Concerned Citizens for BC leader Jim Shepard & $1 million anti-NDP campaign has BC Rail skeletons in closet, lots of unanswered questions

Jim Shepard, Concerned Citizens for BC leader, in recent TV interview 

Skeletons in closet add up for group behind $1 million anti-BC NDP heavy duty negative TV and radio ad campaign

Bill Tieleman’s 24 Hours/The Tyee column

Tuesday February 5, 2013

By Bill Tieleman

"Three things cannot be long hidden: the sun, the moon, and the truth."

- Buddha

An advocacy group asking tough questions about B.C. New Democrat leader Adrian Dix in a $1 million attack ad campaign is being very shy in providing clear answers about skeletons in its own closet.

And as the election nears, Concerned Citizens for BC may face increasing questions about the role of its leader, retired corporate executive Jim Shepard, in the controversial $1 billion privatization of B.C. Rail in 2003.

Shepard, whose group is airing radio ads making negative allegations about Dix's past in the NDP government of the1990s, was a director of B.C. Rail when the B.C. Liberal government broke its election pledge not to sell the Crown corporation.

And it's unclear who is running Shepard's current ad campaign.

What's up Wazuku?

The Tyee and 24 Hours Vancouver newspaper first exclusively revealed last month that CC4BC is spending $1 million on the multi-media campaign, according to the group's internal communications.

Wazuku staffer Kirsten Avison confirmed the consulting company was running the campaign for CC4BC leader Jim Shepard, the former Canfor and Finning CEO and former advisor to Premier Christy Clark.

But last week senior Wazuku partner Steve Kukucha emailed 24 Hours, claiming that CC4BC wasn't one of its projects.

"CC4BC is simply renting office space from Wazuku.  I've passed this on to Jim via email though.....I hope this clarifies things," Kukucha wrote me on Jan. 28.

Yet a day after that, Avison sent out an email (see sidebar) to CC4BC supporters written by Shepard -- obtained by 24 Hours and The Tyee -- stating that:

"In the days ahead, we will be airing some very direct, but factual ads that will bring the contrast between the NDP and free enterprise into even sharper focus."

Neither Kukucha, Avison nor Shepard responded to Tyee inquiries by deadline.

An email address provided by Kukucha for Shepard was incorrect.

Ad backer was BC Rail director

CC4BC's current radio ads claim Dix was responsible for problems in the 1990s, when he was chief of staff to then-premier Glen Clark.

But Shepard needs to answer questions about Wazuku's role in his $1 million ad campaign. Wazuku's other partners include Brad Zubyk, a former NDP staffer who switched sides and worked on Clark's leadership campaign.

Both Zubyk and Kukucha have been active in federal Liberal Party election campaigns.

Wazuku Advisory Group's Michael Watson, Brad Zubyk & Steve Kukucha - website photo

And Shepard may not want to answer questions about his own political past, such as his leading role in the controversial $1 billion privatization of B.C. Rail in 2003.

Shepard was appointed to the board of directors of B.C. Rail in 2001 by the new B.C. Liberal government of then-premier Gordon Campbell, and was on the board through 2003.

Campbell promised in the 2001 election campaign that he would not privatize B.C. Rail, having lost the 1996 campaign in part by pledging to get rid of the Crown corporation that served northern B.C.

But shortly after the election, Campbell reversed himself again and the B.C. Rail board and government eventually approved the sale to CN Railways for $1 billion.

A month after the sale was announced police made an unprecedented raid on the B.C. Legislature, seizing documents from the offices of David Basi and Bob Virk, two then-B.C. government ministerial aides.

Basi and Virk were later charged with breach of trust and fraud for providing confidential government documents to lobbyists for OmniTRAX, the other and losing B.C. Rail bidder. Two other companies, CP Rail and Burlington Northern Santa Fe, had dropped out earlier, with both complaining the process was "unfair."

After years of B.C. Supreme Court pre-trial hearings, Basi and Virk made a surprise guilty plea after only two witnesses had testified -- and the province was shocked when the government admitted it was paying the entire $6 million in legal bills despite the pair admitting their guilt, a complete contradiction of government policy.

Independent B.C. Auditor General John Doyle is probing why the government approved that payment in a report that will raise new questions about the scandal.

And as he becomes an increasing public figure due to his massive pre-election advertising campaign, Shepard may be asked some pointed questions about his past as well.

