NLIS 1
February 14, 2005
(Executive Council)
Prime Minister and
Premier celebrate new revenue sharing arrangement
The governments of Canada and Newfoundland and
Labrador today signed the arrangement that will assist the province in becoming
the principal beneficiary of its offshore resource revenues. The Arrangement
between the Government of Canada and the Government of Newfoundland and Labrador
on Offshore Revenues reflects the Agreement in Principle reached between both
governments on January 28, 2005.
Prime Minister Paul Martin, Premier Danny Williams, R. John Efford, Minister of
Natural Resources Canada, and Loyola Sullivan, Minister of Finance and President
of Treasury Board for Newfoundland and Labrador, participated in the signing
ceremony for their respective governments.
"I made a promise to the people of Newfoundland and Labrador, and I was
determined to make good on that promise. Today, I am delighted to do just that,"
said Prime Minister Paul Martin. "This agreement presents a remarkable
opportunity for the people of this province to seize their potential and build
for themselves and for their children a more prosperous future."
�We celebrate today a better deal on the Atlantic Accord for Newfoundland and
Labrador,� said Premier Williams. �This new arrangement to share our offshore
resource revenues is another step forward to secure a future of self-reliance
and prosperity for Newfoundlanders and Labradorians. We will optimize
opportunities and realize our true potential with a great sense of renewed
pride.�
The arrangement gives Newfoundland and Labrador 100 per cent protection from
equalization reductions or �clawbacks� for eight years as long as the province
receives equalization payments. In addition, the arrangement provides for a
further eight-year extension as long as the province is an
equalization-receiving province in 2010-11 or 2011-12, and that its per capita
debt-servicing costs have not become lower than that of at least four other
provinces.
The province will receive an up-front payment of $2 billion which equals about
three-quarters of the agreed-upon estimate of potential benefits from this
agreement between now and 2012. This payment will serve as a pre-payment of the
new 100 per cent protection.
�With 100 per cent of the province�s offshore benefits delivered through this
new deal, the people of Newfoundland and Labrador have a golden opportunity to
move forward economically,� said R. John Efford, Minister of Natural Resources
Canada and regional minister for Newfoundland and Labrador. �I anxiously await
the day that Newfoundland and Labrador earns its way out of equalization, and
this agreement points us in that direction.�
"Becoming the principal beneficiary of our province's rich offshore resources is
an integral component in achieving sustainable financial health in Newfoundland
and Labrador," said Loyola Sullivan, Minister of Finance and President of
Treasury Board. "With this new arrangement for offshore resource revenues, we
now have an important new tool to enable us to diversify our economy and lay the
groundwork for financial stability."
No amendments to the Canada-Newfoundland Atlantic Accord or Equalization
legislation will be required. Payments under the offshore revenue arrangement
will be made separately from the Atlantic Accord and the new
Equalization-Territorial Formula Financing framework. The Canada-Newfoundland
Atlantic Accord was signed 20 years ago on February 11, 1985.
For more information:
//www.gov.nl.ca/atlanticaccord/
Media contact:
PMO Press Office: (613) 957-5555
Elizabeth Matthews
Communications, Office of the Premier
Government of Newfoundland and Labrador
(709) 729-3960 or (709) 690-5500
2005 02 14
9:45 a.m. |