Speaking Notes
PREMIER DUNDERDALE
ST. JOHN�S BOARD OF TRADE
Sheraton Hotel Newfoundland, St. John�s
Wednesday, February 23, 2011
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First of all, thank you for your invitation and for those kind words of introduction.

Good afternoon everyone.

Let me start by first congratulating the St. John�s Board of Trade on an impressive milestone. 2011 marks the 40th year of the Board�s existence. This anniversary year signals both the longevity and effectiveness of the Board as a strong voice for its members and the business community.

To the past and current executive and board members, well done!

I am excited to be here today for my first address to the St. John�s Board of Trade as the 10th Premier of our province.

And let me tell you, there is a lot to be excited about right now in Newfoundland and Labrador!

Our province has never been in a stronger position.

GDP growth for 2010 is estimated at 5.4 per cent, the highest growth among provinces.

Retail sales grew by 3.6 per cent from January to November in 2010 compared to the same period in 2009.

Our population increased by 0.3 per cent in 2010, marking the second consecutive year of population gains after 16 years of decline.

For the first time in our history, in 2010 we welcomed more than half a million non-resident visitors to our province, with just over 518,000 tourists spending in excess of 400 million dollars right here in Newfoundland and Labrador.

Based on the most recent data, capital investment is estimated to have grown last year by 23 percent to 6.2 billion dollars.

Housing starts increased by 18 per cent.

Oil production increased by 3.1 per cent to 100.7 million barrels. The estimated value of production was $8.2 billion.

Total mineral shipments in 2010 are estimated to have increased by over 90 per cent to 3.8 billion dollars.

Employment increased by 3.3 per cent in 2010. This was also the highest growth rate among the provinces and more than double the national rate.

With these gains, our province has fully recovered the employment losses suffered during the 2009 recession, and we have experienced the fastest employment recovery from a recession since the 1970s.

And the good news continues.

Scotiabank�s senior vice-president and chief economist, Dr. Warren Jestin, recently stated that Newfoundland and Labrador will be a leader in growth in Canada over the next five years as our resources remain in high demand.

The outlook for 2011 is positive.

Employment is forecast to rise by 2.2 per cent; unemployment to fall to 13.9 per cent; personal income to rise by 5.8 per cent; and retail sales to rise by 4.9 per cent.

GDP growth is forecast to match the growth rate of 2010, when we led the country.

Capital investment this year is expected to increase by another 25 per cent to approximately 7.8 billion dollars � this on top of the 23 per cent growth in 2010.

Isn�t it incredible to think of how far our province has progressed?

I grew up in Burin in a family of 11 children. I am amazed and so grateful when I reflect on what it must have taken for my mother and father to provide for me and my brothers and sisters, and often in some very trying times.

What I saw in my parents are the very traits that define us as a people � a work ethic second to none, honesty, versatility, determination, tenacity, innovation, resilience, with a pride in who we are and what we�re made of.

And these are the very traits that are exemplified by you, our business community.

Hamilton Holt, American journalist, social activist and politician, said this: �Nothing worthwhile comes easily. Half effort does not produce half results. It produces no results. Work, continuous work and hard work, is the only way to accomplish results that last.�

For the last seven and a half years, I have had the privilege of working as part of a team that has been committed from day 1 to achieving lasting results to benefit our province and our people. Our commitment rests on responsible governance, fiscal responsibility, and vigilance in ensuring we receive maximum benefits from the development of our resources.

Our government will never waver from those principles which define our vision of a bright and prosperous future for Newfoundland and Labrador.

We have made decisions that have proven to be fiscally sound.

Yes, we have increased our spending, but we have invested very strategically, especially in areas that for so many years were sorely neglected.

A prime example is our infrastructure program, valued at a record 1 billion dollars this fiscal year. The economic stimulus generated by this investment has helped us navigate our way through a global recession while other jurisdictions are still challenged in their recovery.

And of course revitalized and new infrastructure is benefiting residents and communities throughout our province, in the form of schools, hospitals, ferries, roads and bridges.

Infrastructure investments have always been a priority for our government but that was especially true during the height of the global recession.

But we are always mindful of balancing our investments with fiscal responsibility.

On the whole over the past seven and a half years, we have reduced our public debt by nearly a third or close to 4 billion dollars. That is tangible evidence of our fiscal discipline at work for the benefit of current and future generations of Newfoundlanders and Labradorians.

And we achieved it without cutting into key initiatives and social programs that provide important services to our people throughout the province.

By striking the right balance, we signaled clearly to the markets that we are managing the affairs of the province responsibly. The markets have responded by improving our credit rating several times over.

Little wonder that Bank of Canada Governor Mark Carney said here in St. John�s in June: �We would all do well to follow the example of Newfoundland and Labrador.�

And in August, the Bank of Montreal�s chief economist Sherry Cooper said that �the underlying base for the St. John�s economy and Newfoundland in general is very, very solid.�

Our government will not be swayed from the right course. We will continue this year � and, if given the opportunity, in the years to come � to balance fiscal responsibility with smart, strategic investments in infrastructure, education, health care, natural resource development, innovation and economic growth.

