Interesting.......

This has sooooo much to do with behaviour economics.

Anyhow, maybe this GST cut can temporary hold back consumer spending - which is the major factor that has been fueling the Canadian economy lately.

On the other hand, it will only "temporary" cool things off, as people will resume their planned expenditures once the GST is cut, which should be in July.

I can't wait for those Stats Can numbers to come out in the 4th quarter, on sales (i.e. on consumption) , to show the comparison of consumer spending just before and after the GST cut.

Also, it could prove (or disprove) the Euler Condition (in the Macroeconomic prospective), if consumers are really trying to max out their utility by allocating their spending between period 1 and period 2.

----------------------------

POSTED AT 4:02 AM EST ON 27/03/06

Consumers holding back

The thrill of saving money has some delaying their big-ticket buys

STEVEN CHASE

From Monday's Globe and Mail

OTTAWA — Sean Lee is shopping for a high-definition TV to watch his beloved Blue Jays, but the prospect of saving money by waiting until Ottawa lowers the GST has given him reason to delay the purchase.

"I'd be willing to wait a few months for the GST cut to happen," the 35-year-old Toronto account manager said.

Economists say there will be more and more consumers delaying big-ticket item purchases as the Conservative government readies itself to fulfill an election pledge to cut the goods and services tax to 6 per cent from 7 per cent.

This could create a backlog of consumer spending, as car buyers anticipate saving hundreds of dollars and new-home purchasers envisage a discount worth thousands.

Mr. Lee doesn't mind waiting to get a discount on his purchase, even if it only amounts to $40 or $50 on a TV retailing for $4,000 or $5,000. "[It] doesn't seem that much off the price of something that big, but then again, before tax, that's probably like $80 or $90 of income and that's like a half-day of work."

Toronto-Dominion Bank chief economist Don Drummond said he knows a couple of people who plan to buy expensive cars and are holding off until the GST cut.

"Presumably, the prospect of cutting the GST is hurting big-ticket sales right at this moment," he said. "A frugal person who doesn't have a particularly urgent need to consume will no doubt have been waiting since the election results were heard," Mr. Drummond said.

The Tory government says cutting the GST will be part of its federal budget -- expected by late April or early May. But it's staying mum on whether the reduction will take effect immediately on budget day -- or at a later date such as July 1, to provide a transition period for businesses.

Finance Department spokesman David Gamble said the question of whether the budget will cut the rate immediately is "getting into matters of budget confidentiality."

One argument for delaying the cut to July 1 -- the start of the next fiscal quarter -- is that it would benefit some businesses that need time to adjust their cash registers and accounting.

Economists warn that Ottawa must cut the GST on budget day -- or shortly thereafter -- to avoid creating a greater pileup of consumer demand.

Canadian Taxpayers Federation director John Williamson said it's incumbent on Ottawa to let companies know exactly when the cut will take effect.

"The government should already be signalling to business that the one-point cut would come very, very quickly after the budget is tabled. The delay should be days, certainly no more than a week or two."

Mr. Drummond said the greatest incentive to delay a purchase is on new homes, where the biggest potential GST saving lies.

"Few people think about this, perhaps because the GST partial rebate on housing is a bit complicated," he said. "There is no rebate on homes costing more than $450,000, so the savings there is $4,500 and up. The savings per point of GST on a $300,000 new home is still a whopping $1,920."

Canadian Automobile Dealers Association spokesman Huw Williams said his group is pressing Ottawa to move quickly "to avoid the scenario of it starting to be a drag on consumer expectations."

Dale Orr, chief economist at Global Insight (Canada) said the cash-pressed Tory government benefits from delaying the GST cut because it saves $400-million in revenue each month it holds off reducing it.

"There's such a huge incentive for them to delay it as long as possible and they're just going to have to keep their political antennae out and see how long the public will let them get away with it," Mr. Orr said.