Questions for Shepard

One of the only two witnesses to testify in the Basi-Virk trial was fellow B.C. Rail director Brian Kenning, who was appointed at the same time as Shepard in 2001 and who claimed in court that the board spent almost a year trying to convince Campbell to sell the company despite his election pledge not to.

Kenning also confirmed that he was paid a retainer of $15,000 a year and $1,500 to attend each B.C. Rail board meeting.

How much was Shepard paid as a B.C. Rail director?

B.C. Rail expenditures were severely questioned by defence lawyers in the trial and pre-trial hearings, with the court hearing that controversial consultant and past-B.C. Liberal election campaign co-chair Patrick Kinsella had been paid $297,000 in a 49-month contract for "business advice" that one B.C. Rail executive was unaware of for three of those years.

As a B.C. Rail director was Shepard aware of Kinsella's contract? Did they ever meet to discuss B.C. Rail business?

Meanwhile, Shepard is extolling the success of CC4BC, claiming that CC4BC has helped narrow the gap between the B.C. Liberals and the NDP (see sidebar):

"People thought we were wasting our time trying to return a free enterprise government. They don't doubt us anymore," he wrote. "Over 95 per cent of the money raised has gone directly into purchasing advertising so please continue to spread the word."

But if Shepard can spend a million dollars to ask questions he better provide answers about his own politics as well.

Disclosure: Writer of this opinion piece Bill Tieleman supported Adrian Dix's leadership nomination campaign.

CC4BC SAYS ATTACK ADS HURTING NDP

What Concerned Citizens for BC says in its email to supporters obtained by 24 Hours/ The Tyee - this is the complete email:

From: Kirsten CC4BC


Sent: Tuesday, Jan. 29, 2013 03:28 PM Pacific Standard Time


To: undisclosed-recipients 


Subject: CC4BC Update - sent on behalf of Mr Jim Shepard 
 

Dear Supporters,

I just wanted to thank you for all your support over the past months. Our hard work is paying off!!! When we started our campaign the NDP had a 28-point lead in the polls. Remember those days? People thought we were wasting our time trying to return a free enterprise government. They don't doubt us anymore.

Today, Mustel Research released a poll showing that the gap is now 10 percent. Think about that for a moment. In three months, we have gone from being almost 30 points behind to 10. And there are still three months left until the election.

These numbers are the result of our accelerating commitment and hard work. In the days ahead, we will be airing some very direct, but factual ads that will bring the contrast between the NDP and free enterprise into even sharper focus.

This will make our ability to keep on raising money even more important so that we can get our message out to as many people as possible.

Our website now accepts credit card donations and there is no contribution too small. Over 95 per cent of the money raised has gone directly into purchasing advertising so please continue to spread the word.

Thank you again for your commitment. I am looking forward to seeing you all in the days ahead.

Sincerely,

Jim Shepard


Chair,

Concerned Citizens for British Columbia

Why Is Probit Calling Every Voter in BC? And Who Is Their Mystery Client If Not Any BC Political Party?

National polling firm attempting to call every voter in BC – but for who?  All major parties say “not us”! 

Probit, a division of Ekos, firm wants to probe your political leanings in every BC riding, but it won't say who it works for.  Concerned Citizens for BC right-wing pro-BC Liberal advocacy group with $1 million campaign won't respond.

Bill Tieleman’s 24 Hours/The Tyee column

Tuesday January 29, 2013

By Bill Tieleman

"Polls? Nah... they're for strippers and cross country skiers."

- Sarah Palin, ex-American vice-presidential candidate.

A national research firm is attempting to call every single one of British Columbia's estimated 3.27 million eligible voters with election polling and voter identification questions, 24 Hours and The Tyee have learned.

But who is paying for what is sometimes controversially referred to as "robocalling" and why? All four major B.C. political parties say it's not them and they don't know.

The Tyee obtained all the questions conducted by Probit, owned by public opinion polling firm Ekos, in the five-minute call, which could cost up to nearly $500,000.

Probit head Elliott Gauthier confirmed Monday that: "We have been hired to conduct an Interactive Voice Response (IVR) survey. The questionnaire is for all eligible voters in British Columbia."

Gauthier says another research firm hired Probit, but their name is "confidential."  

However, B.C. Liberal, New Democrat, Green and Conservative Party representatives all said they weren't conducting the calls, as did the B.C. Federation of Labour.