Hard work, discipline and strategy always pay dividends. Look at the example of the four young Newfoundlanders and Labradorians whose sports skills have captured national attention at the 2011 Canada Winter Games.

Erica Noonan, of Stephenville, double bronze medalist in para-Nordic cross-country skiing; Emma Meulankamp of Portugal Cove-St. Philip�s, silver medalist in women�s air pistol; flag-bearer Ben Taylor of St. John�s, bronze medalist in the individual air rifle, and Mount Pearl�s Jason Harnum, who along with Ben Taylor, won bronze in the team air rifle competition.

Their success presents a good analogy for all of us. Work out a plan. Have the discipline to stick to your plan. Stay focused. Set your sights on the target. Hit your mark, and enjoy the rewards of a goal achieved.

It is obvious that Newfoundland and Labrador is hitting its mark in so many ways.

Let me talk about the energy sector here for a few moments because one of the most exciting energy projects in the country and indeed North America is happening right here.

I could talk just as easily about the mining sector, which is white hot with activity and optimism right across Labrador and the Island.

But it is particularly gratifying that the sector offering us the greatest promise � energy � is the very sector that has caused us the greatest aggravation through the inequities of the Upper Churchill contract.

If there is one thing of value we have gained from the Upper Churchill experience, it is the fierce resolve to never again let our natural resources be squandered through sellouts and giveaways. The principal beneficiaries of resource development deals in this province, under this government, will be the people of Newfoundland and Labrador.

It was a proud and historic day this past November when I stood with former Premier Williams and others, in this very room actually, to announce the development of the Lower Churchill with Muskrat Falls as Phase one.

This project is easily one of the most attractive clean energy projects in North America, with benefits to Newfoundland and Labrador, Atlantic Canada and the entire nation.

And let me be clear - this is a remarkably good deal for Newfoundland and Labrador.

The few vocal critics who are saying otherwise, frankly don�t want the facts, or are choosing to ignore all the facts.

First of all, consider where we were heading without Lower Churchill power.

Today up to 40 per cent of the electricity fueling businesses and homes here on the Northeast Avalon and across the Island is generated by burning dirty and expensive fuel at the thermal generating plant in Holyrood. The plant emits nearly a million tonnes of greenhouse gases a year.

If it is not taken offline, this plant will require significant expensive upgrades and we�d be looking at replacing it altogether within a couple of decades.

These major infrastructure expenditures would be reflected in consumers� electricity rates and that would hardly be the end of the story.

To meet the growing demand for electricity, we would have to invest in additional generation of power in smaller hydro projects, wind, and ultimately, more thermal generation.

The total capital cost alone of these projects, including the replacement of Holyrood, would be over 3.2 billion dollars!

And with demand increasing and fuel prices forecasted to escalate significantly over the long term, electricity consumers would see rising rates and ballooning bills for many years to come.

The direction of our Energy Plan is clear � to seek long-term stability for the ratepayers of Newfoundland and Labrador and acquire a secure and environmentally-friendly source of power.

Muskrats Falls accomplishes this � it will bring stability to electricity rates with lower costs for consumers over the long term and avoid the volatility of oil-reliant power.

It is clear: maintaining the status quo and relying on fuel to generate power at the aging Holyrood plant is not sensible � not from an economic perspective, not from an environmental perspective, and not from the perspective of costs to consumers.

We need clean power. Muskrat Falls is that clean power. It will make our province�s electricity system 98 per cent carbon free.

But here�s the real beauty of the deal we announced in November. Muskrat Falls will produce more power than we can use. That�s why we have brought Emera into the picture. The agreement with Emera allows us to monetize the value of that surplus power.

Emera will invest over $1.2 billion, or 20 per cent of the overall capital cost of the entire project, and will be responsible for 20 per cent of the operating costs of the entire project for the 35-year life of the contract.

They will also make an additional investment of approximately $600 million towards the Labrador-Island Link.

Emera will receive a fair return on its sizeable investment, including a block of power for Nova Scotia Power.

One of the most significant gains for our province is the ability to transmit power in Nova Scotia, New Brunswick and New England. This enables us to sell additional power to export markets. It also opens the door for us to export additional power in the years that follow.

What this agreement does is provide an unprecedented opportunity for Newfoundland and Labrador as a clean power generator.

There are protections for this province every step of the way to ensure everyone�s best interests are well served, particularly the best interests of the owners of this power, the people of Newfoundland and Labrador.

The Lower Churchill, comprised of Muskrat Falls and Gull Island, is the largest undeveloped hydro project in North America with over 3,000 megawatts of power. Phase One is the development of Muskrat Falls which, though smaller than Gull Island, is not a small project by any means. The energy generated is significant � 824 megawatts of power.

