MDS Nordion on cancelling MAPLEs: Wrong for Canada

Steve West, the president of MDS Nordion, which wholesales the medical isotopes harvested at AECL's Chalk River Lab, is testifying right now at the Commons Standing Committee on Natural Resources (#RNNR for Twitterers). Here's an excerpt from his statement:

The reason for the current supply shortage is Atomic Energy of Canada Ltd.'s decision to cancel the MAPLE project. The MAPLE reactors are complete and await final commissioning. The MAPLEs have created medical isotopes. The MAPLEs can be and should be brought into full service. We recognize that this requires external expertise and we are urging the Government to reconsider its decision to stop the MAPLE project.

The MAPLE project is Canada's opportunity for medical leadership and scientific innovation. The cancellation of the MAPLE project is a detrimental loss to Canada.

The Government of Canada agreed with AECL's decision to abandon the MAPLEs. It was not a reasonable public policy for Canada or the world. It was the wrong decision. It was wrong for global long-term supply of medical isotopes. It was wrong for the patients who rely on this vital product for the treatment of cancer and heart disease. It was wrong for the future of scientific innovation in Canada. It was a mistake in public policy.

MDS announces financial results and tells a prime minister he's wrong

MDS Inc. of Mississauga, Ont. announced its financial results this morning. MDS is the parent company of MDS Nordion, the Kanata, Ont.-based company which buys all of the medical isotopes produced by Atomic Energy of Canada Ltd.'s at the Crown corporation's Chalk River Laboratory.

For the three months ending April 30, MDS Nordion had an operating profit of US$23 million and net revenue of $65 million. That was down from the same quarter last year of $24 million and $80 million. MDS also had this to say in its press release this morning:

After the end of the quarter, in May 2009, Atomic Energy of Canada Limited (AECL) announced that its National Research Universal (NRU) reactor would be out of service for at least three months. Based on historical EBITDA trends related to NRU-supplied isotopes, MDS expects the financial impact of this shutdown to reduce MDS Nordion's adjusted EBITDA by approximately $4 million for every month the NRU is out of service. MDS is assessing plans to reduce costs over the extended shutdown period. MDS Nordion continues to deliver positive EBITDA from sterilization technologies and radiopharmaceutical product and service lines.

MDS continues to work to secure a long-term reliable supply of medical isotopes. In 1996, MDS Nordion contracted with AECL to complete and commission the MAPLE reactors, which were intended to replace the NRU. In May 2008, this project was unilaterally discontinued by AECL and the Government of Canada. MDS invested over $350 million in the MAPLE project, and believes that the completion of the MAPLE reactors is the best solution to provide global medical isotope supply. More recently, MDS Nordion urged the AECL and Canadian Government to consult with international experts and obtain their assistance to activating the MAPLE project to address the current medical-isotope supply shortage. In addition, MDS Nordion is examining longer-term supply alternatives and announced in the second quarter its collaboration with TRIUMF, Canada's national laboratory for particle and nuclear physics, to study the feasibility of producing a viable and reliable supply of photo fission-based Molybdenum-99.

This will have some relevance today. Last night, we reported: Prime Minister Stephen Harper says Canada plans to leave the production of medical isotopes to other countries — despite the fact that for a time last year, this country was producing nearly all such isotopes in the world.
“Eventually, we anticipate Canada will be out of the business,” Harper said Wednesday. [Read the rest of the story]
AECL — again, it's a Crown corporation so taxpayers stand behind its obligations — signed a deal with MDS Nordion guaranteeing a 40-year supply of medical isotopes. The MAPLEs were to produce that 40-year supply. MDS is suing AECL and Canada for $1.6 billion for cancelling the MAPLEs. What now will AECL and Canada owe MDS Nordion now that the prime minister has rather abruptly announced that Canada is out of the business altogether and will not — MAPLEs or no — honour its word to MDS Nordion to provide it with medical isotopes for the next 40 years?
MDS Nordion executives, as it happens, had already been scheduled to testify today at the House of Commons Standing Committee on Natural Resources (hashtag #RNNR for you Twitterers) where executives are expected to make the case for the MAPLEs. Both Liberal and NDP MPs are pushing the government to at least have international experts review AECL's decision to kill the MAPLEs.
Why is all this important? The medical isotopes at Chalk River help 2 million Canadian cancer and heart disease patients every year.

