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Backed by military, Venezuela’s Maduro hits back at rival

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CARACAS, Venezuela — Backed by Venezuela’s military, President Nicolas Maduro went on the offensive against an opposition leader who declared himself interim president and his U.S. supporters, setting up a potentially explosive struggle for power in the crisis-plagued South American nation.

A defiant Maduro called home all Venezuelan diplomats from the United States and closed its embassy on Thursday, a day after ordering all U.S. diplomats out of Venezuela by the weekend because President Donald Trump had supported the presidential claim of Juan Guaido. Washington has refused to comply, but ordered its non-essential staff to leave the tumultuous country, citing security concerns.

The Trump administration says Maduro’s order isn’t legal because the U.S. no longer recognizes him as Venezuela’s legitimate leader.

“They believe they have a colonial hold in Venezuela, where they decide what they want to do,” Maduro said in an address broadcast live on state TV. “You must fulfil my order from the government of Venezuela.”

Meanwhile, all eyes were on Guaido whose whereabouts have been a mystery since the 35-year-old was symbolically sworn in Wednesday before tens of thousands of cheering supporters, promising to uphold the constitution and rid Venezuela of Maduro’s dictatorship.

Speaking from an undisclosed location, Guaido told Univision he would consider granting amnesty to Maduro and his allies if they helped return Venezuela to democracy.

“Amnesty is on the table,” said Guaido, who just weeks earlier was named head of the opposition-controlled congress. “Those guarantees are for all those who are willing to side with the constitution to recover the constitutional order.”

Besides the United States, much of the international community rallied behind Guaido, with Canada and numerous Latin American and European countries announcing that they recognized his claim to the presidency. Trump promised to use the “full weight” of U.S. economic and diplomatic power to push for the restoration of Venezuela’s democracy.

Maduro has been increasingly accused of undemocratic behaviour by his opponents, and has presided over skyrocketing inflation, a collapsing economy and widespread shortages of basic goods.

Meanwhile, Russia, China, Iran, Syria, Cuba and Turkey have voiced their backing for Maduro’s government.

China’s Foreign Ministry called on the United States to stay out of the crisis, while Russia’s deputy foreign minister warned the U.S. against any military intervention in Venezuela. Alexei Pushkov, chairman of the information committee at the Russian Federation Council, called Guaido’s declaration “an attempted coup” backed by the U.S.

Russia has been propping up Maduro with arms deliveries and loans. Maduro visited Moscow in December, seeking Russia’s political and financial support. Over the last decade, China has given Venezuela $65 billion in loans, cash and investment. Venezuela owes more than $20 billion.

Diplomats at the Organization of American States held an emergency meeting Thursday on the Venezuelan crisis, during which 16 nations recognized Guaido as interim president.

Domestically, attention has been on Venezuela’s military, a traditional arbiter of political disputes in the country, as a critical indicator of whether the opposition will succeed in establishing a new government.

Venezuela’s top military brass pledged their unwavering support to Maduro, delivering vows of loyalty Thursday before rows of green-uniformed officers on state television.

A half-dozen generals belonging largely to district commands and with direct control over thousands of troops joined Maduro in accusing Washington of meddling in Venezuela’s affairs and said they would uphold the socialist leader’s rule.

Defence Minister Vladimir Padrino Lopez, a key Maduro ally, dismissed efforts to install a “de-facto parallel government” as tantamount to a coup.

“It’s not a war between Venezuelans that will solve our problems,” he said. “It’s dialogue.”

Guaido’s father, who has lived in Spain for the past 16 years, has called on the military to drop its allegiance to Maduro.

Wilmer Guaido, a taxi driver on the island of Tenerife, told private Antena 3 television on Friday, that Venezuela’s armed forces should be loyal to the country, but not to a specific leader.

“(Simon) Bolivar used to curse against soldiers who give their back to the people,” Guaido said, referring to Venezuela’s independence hero. “I think the military should choose the right side of history.”

The father says he is proud because his son has taken a step forward to take power “from a usurper.”

Juan Guaido has said he needs the backing of three critical groups: The people, the international community and the military. While yesterday’s protest drew tens of thousands to the streets and over a dozen nations in the region are pledging support, the military’s backing is key.

