April 1, 2019
Landmark Atlantic Accord Agreement Achieved
Today, the Honourable Dwight Ball, Premier of Newfoundland and Labrador, was joined by the Honourable Seamus O’Regan, Minister of Indigenous Services for the Government of Canada, to announce an agreement that ensures Newfoundlanders and Labradorians are the principal beneficiaries of their offshore resources, strengthens how those resources are developed through joint management, and will also achieve electricity rate mitigation.
The agreement includes:
- A new and guaranteed revenue stream that will deliver $2.5 billion to the province.
- This revenue stream will immediately reduce the provincial net debt by $2.5 billion, or by approximately $5,000 for every Newfoundlander and Labradorian. In total, the provincial net debt decreases by 16 per cent, and savings on interest will be worth approximately $100 million by 2056.
- Cash installments starting this year until 2056 have no restrictions on the use of the funds and are “front end loaded,” with approximately $1.9 billion, or 60 per cent, being received by 2030.
- The revenue stream is from the Federal Government’s equity interest in the Hibernia project;
- A federal commitment to strengthen the joint management of Newfoundland and Labrador’s offshore development in areas such as land tenure, worker safety, regulatory efficiency, and regulator modernization; and
- A federal commitment to further engage with Newfoundland and Labrador to expeditiously examine the financial structure of the Muskrat Falls Project, so that the province can achieve rate mitigation. To that end, the Federal Minister of Finance will travel to Newfoundland and Labrador to meet with the Premier on Friday, April 5 to advance this work.
Through this agreement, Newfoundland and Labrador will continue to receive 100 per cent of its offshore resource revenues as if these resources were on land. The details outlined in the agreement will be incorporated into the province’s fiscal calculations and included in the presentation of Budget 2019.
“It is fitting that the 70th Anniversary of our Confederation with Canada coincides with the signing of this agreement, which supports a better, more secure future for generations of Newfoundlanders and Labradorians. Our union with Canada was based on the promise of partnership – a partnership that achieves a higher standard of living for the people both our governments serve. Today, we delivered on that promise.”
Honourable Dwight Ball
Premier of Newfoundland and Labrador
“This is an important day for the people of Newfoundland and Labrador. $2.5 billion dollars of guaranteed revenue on a predictable schedule will provide the certainty and clarity we need. It’s excellent progress, but we also need to confront rate mitigation. So, on Friday, the Federal Minister of Finance will be here for the next phase of discussions on rate mitigation for the province. Your seven Members of Parliament for Newfoundland and Labrador know that there’s more that can be done to support the people of this province, and we intend to deliver.”
Honourable Seamus O’Regan
Minister of Indigenous Services
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2019 Atlantic Accord Review
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Office of the Premier
Office of the Honourable Seamus O'Regan, Minister of Indigenous Services
2019 04 01 6:05 p.m.