Working Hard to Safeguard Paddling Assets for All Canadians

All about Whitewater

All about Whitewater
A Blog about River Preservation and the need to protect our free flowing whitewater resources

Wednesday, September 11, 2013

POLAND PRIVATIZES PRIVATE PENSION PLANS

Modified from http://www.zerohedge.com/news/2013-09-06/poland-confiscates-half-private-pension-funds-cut-sovereign-debt-load

Poland announced quietly that it would transfer to the state  the bulk of assets owned by the country's private pension funds (many of them owned by such foreign firms as PIMCO parent Allianz, AXA, Generali, ING and Aviva). In effect, the state just nationalized roughly half of the private sector pension fund assets calling it a "pension overhaul."

In Poland,  mandatory contributions are made into both the state pension vehicle, known as ZUS, and private funds, which are collectively known by the Polish acronym OFE. Bonds make up roughly half the private funds' portfolios, with the rest company stocks.

Nobody expected that this would involve private sector assets.

Private funds within the state-guaranteed system have their bond holdings transferred to a state pension vehicle, but keep their equity holdings. 

The funds would effectively be left with only the equities portions of their assets, even this would be depleted, and there will be uncertainty about the number of new savers joining.

The reason - too much debt.

By shifting some assets from the private funds into ZUS, the government can book those assets on the state balance sheet to offset public debt, giving it more scope to borrow and spend. Finance Minister Jacek Rostowski said the changes will reduce public debt by about eight percent of GDP. This in turn, he said, would allow the lowering of two thresholds that deter the government from allowing debt to raise over 50 percent, and then 55 percent, of GDP. Public debt last year stood at 52.7 percent of GDP, according to the government's own calculations.

To summarize:
  1. Government has too much debt to issue more debt
  2. Government nationalizes private pension funds making their debt holdings an "asset" and commingles with other public assets
  3. New confiscated assets net out sovereign debt liability, lowering the debt/GDP ratio
  4. Debt/GDP drops below threshold, government can issue more sovereign debt
Poland will simply continue borrowing until one day there are no foreign lenders willing to take the same risk as the nation's private pensioners. At that point, Poland, which is in the EU but still has the Zloty, can just go ahead and monetize its own debt by printing unlimited amounts of its currency.

The response to the confiscation was, naturally, one of shock:
The reform is "a decimation of the ...(private pension fund) system to open up fiscal space for an easier life now for the government," said Peter Attard Montalto of Nomura. "The government has an odd definition of private property given it claims this is not nationalisation."

"This is worse than many on the markets had feared," a manager at one of the leading pension funds, who asked not to be identified, told Reuters.
"The devil is in the detail and we don't yet know a lot about the mechanism of these changes, what benchmarks will be use to evaluate our performance... (It) looks like pension funds will lose a lot of flexibility in what they can invest."
Catastrophic consequences for fund flows aside, the Polish prime minister had a prompt canned response:
Tusk said people joining the pension system in the future would not be obliged to pay into the private part of the system. Depending on the finer points, this could mean still fewer assets in the private funds.

"The (current) system has turned out to be built in part on rising public debt and turned out to be a very costly system," Tusk told a news conference.

"We believe that, apart from the positive consequence of this decision for public debt, pensions will also be safer."
You see, he is from the government, and he is confiscating the pensions to make them safer. Confiscation is Safety and all that...
Polish officials have tried to reassure investors, saying the overhaul avoids the more radical options of taking both bond and equity assets away from the private funds outright.

They say the old system effectively made Polish public debt appear higher than it really is.
Well, once you nationalize private assets, the public debt will appear lower than it was before confiscation.
End result: "The Polish pension funds' organisation said the changes may be unconstitutional because the government is taking private assets away from them without offering any compensation.... This may lead to the private pension systems shutting down," said Rafal Benecki of ING Bank Slaski."

Two most recent European blueprints for preserving the myth of solvency are: bail-ins, which confiscate deposits, and pension fund "overhauls", which confiscate, well, pension funds.
And now, back to the global recovery soap opera.