Purchase price: $4,500

With 7% GST (current rate): $4,815

With 6% GST (after promised cut): $4,770

Savings: $45

© Copyright 2006 Bell Globemedia Publishing Inc. All Rights Reserved.

When would Lorne Calvert Learn?

The lesson, again, is when your economy is booming, people will flock to your jurisdiction. Both BC and Alberta are having record low unemployment rate these days, and when people are looking for jobs - they go to places where there are jobs.

----------------
Oil-rich Alberta sees jump in population: StatsCan

Updated Tue. Mar. 28 2006 10:23 AM ET

Canadian Press

OTTAWA — Statistics Canada says Alberta's population increased at more than five times the national average during the last three months of 2005, as record numbers of people flocked to the booming province from other regions of Canada.

Estimated at more than 3.3 million on Jan. 1, Alberta's population increased 0.76 per cent during the fourth quarter, with just over two-thirds of the migrants coming from other provinces and territories.

Alberta's growth was well above the 0.14 per cent rate for Canada's population as a whole.

The province's population gain of 25,100 was the highest ever attained in a fourth quarter -- approached only by similar growth during the oil-boom period of 1979-80.

Seven of Canada's 13 provinces and territories suffered population declines during the fourth quarter -- only the second time since 1971 so many regions recorded a decline during the same quarter.

The only two regions to record a growth rate above the national average were British Columbia, at 0.19 per cent, and Nunavut, up 0.37 per cent.

Three others recorded marginal growth -- Quebec, Ontario and Manitoba -- while the four Atlantic provinces, Saskatchewan, the Yukon and the Northwest Territories all lost population.

Canada's population was estimated at 32,422,900 on Jan. 1, 2006.

© 2006 CTV Inc. All Rights Reserved.

Thank You, Prime Minister Harper

The Chinese Head Tax is not such a big issue in the mainstream media, but it has been huge in the Chinese media since last November (the weekend before the drop of the writ), and it was an election issue that dominated headlines on Chinese papers for at least 2 weeks.

I have been very impressed with the Harper government since after they sworn-in on Febuary 6.

The Prime Minister has a lot of substance, and I really like the way he handled the media, especially where he doesn't go up to the microphone when he has nothing to say.

From recruiting David Emerson, to visiting Afghanistan, to initiate the process of apologizing for the Chinese Head Tax, the Prime Minister showed that he has a vision for this country by focusing to comply his election promises, and try to handle issues swiftly with great efficiency.

The Liberals took more than 12 years to deal with the Head Tax issue. Still they couldn't get it resolve.

Now, it will probably take less than a year for the Conservative government to close this file.

------------------
POSTED ON 25/03/06

Apology for head tax forthcoming, minister says

Chinese-Canadians who met with Heritage Minister Bev Oda yesterday say they welcome her promise that Ottawa will formally apologize for a former head tax on Chinese immigrants and consider paying compensation.

Jason Kenney, the Prime Minister's parliamentary secretary, says it is a "distinct possibility" an apology could come before Canada Day. About 80,000 Chinese paid a total of $23-million from 1885 to 1923 to enter the country.

Susan Eng of the Ontario Coalition of Chinese Head Tax Payers and Families said the meeting was a positive step toward rectifying a historic wrong. CP

© Copyright 2006 Bell Globemedia Publishing Inc. All Rights Reserved.

Adult Children Staying at Home

In fact, I just had a very similar conversation with a friend of mine last night. He feels that staying at home is "problematic" (my friend is in his mid-twenties and is still staying at home), but I think there is nothing wrong.

Now, the difference in opinion probably has to do with culture, and StatsCan is getting it right (my buddy is Caucasian and I'm Asian).

For many Asian people, they don't leave home until they get marry.

This trend does have some socio-economic interpretations.

One reason is property prices are not as affordable as before, and children living at home can save some money for their future property's down payment.

