Newfoundland and Labrador Premier Tony Wakeham has decided not to hold a referendum on a new Churchill Falls deal, citing changing political circumstances. During the provincial election last year, Wakeham had promised a public vote on any deal related to Churchill Falls. However, alongside Prime Minister Mark Carney and Quebec Premier Christine Fréchette, Wakeham announced a new agreement on Monday without a referendum, acknowledging that people might be disappointed by this decision.
Wakeham explained that the involvement of the federal government in the new deal presented significant opportunities that were not previously considered. This development, coupled with changing realities such as the ongoing U.S. trade war, influenced the decision to forgo the referendum.
The House of Assembly will convene on Sept. 14 for a special debate on the new deal, allowing MHAs to review the details with support from the negotiating team. The new agreement supersedes a 2024 Memorandum of Understanding (MOU) negotiated by the previous Liberal government, which was deemed unfavorable for the province after a review commissioned by Wakeham’s administration.
Wakeham highlighted the improved aspects of the new deal, including the ability for Newfoundland and Labrador to sell power to Quebec or use excess power to support local industries. Additionally, Ottawa’s involvement brings benefits such as loan guarantees for the Gull Island hydroelectric project, investment tax credits, and assistance in building the Labrador Transmission Line, amounting to over $3.5 billion in federal investment.
With a Quebec election on the horizon, Wakeham expressed optimism about the deal’s benefits for both provinces, aiming to finalize the agreement by the year’s end. Energy N.L. CEO Charlene Johnson expressed pride in the potential of the energy projects, emphasizing the opportunities they would bring for various sectors and highlighting the importance of Newfoundland and Labrador’s energy resources in the current global geopolitical landscape.
Johnson echoed Carney’s sentiment that the new agreement represents the largest clean energy investment in North American history, emphasizing the region’s capacity to meet global energy demands. She emphasized the significance of Newfoundland and Labrador’s role in addressing the world’s energy needs amidst a volatile geopolitical environment.