**********Have a Nice Day**********

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Canadian Rivers

Canadian Rivers
I speak for river users too!

The Queen is not amused!

The Queen is not amused!
http://www.ispeakforcanadianrivers.ca/

The Damned Dam - 2005 -

The Damned Dam - 2005 -
22nd Annual Kipaw Rally has modest turnout. - 23rd does better

The Ashlu river: it could happen to you

The Ashlu river: it could happen to you

Whitewater Ontario

Whitewater Ontario
Working Hard to Protect Canada's Paddling Resources

Whitewater Ontario - Mission Statement

It is Whitewater Ontario’s mission to support the whitewater paddling community through the promotion, development and growth of the sport in its various disciplines. We accomplish this through the development of events, resources, clubs, and programs for personal and athletic development, regardless of skill level or focus, to ensure a high standard of safety and competency; We advocate safe and environmentally responsible access and use of Ontario’s rivers. Whitewater Ontario is the sport governing body in the province, and represents provincial interests within the national body Whitewater Canada and the Canadian Canoe Association http://www.whitewaterontario.ca/page/mission.asp

Kipawa, Tabaret, and Opemican

Kipawa, Tabaret, and Opemican
If Hydro Quebec is not actively pursuing Tabaret what is that bite out of Opemican for?

Kipawa Dam: After

Kipawa Dam: After
Laniel Dam at 2006 Rally

Where is the Kipawa

Where is the Kipawa
Kipawa flows into lake Temiskamingue, running from Kipawa Lake, under hwy 101 in Quebec

Kipawa Dam

Kipawa Dam
laniel dam at 2004 River Rally

Tabaret is a Bad Idea

About the Kipawa



The best thing paddlers can do to help the cause of the Kipawa:

1. attend the rally and bring others including non paddlers to attend and buy beer and have fun

2. write your MP /MNA and raise the issue and post your objections -1 letter = 200 who didn't write

3. Write Thierry Vandal the CEO of Hydro Quebec strongly opposing the 132 MW standard decrying the use of "diversion" as the most environmentally inappropriate method of power production

4. Write Jean Charest, Premier of Quebec protesting that either the algonquin or the tabaret project will eliminate all other values on the Kipawa River by turning it into a dry gulch.

5. See if you can get other allied groups interested by showing your own interest, ie the Sierra Defense Fund, Earthwild, MEC, and so on.

6. Demand further consultation

7. Currently we are at the point where we need to sway public opinion and raise awareness.

However, if all else fails, don't get mad, simply disrupt, foment, and protest . The Monkey Wrench Gang.

Have you read Edward Abbey?

Important Addresses
CEO,Hydro Québec, 75 boul René Levesque, Montreal, P.Q., H2Z 1A4Caille.andre@hydro.qc.ca



Tabaret is a Bad Idea (Part Two)

Les Amis de la Riviere Kipawa is poised to use an application to the Federal Court to issue a Writ of Mandamus to ensure the Minster does what he is supposed to do, protect the public's right to navigate the water control structure at Laniel, Quebec using the Navigable Waters Protection Act. (see http://www.kipawariver.ca/)

In the now gutted Navigable Waters Protection Act lay the means by which the Minister of Transport could keep the public right of passage down our great Canadian Heritage, our rivers and streams which are threatened especially by resource corporations and power brokers such as Hydro Quebec.

These powerful entities continue to petition that 'this' river or 'that' stream is not navigable and therefore not protectable.
I don't say that dams and bridges should not be built, only that if they are, historical navigation rights should be considered and preserved by making reasonable accommodations for recreational boaters.

It is the Minister of Transport, in exercising the right to allow or disallow work on or over a navigable waterway is what keeps boats and recreational boaters plying our waterways.

To many recent cases launched in the Federal Court concerning the Navigable Waters Protection Act, most recently the case of the Humber Environment Group of Cornerbrook Newfoundland versus the Cornerbrook Pulp and Paper Company indicates that the important oversight is not being faithfully performed. Have we really come to the point now where we must say "such and such a stream is one foot deep, possessing so many cubic feet per second flow and so on?" The answer to this is... YES!