Another phenomenon is more couples are moving in together before they get married. More people are in common law relationships than twenty years ago. Part of it is our society beinig more liberal, and that couples can save significant amount on living expenses (rent, utilities, etc.) by moving-in together.

It would be interesting to see a comparison of percentage of income goes into living expenses between today and twenty years ago.

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POSTED AT 10:16 AM EST ON 21/03/06

Failure to launch? It's a double-edge sword, Statscan says
TERRY WEBER

Globe and Mail Update

Clean out the spare room and stock up the fridge, the kids are coming home.

According to a new Statistics Canada report Tuesday, about 32 per cent of parents with children between the ages of 20 and 34 say they are experiencing some form of failure to launch – meaning they have at least one adult child still living under their roof.

While the phenomenon – the subject of a new Hollywood hit movie – rankles mom and dad on the silver screen, it appears to have less of an impact on the parent-child relationship in real life.

According to the Statscan report – drawn from 2001 data – the majority of parents with an adult child still in the house expressed no frustration with the arrangement.

In general, the report said, parents agreed that having children made them happier people and that having an adult child still at home did not change that.

“On the contrary, parents living with at least one of their adult children were more likely to be very satisfied with the time they spent with their children,” the government agency said.

However, there also seems to be at least some trouble brewing beneath the surface.

The study found that having a grown child at home did increase the frequency of spousal arguments about things such as money, chores and the children themselves.

“The probability that parents would sometimes or often argue over questions of money was 31 per cent when there were two or more adult children at home, compared with only 21 per cent when all children had left home,” Statscan said.

The differences in the frequency of conflicts remain significant, the agency said, even when other factors such as the parent's age, gender and level of income were factored into the equation.

Tuesday's report also suggested that a significant number of adults who came home to roost did so after striking out on their own.

According to the findings, about one-quarter of those now living with parents were so-called “boomerang” children, meaning they returned to the parental home after leaving one or more times.

Statscan said parents living in bigger metropolitan areas were more likely to live with an adult child, possibly because of factors such as higher cost of living and easier access to post-secondary institutions.

Cultural factors also appeared to play a role.

“Parents born in Asia and South or Central America were more likely to co-reside with their adult children than those born in Canada,” Statscan said.

“This was especially the case for parents who had immigrated to Canada recently. For example, the probability that an Asian-born parent who came to Canada between 1980 and 2001 lived with at least one adult child was 82 per cent.”

While income and educational levels did not come into play, the type of housing parents lived in did.

Parents who lived in a detached, semi-detached or duplex were more likely to share space with an adult child than those living in apartments, the agency found.

The parent's own experience earlier in life also seemed to have an influence, Statscan said.

“Parents who themselves had left home at a younger age were less likely to live with their adult children,” the agency said.

“Parents who left their own parents' house in their teens or early 20s may have provided an example for their own children or, alternatively, could have encouraged their children to leave home earlier.”

© Copyright 2006 Bell Globemedia Publishing Inc. All Rights Reserved.

Danny is the MAN!!

This is only Part I of a three-part series.

Danny is doing a great job in Newfoundland, and sometimes I wish that Saskatchewan could have a "Danny Williams" as premier. We need to develop and capitalize on our natural resources and use the proceed (aka economic spin-offs) to develop other industries.

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REVIVAL ON THE ROCK: Williams seeks a piece of the action Still stinging from the province's Churchill Falls hydro deal with Quebec, Premier Danny Williams has a plan to exploit Newfoundland's offshore energy boom, JANE ARMSTRONG reports in the first of a three-part series

JANE ARMSTRONG

ST. JOHN'S -- It's been a good year to be a Newfoundlander. The St. John's economy is humming, thanks to jobs and revenue from the offshore oil industry. Curler Brad Gushue's rink won curling gold in Turin. And, if all goes to plan, a deal to develop a fourth offshore project, Hebron-Ben Nevis, might soon be signed.

