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June 28, 2012 - No. 98
The Takeover of Public Authority by
Private Interests
Beware of Canadians Bearing Gifts and
False Promises
- K.C. Adams -
  
The
Takeover
of
Public
Authority by Private Interests
• Beware of Canadians Bearing Gifts and False
Promises - K.C. Adams
For Your Information
• Detroit River Crossing Agreement Between
Canada and the U.S.
The Takeover of Public Authority by
Private Interests
Beware of Canadians Bearing Gifts and
False Promises
- K.C. Adams -
Beware of politicians
who brook no alternative to solve the economic and political crises,
and slavishly adhere to the anti-social offensive, neoliberal global
offencive and annexation into the United States of North American
Monopolies.
Click to enlarge.
Europeans are not the only ones increasingly wary of
ruling
oligarchs bearing gifts in the form of bailouts, loans and other
ensnaring traps that explode into worsening economic crises. Our
neighbours in Michigan, including a section of owners of capital and
their political representatives, appear not to appreciate Canada's
gift of a new bridge across the Detroit River. They have spurned the
Canadian suitor despite a slavish offering to pay almost the entire
price of the proposed international infrastructure.
The billionaire owner of the existing Ambassador Bridge
has a majority of allies in the Michigan Legislature to block the
bridge and has even mobilized more than 420,000 signatories on "The
People
Should Decide" petition forcing a referendum on the issue at the
November state election.
The bridge saga puts a new twist on the tale of the
snake oil salesman and zealous buyer who both know a scam is afoot but
cannot resist the temptation because no other way to make big money
seems to exist: "I have a hot deal on a new Detroit bridge. We'll give
it to you for nothing! Just agree to it and sign
on the dotted line."
The Globe and Mail is perplexed at this
strange behaviour of "looking a gift horse in the mouth," as if nothing
unusual or fundamental underscores this deal, which has led people of
varying social status to question it. The Globe editorialists
find it "understandable that they [the billionaire
owner of the existing Ambassador Bridge Manuel Moroun and his allies]
have
influenced some state legislators in Lansing, Mich. But the success of
the campaign called The People Should Decide is perplexing."[1]
The Globe writers find it "understandable"
that Moroun money would influence politicians because big money
controls U.S. and Canadian official politics, but find "perplexing"
that Canadian bridge money, which essentially is a state-organized
service fee paid by Canadian colonials, has not had the
same effect on 420,000 Michigan petitioners. The Globe
discovers solace in the words of an editorial in the Detroit Free
Press, "Canada believes in Michigan's future more than
Michiganders do." Yes, that must be it. For both monopoly-controlled
newspapers, Canadians -- at least of the
Harper and McGuinty ilk -- believe in a future of U.S. annexation,
neoliberal globalization, monopoly right, austerity and recurring
economic crises, and do not believe that an alternative of a diverse
self-reliant, stable pro-social Canadian economy, which trades for
mutual benefit and guarantees the well-being and
security of its members exists, much less can be brought into being.
So what is the Globe, Harper, McGuinty, Obama
and Governor Snyder antidote to this obstructionism of the billionaire
bridge owner, his "tea party friends" and 420,000 "perplexing"
Michiganders who want a say on the matter and possibly an alternative
to the current state of political and economic
affairs? Executive rule and dictate!
The Globe chants with satisfaction that
executive authority will not allow any alternative political or
economic proposals or agenda to be explored let alone allowed to
develop: "Fortunately for the North American economy as a whole, the
projected bridge is now the subject of an international agreement
between Canada and the United States. The constitutional foreign-policy
power of the U.S. federal government will prevail over the uncertain
vagaries of Michigan politics."
The Globe editorialists and their monopoly
underwriters hate "vagaries." Those who dominate the political and
economic affairs of both Canada and the U.S. despise the "vagaries" of
involving the people in decision-making and the possibility that people
may seek out pro-social alternatives in harmony
with the modern conditions of socialized industrial mass production.
The ruling authorities are determined to prevail with executive rule,
including "the constitutional foreign-policy power of the U.S. federal
government" to defend the status quo and shut the door on any
alternative to monopoly dictate, neoliberal
globalization and annexation into a United States of North American
Monopolies.