The honourable Mr. Justice John A. O'Keefe, ruled that it had not been shown that the river was navigable. How convenient was that to the Minister? But either the Minister of Transport acts to protect our rivers and streams as a public right or he does not and that means rivers and streams currently enjoyed by kayakers and canoists.

Enough of the cheating, and double-talk. Canadians! our rivers and streams are our own, lets urge the Minister of Transport and the our government to protect them.

Peter Karwacki

Tabaret is a Bad Idea (Part Three)

10 Reasons WhyTabaret is a Bad Idea1) Tabaret is too big. The station is designed to useevery drop of water available in the Kipawawatershed, but will run at only 44 percent capacity.We believe the Tabaret station is designed to usewater diverted from the Dumoine River into theKipawa watershed in the future. 2) The Tabaret project will eliminate the aquaticecosystem of the Kipawa River.The Tabaret project plan involves the diversion of a16-km section of the Kipawa River from its naturalstreambed into a new man-made outflow from LakeKipawa. 3) Tabaret will leave a large industrial footprint on thelandscape that will impact existing tourismoperations and eliminate future tourism potential. 4) The Tabaret project is an aggressive single-purposedevelopment, designed to maximize powergeneration at the expense of all other uses. 5) River-diversion, such as the Tabaret project, takinglarge amounts of water out of a river’s naturalstreambed and moving it to another place, is verydestructive to the natural environment. 6) The Kipawa River has been designated a protectedgreenspace in the region with severe limitations ondevelopment. This designation recognizes theecological, historical and natural heritage value ofthe river and the importance of protecting it.Tabaret will eliminate that value. 7) If necessary, there are other, smarter and morereasonable options for producing hydro power onthe Kipawa watershed. It is possible to build a lowimpactgenerating station on the Kipawa river, andmanage it as a “run-of-the-river” station, makinguse of natural flows while maintaining other values,with minimal impact on the environment. 8) The Kipawa watershed is a rich natural resource forthe Temiscaming Region, resonably close to largeurban areas, with huge untapped potential fortourism and recreation development in the future.Tabaret will severely reduce this potential. 9) Tabaret provides zero long-term economic benefitfor the region through employment. The plan is forthe station to be completely automated andremotely operated. 10) The Kipawa River is 12,000 years old. The riverwas here thousands of years before any peoplecame to the region. The Tabaret project will change all that.

Problems on a local River?

  • There is more to do as well but you have to do your research and above all, don't give up.
  • IN the meantime prepared a document itemizing the history of navigation of this spot and its recreational value. Use the Kipawa river history of navigation as a guide: see www.kipawariver.ca
  • Under the Ministry of Environment guidelines you have a set period of time to petition the change under the environmental bill of rights, you may have limited time to take this action. But it involves going to court for a judicial review of the decision.
  • 4. contact the ministry of natural resources officials and do the same thing.
  • 3. contact the ministry of the environment and determine if they approved the project
  • 2. determine if the dam was a legal dam, approved under the navigable waters protection act.
  • 1. research the decision and timing of it to determine if an environmental assessment was done.

Minden Ontario

Minden Ontario
Gull River Water control at Horseshoe lake

A History of Navigation on the Kipawa River

Prior to the environmental assessment there was no signage at the Laniel Dam

T-Shirts Area: These are available now!

T-Shirts Area: These are available now!
Send $25 and a stamped self addressed envelop for the Tshirt, and for the bumper sticker, a stamped and self addressed envelope with $5.00 for the bumper sticker to Les Amis de la rivière Kipawa, 80 Ontario St., Ottawa, Ontario, K1K 1K9 or click the link To purchase a Les Amis "T" contact Doug with the following information: Number of shirts:Sizes: Ship to Address: Method of Payment: cash, cheque and paypal, Shipto address:

Bumper Stickers Now Available

Bumper Stickers Now Available
Get your bumper sticker and show your support for the Kipawa Legal Fund ! - send $5.00 in a Stamped, self addressed envelope to: Peter Karwacki Box 39111, Ottawa, Ontario, Canada, K1H 7X0