But Danny Williams wants more. The fiery Premier of Newfoundland and Labrador has embarked on an ambitious -- some say risky -- plan to transform this resource-rich, but debt-ridden region into a "have" province. He plans to accomplish this by making Newfoundland a partner in future energy megaprojects.

Not only is Mr. Williams seeking equity in and higher royalties from the Hebron project, he said the province will demand more control and participation in all future energy deals, specifically, a refinery or processing plant to bring jobs and stability to areas outside of St. John's, where unemployment rates are chronically
stuck in the double digits.

Mr. Williams doesn't think his demands are unreasonable.

"What I'm saying is: Give us some long-term employment," Mr. Williams said in an interview at his St. John's office. "Then we can have a sustainable industry that is not just boom or bust. Project
in, project out."

"So let's create some evenness. Let's create some stability."

Mr. Williams has even bigger plans for the future.

The goal, he said, is to transform Newfoundland and Labrador into a repository of energy projects -- not just offshore oil. He wants to harness power from wind, hydroelectricity and natural gas. The phrase he coined for his vision of Newfoundland is "energy warehouse."

"Every asset that this government's got as a resource, apart from the human resources, we're looking for a significant piece of the action," Mr. Williams said. "Everything."

To that end, last year he hired a senior executive from Petro- Canada, Ed Martin, to lead Newfoundland and Labrador Hydro Corp.

To start, Mr. Williams wants Newfoundland to own a majority stake in the proposed hydroelectric development on the lower Churchill Falls in Labrador.

In the past, Mr. Williams said Newfoundland has been out-manoeuvred at the negotiating table, citing the original Churchill Falls development, which led to Quebec reaping a windfall compared to Newfoundland and Labrador. Under that deal, Quebec's average yearly revenue is $600-million, compared with $23-million for Newfoundland and Labrador.

"There has been a history of giveaways in this province," Mr. Williams said. "There's been a concern that we've always given away the lion's share of our natural resources and haven't got a fair return as a result of it. It started with the Upper Churchill and that's the thing we keep coming back to. It's a huge inequity from
the perspective of this province. If we even had 50 per cent of those revenues, it would have made a huge difference."

Despite complaints that most of the wealth generated in the past by Newfoundland's resources left the province, the current boom has brought tangible improvements, at least to St. John's.

There is no better place to witness the transformation of the economy than on Water Street in downtown St. John's, a narrow, kilometre-long stretch of designer clothing boutiques, galleries and trendy restaurants, none of which feature seal flippers or cod tongues on the pricey menus.

Atop one of the city's steep hills, the magnificent 19th-century stone and masonry Benevolent Irish Society building has been converted to luxury condominiums. The four-storey marquee unit, with its unmatched views of St. John's Harbour, recently sold for $1.5-million. The confidence among Newfoundlanders -- from business leaders and politicians to cab drivers and restaurant staff -- is palpable.

"We have a province now that is really on the move," Mr. Williams said. "I think Newfoundland and Labrador has really come of age in the minds of all Canadians."

There is reason for Newfoundlanders to be optimistic. The province has three offshore oil projects -- Hibernia, Terra Nova and White Rose -- operating off the Grand Banks and is in negotiations for a fourth, Hebron-Ben Nevis. Hibernia, which came into production in 1997, with $1-billion in help from Canadian taxpayers, is producing more oil than predicted and may yet contain an even larger reservoir -- up to 300 million more barrels -- than the 900 million barrels originally thought.

A recent report prepared for Petroleum Research Atlantic Canada, funded in part by oil companies and the Newfoundland government, concluded Newfoundland's economy isn't just surging; it has been transformed.

Not only has the oil industry brought jobs and royalties, said author Mark Shrimpton, but the industry's rigorous standards, especially with respect to safety, have raised the level of expertise among firms competing for contracts.

"The industry has also encouraged the adoption of international standards and business practices in such areas as health and safety, quality management and document control," the report said.