The pro-Liberal group Concerned Citizens for BC, which 24 Hours Vancouver newspaper and The Tyee exclusively revealed has a $1-million advertising campaign budget and is running anti-NDP radio ads currently, didn't respond to email inquiries by deadline.

What they want to know

Bryan Bedera of GrassRoots 2.0 -- a Reno, Nevada calling firm, estimated the Probit calls would cost about 15 cents each.

That would price the calls at up to $491,000, but Bedera notes a volume discount might bring the price down to as low as 10 cents a call or $327,000. And since not every voter has their own phone, the potential total calls and the price is more likely half that.

Steve Griffiths of Ifbyphone, a Chicago-based telemarketing firm which does call in Canada, said Monday its rates usually average five cents per minute but with a high volume of calls the price would come down to 3.5 cents a minute, or around 20 cents a call with the length of the Probit script.

I received automated Probit telephone calls twice last week, on Thursday and Sunday evening at my home in the Vancouver-Point Grey riding, recording one call and taking notes for the second identical survey.

The questions seem to combine polling and voter identification, where the party commissioning the Interactive Voice Response [or Recognition] survey is provided with results on the party preferences of the person who answers, reaction to issues raised, approval rating of party leaders and demographic information.

The cheaper IVR automated campaigning is a means by which a party can reach far more people than with a traditional live phone call, making it a cost-effective method of determining where your candidate stands with voters and which ones to concentrate efforts on, i.e. the undecided or soft support voters who might be convinced to back your candidate with the right argument.

IVR is also used for Get Out The Vote efforts on election day, candidate endorsements, advance voting reminders or any other messaging a party may wish to send to voters.

The Probit poll was just five minutes long but packed in key questions, including these:

"Would you say the provincial government is on the right track or the wrong track?"

This is a classic question almost always asked in party polling -- a general indication of political environment that sometimes is at odds with party preference numbers but usually shows the way the wind is blowing.

"If a B.C. provincial election were held tomorrow, which one of the following would you vote for here in Vancouver-Point Grey: Christy Clark, the BC Liberals' candidate; David Eby, the BC NDP candidate, Francoise Raunet, the BC Greens candidate, the BC Conservatives' candidate [not yet nominated], an independent candidate or are you undecided?"

If undecided, the poll asks: "Which party's candidate are you leaning towards supporting?" with the same choices.

This again is classic, a way to attempt to get a "forced choice" answer out of those who don't want to give their party preference.

The poll then asks if "you approve or disapprove of" Premier Christy Clark's and NDP opposition leader Adrian Dix's performance or have no opinion.

The poll also asks who you voted for in the May 2009 provincial election, followed by demographic questions on gender, age, education level, household annual income, ethnic background, what kind of phone service you use and your postal code.

The past election voting allows the pollster and/or party to track voter retention --- how many previous supporters are still on board, while demographics help a pollster ensure a balanced sample.

Probit also asks if you wish to join its research panel for future surveys "on a variety of topics".

Probing Probit

Probit does not mention voter identification on its website as one of its services but it does state that it is suited to "market research" among other purposes.

"Probit is EKOS' new Internet-telephone survey tool for answering serious research questions. It is the most rigorously constructed hybrid survey tool in Canada. Probit is perfectly suited to polling, communications, evaluation, market research or any project that requires valid, representative sampling."

The BC Liberals polled heavily in Vancouver-Point Grey during the lead up to the May 2011 byelection that Clark narrowly won by 564 votes over Eby -- and at that time I also revealed details of the polling.

Regardless of whether we ever find out all the details of the Probit polling or who is behind it, what is clear is that the battle for B.C. will be both fierce and expensive.

.

BC Government Bailouts for BC Film Industry? Cut! The Never Ending Call For More Money From Hollywood

BC Liberal, NDP politicians: resist being seduced by Hollywood's subsidy hungry hype

Hollywood sign over the movie business capital in Los Angeles

Bill Tieleman’s 24 Hours/The Tyee Column

Tuesday January 21, 2013

By Bill Tieleman

"Free is too much!" -- Desk sign at Hollywood film producer's office, 1998

If there's one thing that both BC Liberals and New Democrats can agree on it's this: giving money to Hollywood is almost irresistible!

So if you want to get literally hundreds of millions of tax dollars to subsidize your already highly profitable $1.2 billion industry, just send a few movie stars and producers up to British Columbia, smile sweetly about how you love the place and then threaten to leave.

Works every time.

