[TWI-Only] [IC] Gael Four Commission

[Ainslie]

The Commission now acknowledges the entrance of Noronica into the Mandurah Accord. Thanks to the Noronnican delegation for their time.

[Michigonia]

Dr. Olden Prosje, formerly the Senior Trade Commissioner to Ostehaar, took his seat as the new Michigonian observer delegate to the G4C. The 62 year old technocrat, with all his liberal underpinnings, took the post with pride. He smiled and nodded to the other delegates, anxiously anticipating the next order of business.

[Ainslie]

Unsure of what to do with this new delegate, Downey looks at the other representatives waiting to see their reactions. The Mandurah Accord meant that people must have a seperate vote to be elevated into the commission. She waited.

You can observe but you won't be able to vote until there's a vote elevating you to voting rights in the commission

[Ostehaar]

Mehnard entered the meeting room, a warm cup of tea in his one hand and several thick spiral bound booklets in the other. He nodded slightly at Dr. Prosje, whom he knew from past encounters, and took his seat next to the table.

"Good day, delegates," he said cheerfully as he arranged his papers in front of him, "I have several issues I'd like to discuss with you all, delegates from Noronica and Michigonia included. Are we voting on doctor Prosje's admittance into the commission, or should I go ahead with my plans first?"

[Verdon]

"The plans, if you will." said Vidal, "I don't think anyone has any issue with Dr. Prosje's presence."

[Ostehaar]

Mehnard thought for a moment. "Alright, then let me just hand you all the main points." He grabbed some of the booklets and handed them around.

"There are some minor issues in addition, but I'll start with the important one." He cleared his throat. "I'm proposing, on behalf of my government, of course, the establishment of a multinational partnership specializing in nuclear power and renewable energy, the Gael Alternative Energy Group. The purpose of this corporation would be to facilitate and promote the construction of more nuclear power plants in Gael, in order to replace fossil fuel based energy production, as well as funding, research, and development of renewable energy options."

"In regards to nuclear energy, this company will not have its own engineering and development units, and instead will rely on OCES for these roles. So basically, its main focus would be to administrate the projects. Meaning, to hire contractors, to find sites suitable for nuclear facilities, to handle the business aspect of the projects such connecting each plant to the local power grid and purchasing lands."

"Ownership of the Group would be divided among Ostehaar and the G4 nations, with Ostehaar controlling 30% of the company and Ainslie, Verdon, Adagar, Noronica, and Michigonia each controlling 14%. This would ensure that any majority, meaning at least 4 partners, would also have the majority of 'votes', and that a three-against-three situation would result in Ostehaar being the deciding partner. However, this is all... negotiable."

"According to our initial plan, which is also open to discussion, of course, the company would have four subsidiaries. 'GAEG-NP', Nuclear Power, would manage and promote the power plant and fuel cycle projects across Gael. 'GAEG-AS', Advanced Services, would develop recycling solutions for used fuel, offer storage, transportation, and disposal options for radioactive materials, and would also include a Logistics Unit that would support and assist operations of GAEG-NP, and an Exploration Unit that would locate and develop new uranium ore deposits. 'GAEG-RE', Renewable Energy, would represent the four business lines of solar power, offshore wind power, biomass power, and hydrogen power storage and distribution. Finally, 'GAEG-RD', Research and Development, would focus on education and training for future nuclear engineers and scientists across Gael, and operate nuclear research facilities."

"There's more in the booklets I gave you... business models, market analysis, potential projects, our suggestion for the organizational chart and the board, and other matters."

Mehnard sighed and paused for a moment. "The other issues I wanted to raise are more of a formality. My idea is that we, as a collection of nations which share interests, adopt a shared, consistent position on certain regional issues. I'm talking about San Javier, terrorism in the Mesder, the Second Imperial War, and perhaps Merrit Isle. I believe we should present a united Gael on these matters, with a clear and practical agenda."

[Ainslie]

We are interested in the Oster's proposal, but we would like to see the initial reactions of the other delegates before we enter more in depth discussion about it. I also agree that where possible, a united Gael response to global issues would send a powerful message to the Isles about the benefits of regional cooperation in the sphere of diplomacy. Ainslie supports that notion.

[Verdon]

"An organized approach to energy solutions is a marvelous idea and paves the way for standardized, and high-set environmental standards. I know some of you signed the Kirsdoff Summit Agreement; in Verdon, we need to shift 17 kilowatt/hours to renewable sources in the next fifteen years. However, all energy assets and infrastructure are owned by our government; energy is a nationalized industry in Verdon. How does that come into play with regards to the GAEG's ownership and assets?"

[Ostehaar]

Mehnard nodded as he took notes. "Well, the moment a facility finishes construction, it can be formally handed over to government ownership. GAEG's first and foremost role, as I see it, would be to manage the projects until completion, and further operation by GAEG or OCES can then take place only if the local authority wishes."

"So the bottom line is that your government can keep owning Verdon's operating energy infrastructure. The only exception would be that it wouldn't own facilities that are still under construction. Is that a problem?"

[Ainslie]

We're open to the proposal in its entirety as presented. Is the Verdonian delegate satisfied with the Oster's response? If so, shall we begin the voting given that there have been no other obvious objections?

[Agadar]

"Impressive plan, mister Pohesjer," count-palatine Blackburn stated, "however, the division of the ownership of the group begs the following question: why would Ostehaar's share be more than twice that of its fellow G4 member nations?"

[Ostehaar]

"The ownership allocation is designed to give Ostehaar decision rights in the case of tie among board members. Notice that any simple majority among members becomes the majority of shares, whether Ostehaar votes with that majority or not. In the case of a three-to-three tie, the larger Oster cut makes its side of the discussion the bigger one, share-wise."