While offshore oil has provided about 5,000 direct jobs, there has been spinoff employment for consultants, lawyers, suppliers, and fabricators, the report said. "Companies are now more ambitious, more competitive and more confident," Mr. Shrimpton said.

However, this seismic shift is confined largely to St. John's. "Past the bypass," a phrase used to describe the rest of Newfoundland, the economic landscape has never been more bleak. Unemployment in St. John's hovers between 7 and 8 per cent, but it's as high as 50 per cent in some coastal communities, which relied on the cod fishery and were decimated by its collapse.

As well, the decades-long tradition of leaving home to find work elsewhere -- chiefly in Alberta's oil sands -- has not abated. The population, which stood at 589,000 in 1992, is now 515,000.

"There are two Newfoundlands," said Ryan Cleary, editor of the St. John's weekly The Sunday Independent. "There is St. John's. Then there is the Newfoundland that really is dying."

Despite rising incomes and increased opportunities, Newfoundland and Labrador's economy is still saddled by debt, a staggering $11-billion, the highest per capita in the country.

Oil exploration began off the foggy, iceberg-laden Grand Banks in the late 1960s. It wasn't until 1997 that the first oil platform, in the Hibernia field, began producing. So far, Newfoundland has received about $700-million in royalties, land tenure fees and corporate taxes from Hibernia.

To bolster the province at the negotiating table, Mr. Williams hired Mr. Martin to lead the province's utility. Mr. Martin, 48, is a Newfoundland native whose most recent position was managing Petrocan's interests in Hibernia, White Rose, and Hebron.

It's said that if Mr. Williams has the vision for Newfoundland and Labrador's energy future, Mr. Martin is the enforcer. Last summer, Mr. Williams announced a restructuring of the utility and appointed Mr. Martin to the negotiating teams for Hebron and the lower Churchill projects.

The utility has also asked for proposals to generate 25 megawatts of wind power to determine if it's economically feasible.

During an interview at Newfoundland and Labrador Hydro's headquarters in St. John's, the media-wary Mr. Martin is low-key and soft-spoken. Where Mr. Williams is easily riled and openly emotional, Mr. Martin is contained and unruffled, his voice seldom rising.

Born in Grand Falls, Mr. Martin said he took the public utility job because he wanted to contribute something to his province, and he wanted to come home, a theme he often returns to in his conversation.

The success of the offshore oil industry has instilled an unprecedented confidence in the province, Mr. Martin said. "We know we can handle the big jobs."

Like Mr. Williams, Mr. Martin would dearly love to see more young people stay in the province. "That's everything," he said. "We have a reputation for people wanting to live here and be here. The lifestyle is tremendous. The people are fantastic. It's a great place to live."

Mr. Martin was one of the Newfoundland diaspora. After graduation, like thousands of other Memorial University students, he left the province for better opportunities on the mainland. Now, he wants to create opportunities to keep professionals here.

Mr. Martin said he drew inspiration from Norway's utility, Norsk Hydro, when expanding the mandate of Newfoundland's utility. Norsk has also gone the equity route. Mr. Martin said Norway and Newfoundland have much in common, including "a relatively small population, a large resource base, both hydroelectric and oil and gas, a very confident and proud people. It reminds me of Newfoundland."

Mr. Martin's first big test will be negotiating a deal to develop the lower Churchill.

"With the huge power demands out there, plus you couple that with the fact that we have a very environmentally friendly, green project in the lower Churchill and it's a very attractive project." The goal, he said, is to make money for the people of Newfoundland. "That's why we exist. They're our shareholders. Our role is to maximize returns for our shareholders."

Mr. Williams' dream of getting an equity stake in the province's energy resources has generally been greeted favourably by residents here. However, there are skeptics, especially among oil producers. Already, negotiations between the province and Chevron over Hebron have stumbled.