What's next in store, Canadians and Michiganders may
ask, if the ruling oligarchs in Washington and their flunkies in Canada
do not get their way -- "the constitutional foreign-policy war-making
power of the U.S. federal government"?
Harper and McGuinty have been led by the nose to this
slavish Crossing Agreement under the influence of the
neoliberal line of no alternative to the present course of recurring
crises, pay-the-rich bailouts, austerity, the smashing of social
programs and public services, annexation, predatory wars,
and the politicization of private monopoly interests. Canadians,
especially Ontarians, should join with those "perplexing" Michiganders
in questioning this incoherent neoliberal "international arrangement"
that is to be consummated using the executive authority of "the
constitutional foreign-policy power of the U.S.
federal government."
An alternative exists; it must exist because that has
always been the trend of history and the forward march of humanity. It
is up to Canadians and the people of the U.S. to deprive the ruling
oligarchs of the power to deprive the people from uniting in conscious
participation in acts of finding out what the alternative
may be according to the material conditions, and developing the
practical politics to bring an alternative into being.
Note
1. From the June 22, 2012 Globe
and
Mail article "Where Windsor meets Detroit, two bridges are
better than one"
For Your Information
Detroit River Crossing Agreement Between
Canada and the U.S.
- Initial Execution Date: June 15, 2012 -
For your information, TML presents excerpts
from the official document. The Synopsis sums up the
slavish content of this so-called "international arrangement." The
parts dealing with the private public agreements and "partnerships" to
construct the associated projects, and manage
and maintain the international crossing, toll booths and customs plazas
are vague, as the most important content will be found in secret
agreements to pay the rich. To view the complete document, click here.
***
Synopsis:
The Crossing Agreement provides a framework for a
Crossing Authority established by Canada to design, construct, finance,
operate and maintain a new International Crossing between Canada and
Michigan with funding approved by Canada, but with no funding by the
Michigan Parties. The Michigan Parties
are not obligated to pay any of the costs of the new International
Crossing. [...]
II
PURPOSE
This Agreement is to provide a framework for the
Crossing Authority established by Canada to, with the assistance as
necessary, but not funding by, Michigan:
(a) design, construct,
finance, operate and maintain the
International Crossing through the life cycle of the International
Crossing and design, construct and finance the Michigan Interchange
prior to the International Crossing Opening Date, under the oversight
of the International Authority established by this Agreement with
funding as approved by Canada, through one or more Public-Private
Agreements with one or more private sector Concessionaires procured
through one or more competitive procurement processes; and
(b) design, construct,
finance and/or maintain the US
Federal Plaza, with the agreement and funding as approved by US Federal
Agencies and with any funding as approved by Canada, through one or
more US Federal Plaza Public-Private Agreements with one or more
private sector Concessionaires [...]
IV
INTERPRETATION
[...]
(e) "Canadian Contributions"
means
at
any
particular time, all monies and all real or personal property or
services provided which monies or monies for such property or services,
have been appropriated by the Parliament of Canada and have been paid
by Canada or provided by Canada to the Crossing
Authority and paid by the Crossing Authority for International Crossing
Costs, Michigan Interchange Costs, US Federal Plaza Costs, Crossing
Authority Costs and International Authority Costs.
[...]
(u) "Federal Aid
Eligibility Requirements" means
all requirements under US federal Law, as provided in the Stewardship
and Oversight Agreement dated November 29, 2011 between FHWA and MDOT,
as amended from time to time, necessary for expenditures on a project
to be eligible as the non-federal share for federal aid matching
purposes under the FHWA's Federal Aid Highway Program; provided that,
(a) in replacement of the "Buy America" provisions otherwise applicable
under the FHWA's Federal Aid Highway Program, it shall be required that
all iron and steel used in Federal Aid Highway
Project Activities must be produced in only the US and Canada and (b)
there shall be no discrimination in favour of the US over Canada or in
favour of Canada over the US with respect to any products, materials,
supplies, labour or services under any of the Federal Aid Eligibility
Requirements.
[...]
(hh) "International
Crossing Costs" means all
costs and expenses paid by Canada or the Crossing Authority associated
with the International Crossing and the International Crossing Lands,
including costs of the International Crossing Land Activities and costs
of the International Crossing Project Activities,
and related obligations under this Agreement and any Public-Private
Agreement including payments to a Concessionaire [...]