The transcript: Lisa Raitt apologizes

At about 12:45 this afternoon, in a press conference room in Parliament Hill's centre block, embattled Natural Resources Minister Lisa Raitt had this to say:

Thank you everyone. Today I want to personally communicate my deep regret for wording I used in a private discussion earlier this year which was inadvertently recorded. As somebody who has had in their personal life been deeply affected by cancer, my intent was certainly not to show any disrespect for cancer victims, survivors or their families. However, it's clear that these remarks have been interpreted in that way. So I want to offer a clear apology to anyone who's been offended by what I've said.

I want people to know that when I was 11 years old, I watched my father pass away from colon cancer over a period of 18 months. My mother and I and my brother took care of him until his final days. Twenty years later, I was in the room with my brother as he died from lung cancer. As you can see, it's a very personal issue for me and it's one that I really don't take lightly.

With respect to the medical isotopes issue however, I will continue to work with Minister Aglukkaq and the international community to address the isotope shortage in Canada and around the world. Thank you.  

Raitt took no questions.

PM stands by Raitt despite tape's revelations that she could solve

In the tape at one point, Natural Resources Ministers Raitt and former aide Jasmine MacDonnell speak about their unsuccessful efforts to get Aglukkaq to contribute to a news release they wanted to issue about the medical isotope supply.

On the tape, Raitt says Aglukkaq and her staff seem “terrified” of the issue.

“Good,” Raitt continues. “Because when we win on this, we get all the credit. I'm ready to roll the dice on this. This is an easy one. You know what solves this problem? Money. And if it's just about money, we'll figure it out. It's not a moral issue.

“It's really clear,” said Raitt. “Oh. Leona. I'm so disappointed.”

Shortly after that exchange, MacDonnell says to Raitt the isotope issue is hard to control, “because it's confusing to a lot of people.”

“But it's sexy,” Raitt responds. “Radioactive leaks. Cancer.”

“Nuclear contamination,” MacDonnell says.

“But it's only about money,” Raitt concludes . . .

…Dimitri Soudas, Prime Minister Stephen Harper's press secretary, seemed to suggest Monday that Harper had no plans on taking any disciplinary action.

“While embarrassing, this in no way affects the minister's ability to do her job,” Soudas said in an e-mailed statement. “Ministers Raitt and Aglukkaq have the confidence of the PM.”

[Read the rest of the story]

129 days later, a trickle of RINC money begins to flow

On January 27, 2009, in his budget speech, Finance Minister Jim Flaherty said:

… we will launch a national project to renew thousands of community recreational centres across the country.

Recreational Infrastructure Canada—or RInC—will provide $500 million over the next two years to build and renovate hockey arenas, swimming pools and other recreational facilities.

RInC funding will help leverage non-profit and community fundraising efforts.

It will encourage all Canadians to get involved in renewing Canada’s infrastructure, right in their own neighbourhoods.

Earlier this week, the first RINC funds (you pronounce RINC as you would pronounce Rink) were announced and a tip o'the toque goes to the Western Economic Diversification Canada (WEDC), the regional development agency for Western Canada, for being the first government department to approve applications for RINC funding and get the money out the door. (Does the money really get out the door? Read this for the answer. THe answer is technically no but practically yes.)
Not sure who does RINC funding in Ontario, but, if WEDC does it in the west, I assume that CEDQR does it in Quebec and ACOA does it in the east.
The first projects to be funded out of this $500 million fund involve installing artificial turf at Calgary sports field and putting roofs over rural outdoor ice rinks in northern Alberta. Read about them for yourself:

Now that's the good news — that WEDC was able to approve and announce funding 129 days after the budget was tabled and 65 days after it went into effect.