Some observers say the Premier is going down the wrong path by seeking ownership of its resources. Peter Fenwick of the Atlantic Institute for Market Studies said Mr. Williams is playing a risky game. The more demands the province makes, he said, the greater the chances that oil producers will walk away. Mr. Fenwick said Mr. Williams' equity bid could also backfire in the event oil prices drop, leaving Newfoundland and Labrador taxpayers with nothing for their investment.

Mr. Williams disagrees. "I have every reason to believe as a business person that these are going to be profitable ventures," Mr. Williams said. "I am an entrepreneur in background. So I am a risk taker."

© Copyright 2006 Bell Globemedia Publishing Inc. All Rights Reserved.

This is Funny!!

For All You "Nay Sayers" about Minimum Wage......

Does high minimum wage kill jobs? Not necessary.

BC probably has the highest minimum wage in the country ($8.00/hr), and our unemployment rate is currently at a 30-year low, at 4.8%.

What is going on here?

Minimum wage does not necessary kill jobs. A lot of times, it has more to do with X-Efficiency. In short, when employers are able to pay their employees more, workers will work harder, more productive, and more satisfy with their jobs. Unhappy workers will only do the very minimal to get by. They will not put in extra effort.

Take a look at the famous Henry Ford example. Ford paid workers more than double of the industry wage, and he had the "happiest" work force in the industry. His work force was the most productive at the time among all car manufacturers.

------------------------

Jobless rate matches 30-year low

TAVIA GRANT AND ROMA LUCIW

Globe and Mail Update

POSTED AT 11:59 AM EST ON 10/03/06

The Canadian economy created 24,700 jobs in February, unexpectedly sending the unemployment rate to a three-decade low of 6.4 per cent, Statistics Canada said Friday. All of the new jobs were part-time.

Economists polled by Bloomberg News had expected 22,000 to have been added in the month with the jobless rate holding steady at 6.6 per cent. February's rate is the same as in November, its lowest in 30 years.

A large gain in part-time positions outweighed a drop in full-time jobs, Statscan said. Construction, trades and even manufacturing added to payrolls last month.

Stewart Hall, a market strategist for HSBC Securities (Canada) Inc., said that beneath the upbeat headline, there were a mix of things going on in the February numbers.

“Rather than a ringing endorsement of a robust jobs market,” the lower unemployment rate was driven by a drop-off in the number of people looking for work, and all of the jobs created were part-time, he said. “The report lacks a compelling story either way.”

Like all economic data of late, the report highlights the disparities between Canada's regions. In Alberta, the jobless rate fell to a 30-year-low of just 3.1 per cent as the province rang up its second-largest monthly employment gain ever. In Ontario, unemployment fell to 6.2 per cent — double that of Alberta — because fewer people looked for work. The province lost 17,000 jobs last month.

In the past year, employment has jumped 3.5 per cent in Alberta and British Columbia, double the national rate of employment growth.

Craig Alexander, TD deputy chief economist, said the central bank's hands are tied when it comes to addressing the regional discrepancies across the country, which call for higher rates to limit wage and price pressures in Alberta and lower ones in manufacturing-rich central Canada.

“The central bank has to set policy on the basis of the performance of the national economy, which currently looks to be operating at full capacity, suggesting that a further quarter point tightening may be in the cards in April,” he said.

The prospect of another interest-rate hike on April 25 supported the loonie, sending it to 86.19 cents (U.S.) Friday from Thursday's close of 86.10 cents.

The Bank of Canada raised interest rates for the fifth time in a row by a quarter percentage point to 3.75 per cent on Tuesday, and although it toned down its bullish languages, it signalled that further hikes might be in store.

Canada's labour-force participation rate, a measure of how many people are looking for work, continued its 20-month slide, falling in February by 0.2 percentage points to 67 per cent.

Among provinces, Alberta added 25,000 new jobs in the business, building and other support services, trade, public administration and “other services” industries. Young people received the bulk of February's new jobs, with an increase of 15,000. Wages were up 6.1 per cent from last year as employers competed for scarce labour.

