The board of Newfoundland and Labrador Hydro has completed its due diligence process in examining the proposed framework agreement of the development of the Gull Island Hydro Electric Project and have passed a resolution supporting this development.

This vote was less than unanimous. Three of the 10 board members did not vote in support of the resolution before the board. The chair, Mr. Dean MacDonald and one other board member, Mr. Mark Dobbin, have tendered their resignations. I wish to thank them for the service they have given to Newfoundland and Labrador Hydro. A third board member, Mr. Bill Kelly, wishes to continue serving on the board. All board members are to be commended for the significant time and effort they have contributed to this issue.

I have asked the president and CEO of Newfoundland and Labrador Hydro, Bill Wells, to report directly to government on the deliberations of the board, including any concerns regarding the proposed Gull Island development. Government is most interested in hearing the specific issues and the facts surrounding them. More importantly we want to give them full consideration and evaluation.

An announcement will be made in the near future on filling the position of chairperson and the board vacancy.

2002 11 25                                         2:05 p.m.