As talks about the signing of a new Churchill Falls deal reach a fever pitch, at least one new clause could have major positive ramifications for Newfoundland and Labrador, says one long-term former civil servant.
In the revamped deal, as first reported by allNewfoundlandLabrador, there’s a guaranteed transmission access of 985 megawatts through Quebec. This means Newfoundland and Labrador can sell up to that amount of Churchill River electricity by sending it through Quebec, using Hydro-Quebec’s transmission network, and on to other markets. For example, if Massachusetts needed power, Newfoundland and Labrador could sell it.
The previous Churchill Falls MOU had no guarantees of transmission access and it would be Quebec that would have first access to energy set aside for N.L. but that was not being used within the province.
CBC confirmed the detail through a source with direct knowledge of the deal who is not authorized to speak publicly.
Ron Penney said if such a deal regarding transmission access is true, “It would be a big, a big change, no question and very advantageous to us.”
Ron Penney says he doesn’t believe time permits for an MOU to be turned into a legal agreement between the provinces in the next few weeks. (CBC)
This would be a boost for N.L. Premier Tony Wakeham, who has reiterated that the deal needs to be the best for this province.
“My focus remains firmly on acting in the best long-term interests of our province and my priority will always be to ensure that Newfoundlanders and Labradorians are the primary beneficiary of our resources,” Wakeham said in January.
CBC News has asked Wakeham for an interview, and is awaiting a response.
Meanwhile, speaking with reporters in Montreal on Thursday, Quebec Premier Christine Fréchette said in French that reaching a deal is a matter of long-term energy security for her province.
“The discussions have really accelerated in recent days, and that makes me very confident that we could reach a deal and sign something in the near term,” she said.
Not a done deal, yet
Penney said while the details of a Churchill Falls deal could be released soon, the path to a binding agreement is fraught.
On Wednesday, sources not authorized to speak publicly confirmed to CBC News a new memorandum of understanding was being finalized. They said two or three issues are outstanding, but are close to being resolved and the two governments are aiming to make a formal announcement early next week.
Penney, a former deputy minister of justice and a critic of the controversial Muskrat Falls hydroelectric project, said he’s not surprised to hear a deal could be reached, pointing to “political imperatives” for Fréchette as she’s facing an election — which has to be called by Aug. 29.
“So clearly there was quite a bit of pressure on her. And of course, there’s also pressure on us because under the previous MOU, we would have gotten immediate cash on an annual basis, which we desperately need,” Penney told CBC Radio’s The St. John’s Morning Show.
However, he said, the situation in Quebec complicates matters.
“I don’t think we should celebrate too much even if the deal is signed because the polls show that the PQ is going to be the next government in Quebec and they oppose the existing MOU,” said Penney.
He added there can’t be negotiations during an election, so it’s “just not possible” for the MOU to be turned into a legal agreement, something that can take months.
“Whether or not that will even happen is very much up in the air,” Penney said.
He said it’s also a matter of waiting to see what exactly the MOU entails.
Look forward to details: Liberals
Liberal Leader John Hogan said he is pleased about the possibility of a good deal.
“We still don’t know for sure if there’s a deal. We’re hearing there’s a few things that need to be finalized before we see it next week,” he said. “But we look forward to getting in there and reading that agreement and seeing exactly what Newfoundland and Labrador is getting.”
His party won’t oppose a deal for the sake of politics, he said, adding he hopes the premier and ministers are available to answer questions on the MOU’s contents. He also wants to see it debated in House of Assembly, like what was done with the previous MOU.
Sources have said a new Churchill Falls deal is close to being reached. (CBC)
Like Penney, Hogan also raised concerns about the available time to secure a deal and a looming Quebec election.
NDP Leader Jim Dinn said it looks like a promised referendum on the MOU is not likely to happen.
“I always thought a referendum, the way the PCs framed it, was incredibly naive on their part and ill-advised,” he told CBC News.
He said a referendum would require a public outreach component to ensure people are informed, which he said hasn’t happened.
NDP Leader Jim Dinn wants a special debate in the House of Assembly on the MOU. (Darryl Murphy/CBC)
Dinn said then there should be a special debate in the House of Assembly on the MOU, like what was done for the previous MOU, with experts brought in.
“Let’s have that fulsome debate so that the public can listen in, can ask the questions,” he said.
In an NDP statement released earlier Thursday, Dinn said he wanted to know whether the Innu Nation was consulted on the new MOU.
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