Though many rank-and-file troops suffer the same hardships as countless other Venezuelans when it comes to meeting basic needs like feeding their families, Maduro has worked to cement their support with bonuses and other special benefits.

In a video addressing the military earlier this week, Guaido said the constitution requires them to disavow Maduro after his May 2018 re-election, which was widely condemned by the international community because his main opponents were banned from running.

But there were no signs that security forces were widely heeding Guaido’s call to go easy on demonstrators.

Gunfire during the protests and looting left 21 dead between Wednesday and early Thursday in the capital of Caracas and throughout the country, reported Marco Ponce, co-ordinator of the non-profit Venezuelan Observatory of Social Conflict.

The U.N. human rights chief is calling for independent investigations into the violence linked to protests.

Michelle Bachelet’s office in Geneva said that she “urged all sides to conduct immediate talks to defuse the increasingly incendiary atmosphere.”

Many Venezuelans were looking for Guaido to re-emerge and provide guidance on the opposition’s next steps.

Guaido, a virtually unknown lawmaker at the start of the year, has reignited the hopes of Venezuela’s often beleaguered opposition by taking a rebellious tack amid Venezuela’s crushing economic crisis.

He escalated his campaign Wednesday by declaring that the constitution gives him, as president of the congress, the authority to take over as interim president and form a transitional government until he calls new elections.

___

Christine Armario reported from Bogota, Colombia. Associated Press writers Josh Goodman and Fabiola Sanchez in Caracas contributed to this report.

Scott Smith And Christine Armario, The Associated Press









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Mortgaging Canada’s energy future — the hidden costs of the Carney-Smith pipeline deal

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By Dan McTeague

Much of the commentary on the Carney-Smith pipeline Memorandum of Understanding (MOU) has focused on the question of whether or not the proposed pipeline will ever get built.

That’s an important topic, and one that deserves to be examined — whether, as John Robson, of the indispensable Climate Discussion Nexus, predicted, “opposition from the government of British Columbia and aboriginal groups, and the skittishness of the oil industry about investing in a major project in Canada, will kill [the pipeline] dead.”

But I’m going to ask a different question: Would it even be worth building this pipeline on the terms Ottawa is forcing on Alberta? If you squint, the MOU might look like a victory on paper. Ottawa suspends the oil and gas emissions cap, proposes an exemption from the West Coast tanker ban, and lays the groundwork for the construction of one (though only one) million barrels per day pipeline to tidewater.

But in return, Alberta must agree to jack its industrial carbon tax up from $95 to $130 per tonne at a minimum, while committing to tens of billions in carbon capture, utilization, and storage (CCUS) spending, including the $16.5 billion Pathways Alliance megaproject.

Here’s the part none of the project’s boosters seem to want to mention: those concessions will make the production of Canadian hydrocarbon energy significantly more expensive.

As economist Jack Mintz has explained, the industrial carbon tax hike alone adds more than $5 USD per barrel of Canadian crude to marginal production costs — the costs that matter when companies decide whether to invest in new production. Layer on the CCUS requirements and you get another $1.20–$3 per barrel for mining projects and $3.60–$4.80 for steam-assisted operations.

While roughly 62% of the capital cost of carbon capture is to be covered by taxpayers — another problem with the agreement, I might add — the remainder is covered by the industry, and thus, eventually, consumers.

Total damage: somewhere between $6.40 and $10 US per barrel. Perhaps more.

“Ultimately,” the Fraser Institute explains, “this will widen the competitiveness gap between Alberta and many other jurisdictions, such as the United States,” that don’t hamstring their energy producers in this way. Producers in Texas and Oklahoma, not to mention Saudi Arabia, Venezuela, or Russia, aren’t paying a dime in equivalent carbon taxes or mandatory CCUS bills. They’re not so masochistic.

American refiners won’t pay a “low-carbon premium” for Canadian crude. They’ll just buy cheaper oil or ramp up their own production.

In short, a shiny new pipe is worthless if the extra cost makes barrels of our oil so expensive that no one will want them.

