Newfoundland and Labrador Premier Tony Wakeham has indicated that his choice to bypass a public vote on a new Churchill Falls agreement, contrary to earlier commitments, is influenced by political factors.
During his campaign for last year’s provincial election, he assured a referendum would take place on any deal concerning Churchill Falls. On Monday, alongside Prime Minister Mark Carney and Quebec Premier Christine Fréchette, Wakeham revealed a new agreement, which will not be subject to a public vote. He acknowledged that many might feel “disappointed” by the lack of a referendum.
“The situation has evolved significantly now that the federal government is involved. This level of involvement was never even considered in the previous [memorandum of understanding] or at any time prior,” Wakeham shared during a phone call on Wednesday with CBC Radio’s The St. John’s Morning Show.
He noted that with the federal government advocating for prompt action, the “facts on the ground” have transformed in the past year, particularly with regard to the ongoing trade dispute with the U.S.
U.S. President Donald Trump has temporarily suspended 50 percent tariffs on Canadian products for three days, which were set to take effect on August 19, while discussions regarding a trade agreement are ongoing.
“We are facing the possibility of additional U.S. tariffs, and that threat remains,” Wakeham stated.
The House of Assembly is set to reconvene on September 14 for a special discussion, with Wakeham assuring that Members of the House of Assembly (MHAs) will be equipped with the necessary resources to examine the details. He confirmed that the negotiating team would be available during this session.
The new agreement supersedes a 2024 MOU established by the former Liberal provincial administration, which a subsequent review by Wakeham’s government found to be not advantageous for the province.
During the vote on the previous MOU, the PC caucus staged a walkout.
When questioned about the possibility of a similar walkout from the opposition, Wakeham remarked that they had previously supported the former MOU and insisted that the current proposal is an improvement.
“This is a new and improved deal that offers increased power, enhanced value, and greater transmission capacity,” he asserted.
Wakeham further mentioned that a significant advantage of the new agreement is Newfoundland and Labrador’s ability to sell electricity to Quebec or retain surplus power for local industry needs. He also pointed out that the federal involvement enhances the current MOU, such as the proposed 2,000 megawatt onshore wind energy initiative in Labrador, where the federal government could take a 40 percent equity share that Newfoundland and Labrador could later repurchase.
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Additional benefits include loan guarantees for the Gull Island hydroelectric project, which will assist in reducing borrowing costs, investment tax credits, and federal support for constructing the Labrador Transmission Line, he noted.
“All these elements combined represent over $3.5 billion in investment from the federal government, which is joining us as a partner,” he explained.
With an impending Quebec election that could result in a change of government, Wakeham acknowledged the unpredictability of that situation but expressed confidence that this deal serves the interests of both provinces.
He expressed his hope to finalize the agreement by the end of the year.
‘Tenuous geopolitical world’
Charlene Johnson, CEO of Energy N.L., was present during Monday’s announcement and expressed pride in Newfoundland and Labrador’s “natural resources that are the envy of the world.”
Her members eagerly anticipate the multitude of job opportunities that the energy initiatives could generate, encompassing engineering, fabrication, on-site construction, and ongoing operation and maintenance.
“We are excited about the prospects throughout the entire lifecycle of this project,” Johnson stated.
Energy N.L. CEO Charlene Johnson emphasizes her members’ eagerness to engage in all phases of the projects. (Danny Arsenault/CBC)
She also remarked on Carney’s characterization of this as the largest clean energy investment in North American history, calling it “very significant.”
“The world is in dire need of energy at this moment, and Newfoundland and Labrador possesses the resources and expertise to meet that demand,” Johnson emphasized. “We are all highly aware of the fragile geopolitical landscape we currently navigate.”
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