Premier Danny Williams
St. John�s Board of Trade
September 12, 2007

Thank you Donna and thank you all so much for that warm reception.

Given that you will all be hearing a lot from me over the next month, I am actually shocked and honoured that you would subject yourself to even more by coming out today!

I will try my best to not bore you today, and I apologize in advance because in just a few days you will see my giant head rolling down the street on the side of a bus. That is something that you will never get used to - trust me!

I was 25 miles out of Gander in a chopper the last election and I could still see my face on the side of the bus in the airport. Not nice. Children are probably still having nightmares over it.

Before I begin today, I am going to ask you to indulge me for just a few moments because I would like to share a song with you.

It is something that speaks to the hearts and minds of every soul who is blessed to call this province home. It gives me goose bumps, and I hope that you will listen closely to each and every word so that you too can feel the pride and emotion that I feel whenever I hear it.

SONG PLAYS

Now, if that doesn�t get you pumped up about this province, then I don�t know what would! "We know what we�re fighting for; We believe in what we�re fighting for; We love what we�re fighting for; Newfoundland and Labrador."

And that is what our government is all about. That strength of character; that pride of place; that spirit of togetherness in the quest to make this province a better place.

The passion of this song is what motivates and drives our government each and everyday - every time we sit around our caucus table to debate ideas; every time we gather around the Cabinet table to develop policies; every time we sit across a board room table to negotiate on behalf of the people of Newfoundland and Labrador.

JFK said, "Let us never negotiate out of fear, but let us never fear to negotiate." I quoted this in one of my first speeches and have practiced it ever since.

We do know what we�re fighting for and we believe in what we�re fighting for. It is for stronger rural regions; a robust economy; a more self-reliant province; and a more prosperous future for our children and grandchildren.

We may be a small province in numbers, but working side by side a half a million proud and strong � we will achieve greatness for this province. And we must all pull together.

As I said, in just a few days you will see the launch of the 2007 Provincial Election Campaign.

This marks the first ever fixed election date in Newfoundland and Labrador. And believe me, there are definitely pros and cons with that approach. But I firmly believe that fixed elections reflect the core values of our government which are accountability and transparency.

Our four years in government have been marked by strategic decisions based on long-term planning. We have made some tough, unpopular choices because it is the right thing to do. We did a lot of this especially early on in our mandate because we were left with such a fiscal mess to clean up.

But I think everyone in this room would agree that stabilizing and improving the fiscal situation of this province is probably our single greatest accomplishment to date.

As a result of the good negotiations, strong fiscal management and good governance, we now have the tools in place and our new credit ratings reflect that.

We have all the elements of a thriving, self-reliant economy right here, all around us - our natural resources, our great minds, our tremendous experience and the boundless imagination and motivation to shatter expectations and shock the rest of the country with an honest-to-goodness success story made right here in Newfoundland and Labrador.

One of the key steps to achieving the self reliance we so desire is to become a contributing partner to this great federation.

We are closer than ever before to coming off of equalization, and to being a net contributor to the equalization program. "Have not will be no more" is no longer a pipe dream. It�s happening.

If you recall the song we heard a few minutes ago there was a compelling line that said, "Will the haves who finally conquer, thank the have nots in their graves?" The answer is "yes, we will".

To think that we are actually close to shedding that have-not status is something that makes my heart swell with pride, because I know that it is something we accomplished together as a people.

And we owe a great debt of gratitude to those before us who were proud, strong and determined in the face of adversity.

Our province is on the right track because of a solid game plan that our government implemented four years ago.

We started with the fundamentals of getting our fiscal house in order and immediately moved to restore confidence within the House of Assembly by opening up those books to the Auditor General after a previous government had eliminated access.

It was something I felt passionately about doing and though some of the fallout has been unpleasant to say the least, restoring public confidence in this institution is one of our proudest achievements.

I would imagine that within a few days the AG will finally be releasing his report, and I can only imagine what may be contained therein.

As a result of the AG being allowed back and the report of Chief Justice Green, we will have the best system in Canada. Significant safeguards will be in place. The system failed us but it can and it will be fixed.

But at the end of the day, do not lose faith in the political system in this province because our democracy is too important for the electorate to lose faith.

In addition to facing and overcoming our fundamental challenge of attacking our fiscal problems, our government also set to work to implement strategies and plans to build and grow the economy.

We invested like never before in neglected and crumbling infrastructure, and creating significant employment.

We demonstrated faith and confidence in our rural regions by investing some real money in our roads, our ferries, our schools, our health centres, our broadband, and all the other fundamentals of economic success.

Ask communities like Belloram, Hermitage, Baie Verte, St. Lawrence, Stephenville, Postville, Labrador City, St. Anthony and many others will tell you that things are improving dramatically in rural Newfoundland and Labrador.

We developed strategic action plans identifying all the best opportunities in every sector of our economy, one by one � aquaculture, agrifoods, mining, tourism, culture, forestry, manufacturing, innovation � every sector offering the promise of growth and jobs.