The bad news, I suppose, is that this is a $500 million fund which is supposed to be spent over two years to help offset the effects of recession and, 129 days after the budget was tabled and 65 days after it went into effect, just $2.1 million of $500 million has been allocated. That amounts to less than one quarter of one per cent of this particular fund.

Which reminds me of something the government put in the budget on Jan. 27:

“Canada is in recession today. Measures to support the economy must begin within the next 120 days to be most effective.”

Best explanation for MPs to ramp up expenditure approvals process

One of the ways the federal government is “hurrying money” out the door is to fiddle with the normal process by which the government is legally allowed to spend money. The opposition in Parliament questioned why the Conservatives needed to do this fiddling and, yesterday during a committee meeting, I heard the best explanation yet of why this fiddling was important. And that explanation came from a bureaucrat, not a politician.

The key concept to understand here is that Parliament must authorize every nickel the government spends. Whether it's paperclips the taxman uses, salaries for Parks Canada employees, or foreign aid, all the spending must go through Parliament.

The legislation for spending authority are often known as “supply bills”. Each calendar year is roughly grouped into three “supply” periods. So while the federal budget and the government's annual expenditure plan are passed early in the year, the legislation that triggers actual spending is grouped around a series of documents and legislation tabled and voted on for each of the three supply periods.

What the Tories wanted to do to speed up some funding — and help fight the recession — was take money — about $3 billion worth — that would normally have been voted on in a future supply period this year and have Parliament vote on it right now. That legislation is, in fact, before the House right now and a vote is due before June 15. The key vote in this package of spending legislation is called “Vote 35” and it is that Vote 35 that contains the $3 billion number.

Here's the explanation that is contained in the latest “Estimates

Given the current economic situation and the need to expedite the funding of programs in the Economic Action Plan, the Government sought Parliament’s approval for an appropriation of $3 billion in 2009-10 Main Estimates for a new central Vote for Budget Implementation Initiatives – Treasury Board Vote 35. As of April 1, 2009, this appropriation allows Treasury Board Ministers to allocate funds directly to departments for immediate requirements related to budget measures in advance of Parliament’s approval of Supply for Supplementary Estimates. The new Vote is an exceptional and time-limited mechanism, allowing for allocations up to June 30, 2009 as bridge funding in advance of Supplementary Estimates. Any unallocated funds remaining in the Vote after June 30 will lapse.

At yesterday's meeting of the House of Commons Standing Committee on Government Operations and Estimates, Daniel Watson, the associate deputy minister for Western Economic Diversification (the regional development agency for Western Canada), gave what I though was the best explanation yet for why the government needed to shovel these extra billions into this supply period as opposed to waiting for future supply periods.

Watson is responding here to a question from Chris Warkentin, the Conservative MP from Peace River, Alberta, who had asked: “Could [you] give me some information as it pertains to this and how jobs are created even possibly before the cheque is cut from the federal government.”

Here's Watson's response:

In the world of contribution programs generally – you think of people looking for work who are maybe unemployed or underemployed – there are four key conversations that happen. The first one is, “we'll see”. That conversation started on January 27 when people had heard about this program and said to themselves, “I wonder if this can work for me”. The question is “we'll see”, nobody sort of knew the specific answer. [Watson is speaking here about Recreational Infrastructure Canada or RINC, the program to help municipalities to build new hockey rinks, soccer fields, etc. Western Economic Diversification 'deliver's RINC funding in Western Canada – Akin]

But as people were able to get more details about it, as people sort of began to look at the criteria, people got further into the stage of applications, got into another conversation, which is “be ready”. Be ready goes in part to the idea, “Well if we're going to need to show people what we're going to do, you have to hire people to do blueprints, you have to hire engineers, you have to hire people to get ready with environmental assessments and to advise on those fronts.”