The estimated total capital cost of the project is 6.2 billion dollars. Here�s how that breaks down:

• 2.9 billion for the generating facility at Muskrat Falls and transmission infrastructure in Labrador;
• 2.1 billion for the Labrador-Island link and transmission infrastructure upgrades on the Island; and
• 1.2 billion for the Maritime Link.

The project will generate 8,600 person-years of direct employment in Newfoundland and Labrador, with 5,400 of these person-years occurring in Labrador.

If you add on the indirect and induced employment, the total number rises to 18,400 person-years of employment in Newfoundland and Labrador.

At peak employment during the construction phase, we will see about 2,700 people working.

First consideration for jobs in Labrador will go to the Labrador Innu as outlined in the New Dawn Agreement, then to Labrador residents, and then to residents of the province generally.

The project will be on land that is part of the Innu land claim, and it is right and proper that the Innu people benefit fully from this development.

Our relationship with the Innu Nation is strong, and we are working, at their request, to facilitate the resolution of issues they have outstanding with the federal government.

Total income from the construction phase of Muskrat Falls for labour and business in Newfoundland and Labrador will be approximately 220 million dollars a year, which adds up to 1.4 billion dollars over the course of the project.

This activity will generate some 210 million dollars in provincial tax revenues, plus some 525 million dollars in federal tax revenues.

Nation wide, the construction phase will generate 540 million dollars a year in labour and business income, totaling 3.5 billion dollars by the time this project has been completed.

This is a good deal for Canada and the more you scrutinize it, the better it looks!

You have probably heard that I�ve recently met with the Prime Minister on two occasions.

There has been lots of speculation about what these meetings signify. Are federal-provincial relations thawing? Is the new Premier taking a softer approach?

I actually can�t help but smile when I hear that. �Soft� has not been a word people generally use to describe me.

The reasons behind the strained relationship between our government and the Government of Canada came down to us not feeling respected or heard in a meaningful way on key issues that mattered to the people of our province.

But it is a new day.

My goals for the meetings I have had with Prime Minister Harper since becoming Premier were simple: to present in a very straightforward way the priorities of our province, with focus on some key items, including a federal loan guarantee for the Muskrat Falls development.

My last meeting with the Prime Minister took place here in St. John�s the week before last and it was a positive one. We have provided further information on Muskrat as requested specifically by the Prime Minister and he committed to a timely response.

Securing a loan guarantee from the Government of Canada will mean savings in interest costs for the project, all of which will go to further reduce rates for consumers, putting more money directly into the pockets of residents here in Newfoundland and Labrador and in Nova Scotia.

In addition, the Federal Government�s record on the environment will certainly be boosted by supporting a clean, green mega energy project like Muskrat Falls.

As I�ve said before, I would be astounded if the Federal Government does not recognize the benefits this development has for the entire country and provide the loan guarantee.

But with or without it, Muskrat Falls will proceed. This project is sound, it stands on its own merits and it makes sense. It�s that simple.

Our Energy Plan takes a comprehensive approach to the development of both our non-renewable resources and our sustainable, renewable, clean energy resources. Hydroelectric power can fuel sustainable economic activity in perpetuity, and that makes it a key vehicle for our drive to self-reliance.

There is so much I could talk about when it comes to our economic development, our future prosperity and what is going right in Newfoundland and Labrador.

I could talk about our oil and gas sector, our equity stakes in three offshore projects, our production total of approximately 1.2 billion barrels from Hibernia, Terra Nova, White Rose and North Amethyst , the ramp-up of Hebron leading to 2017, and the undiscovered reserves of 6 billion barrels of oil and 60 trillion cubic feet of natural gas to add to the 3.1 billion barrels of oil and 11 trillion cubic feet of natural gas already discovered.

I could talk about the huge investments we have been making in post-secondary education to boost skills development, and to improve access to apprenticeships so our people are ready for the unprecedented opportunities on the horizon.

I could talk about the major investments we are making to modernize our K-12 schools and education programming.

I could talk about the investments we are making in research and development to focus our growth in the global marketplace.

Poverty reduction, youth retention and attraction, lowered taxes, improved health care, the list could go on and on.

There has been no better time to live and work and do business in Newfoundland and Labrador, as you all well know.

I am invigorated every day as I contemplate the amazing potential and bright future of our province. Newfoundland and Labrador is indeed the place to be and I know I am in the company of those who share in the commitment to its success.

Let me close with the words of a Nina Simone song which I think we can all relate to, as they reflect the momentum and optimism that signal a bright future for our people and our province.

Don�t worry, I won�t be singing them�I think it�s a very valuable trait to be able to recognize not just your talents and skills, but your shortcomings as well.

And to quote the incomparable Ms. Simone: �It�s a new dawn. It�s a new day. It�s a new life for me, and I'm feeling good.�

Thank you.