And when over 1,000 rightly worried film and television workers meet tonight at North Shore Studios for a Save BC Film information session that will get blanket media coverage, and an online petition hits 25,000 signatures, watch the pressure build on both parties to outbid each other with your money.

But things don't change when it come to film moguls milking the government like a prize dairy cow while promising to make politicians look like stars.

Adventures in Hollywood

In 1998 I went on a "fact finding" mission to Hollywood representing labour, along with a B.C. government deputy minister and film industry representative.

The trip was needed because Ontario had just introduced an 11 per cent tax credit on labour used in film and television production -- excluding foreign actors and crew -- and B.C. was under pressure to match it or the industry would die hard with a vengeance.

We spent two days meeting movie executives and in one producer's office was a big sign at his desk that epitomizes the whole situation: "Free is too much!"

The penny -- and a several million dollars -- dropped for me then.

The same producer said his firm would shift a $2 million television movie of the week from Vancouver studios to Toronto if it could save just $10,000 in total from Ontario tax credits.

"Seriously?" we asked incredulously. "Even with more experienced crews, the time zone difference, better weather, the extra distance from Hollywood, the variety of locations and sets?"

"Yes," was the straight answer back.

And it may be true.

Scripting a bidding war

B.C. paid up then even when the dollar hit as low as 63 cents U.S. and kept jacking the tax credit from 11 per cent to an astonishing 33 per cent today on all local labour costs, plus additional credits for shooting outside Vancouver, spending around $285 million a year to keep up to 25,000 jobs here. Currently the industry says the unemployment rate is about 90 per cent.

But Hollywood has a good script and we now see the results of Ontario and Quebec starting a shameless bidding war for film industry jobs and investments with an incredibly generous tax credit hike to 25 per cent of total costs that puts B.C. 10 per cent to 13 per cent behind them.

Better investments

Just think for a minute about that -- would the restaurant or forest products or construction industry like to get a one-third tax credit on all its labour costs?

A tax credit that really means you get all tax paid back and then a cheque from the government for the remaining value of that cost?

You bet! Would they invest that money in B.C. to create more jobs? Sure!

Would spending $300 million a year building 1,000 or more units of housing for the homeless create lots of great jobs and put a needed roof over people's heads too? You bet!

But unlike the film business, other sectors can't easily get up and leave town.

Movie and TV shoots, unfortunately can and do.

And they're not shy about making that clear.

Movie production manager Warren Carr made it clear in an interview with CKNW radio's Sean Leslie on Sunday.

"Yes, we need a little help on the tax credit," said Carr, who helped produce The Bourne Legacy and Diary Of A Wimpy Kid.

The movie moguls were also big fans of B.C.'s outgoing Harmonized Sales Tax, which also put more money in their pockets at consumers' expense, advocating strongly for it in 2011's binding referendum when I was strategist for Fight HST, the group that successfully opposed the tax.

Today the industry's Save BC Film online petition also puts it plainly -- give us tax money:

"Vancouver's ability to remain a competitive film market relies heavily on the support of the provincial government and their enthusiasm for maintaining an attractive taxation scheme.

"With a strong Canadian dollar, this is the only way to ensure and build upon the long-term success that has been established."

Fair enough from the film industry perspective -- and no one wants to see workers unemployed -- but the rest of us may not agree that ever-rising levels of tax rebates from the public coffers are a good way to save jobs.

Let's direct our own fate

No matter what B.C. does, other jurisdictions in Canada, the U.S. and elsewhere have engaged in an unlimited bidding war for Hollywood's favour, with tax credits as high as 35 per cent in Louisiana.

So what's the solution if throwing more money at Hollywood isn't?

There has to be a sustainable plan for B.C.'s film and television industry; one that isn't completely dependent on massive tax credits or a depressed Canadian dollar to survive and grow.

But it won't be developed in the heat of a panic campaign or with advice from self-serving movie moguls.

And Hollywood's love of whip-sawing province against province, as well as American states and foreign countries, for the biggest, fattest tax credits imaginable has to hit the cutting room floor at last.

Premier Christy Clark and her government have done a pretty miserable job with the industry, considering how much money they spend on it, alienating both workers and bosses with their indifference to what really is a very difficult situation of high unemployment and fewer productions in B.C.

But both parties would be smart not to jump when Hollywood yells: "Action! Throw us big bucks and make it look sincere!"

With a sensible strategy, B.C.'s film and television business won't fade to black and the hit movie "Tax Credit Bandits" won't keep producing expensive sequels.