The Official Opposition is pleased that developments on the Churchill River are moving forward, building on the foundation established by our 2024 MOU. As acknowledged in the announcement, the deal outlined today is largely consistent with the framework set out in the MOU, and we are pleased the Conservative government now recognizes that it was a good deal all along.
We thank Liberal Prime Minister Mark Carney, who has long recognized the importance of moving this generational project forward. Our former Liberal government successfully advocated for Churchill Falls to be included on the list of potential National Major Projects and pushed for federal investment tax credits. We continued to champion these measures with Prime Minister Carney, and we are pleased to see him follow through and push this deal over the finish line. We are also pleased that the Innu Nation has continued its support of the MOU, and encourage the government to continue meaningful Indigenous engagement.
Newfoundland and Labrador Concessions, More for Quebec
However, the Official Opposition has serious questions for Premier Wakeham. The additional developments appear to greatly favour Quebec, including Quebec receiving an additional 3500MW and Newfoundland and Labrador receiving only 760 additional MW. According to La Presse, the federal government will pay Quebec $6.5 billion, while Newfoundland and Labrador will receive only about half that.
Premier Wakeham has also removed the 2% escalator on the Gull Island project, losing the guarantee that the price paid to Newfoundland and Labrador over time would rise.
For years, Premier Wakeham was clear that a 50-year agreement was too long. Now, he has agreed to exactly that.
Concerningly, the new MOU will now start on January 1, 2027, as opposed to retroactive payments agreed to in our former MOU. Premier Wakeham’s delay has already cost Newfoundlanders and Labradorians more than $2 billion this year – money that our province needed urgently to help with affordability and health care.
Referendum Broken Promise
Premier Tony Wakeham also made a clear promise to Newfoundlanders and Labradorians: any final deal on Churchill Falls and Gull Island would be put to a public referendum.
He made that commitment from the very first day of his election campaign and repeated it throughout the campaign – asking Newfoundlanders and Labradorians to trust him while asking for their votes.
Today, Premier Wakeham has finally admitted he will break that promise, trading a referendum for debate in the House of Assembly, while the Quebec election is ongoing, which could put an end to the entire opportunity.
Newfoundlanders and Labradorians simply deserve better. If the public can not trust what Premier Wakeham said less than a year ago, how can they trust anything he says today?
Too Little, Too Late: Quebec Election put this all at Risk
Premier Wakeham and the Conservative government put our province’s future, billions of dollars in potential revenue and tens of thousands of jobs at risk by delaying the updated MOU until the last minute and playing politics with a generational project, only to come back with an agreement that is, by their own admission, essentially the same deal.
With Québec heading to the polls in a matter of days, there was no time to waste. This opportunity could be lost if a Parti Québécois government is elected, as they have been clear that they will terminate these agreements.
As reported, there is no penalty if either party withdraws from the agreement before a final agreement is concluded, no later than December 31, 2026. This gives any new Quebec government plenty of time to follow their commitments and terminate the deal, leaving Newfoundland and Labrador to lose the historic opportunity the MOU brought.
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