Newfoundland and Labrador Premier Tony Wakeham has decided not to proceed with a public vote on a new Churchill Falls deal, citing changing political circumstances. Wakeham, who had pledged a referendum during the last provincial election campaign, unveiled a new agreement with Prime Minister Mark Carney and Quebec Premier Christine Fréchette. Despite the initial promise of a referendum, Wakeham acknowledged that the deal would not be subject to a public vote, potentially disappointing some.
In an interview with CBC Radio’s The St. John’s Morning Show, Wakeham explained that the involvement of the federal government presented significant opportunities that were not previously considered. The shift in circumstances, including pressures from the U.S. trade war and the need for swift action as advocated by the federal government, influenced the decision to forego the referendum.
The upcoming special debate in the House of Assembly on September 14 will provide MHAs with the opportunity to examine the details of the new agreement, which replaces a 2024 memorandum of understanding (MOU) deemed unfavorable to the province by a review commissioned under Wakeham’s administration. The revised deal offers benefits such as the option for Newfoundland and Labrador (N.L.) to sell power to Quebec or retain excess power for local industries.
Furthermore, the agreement includes provisions for loan guarantees for the Gull Island hydroelectric project, investment tax credits, and collaboration with Ottawa on infrastructure projects like the Labrador Transmission Line. Wakeham emphasized the federal government’s commitment to investing over $3.5 billion in the region, positioning them as partners in the endeavor.
Although uncertainties loom with a pending Quebec election, Wakeham expressed optimism about the mutually beneficial nature of the agreement for both provinces. Energy N.L. CEO Charlene Johnson lauded the deal as a significant clean energy investment with vast economic potential for the region. She highlighted the expertise and resources available in Newfoundland and Labrador to meet the global demand for energy amidst a volatile geopolitical landscape.
Looking ahead, Wakeham aims to finalize the definitive agreement by the year’s end, underscoring the transformative impact of the partnership on the region’s energy sector.