(ss) "Michigan Interchange"
means
the
interchange
between Interstate 75 and the Michigan Crossing or the US Federal
Plaza, included in the International Crossing Alignment.
(tt) "Michigan Interchange
Costs" means all costs
and expenses paid by Canada or the Crossing Authority associated with
the Michigan Interchange and the Michigan Interchange Lands, including
the costs of the Michigan Interchange Land Activities, the costs of the
Michigan Interchange Project Activities
and related obligations under this Agreement and any Public-Private
Agreement, including payments to a Concessionaire [...]
(ggg) "RFP" means a
request by the Crossing
Authority to potential Concessionaires (i) prior to the International
Crossing Opening Date requesting proposals [...]
(iii) "RFQ" means a
request by the Crossing
Authority to potential Concessionaires (i) prior to the International
Crossing Opening Date requesting qualifications [...]
(rrr) "US Federal Plaza
Costs" means all costs
and expenses paid by Canada or the Crossing Authority associated with
the US Federal Plaza and the US Federal Plaza Lands, including the
costs of the US Federal Plaza Land Activities, the costs of the US
Federal Plaza Project Activities and related obligations
under this Agreement and any US Federal Plaza Public-Private Agreement,
including payments to a Concessionaire [...]
IX
INTERNATIONAL CROSSING, MICHIGAN INTERCHANGE & US FEDERAL PLAZA
Section 1. The Crossing Authority shall be
responsible for International Crossing Project Activities and shall be
responsible for the design, construction, financing, operation and
maintenance of the International Crossing, in compliance with
Applicable Law, pursuant to Public-Private Agreement(s) with
Concessionaire(s) procured by the Crossing Authority [...]
[Repeated from the Synopsis: The Crossing
Agreement provides a framework for a Crossing Authority
established by Canada to design, construct, finance, operate and
maintain a new International Crossing between Canada and Michigan with
funding approved by Canada, but with no funding
by the Michigan Parties. The Michigan Parties are not obligated to pay
any of the costs of the new International Crossing.]
Section 2. The Crossing Authority shall be responsible
for the improvement, operation and maintenance of the International
Crossing in compliance with Applicable Law after the termination of the
Public-Private Agreement(s) during the term of this Agreement, directly
or pursuant to Public-Private Agreement(s)
with Concessionaire(s) procured by the Crossing Authority [...]
Section 3. The Crossing Authority shall be responsible
for Michigan Interchange Project Activities and shall be responsible
for the design and construction of the Michigan Interchange prior to
the International Crossing Opening Date, in compliance with Applicable
Law, pursuant to Public-Private Agreement(s)
with Concessionaire(s) procured by the Crossing Authority [...]
Section 4. The Crossing Authority shall enter into
discussions with the appropriate US Federal Agencies to determine
whether and the extent to which US Federal Agencies or the Crossing
Authority shall be responsible for one or more of the design,
construction, finance and maintenance of the US Federal Plaza.
Except to the extent that US Federal Agencies agree to be responsible
for the design, construction, finance and maintenance of the US Federal
Plaza, the Crossing Authority shall be responsible for the design,
construction, finance and maintenance of the US Federal Plaza, subject
to agreement with the appropriate
US Federal Agencies, in compliance with Applicable Laws, pursuant to US
Federal Plaza Public-Private Agreement(s) with Concessionaire(s)
procured by the Crossing Authority.
Section 5.
(a) Unless the Governor of
Michigan expressly waives
this requirement in writing, the Crossing Authority and the Michigan
Parties shall be responsible for working together, using their combined
efforts in a cooperative manner consistent with the RFQ Process
Requirements, RFP Process Requirements and Public-
Private Agreement Requirements and the framework established in this
Agreement, to ensure that, subject to subsection (d) of this Section 5,
all Canadian Contributions expended on Federal Aid Highway Project
Activities prior to the International Crossing Opening Date comply with
any and all applicable Federal
Aid Eligibility Requirements. This joint responsibility shall be
implemented as follows:
[...]
