Newfoundland and Labrador Premier Tony Wakeham has decided not to hold a public referendum on a new Churchill Falls deal, citing changing political circumstances. Wakeham, who previously pledged a referendum during the provincial election campaign, made the announcement alongside Prime Minister Mark Carney and Quebec Premier Christine Fréchette. The new deal, unveiled on Monday, will not undergo a referendum, a move that Wakeham acknowledged may disappoint some. Wakeham explained that the involvement of the federal government presents a significant opportunity that was not considered before, especially in light of the evolving U.S. trade tensions.
The upcoming special debate in the House of Assembly on September 14 will provide Members of the House with the chance to review the details of the new agreement. The agreement supersedes a 2024 Memorandum of Understanding (MOU) reached by the previous Liberal government, which was deemed unfavorable for the province by a review commissioned by Wakeham’s administration.
Wakeham emphasized the improved terms of the new deal, highlighting benefits such as the option for Newfoundland and Labrador to sell power to Quebec or retain excess power to support local industries. Additionally, he pointed out the involvement of Ottawa in enhancing the agreement, including support for a proposed 2,000-megawatt onshore wind energy project in Labrador.
The agreement also includes provisions for loan guarantees for the Gull Island hydroelectric project, investment tax credits, and assistance in building the Labrador Transmission Line from the federal government. Wakeham expressed optimism about finalizing the agreement by the end of the year, despite the potential for a change in government following the upcoming Quebec election. Energy N.L. CEO Charlene Johnson praised the deal, emphasizing the opportunities it presents for the province’s energy sector and its workforce. She echoed the sentiment that Newfoundland and Labrador’s natural resources and expertise position the province as a key player in the global energy landscape.
Johnson noted the significance of Carney’s characterization of the deal as the largest clean energy investment in North American history, underscoring the importance of meeting global energy demands amidst a complex geopolitical environment.