Minister responds to Opposition Leader�s comments

Mines and Energy Minister Lloyd Matthews today responded to remarks made by the Leader of the Opposition, Danny Williams, regarding the province�s energy plan and its ramifications on a potential Lower Churchill project.

"Mr. Williams has once again brought forward several points that have no basis in fact," said the minister. "Any future Gull Island project will only be developed in a manner that is in the best interests of the people of Newfoundland and Labrador. We will not rush to do a deal, we will only do a deal when the right one is presented."

The minister outlined several issues that he believes were misrepresented by the Official Opposition in a press release issued yesterday.

Provincial energy plan
"Mr. Williams stated that this province does not have an energy plan. This statement is not factual. Government has just completed an electricity policy review consultation process that will be considered by government in the near future and officials are currently evaluating the need for a review of the other components of a comprehensive energy strategy. These components will come together to form a long-term energy strategy for this province. Hydroelectricity is only one aspect of this strategy and we will continue to examine other aspects such as natural gas.

Access to our hydroelectric resources
"Mr. Williams feels that this province will not have access to any of the power that would be produced from our hydro resources in Labrador. I will state again, as I have stated in the past, that before any deal is signed government will ensure that the recall provisions contained in any potential deal will provide more than enough recall power to ensure that we can continue an aggressive industrial development strategy and encourage new industrial development in the province. Without this provision, there will be no deal.

Kyoto Protocol
"Mr. Williams has stated that it would be irresponsible for government to move forward without a full understanding of the Kyoto Protocol that could be signed in the future. I believe that Mr. Williams is being irresponsible by suggesting that the Kyoto Protocol should hold up developments of clean energy resources that will strongly benefit our province by its development. One of the purposes of the Kyoto Protocol is to promote clean energy resource development, not hinder it as Mr. Williams suggests. A deal on the development of Gull Island, with or without the Kyoto Protocol, will only help this province.

Muskrat Falls
"Mr. Williams believes that Muskrat Falls will never be developed if it is not developed in conjunction with Gull Island. It is irresponsible to suggest that we should jeopardize the opportunity to develop the Gull Island site for the sake of a development that is currently not economically viable. If in the future circumstances change to favour this development, it will move forward on its own merit.

"Once again Mr. Williams appears to be scared that this government will reach a good deal for the development of the province�s resources. I can assure Mr. Williams and the people of the province that, like the Voisey�s Bay deal, nothing will be signed unless it provides the right level of benefits to the people of Newfoundland and Labrador. The alternative to trying to reach a good, sound business deal is to do nothing and that is simply not an acceptable option."

The minister stated that negotiations are continuing between the Government of Newfoundland and Labrador and the Government of Quebec, and that government remains optimistic that a Gull Island agreement can be reached soon.

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

2002 09 13                                      2:10 p.m.