Newfoundland and Labrador Premier Tony Wakeham has decided not to proceed with a public referendum on a new Churchill Falls deal, citing political reasons for the change in plans. During last year’s provincial election campaign, Wakeham had pledged a referendum on any Churchill Falls deal. However, alongside Prime Minister Mark Carney and Quebec Premier Christine Fréchette, a new deal was announced on Monday without the promise of a referendum, leading to potential disappointment among the public.
Wakeham explained that the involvement of the federal government presented a significant opportunity that was not previously considered. He highlighted the evolving circumstances, such as the impact of the U.S. trade war and the temporary halt of 50 percent tariffs on Canadian goods by President Trump. The House of Assembly will convene on September 14 for a special debate on the new deal, allowing Members of the House to review the details along with the negotiating team.
The new agreement supersedes a 2024 memorandum of understanding (MOU) reached by the previous Liberal government, which was deemed unfavorable for the province after a review commissioned by Wakeham’s administration. Wakeham emphasized the improved aspects of the new deal, including the ability for Newfoundland and Labrador to sell power to Quebec or utilize excess power to support local industries. Additionally, Ottawa’s involvement brings benefits such as loan guarantees for the Gull Island hydroelectric project and investment in the Labrador Transmission Line.
Despite the upcoming Quebec election and the uncertainty it may bring, Wakeham believes the new agreement is beneficial for both provinces. The CEO of Energy N.L., Charlene Johnson, expressed pride in the natural resources of Newfoundland and Labrador and the opportunities the energy projects will bring. She highlighted the significance of the clean energy investment, calling it the largest in North American history. Johnson emphasized the importance of energy supply in the current geopolitical landscape.
Wakeham aims to finalize the agreement by the end of the year, hopeful that it will bring substantial benefits to the province.