The future of the Churchill River project presents several avenues for consideration. Below are three options and the important context surrounding each.
1) Run out the existing contract and promote the river and existing assets for further development, with the hope that within the next 17 years Quebec’s unreasonable strangle hold on the asset can be broken.
2) Petition the Feds for the right to transport our electrical energy to market across other jurisdictions similar that already in place in this country for oil energy and seek a partner(s) to collectively develop a proposal that will provide a better return to NL.
3) Do a deal now with Quebec (i.e. the MOU). One thing is certain, we (NL) do not have the resources at this point either financially or otherwise to do this development on our own. We need a partner that does. Is QH that partner? Maybe, but NOT under the terms outlined in the current MOU.
Premier Smallwood faced enormous obstacles when first promoting the original development but was able to get the financing and expertise in place to, as we say, “get her done”. By any measure that project was a tremendous success. Unfortunately for us, one critical clause was overlooked in the contract and 100% of the huge windfall gain accruing from the subsequent energy price increase have gone to Quebec.
By all accounts, with the current MOU we are about to do it again. Let’s not be that gullible, please.
The great resources the people of this province brought into the confederation have been exploited for gain but not for the people of this province. For example, Quebec has realized billions of dollars from the original CF deal while NL through CFLCo has received barely enough income for it to remain solvent. Unbelievable, when you think of it. Similarly with the abundant fish resources we brought when we joined in 1949. In the intervening years the record will show that the Feds through DFO have mismanaged those stocks, in the case of cod for example, to the brink of extinction. As a direct result, tens of thousands of our citizens lost their employment in the industry. It was also a huge fight to get a share of the provinces offshore oil riches we brought with us as well…and the list goes on. Its past time for that to stop.
So why do we always end up on the short end of the stick? Our 2% representation in parliament doesn’t help, and the 10 equal provinces concept is just a myth.
The reality is we are destined to be underdogs in this confederation forever. In my view it will only stop when we make it stop.
We can start right now by demanding a full independent review of this MOU by an arms length organization. The outcome will better help us decide how to proceed. How can anyone argue against that?