Newfoundland and Labrador Premier Tony Wakeham has explained his decision to forgo a public referendum on a new Churchill Falls deal, citing changing political circumstances. Wakeham, who had pledged a referendum during the provincial election campaign last year, made the announcement alongside Prime Minister Mark Carney and Quebec Premier Christine Fréchette. He acknowledged that the decision not to hold a referendum might disappoint some individuals.
In a phone interview with CBC Radio’s The St. John’s Morning Show, Wakeham highlighted the significant shift in circumstances due to the federal government’s involvement, a factor not considered in previous agreements. He emphasized the evolving landscape, pointing to the ongoing U.S. trade tensions and the potential impact of tariffs on Canadian goods.
The House of Assembly is set to convene on September 14 for a special debate on the new deal, which supersedes a 2024 Memorandum of Understanding (MOU) negotiated by the previous Liberal government. The review commissioned by Wakeham’s administration concluded that the previous MOU was not in the province’s best interests. Wakeham addressed concerns about potential opposition by noting improvements in the current deal, including enhanced power transmission and the option for Newfoundland and Labrador to sell excess power to Quebec or support local industries.
The new agreement, which includes support for the Gull Island hydroelectric project and investment tax credits, represents over $3.5 billion in federal investment. Wakeham expressed optimism about finalizing the agreement by the end of the year and emphasized the benefits of collaboration with Ottawa. Despite the upcoming Quebec election, Wakeham believes the deal is advantageous for both provinces.
Energy N.L. CEO Charlene Johnson expressed enthusiasm for the opportunities presented by the energy projects, underscoring the region’s natural resources and expertise. She echoed Carney’s characterization of the investment as the largest clean energy initiative in North American history. Johnson emphasized the importance of Newfoundland and Labrador’s role in meeting global energy demands amidst a complex geopolitical environment.