The next conversation though is quite critical which is one that we enter into and it's the “I promise” conversation. That's where we say “we've received your application, we've looked at it and I promise that we will reimburse this share of costs”. That's where Vote 35 was critical for us. Under the Financial Administration Act I cannot promise to pay for something that Parliament hasn't given me the money to pay for. So I can't say “I promise” unless Parliament says “here's the money to back that up”.

The conversation that follows immediately after “I promise” is the fourth one that we all look forward to, which is “you're hired”. So it's from “we see” to “be ready” to “I promise” to “you're hired”.

The final conversation .. is “here's your cheque”. That happens months after the fact because the way these programs are designed, we always for due diligence purposes, pay after. We check their bills. We check “did you do what you said you were going to do”. So they go out, they incur the costs, they get the credit that 's required to do this. This is a standard practice across the federal government grant contribution world and we pay if they did what they said.

The key one for us that was critical about Vote 35 is we would not have been able to say “I promise” had we not had the money out of Vote 35 in relation to RINC as we don't have that money available to us and so we can't sign on the dotted line.

Better than hockey! Me, Lunn and Stringer talk politics

My friend Susan Lunn of CBC Radio and I have been invited by our friend Martin Stringer to join him on his weekly show, Prime Time Politics, tonight to talk about what turned out to be a relatively busy week in federal politics. There was Lisa Raitt's forgetful staffer, a major bank's prediction about a monster-sized deficit, and election buzz with Michael Ignatieff's musings earlier about a “clear and serene” decision he hopes to make next week about whether to bring the government down.

You can tune in at 8 pm ET or 5 pm PT on CPAC.

Elections Canada ramps up staffing

Michael Ignatieff on June 2, 2009: “I don't want an election. Canadians don't want an electio. But here's where I am . . . I'm trying to make Parliament work with a government that every day is displaying more flagrant examples of incompetence.”

No surprise, then, that, on June 3, the following message has been circulating through federal government offices all day:

URGENT WE NEED 5 CALL CENTRE SUPERVISORS FOR ELECTIONS CANADA TO START TOMORROW $20 PER HOUR –SHIFT WORK MUST BE BILINGUAL

TILL END JULY –IF YOU KNOW ANYONE WITH THE RIGHT EXPERIENCE CONTACT ME TODAY!!!!!!!!!

Intermediate Project Administrators Bilingual (5)

Reason

Due to a June 12th, 2009 contingency readiness date, it is vital for the Enquiries Centre core staff to review existing training modules and prepare for training exercises should there be a snap election. Dedication by the front line staff is required in order to manage up to 400 inbound phone calls per day, leading up to the issue of the writ. Due to the specialized nature of the material that requires assimilation by new employees, it is vital to hire supervisory staff that will support the tier 3 advisors well in advance, to ensure that the material is properly absorbed. These supervisors will also be providing lead-in support for the training component of the additional resources that will be joining the core staff at the Enquiries Centre to take the incoming calls. It is necessary to be pro-active in hiring these additional resources in order to be fully prepared and ensure proper administrative and operational support for all public callers that reach the Enquiries Centre.

The supervisors will be responsible for supporting the additional staff, as well as conducting administrative and operational duties in order to ensure optimum efficiency in the call center.

DUTIES:

Recent experience in a help desk or call center environment supervising call center advisors providing clients support via the telephone.

Experience in conducting research using automated systems and software.

Experience with call tracking applications and various databases for the purpose of accessing client profiles and information.

Experience in preparing and presenting staff briefings and information/training sessions.

Ability to deal with changing priorities

** Must also possess effective interpersonal skills, sound judgment and dependability.

REQUIRED COMPUTER SKILLS:

Comfortable with use of Microsoft Outlook E-mail clients, Excel spreadsheet software, Microsoft Word, and a good understanding of browser-based technology and Internet research.

Willingness to work overtime is required.