(ii) Prior to the Crossing
Authority undertaking any particular Federal Aid Highway Project
Activity for which the Crossing Authority is responsible under this
Agreement, the Crossing Authority shall request and MDOT (Michigan
Department of Transportation) shall be responsible for identifying and
providing
to the Crossing Authority (with the specificity and detail reasonably
requested by the Crossing Authority) the specific Federal Aid
Eligibility Requirements applicable to such Federal Aid Highway Project
Activity. Subject to subsection (e) below, the Crossing Authority shall
be responsible for complying with the
Federal Aid Eligibility Requirements identified and provided by MDOT
upon such request by the Crossing Authority.
(iii) As part of the
consultation with the Michigan Parties pursuant to Article V, Section 4
of this Agreement, MDOT shall, upon request by the Crossing Authority,
provide assistance in the development
of the specific provisions to be included in the RFQ, RFP and
Public-Private Agreement as necessary to comply with Federal Aid
Eligibility Requirements or confirm that the specific provisions
developed by the Crossing Authority are sufficient to comply with the
Federal Aid Eligibility Requirements. Subject to
subsection (e) below, the Crossing Authority shall be responsible for
enforcing all provisions related to Federal Aid Eligibility
Requirements that are included in the final RFQ, RFP and Public-Private
Agreement after approval by the International Authority in accordance
with Article VI, Section 5.
(iv) MDOT shall perform
oversight activities consistent with the Stewardship and Oversight
Agreement, dated November 29, 2011, between FHWA and MDOT, as amended
from time to time, as necessary to assure FHWA of compliance with
Federal Aid Eligibility Requirements, including all environmental,
administrative, financial, procurement and contracting process
requirements, in accordance with this Agreement. MDOT shall promptly
inform the Crossing Authority of any change in US federal Law regarding
Federal Aid Eligibility Requirements. MDOT shall provide the Crossing
Authority a copy of any proposed
amendment to the Stewardship and Oversight Agreement, dated November
29, 2011, between FHWA and MDOT which could affect Federal Aid
Eligibility Requirements applicable to Federal Aid Highway Project
Activities promptly after receipt of the proposed amendment from FHWA
or promptly after such amendment
is proposed by MDOT, as applicable. [...]
(b) There shall be no
obligation that the Canadian
Crossing Land Activities or Canadian Crossing Project Activities comply
with any Federal Aid Eligibility Requirements applicable to Federal Aid
Project Highway Activities. Nevertheless, the RFP and the
Public-Private Agreement shall require that all iron and
steel used in the bridge component of the Canadian Crossing, not
including the plaza and approach, shall be produced in only the US and
Canada, unless the Governor of Michigan has expressly waived this
requirement or the requirements of subsection (a) of this Section 5 in
writing. The Crossing Authority shall
be responsible for enforcing this requirement in the RFP and the
Public-Private Agreements. The Crossing Authority shall be responsible
to supply or, to the extent applicable, to enforce the obligation of a
Concessionaire to supply pursuant to a Public-Private Agreement, all
information reasonably requested by MDOT,
whether before or after the International Crossing Opening Date, as
necessary to demonstrate compliance with this Section 5(b).
[...]
(d) Notwithstanding any other
provision in this
Agreement, all obligations under this Section 5 shall be deemed to have
been met for all purposes if US $550 million expended on Federal Aid
Highway Project Activities prior to the International Crossing Opening
Date are eligible as the non-federal share for federal
aid matching purposes under the FHWA's Federal Aid Highway Program,
except that the Parties shall remain obligated to perform their
respective obligations under this Section 5 to the extent necessary for
such US $550 million to remain eligible as the non-federal share for
federal aid matching purposes under the
FHWA's Federal Aid Highway Program.
[...]
Section 6. The Michigan Parties, subject to funding by
the Crossing Authority and Applicable Law, shall be responsible for the
Coast Guard Permit Application Activities. [...]
Section 7. The Michigan Interchange shall be part of the
Interstate System in Michigan and shall be maintained as required by
Applicable Law.
Section 8. The Michigan Parties, upon request of the
Crossing Authority and subject to funding by the Crossing Authority and
Applicable Law, shall be responsible for anything necessary or
appropriate for the Michigan Crossing and the US Federal Plaza during
the term of this Agreement and for the Michigan Interchange prior to
the International Crossing Opening Date [...]
X
CROSSING AUTHORITY REVENUE, CANADIAN CONTRIBUTIONS & US FEDERAL
AGENCIES CONTRIBUTIONS
[...]
