June 17, 1998
(Executive Council)

Premier Tobin clarifies Churchill Falls announcement expenditures

Premier Brian Tobin today clarified the details of Newfoundland and Labrador's expenditures associated with the March 9 announcement in Churchill Falls.

"In the past several days there has been some confusion as to who spent what sums of money, and for what purpose," said the premier. "Let me clarify, once and for all, that Newfoundland and Labrador Hydro spent $262,241 on the March 9 announcement, and a further $155,412 on a public education campaign in the days that followed. Our total expenditures were $417,654. We have never had any contractual arrangements with National Public Relations, and the $1.4 million expenditures attributed to Hydro Quebec are entirely their own."

The March 9 announcement included costs for communications materials, a multimedia presentation, staging the event for television, technical and administrative support, transportation to and from Labrador, as well as in Churchill Falls, accommodations, and food for media, staff and guests.

"In the days after the announcement we undertook a campaign to fully inform the people of this province about the details of the proposal," said the premier. "It was a commitment I made to Newfoundlanders and Labradorians, and one that I kept. My televised address, as well as the householder and advertising that followed, accomplished that goal."

Whatever could be accomplished with in-house resources was done in-house, noted the premier. To control costs, outside consultants were only used for specialty services such as advertising and television production.

"Labrador was the most appropriate venue for this announcement," said Premier Tobin. "We kept our expenditures in check, and I believe at the end of the exercise, the people of this province had before them, the information necessary to make an informed judgement about this project. I repeat, our total expenditures were $417,654. We have no involvement in the $1.4 million attributed to Hydro Quebec or its consultants."

Contact: Heidi Bonnell, (709) 685-3674.

1998 06 17                          2:55 p.m.