Newfoundland and Labrador Premier Tony Wakeham has decided to forego holding a public referendum on a new Churchill Falls deal, citing changing political circumstances. During the provincial election campaign last year, Wakeham pledged a referendum on any Churchill Falls agreement. However, alongside Prime Minister Mark Carney and Quebec Premier Christine Fréchette, Wakeham announced a new deal on Monday without plans for a referendum. Wakeham acknowledged that this decision may disappoint people who were expecting a vote to take place.
Explaining his decision, Wakeham stated, “What has changed is the enormity of the opportunity now that the federal government is involved. This was never even contemplated in the old memorandum of understanding or ever before that.” He emphasized that the current situation has evolved due to the involvement of the federal government and shifting circumstances, such as the ongoing U.S. trade war.
With the U.S. President Donald Trump pausing 50% tariffs on Canadian goods amid trade negotiations, Wakeham highlighted the looming threat of additional tariffs. The House of Assembly is set to convene on Sept. 14 for a special debate to discuss the new deal, which supersedes a 2024 memorandum of understanding negotiated by the previous Liberal government.
Wakeham addressed concerns about potential opposition to the new agreement, emphasizing that the current deal offers more benefits, including increased power, value, and transmission capabilities. He outlined additional advantages, such as the opportunity for Newfoundland and Labrador to sell power to Quebec or utilize excess power to support local industries. Moreover, Ottawa’s involvement is expected to enhance the agreement, with proposed projects like the 2,000-megawatt onshore wind energy project in Labrador potentially involving a 40% equity stake from the federal government.
The new deal also includes provisions for loan guarantees for the Gull Island hydroelectric project, investment tax credits, and support for building the Labrador Transmission Line. Wakeham estimated over $3.5 billion in federal investment in these initiatives. Despite the upcoming Quebec election, Wakeham expressed optimism about the deal’s benefits for both provinces and aims to finalize the agreement by year-end.
Energy N.L. CEO Charlene Johnson praised the new agreement, emphasizing the potential for job opportunities and economic growth in the energy sector. She echoed Carney’s description of the deal as the largest clean energy investment in North American history and emphasized Newfoundland and Labrador’s capability to meet global energy demands. Johnson underlined the importance of energy resources amid current geopolitical uncertainties.
Overall, the new Churchill Falls deal signals significant progress in clean energy investment and economic development, positioning Newfoundland and Labrador as a key player in the energy sector.
[Source](https://www.cbc.ca/news/canada/newfoundland-labrador/ottawa-partnership-u-s-tariffs-why-churchill-falls-referendum-axed-says-wakeham-9.7312118)
