Minister responds to criticisms of potential Gull Island development

Mines and Energy Minister Lloyd Matthews today responded to criticisms put forward by former minister Chuck Furey concerning a potential Gull Island development with the Province of Qu�bec.

Mr. Furey raised several concerns with developing the Lower Churchill and Gull Island projects in several media interviews over the past weekend.

"The Gull Island project that we are examining today is much different from the project contemplated by government in 1998 when Mr. Furey was minister," said Mr. Matthews. "Mr. Furey�s comments are rooted from a genesis of frustration due to past failures. These type of comments are backward, outdated and unproductive, and Mr. Furey�s level of information is not current.

"We are confident that we can achieve a deal that will provide substantial benefits to the people of this province. I can assure Mr. Furey that if this province does not realize the benefits that we desire for our citizens, there will be no project. I do not accept the suggestion that our negotiating team is less competent than Qu�bec. I have great faith in the intelligence and skills of our negotiators, and we will only bring forward a deal that ensures that the people of this province receive maximum benefits throughout the life of any potential project. It is our resource, and unless it is developed in a manner that meets our requirements, there will be no deal.

"The suggestion that the Qu�bec negotiating team is less than honest and is looking to hoodwink Newfoundlanders and Labradorians adds no value and does not assist our efforts in any way. That attitude shows an unwillingness to move forward due to past judgements which are not grounded in fact. Government will continue to negotiate in good faith on behalf of the people of Newfoundland and Labrador. That is what the people of this province expect and demand, and we owe them no less.

"After 30 years of successive governments being unable to find an industrial user for Lower Churchill power, nor a long-term customer in the United States, we have no difficulty in negotiating with the Province of Qu�bec as an interested and obvious customer. It is now time to move forward and examine new development options."

Minister Matthews stated that government has proven over the past 18 months that it can negotiate good deals on behalf of the people of the province. Government will continue to move forward with development projects that are in the best interest of the citizens of Newfoundland and Labrador.

Media contact: Darrell Mercer, Communications, (709) 729-5777 .

2002 08 12                  2:55 p.m.