Canada's hourly wage growth was up 3.3 per cent in February, ahead of the 2.8-per-cent increase in inflation as measured by the consumer price index.

British Columbia's unemployment rate fell to 4.8 per cent, also the lowest rate in the last three decades. “Much of the downward trend in the province's unemployment rate is due to a strengthened labour market in the Vancouver area,” the report said.

In Ontario, the unemployment rate fell as youths gave up looking for work. The manufacturing industry, meantime, rebounded from January's steep decline, adding 12,800 positions.

While Ontario factories have shed 81,000 jobs in the past three years because of a strong dollar, rising energy costs and heated competition from abroad, other sectors such as education and construction have picked up the slack. Overall employment in Ontario is 1.4 per cent higher than the same month last year.

Newfoundland and Labrador's jobless rate fell to 15.1 per cent as its economy added 6,000 jobs. The largest increases in employment came from hiring in natural resources and professional, scientific and technical services, Statscan said.

The Canadian economy created 56,300 new part-time positions in February, though it shed 31,600 full-time jobs. At the same time, the private sector added jobs while the public sector lost them.

© Copyright 2006 Bell Globemedia Publishing Inc. All Rights Reserved.

Sir Paul, You're Wrong!!

I watched that square-off between the McCartneys and Premier Danny Williams last night on CNN.

Here is what I think:

- Heather Mills McCartney was very annoying, as she kept interrupting Premier Williams and not allowing the Premier to finish his lines.

- The McCartneys kept saying that they are in NF&L (when Danny said that he'd like to invite them to come to NF&L), but the fact was they were in PEI. Seems to me that the McCartneys cannot even distinguish between the provinces of PEI and NF&L. They kept claiming that they are in NF&L, but the fact is they are in PEI.

- Premier Williams was too polite. However, he delivered his messages.

- The McCartneys are ignoring legitimate facts and arguments that were against their agenda (i.e. studies and reports by other environmental organizations - that approved the Canadian seal hunt is humane.)

- The Premier made a good point when he was saying that ALL KILLINGS are brutal, including slaughtering cows, pigs, and chickens. It has no difference in the seal hunt.

- The McCartneys do not realize that there were not only fur can be sold in markets from the seal hunt, but there are also other by-products (i.e. fat, meat, and other items). It is not ONLY just for the fur. Also, the McCartneys failed to acknowledge that hunting white-coated baby seal is illegal.

- The McCartneys failed to acknowledge that the seal hunt is sustainable.

I guess Danny wasn't ready to play rough with the McCartneys. I have to say that Sir Paul was very polite, but I am sure that he was also "confused" by his own arguments from time to time, as he was clearly mis-informed about the situation.

And you can tell that Danny was trying to ignore Mills by kept addressing to Paul instead of to Heather, but she just kept jumping all over Danny. The strategy was good (by only debating Paul and ignoring Heather after she started getting aggressive. Also, the big name is Paul McCartney - not Heather Mills McCartney. Besides, Danny would have looked very bad if he got into a yelling match against a blonde woman on Larry King Live.)

A copy of the transcript of the debate can be retrieved here.

Anyhow, this is for fun. Very addictive!!

--------------------

Premier faces off against ex-Beatle

JANE ARMSTRONG

From Saturday's Globe and Mail

March 04, 2006

St. John's — The noisy, emotion-filled voices on the Larry King Live show last night came from Canada of all places, where the topic on the popular CNN show turned to baby harp seals.

Paul McCartney, superstar ex-Beatle, billionaire and vociferous vegan, squared off against Danny Williams, the fast-talking millionaire premier of Newfoundland and Labrador and staunch defender of his province's three-century old practice of hunting seals each spring.

Wearing a beige sweatshirt with "Canada" emblazoned on the front, Sir Paul called the annual seal hunt a "brutal" practice. His wife Heather said the baby seals are "clubbed to death" before they ever get a chance to swim.

