildlife Service
“Northern Spotted Owl”   Photo by John and Karen Hollingsworth – US Fish and Wildlife Service

Jim Geisinger remembers well the day in 1990 when the northern spotted owl was listed as a threatened species.

Chestnut brown with white spots and dark eyes, the owls live in the ancient forests of the Pacific Northwest. There are fewer of them now than in 1990.

“We were devastated and very frightened – we didn’t know what would happen next,” said Geisinger, a former logger who is now the executive vice president of a logging trade organization in Oregon. “It basically shut down the whole timber sale program.”

Kristen Boyles, an attorney with Earthjustice Northwest, remembers the day differently. “There was a great deal of pride,” she said.

Court battles between environmentalist groups like Earthjustice, fighting to protect old-growth forests, and timber companies had been tying up the courts since the 1970’s.

The listing of the spotted owl would be the catalyst for a new federal land management system that would preserve forests over 150 years old and diminish returns for the timber industry. The Northwest Forest Plan, introduced in 1994, would allocate over 20 million acres of federal forest land for reserves to restore the diminishing species.

The timber industry would receive less than four million acres to harvest.

“I can tell you with a very straight face that our industry has downsized by about 50 per cent from what it was before the owl was listed,” he said. Oregon has lost about 230 mills in the last 25 years, Geisinger said.

Jody Caicco of the U.S. Fish and Wildlife Service has a different opinion of the forest plan. She thinks it’s been a good compromise between conserving the ecosystem of the old-growth forest and allowing timber companies to still harvest some lumber.

“I was struck by the fact that these national lands were being used for personal profit,” said Caicco. “I was pleased when the plan was instituted.”

However, despite the attempts to preserve the spotted owl, the population is decreasing by 2.9 percent per year. Although Caicco said they don’t have a definitive population number, an estimate from conservation group Defenders of Wildlife puts the U.S. population at less than 2500 pairs – which means approximately 75 pairs of spotted owls are lost each year.

Caicco recommends patience.

“It’s going to take a while for the forests to grow back up into suitable habitat for owls and other old-growth dependent species,” she said.

However, Caicco admits that wildfires have also been decimating the old-growth forest habitat – much more than originally predicted by the Fish and Wildlife Service.

Geisinger agrees. “We’re burning up more spotted owl habitat than we ever logged,” he said. “The plan’s been a miserable failure.”

While loss of old growth habitat was the main reason for the decreasing population before the forest plan was put into effect, today the owl faces a much more familiar enemy: the barred owl, a close cousin who outcompetes the spotted owls for habitat.

The Fish and Wildlife Service is conducting a study now to see if removing barred owls will encourage a comeback in the spotted owl population.

To address these issues, the Northwest Forest Plan is undergoing an inter-agency review this year. The U.S. Forest Service is holding “listening sessions” to hear suggestions from industry and the public in the spring of 2015.

While Geisinger doesn’t believe a return to pre-listing levels of harvest is possible, he’d like the slate “wiped clean”.

“We’d like to figure out the best way to manage the land, accommodating threatened and endangered species and sustaining rural communities who rely on natural resources to survive,” said Geisinger.

For Caicco, the most important thing is that the owl is still here. “If you lose a particular component of an ecosystem, you don’t know how it will affect the rest of it – including us. We are all connected, and if you start unravelling those connections, it could have unintended consequences.”

 

 

 

 

Sony posts $1.2 billion loss : woes in PC and smartphone sectors affect Canadian stores

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Sony Corp. posted a loss of $1.2 billion in its second-quarter financials, a decrease of almost 1900 per cent compared to September of last year – and Canadian retail stores are paying the price.

David Cray, an associate professor at Carleton’s Sprott School of Business, said Sony’s inability to compete in the PC and smartphone markets against heavyweights such as Apple and Samsung have diminished profits.

Associate Professor at Carleton's Sprott's School of Business (photo courtesy of the Sprott website)
      David Cray, associate professor at Carleton’s Sprott      Business School (photo courtesy of the Sprott website)

It’s been bad news for shareholders – Sony won’t pay interim or year-end dividends to its shareholders for the 2014 fiscal year. Its stock, already on the negative side of the equation, plummeted over 500 per cent in one year.

The Japanese company has faced heavy competition in their mobile communications sector, losing almost $2 billion between September of 2013 and the same month in 2014. In their second quarter financials, Sony characterized the smartphone market as having “severe price competition… rapid development in technology and subjective and changing consumer preferences”, making it difficult to stay viable in the market. Cray said that while companies like Apple and Samsung have edged Sony out of the market, Asian companies have also taken profits domestically.

 

Competition in the PC sector is also a problem for Sony. Many customers prefer to enjoy music and play videos on their computers or tablets, said Cray. In previous years Sony had been labouring to make profits with its VAIO computer business, again wrestling with extreme competition from the likes of Apple. In July of 2014, Sony sold its computer business to a Japanese company due to poor sales. While selling VAIO relieved Sony of expenses, it will leave the company crippled in the PC sector.

Sony Corp. has taken other steps to bring its balance book back into the black. In the six months after its last yearly report in March of 2014 it laid off 12 per cent of its total work force – 1,782 employees.

Sony’s recent decision to close all 14 of its Canadian stores, leaving 90 people unemployed, was another move to shed costs.  A statement in its second quarterly financial statement said that Sony would withdraw from any countries where there was “poor prospect for profitability” in its mobile communications segment. Its performance in Canadian markets hasn’t been a high point. Canadian revenues are lumped in with the Middle East, Africa, Brazil and Mexico. The revenue of these five regions has yielded the equivalent of over $10 billion in revenue – a mere ten per cent of Sony’s total sales and operating revenue from 2013.

Sprott’s David Cray suggested that another reason that Sony is jettisoning its retail stores in Canada is the “increasing reliance” of Canadians on online purchases. According to a Canadian Ipsos Reid Report poll in July of 2014, eight out of ten Canadians have made a purchase online in the last year. This trend has been diminishing returns for Sony’s retail stores, as well as helping force stores like Target out of the country.

While one can speculate about the Canadian closures, the specific reasoning behind the decision is shrouded in mystery. In an email, a representative of Sony Canada said he couldn’t talk about the Canadian store closures or Sony’s financial struggles.

Sony expects to incur $897 million in nebulous “restructuring costs” at the end of the fiscal year in March, which hints at more changes in the near future.

However, Sony hasn’t been forthcoming about its financial woes or its plans to spring back in the upcoming fiscal year – calls to the corporation weren’t returned and email responses wouldn’t comment on the future.