"And why would Ostehaar deserve that right, you ask? Just one reason, and it's that a lot of GAEG's activities would rely on OCES' capabilities. As I stated, though, this is open to discussion. We believed that the G4 member's wouldn't oppose this, given the above reasoning."

[Agadar]

"Are you saying OCES will lend their capabilities to GAEG free of charge?" Blackburn inquired. "If not, and they are fairly compensated for their works, then GAEG's reliance on them is not an argument for Ostehaar to hold such an unequally large share. After all, we will all be financing GAEG in the same capacity, no? Or will Ostehaar's contributions to GAEG be twice that of other G4 nations?"

"On another note: what if future members of the G4 desire to take part in GAEG? Would ownership of GAEG be divided even further? And what if a GAEG nation leaves the G4 for whatever reason? Surely, said nation would legally maintain his share in GAEG. Does this not allow for the possibility of an international legal dispute and a disruption of the efforts of GAEG and the G4 as a whole?"

Blackburn adjusted his glasses.

"Forgive me if these questions are already answered in your booklets. Seeing as I have only just been given them, I have not yet had the chance to read through them."

[Ostehaar]

"Not completely free of charge, but indeed in lowered fees," Mehnard said.

"Our idea was to divide the Oster 30% into two segments, 10% would be owned by FIF, which is an investment fund owned by some leading technological corporations in Ostehaar and by our government. The remaining 20% would be owned directly by OCES. The Oster government itself, as a separate entity, would not be a part of that deal. In a similar fashion, your governments can choose to allocate your shares however you wish, the same way ours chose to place most of them on the private sector."

"So in a sense, yes, our contribution would be a bit larger than yours, if this arrangement is accepted."

"As for joining members, according to the initial plan, that would require a GAEG vote to accept the new member, and to allocate shares accordingly. Leaving members... that's a more difficult issue indeed. The suggested mechanism is that this too would be discussed and decided upon by the remaining members. However, if you have other ideas, we can discuss those."

"In any case, it is obvious that you have significant reservations with the proposed arrangement. In you opinion, should we simply allocate the shares equally? Would you have any reservations then?"

[Agadar]

"Your plan is to divide the shares among Oster private enterprises?" Blackburn wondered. "I would hardly call it a G4 initiative if the governments of the G4 are not controlling the shares. Besides: if GAEG employs the services of OCES, and OCES has shares and thus decision-making powers in GAEG, is this not a conflict of interests?"

"I would propose a simpler division of shares. Have the G4, as an entity, be in full control of GAEG. Decisions about GAEG policies will then be resolved the same way as any other G4 policies are: through a simple vote by the committee. If no resolution can be reached this way, GAEG's board of directors can have the final word."

"This solution would solve the -in my eyes- inequality of the shares distribution, and what to do when a nation enters or leaves the G4 accord."

[Ostehaar]

"It was merely a way to give OCES decision power in order to prevent problems that may arise if, for example, OCES would not be able to supply some demands."

"However, I see your point, and your suggestion sounds reasonable. We would still need to determine exactly the funding process for GAEG, though, since the G4 agreement in itself doesn't currently contain the proper tools for that."

"What do the other delegates say on this arrangement?"

[Verdon]

"We are also concerned about the over-reliance on the OCES. Projects like these would normally be handled by Verdonian companies, so awarding such large building contracts to foreign companies may not go over so well..."

[Ostehaar]

"I understand," Mehnard said. He paused for a moment and moved his papers a bit, ready to write notes in his notebook.

"Then let's try to come up with a better outline. G4 ownership instead of private and public ownership by members, for a start, and opening the group to companies other than OCES. I believe establishing such a partnership would not only benefit our nations, but would also set an example to the rest of the region in the field of alternative energy. That's why I'm willing to try almost any arrangement, no matter for far it may be from my initial suggestion."

[Agadar]

"It seems natural to me that if GAEG seeks to do a project in a G4 nation and there is a company in that nation capable of fulfilling GAEG's quota, that GAEG's board of directors would naturally choose said company over foreign companies, unless the costs of or quality provided by said company does not meet GAEG's demands," Blackburn proposed. "This would prevent giving OCES a monopoly control of such projects, while incentivizing indigenous companies to take part in GAEG and ensure their prices and quality are up to standards."

[Ostehaar]

"I agree," Mehnard said.

[Verdon]

"This is the edit we're looking for. We can make the obvious concession that OCES is, by far, a leader in nuclear power, but we'd rather have other energy projects - ones we're capable of managing - to stay 'native' in production."

[Ostehaar]

"What do the delegates of Ainslie, Noronica, and Michigonia have to say about this arrangement?"

[Ainslie]

We have already established our position.

[Noronica]

Rachel added her own thoughts into the mix, "I feel that this would be an excellent opportunity to unify and hasten our approach to renewable energy. As it stands, Noronica operates nuclear power stations in partnership with the OCES. However, I agree with both the Verdonian and Agadar delegates in that other energy companies and projects should have an equal opportunity. As pointed out, we need an incentive for this system to work and I believe with the points made and with what we have, we should be able to set this up. I don't think I have anything further to add to this conversation other than that I agree that we need a unified approach to renewable energy instead of relying on fossil fuels, and hopefully Gael can set a precedent for the rest of the Isles."

[Ostehaar]

"I feel that we've covered the main issues," Mehnard said. "I appreciate your inputs, and I'll bring this up again very soon once I get final word from my government regarding the points raised."

"Let's clear the agenda so we could carry on."

[OOC: I'll make a dispatch about it soon so we could finish discussing the details next time]