"I think it's a cruel practice that should be ended," Sir Paul told Mr. King, adding that he's been disturbed by the hunt for more than four decades.

The couple spoke to the talk show host from Charlottetown.

However, Mr. Williams, an admitted Beatles fan, emerged from a St. John's television studio last night looking like a prize fighter who scored a knockout.

"It was a wonderful experience," Mr. Williams told reporters after the early evening taping. He said Mr. King was "very fair," although he thought Sir Paul and Lady McCartney cut him off too frequently. He added that both are misinformed about the seal hunt.

The premier agreed to appear on the talk show, which has an audience of nearly 60 million worldwide, because he was "peeved" at the succession of international superstars who traipse to Canada's East Coast every couple of years to protest against the annual seal hunt.

The hunt so reviled by animal activists, he argued, is a legal, humane practice -- not unlike a slaughterhouse -- that employs about 5,000 Newfoundlanders.

Sir Paul and Lady McCartney arrived in Canada earlier this week to protest against the hunt, which the pop star described as "stain on the Canadian people."

The couple flew to St. John's, then Charlottetown and later travelled by small plane to an ice pan north of the Iles de la Madeleine in the Gulf of St. Lawrence to watch the seal pups close up.

Sir Paul said the scene on the ice was wondrous. "It's a fantastic spectacle. It's a beautiful, wildlife spectacle. And it's the kind of thing that people should just respect and love."

However, he added: "It was terrifying to think that in probably three weeks time, the sealers will arrive with clubs and pick axes and with guns and will kill a huge amount of these baby seals."

Ms. McCartney said the couple researched the issue before arriving in Canada and concluded that Canadian sealers can earn a living in other ways.

Mr. Williams and scores of other East Coast fishermen would disagree. Most seal hunters are fishermen looking to subsidize their incomes in the off season.

Mr. Williams said he believes the couple zeroed in on the seal industry because it's not powerful and, unlike chickens and cows, seals are highly photogenic.

"They target us because we're a smaller province, it's a small industry. They're not going to take on the beef industry. The seal pup makes a great photo op."

Mr. Williams said the show ended with the McCartneys urging Canada to end the seal hunt, noting that international boycotts have hurt sales. Mr. Williams replied that the boycott is based on faulty information. However, he invited the couple to visit Newfoundland.

During their trip this week to the Gulf of St. Lawrence, the McCartneys were photographed alongside a white-coated baby seal, which, Mr. Williams noted, are illegal to hunt.

The Newfoundland Premier said he respects the ex-Beatle and loves his music, but believes the couple are misinformed.

"There are a lot of Beatles fans in Newfoundland and Labrador, but to see them come in as international superstars and see them be used to promote something that is incorrect, then it is incumbent on the government of Newfoundland and Labrador and Canada ..... to counteract the information."

When CNN called the Premier's office Thursday, Mr. Williams jumped at the chance to debate.

"I see this as a tremendous opportunity. I asked for a private meeting with Paul McCartney. I have one now with approximately 50 to 60 million people in the room with us."

The debate did not change anyone's mind, he said.

"Mr. and Mrs. McCartney are vegans," Mr. Williams said. "And what they stand for is the complete elimination of the killing of anything that is breathing."

Sir Paul is following in the footsteps of other international celebrities who have come to Canada tow to protest against the seal hunt, including Brigitte Bardot Pamela Anderson.

Sealing in Canada dates to the 1700s and is worth an estimated $20-million annually.

In the late 1970s, the European Community banned the importation of white-coat pelts.

In 2003, Ottawa introduced a three-year management plan allowing for 975,000 seals to be hunted.

Mr. Williams said the seal hunt is supervised and regulations are enforced.

Newfoundland has between 4,000 to 5,0000 sealers. Earnings from the annual seal hunt, which begins in March, comprise nearly 30 per cent of their annual incomes.

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