Anti-poverty leaders from across Canada are celebrating our poverty reduction strategy as the model for the rest of the country. We now have the best student aid package in the country, the envy of students everywhere.

We now have the lowest personal income tax rates anywhere in Atlantic Canada. Our investment in health care and long term care is unprecedented.

Our business and investment climate has caught the attention of movers and shakers, not only from across Canada but from far beyond.

Investments into our fishing and aquaculture industries are helping to evolve this industry which continues to be such an important part of the province�s economy.

We have stood together as one to fight the Harper government; a promise-breaking regime that reneged shamelessly on their commitment to sign an equalization agreement equivalent in value to our entire provincial debt. They don�t deserve a single seat in this province and should be booted out of office altogether.

If they expect us to take their promise-breaking lying down, they�re sadly underestimating the people of this province. They should have a listen to that wonderful song we heard earlier if they doubt our resolve for one moment.

We must send a loud and clear message to those in Ottawa that Newfoundland and Labrador is no longer prepared to be the poor cousin of Confederation. We don�t have our cap in hand anymore.

Of course, our government is always very aware of the issues facing our business community as well, and we work diligently to both address your challenges and help optimize the opportunities.

The province recognizes the importance of creating an attractive business climate for business to establish or grow operations.  Businesses are major contributors to our economy and it is our role to foster an environment that facilitates growth and success.

And while large business plays a critical role in our economy we know that we must also place considerable emphasis on helping small- to medium-sized enterprises. Our investments and policies reflect this.

We are also positioning Newfoundland and Labrador as a competitive economy with internationally-recognized strengths and advantages.

Our budget this year allocated 32 million dollars for business attraction and more than 70 million dollars to stimulate business growth, create jobs, and strengthen economies throughout the province.

Of course, I think everyone knows that we are also a strong believer in the value of competitive broadband throughout the province. We took a lot of heat from the opposition for a 15 million dollar investment that will return more than 400 million dollars in benefits to government alone, not to mention the private sector.

And we are committed to the advanced technology sectors which are quickly emerging as a key part of the St. John�s and provincial economies. 

To make our province more business-friendly and competitive, we are currently undergoing a Business Tax Incentive Review. We want to ensure that our province is competitive in the global marketplace when it comes to what we offer companies who commit their resources to Newfoundland and Labrador.  

We also instituted the largest cut in personal income tax in Newfoundland and Labrador�s history. We have moved from the highest rate of personal income tax in Atlantic Canada to the lowest. 

And we continue to increase our investment in the tourism industry. One tangible result of that was the award we received this past weekend for our new tourism marketing campaign which has recently received rave reviews and been dubbed world class.

Of course, not all of our decisions have been easy for the business community to accept. And we fully acknowledge that you have endured some pain as you supported us along the way.

One of the most obvious examples of this was the process of the Hebron negotiations.

When we stood firm with the Hebron partners in our negotiations, the business community suffered some short-term pain. But I am forever grateful for those of you who had the patience to support us. When the Globe and National Post and local liberals and some local reporters criticized our approach, the vast majority of Newfoundlanders and Labradorians stood with us.

And I can assure you that your children and grandchildren will thank you, because the terms we reached on the Hebron MOU are historic for this province and will have meaningful and long reaching benefits for our people for generations to come.

Not only were we able to achieve super royalty but we were successful in taking an equity position in what promises to be a very lucrative project. At today�s prices of nearly 80 dollars a barrel, I don�t think any of us would scoff at buying 35 million barrels of oil for 110 million dollars.

As a matter of fact, yesterday�s prices of more than 78 dollars a barrel is a record high. Pretty straightforward math will tell you that�s not a bad investment.

Not to mention we saved the province a half a BILLION dollars � not million but half a BILLION � in investment tax credits by waiting more than a year to get the right deal with the Hebron partners.

But perhaps even more important than the substantial financial benefits, this deal speaks to a much more fundamental principle. It speaks to our desire as a people to take real and meaningful ownership of our own resources.

Just this past week the President of Statoil acknowledged oil production is OECD countries will start to decline as early as 2010 and stated that "the most important challenge to this industry is access to new projects."

Well, guess what folks � we have new projects and they are not the challenging oil sands projects.

Yesterday we released our first-ever provincial Energy Plan entitled Focusing Our Energy. This comprehensive plan will map our province�s future for responsible and sustainable energy solutions for the 21st century.

Our vast energy sources position our province as a significant player on the international stage and we know that the only way to ensure we are properly prepared to seize every opportunity for maximum economic benefit from these resources is through a comprehensive, long-term plan.

Focusing our Energy lays out both a visionary and strategic direction for development that will have far reaching benefits for our people and our province.

One startling figure that you will see in this plan is a chart that breaks down the total benefits that have accrued to the province from some of our resources, and the benefits that have gone outside of the province.

