December 18, 1997
(Executive Council)

The following statement was issued today by Premier Brian Tobin. It was also read in the House of Assembly:

Newfoundlanders and Labradorians understand the great hydro-electric potential of the Churchill River. However, to date, almost all the benefits realized from the Churchill River have gone to Quebec under the Upper Churchill contract; other potential benefits that could be derived if we developed the Lower Churchill have been lost, as the water has simply flowed to the sea. This government is committed to achieving a far greater share of the benefits of the Churchill River for the people of our province.

In recent days, news stories have indicated that an agreement is near involving the governments of this province, Quebec and the federal government to develop the Lower Churchill. I can inform the House today that no such agreement is imminent. What has occurred over several months is a series of discussions on hydro-electric issues in Labrador. These discussions have shown some promise. In the New Year, the discussions may lead to detailed negotiations. Those negotiations could, in turn, lead to an agreement.

In any such negotiations, three goals are fundamental to this government's position:

First, there must be far greater benefits to the people of this province under any new arrangements than under existing arrangements;

Second, these benefits must include increases in our revenues as the price of electricity increases; and

Third, any new arrangement must provide for power at long term stable prices for Labrador and the island portion of our province.

As the House may note, the existing Upper Churchill agreement provides for none of these, neither major benefits for the people of our province, nor any increase in our revenues as the price of electricity increases, nor power at long term stable rates for Labrador and the island portion of the province. This government is committed to achieving arrangements that are fundamentally different and markedly better for the people of our province or there will be no agreement.

If our discussions with Quebec and the federal government are successful, then sometime in the New Year we will be in a position to make public the basis on which we intend to commence detailed negotiations on Labrador hydro issues. In all of this, the government will be guided by the three goals I have set out. These goals are fundamental to making hydro-electric development in Labrador one of the great success stories for our province as we enter the 21st century.