Newfoundland and Labrador Premier Tony Wakeham has decided not to proceed with a public vote on a new Churchill Falls agreement, citing changing political circumstances. During the previous provincial election campaign, Wakeham pledged a referendum on any Churchill Falls deal. However, alongside Prime Minister Mark Carney and Quebec Premier Christine Fréchette, a new deal was announced without a referendum. Wakeham acknowledged that people might be disappointed by this decision.
In a phone interview with CBC Radio’s The St. John’s Morning Show, Wakeham explained that the involvement of the federal government in the current opportunity was unprecedented and not considered in previous agreements. He emphasized that external factors, such as the ongoing U.S. trade war and the delay of 50% tariffs on Canadian goods by President Donald Trump, influenced the decision-making process.
The House of Assembly will convene on September 14 for a special debate on the new agreement. Wakeham assured that Members of the House will receive necessary resources to review the details, with the negotiating team present. The new deal supersedes a 2024 Memorandum of Understanding (MOU) from the previous Liberal government, which was deemed unfavorable for the province after a review commissioned by Wakeham’s administration.
Wakeham highlighted the advantages of the new agreement, including the option for Newfoundland and Labrador to sell power to Quebec or retain excess power for local industries. Additionally, Ottawa’s participation in the agreement brings benefits such as loan guarantees for the Gull Island hydroelectric project and investment tax credits. The premier expressed optimism about finalizing the agreement by year-end.
Energy N.L. CEO Charlene Johnson expressed pride in the natural resources available in Newfoundland and Labrador, emphasizing the potential for economic growth through energy projects. She underscored the significance of the new agreement as the largest clean energy investment in North American history. Johnson emphasized the importance of meeting global energy demands in the current geopolitical climate.
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