For the Upper Churchill, to date approximately 19 billion has gone to Quebec, while this province has received approximately 1 billion dollars. Over the next 37 years, Quebec could receive close to 50 billion dollars more.

For our offshore petroleum resources, to-date the oil companies have received some 10 billion dollars; the Federal Government have taken in almost 6 billion dollars and Newfoundland and Labrador has received 2 billion dollars.

The four oil projects, the Upper Churchill, the Lower Churchill, Voisey�s Bay and Labrador West alone will contribute 100 billion dollars to the Government of Canada and Quebec.

This staggering reality is precisely the reason this government has taken a strong stance when it comes to negotiating greater benefits for this province. Whether it be with Ottawa or the oil companies, we will no longer settle for less. We know what we�re fighting for.

And in 2041, we will repatriate the Upper Churchill and take back what is rightfully ours.

In keeping with our government�s core philosophy of "no more giveaways", we are moving forward on the basis of maximum, real and meaningful benefits for our people.

And this is exactly what we are doing. Newfoundlanders and Labradorians are striving to achieve our self-reliance so that we are truly masters of our own house.

A tremendous amount of work, consultation and analysis has gone into the development of our plan and we are extremely proud of it. To hear the Leader of the Opposition criticize it yesterday when he didn�t even bother to participate in one of our consultations or submit his own plan among the 86 that were submitted right across this province, is insulting to the people of this province.

We owe it to the people today and future generations to ensure that we get this right, and we now feel that we have the best plan possible with input from some of the most strategic and brightest minds this province has to offer.

The plan strikes a fair balance that will provide maximum benefits to the people of the province and a competitive return to, and certainty for, the companies who invest in Newfoundland and Labrador.

Long gone are the days when we take a deal for the sake of a deal. Long gone are the days when we bargain away what we should be leveraging. And long gone are the days of sitting back and watching others benefit while we take the crumbs.

Together, we have everything we need to make our vision of prosperity a reality. Together, we will do whatever is required to ensure our future in Newfoundland and Labrador is strong, self-reliant and secure. Together, we will give rural families and all our communities � large and small � a solid future right here at home.

And on that note, I would like to share another very significant piece of good news with you.

As you all know, government recently approved a Development Plan Application from Husky Oil for an extension of the White Rose field involving approximately 24 million barrels of oil.

Coincidental to the application, and for some time prior to yesterday�s announcement of our energy plan, government has been negotiating in earnest with Husky over a new royalty arrangement for this area and for additional extensions that will be developed in the future. Husky estimates the total reserves for the areas in question at 214 million barrels.

I am extremely pleased to announce that last night I spoke with Dr. John Lau of Husky and this morning we brought those negotiations to a successful conclusion.

Government, thru Newfoundland and Labrador Hydro, will become a five percent equity owner in the new development area.

While the price will be subject to due diligence, data verification, and the outcome of a well currently being drilled, based on the reservoir information available today we expect that price to be 44 million dollars Canadian, plus a processing fee of three dollars and fifty cents Canadian for each barrel of crude it owns.

Should the size of the reservoir change as a result of the well currently being drilled, that price will be adjusted accordingly. The total value for government of the satellite extensions at today�s price is more than 6 billion dollars.

The project will be subject to the generic oil royalty regime which was in place while the negotiations were underway, with one important exception.

As occurred with the Hebron development, the White Rose extension will provide the province with a new super oil royalty once the project achieves net payout.

This will result in the province receiving an additional 6.5% of net revenues in any month in which West Texas Intermediate oil prices exceed 50 dollars US flat.

This is indeed a significant development for the province, especially as I said earlier when you see oil prices closing at about 78 US yesterday.

I would like to say to our new partners, Husky and Petro-Canada, that we look forward to a long and mutually beneficial relationship. I also look forward to celebrating this news through a more formal announcement at a later date, should the people of the province bless us with a second mandate.

Our star is rising. No glass ceiling imposed from beyond our shores will ever keep us down.

This province, its people and its economy is not just hot. We are smoking hot.

We are on the march to self-reliance and prosperity, and absolutely nothing will hold us back from our goal.

We will seize control of our own destiny, and we will be masters of our own house.

I quoted Oprah Winfrey to Cathy Bennett the last time I was here and l say it again today, "The future is so bright it hurts my eyes."

Catch the vision of what I see on the horizon for Newfoundland and Labrador. Our time has come. The future is ours for the taking. We are ready and we are determined to achieve our rightful place.

Let us move forward boldly with pride and confidence. Let�s seize the opportunities, complete the job we started, and reap the rewards of self-reliance and prosperity for all of our communities and all of our families.

And you know why? Because we love what we�re fighting for. Newfoundland and Labrador.

Thank you.

 


SearchHomeBack to GovernmentContact Us


All material copyright the Government of Newfoundland and Labrador. No unauthorized copying or redeployment permitted. The Government assumes no responsibility for the accuracy of any material deployed on an unauthorized server.
Disclaimer/Copyright/Privacy Statement