Tracking Twitter Election gossip: Introducing #elxn41

Many of you are not on Twitter and have no interest in become twits. (And good for you. Those not interested in Twitter are probably you younger readers. New research shows that it's us old fogies, believe it or not, that are taking to Twitter in greater numbers than you young whippersnappers. But I'm old and I digress …)

On Twitter, you 'follow' other Twitterers. But what if you're interested in a particular subject rather than an individual Twit? One thing Twits do is set up 'hashtags', which are, essentially, channels on a particular topic. Twits include this hashtag in every tweet so that various search engines and Tweet-reading applications can track the hashtag.

Today, with election gossip heating up, I thought it time that it time we set aside a hashtag to handle Tweets for the next federal general election.

Now, coming up with a hashtag is an art form itself. Remember, on Twitter, you only get 140 characters to say something. So you don't want hashtags to be taking up too many characters. Mind you, you want them to be unique and you want them to be easy to remember and, if possible, give you a hint about what it's about. Conservatives, for example like to twit on the hashtag #roft. That's unique and its short but it's not self-evident what it's about. (roft stands for Right OF Twitter). Liberals are tweeting away on the hashtag #lpc.

That's outstandingly short and political junkies will recognized the acronym but it still requires specialized knowledge. I started one up to track all the money Ottawa spends called #ottawaspends . That gives you a good hint about what the hashtag is about but, it's a little long and eats up too many characters.

So back to an election hashtag: I proposed we start out with #elxn09 and then, if we get through this year, we can turn it into #elxn10.

Kerry Wall, who works for CBC News, helpfully tweeted back the following:

“@davidakin You could also go with a varation on #41stcdnelxn; hard on the eyes but it won't matter whether the election is in 2009 or 2010.”

Excellent point, Kerry. Whether it's this year or next, the next general election will be the 41st general election in Canada's history. So I'm taking up Kerry's suggestion but, remembering that we want to keep hashtags as short as possible, I'm going to suggest we go with #elxn41 to tweet about the next election.

So, bottom line: If you're a Twitterer, I invite you to include the hashtag #elxn41 in anything you think is election related. For the rest of you, check out this Web page to catch up on #elxn41 gossip or, better yet, grab the RSS feed and have this content pushed out to you.

TD Bank: Do we now have a structural deficit?

Last week, Finance Minister Jim Flaherty announced that this year's deficit would be $50 billion but, notably, he did not alter future year forecasts and he stuck to his budget forecast that the federal books would be balanced again 2013-2014. Prime Minister Stephen Harper has repeatedly vowed that his government will never run “a structural deficit”. As he has explained it, a structural deficit is one that would persist even economic growth returns to normal levels.

The government's plan to avoid a structural deficit is, essentially, to keep spending relatively stable and then wait for tax revenue to rebound once the economy rebounds.

But TD Bank, whose chief economist is Don Drummond who spent more than two decades as a Department of Finance bureaucrat who was involved in the preparation of many federal budgets, takes a look at Flaherty's updated figures and concludes that the deficit will not disappear on its own by 2014 even though the economy should be resuming normal growth. Indeed, by 2014, when Flaherty says the budget will show a surplus, Drummond (and his associate Derek Burleton) say the deficit will be just shy of $20 billion that year. (The federal debt will have climbed from less than 30 per cent of GDP to 34.4 GDP, TD says.)

So if the prime minister says a “structural deficit” is one that exists in times of normal growth and if Drummond's forecast includes persistent deficit, then, presumably, the Harper government now owns a structural deficit.

There are only two ways to get rid of a structural deficit and both Harper and Drummond agree on this point: A government can raise taxes or it reduce spending. Or to use economist-speak, “balancing the budget is elusive unless changes to the policy parameters are undertaken.”

So Prime Minister – which policy parameter is it going to be? Tax hikes or program cuts?

Come to think of it: Probably a good idea about now to put the same question to Mssrs. Ignatieff, Layton, and Duceppe!