Newfoundland and Labrador Premier Tony Wakeham has decided not to proceed with a public referendum on a new Churchill Falls deal, citing changing political circumstances. During the provincial election campaign last year, Wakeham had promised 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 a referendum, leading to potential disappointment among the public.
Wakeham explained that the increased involvement of the federal government in the new deal presented unforeseen opportunities that were not part of the previous understanding. The shifting landscape, including the ongoing U.S. trade war and the temporary halt of 50% tariffs on Canadian goods by President Donald Trump, has influenced the decision-making process.
The House of Assembly will convene on Sept. 14 for a special debate to discuss the new deal, which replaces a 2024 Memorandum of Understanding (MOU) deemed unfavorable for the province by a review commissioned by Wakeham’s government. The revised agreement offers benefits such as the ability for Newfoundland and Labrador (N.L.) to sell power to Quebec or support local industries with excess power.
Furthermore, the partnership with Ottawa includes support for energy projects like the proposed 2,000-megawatt wind energy project in Labrador, with the federal government potentially taking a 40% equity stake that N.L. could buy back in the future. Additional perks include loan guarantees for the Gull Island hydroelectric project, investment tax credits, and assistance in constructing the Labrador Transmission Line.
Despite the upcoming Quebec election potentially leading to a change in government, Wakeham believes the new deal is advantageous for both provinces. He aims to finalize the agreement by the end of the year.
Charlene Johnson, CEO of Energy N.L., expressed optimism about the opportunities the energy projects will bring, emphasizing the significant clean energy investment highlighted by Carney. She underscored the importance of N.L.’s resources and expertise in meeting the global demand for energy in the current geopolitically uncertain world.
The developments surrounding the Churchill Falls deal signify a significant shift in energy partnerships and underscore the region’s potential to contribute to North America’s clean energy landscape.