Section 6. The Crossing Authority shall fund in any
calendar year, subject to funding by Canada, the payment of:
(a) the International
Crossing Costs, the Michigan
Interchange Costs, the US Federal Plaza Costs, the Crossing Authority
Costs and the International Authority Costs; and
(b) all costs of anything
necessary or appropriate for
the Michigan Crossing, the Michigan Interchange or the US Federal Plaza
requested by the Crossing Authority, and undertaken by any of the
Michigan Parties.
[...]
Section 11. The Michigan Parties shall not be required
to fund any International Crossing Costs, Michigan Interchange Costs,
US Federal Plaza Costs, Crossing Authority Costs or International
Authority Costs.
XI
LIABILITIES
Section 1. Canada shall not be liable for acts or
omissions of the Crossing Authority (except as otherwise specifically
agreed by Canada in its sole discretion) or the Michigan Parties. The
Crossing Authority shall not be liable for acts or omissions of Canada
or the Michigan Parties. The Michigan Parties shall
not be liable for acts or omissions of Canada or the Crossing Authority.
Section 2. All liabilities of the Crossing Authority to
third parties arising out of anyone or more of the design, construction
and financing of the International Crossing, the Michigan Interchange
or US Federal Plaza shall be satisfied by the Crossing Authority.
Section 3. All liabilities of the Crossing Authority to
third parties arising out of anyone or more of the administration,
operation, maintenance and improvement of the International Crossing or
the US Federal Plaza shall be satisfied by the Crossing Authority.
[...]
XII
INSURANCE
The Crossing Authority shall be responsible for
insurance coverage necessary to protect against damage to International
Crossing. The Crossing Authority shall be responsible for such other
insurance coverage as may be necessary for the benefit of itself,
Canada, the Michigan Parties and the International Authority
and their members and employees to protect against claims or
liabilities arising out of the performance of this Agreement. [...]
XIII
RECORDS AND AUDITS
Section 1. The Crossing Authority shall be responsible
for the maintenance of proper, complete and accurate books and records,
inter alia, for Crossing Authority Revenue, US Federal Agencies
Contributions, International Crossing Costs, Michigan Interchange
Costs, US Federal Plaza Costs, Crossing Authority
Costs, Canadian Contributions and Unrecouped Canadian Contributions.
[...]
XVIII
GENERAL PROVISIONS
[...]
Section 14. Post Canadian Contributions Recoupment
Date. Schedule A shall not be effective and apply to this Crossing
Agreement until satisfaction of the requirements specified in Section 1
of Schedule A. The Parties do not anticipate that the first Canadian
Contributions Recoupment Date will
occur until at least fifty (50) years after the Effective Date. [...]
SCHEDULE "B'
CROSSING AGREEMENT
PROCUREMENT REQUIREMENTS FOR INTERNATIONAL CROSSING
Section 1. RFQ Process Requirements
[...]
(b) The following shall be considered in evaluating an
RFQ submission:
i. Criteria based on general
reputation, qualifications, industry experience, safety record,
experience related to development and execution of community benefits
plans and community consultations, technical and financial capacity, or
any combination of these, without discrimination on the basis of
nationality.
ii. Evidence that the Private
Entities have the capacity to obtain all required payment and
performance bonding, liability insurance, and errors and omission
insurance.
Section 2. RFP Process Requirements
[...]
v. The proposed plan for
compliance with the Federal Aid Eligibility Requirements as
specifically set forth in the RFP in accordance with Article IX,
Section 5 of the Crossing Agreement.
Section 3. Public-Private Agreement Requirements.
[...]
(b) Specific provisions to be included in a
Public-Private Agreement:
[...]
xiii. Provisions requiring
the Concessionaire to comply with the Federal Aid Eligibility
Requirements and provisions for the enforcement of those requirements,
each as specifically set forth in the Public-Private Agreement in
accordance with Article IX, Section 5 of the Crossing Agreement.
(c) Specific provisions that shall not be included in a
Public-Private Agreement:
[...]
iv. Any provision that
Michigan, any of its political subdivisions, MDOT, MSF or an agency or
authority of Michigan, are obligated to use Michigan state funds to
make any payment to the Concessionaire or any third party.
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Website: www.cpcml.ca
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