This week, the Official Opposition participated in a four-day special sitting of the House of Assembly, where every member of the Liberal Caucus took the opportunity to ask questions and learn more about the Conservatives’ deal with Quebec.
“Our team started this week with genuine curiosity and a determination to understand this consequential deal. We asked important questions, examined the details and challenged the government’s claims. As the week progressed, a number of serious issues, concerns and contradictions became clear,” says Opposition Leader John Hogan, KC.
The Official Opposition supports the development of hydroelectric projects on the Churchill River, and had genuinely hoped for a deal they could support. However, after four days of questions, it is clear the Conservatives’ deal falls short of correcting the mistakes of the past.
Here’s what we learned:
- The agreement does not include market-based pricing for Churchill Falls to ensure Newfoundland and Labrador benefits from growing energy market prices in Quebec and other markets.
- The price Quebec pays for power from Gull Island will actually fall over time.
- There are no off-ramps in the 50-year deal
- The deal lacks independent oversight and is not subject to an independent review
- The federal government’s new tax credits and programs would apply to any similar development or deal, and Quebec is receiving the lion’s share of the power and twice as much federal funding.
The Premier has also lost credibility, as his own experts have contradicted his claims about transmission to external markets, market-based pricing, and escalation. The Conservatives have not only broken their promise to hold a referendum, but they also abandoned their previous criticisms of a 50-year deal, exclusivity, and control of Hydro Quebec. Newfoundlanders and Labradorians simply cannot trust them.
The Conservatives want you to believe it’s this deal or no deal – while they’ve already proven that isn’t true.
Members of the House of Assembly have a duty to the people who elected them. To represent their interests and advocate for what is in their best interest. After weeks of conversations with constituents across the province, and following the conclusion of the special sitting, Members of the Official Opposition could not vote in favour of a deal with so many missing protections.
Twice, Newfoundland and Labrador has had to learn hard lessons from the Churchill River. First from the unfair, lopsided deal of 1969, and again from the misguided Muskrat Falls project. This was an opportunity to learn from both experiences and protect Newfoundland and Labrador’s long-term interests. Premier Wakeham’s Conservative government missed the mark.
“As the special sitting of the House of Assembly concludes and Premier Wakeham and his government move forward with negotiations, I strongly urge them to establish truly independent oversight and commit to bringing the definitive agreements back to the House of Assembly for a full debate before they are signed – which would be one final opportunity to get this right,” says Hogan.
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