No independent oversight, no support for Churchill Falls MOU, PC leader declares

PC Leader Tony Wakeham declared Tuesday his party will not support the Churchill Falls MOU unless it undergoes an independent review, while the Liberals again signalled a willingness to open the tentative agreement and any future formal deal to more scrutiny.

For the second consecutive day, debate during a special session of the House of Assembly was dominated by demands from Opposition politicians for a rigorous audit of the tentative agreement with Hydro-Quebec, by experts not linked to the government or N.L. Hydro.

MHAs are scheduled to vote Thursday evening on a motion to grant N.L. Hydro, the province's Crown-owned utility, permission to continue negotiations with the aim of reaching definitive agreements with Quebec by the spring of 2026.

The formal agreements, if reached, are forecasted to inject more than $225 billion in revenue into the provincial treasury over the next 50 to 60 years, and includes a ripping up of the lopsided 1969 agreement that sees Quebec receive roughly 15 per cent of its electricity capacity from Churchill Falls at a near-free price of 0.2 cents per kilowatt hour.

Under a proposed new deal, Quebec will pay about 30 times more for that power from the existing Churchill Falls station, and unlike the current agreement, prices are not fixed.

But the 14-member PC caucus will either abstain or vote against the motion, said Wakeham, unless the government agrees to its demand for an extra layer of scrutiny. The NDP and independent MHAs in the legislature have also called for more oversight.

"You're asking us to turn around in the House of Assembly after four days and to vote on something that will impact Newfoundlanders and Labradorians for 50-plus years. I think due diligence would require this to have an opportunity to be looked at by others who are capable of doing that review," said Wakeham.

The Liberals have repeatedly defended the process, saying they are following the recommendations of Justice Richard LeBlanc, who led the inquiry into the disastrous Muskrat Falls project, which was billions over budget and years behind schedule.

LeBlanc's first recommendation was that the province should never plan, approve or construct any large project with a budget greater than $50 million without engaging independent experts to review the project.

There's been heated debate over whether the Liberals are meeting the standards proposed by LeBlanc.

"What we are proposing now is absolutely within what Justice LeBlanc has said," Energy Minister Andrew Parsons told reporters.

Premier Andrew Furey has promised not to repeat the mistakes of previous deals on the Churchill River, and said they've taken extraordinary steps — from the creation of an expert advisory panel to the hiring of world class consultants and leading business law firms — to ensure the province enters into the best possible deal with Quebec.

Expert consultants from the firms JP Morgan and Power Advisory, who supported N.L. Hydro's team during negotiations with Quebec, will also answer questions from MHAs on Wednesday and Thursday.

The Liberals have also said any developments in Labrador that may affect power rates in the province will also be reviewed by the province's utility regulator, the PUB.