And that doesn’t even touch on the problem for the domestic market, where the higher production cost will be passed onto Canadian consumers in the form of higher gas and diesel prices, home heating costs, and an elevated cost of everyday goods, like groceries.

Either way, Canadians lose.

So, concludes Mintz, “The big problem for a new oil pipeline isn’t getting BC or First Nation acceptance. Rather, it’s smothering the industry’s competitiveness by layering on carbon pricing and decarbonization costs that most competing countries don’t charge.” Meanwhile, lurking underneath this whole discussion is the MOU’s ultimate Achilles’ heel: net-zero.

The MOU proudly declares that “Canada and Alberta remain committed to achieving Net-Zero greenhouse gas emissions by 2050.” As Vaclav Smil documented in a recent study of Net-Zero, global fossil-fuel use has risen 55% since the 1997 Kyoto agreement, despite trillions spent on subsidies and regulations. Fossil fuels still supply 82% of the world’s energy.

With these numbers in mind, the idea that Canada can unilaterally decarbonize its largest export industry in 25 years is delusional.

This deal doesn’t secure Canada’s energy future. It mortgages it. We are trading market access for self-inflicted costs that will shrink production, scare off capital, and cut into the profitability of any potential pipeline. Affordable energy, good jobs, and national prosperity shouldn’t require surrendering to net-zero fantasy.If Ottawa were serious about making Canada an energy superpower, it would scrap the anti-resource laws outright, kill the carbon taxes, and let our world-class oil and gas compete on merit. Instead, we’ve been handed a backroom MOU which, for the cost of one pipeline — if that! — guarantees higher costs today and smothers the industry that is the backbone of the Canadian economy.

This MOU isn’t salvation. It’s a prescription for Canadian decline.

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Cost of bureaucracy balloons 80 per cent in 10 years: Public Accounts

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By Franco Terrazzano 

The cost of the bureaucracy increased by $6 billion last year, according to newly released numbers in Public Accounts disclosures. The Canadian Taxpayers Federation is calling on Prime Minister Mark Carney to immediately shrink the bureaucracy.

“The Public Accounts show the cost of the federal bureaucracy is out of control,” said Franco Terrazzano, CTF Federal Director. “Tinkering around the edges won’t cut it, Carney needs to take urgent action to shrink the bloated federal bureaucracy.”

The federal bureaucracy cost taxpayers $71.4 billion in 2024-25, according to the Public Accounts. The cost of the federal bureaucracy increased by $6 billion, or more than nine per cent, over the last year.

The federal bureaucracy cost taxpayers $39.6 billion in 2015-16, according to the Public Accounts. That means the cost of the federal bureaucracy increased 80 per cent over the last 10 years. The government added 99,000 extra bureaucrats between 2015-16 and 2024-25.

Half of Canadians say federal services have gotten worse since 2016, despite the massive increase in the federal bureaucracy, according to a Leger poll.

Not only has the size of the bureaucracy increased, the cost of consultants, contractors and outsourcing has increased as well. The government spent $23.1 billion on “professional and special services” last year, according to the Public Accounts. That’s an 11 per cent increase over the previous year. The government’s spending on professional and special services more than doubled since 2015-16.

“Taxpayers should not be paying way more for in-house government bureaucrats and way more for outside help,” Terrazzano said. “Mere promises to find minor savings in the federal bureaucracy won’t fix Canada’s finances.

“Taxpayers need Carney to take urgent action and significantly cut the number of bureaucrats now.”

Table: Cost of bureaucracy and professional and special services, Public Accounts

Year Bureaucracy Professional and special services

2024-25

$71,369,677,000

$23,145,218,000

2023-24

$65,326,643,000

$20,771,477,000

2022-23

$56,467,851,000

$18,591,373,000

2021-22

$60,676,243,000

$17,511,078,000

2020-21

$52,984,272,000

$14,720,455,000

2019-20

$46,349,166,000

$13,334,341,000

2018-19

$46,131,628,000

$12,940,395,000

2017-18

$45,262,821,000

$12,950,619,000

2016-17

$38,909,594,000

$11,910,257,000

2015-16

$39,616,656,000

$11,082,974,000

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