Newfoundland and Labrador Premier Tony Wakeham has decided not to proceed with a public referendum on a new Churchill Falls deal, citing changing political circumstances. During his election campaign last year, Wakeham had pledged a referendum on any such deal. However, a new agreement was announced on Monday with Prime Minister Mark Carney and Quebec Premier Christine Fréchette, but it will not be subject to a referendum, disappointing those expecting a vote.
Wakeham explained that the involvement of the federal government in the new deal presented a significant opportunity that was not previously considered. He highlighted the changing landscape due to factors like the U.S. trade war and the pause on Canadian goods tariffs by U.S. President Donald Trump.
The House of Assembly is set to convene on September 14 for a special debate on the new deal, allowing members to review the details with the negotiating team present. The new agreement supersedes a 2024 memorandum of understanding (MOU) reached by the previous Liberal government, which was deemed unfavorable for the province after a review commissioned by Wakeham’s administration.
Wakeham emphasized the benefits of the new agreement, including the option for Newfoundland and Labrador to sell power to Quebec or use excess power to support local industries. He also highlighted the enhanced terms with Ottawa’s involvement, such as potential equity stakes in energy projects and support for infrastructure development.
The CEO of Energy N.L., Charlene Johnson, expressed optimism about the project, calling it a significant opportunity for the region’s economy. She emphasized the expertise and resources available in Newfoundland and Labrador to meet the global demand for clean energy, acknowledging the current geopolitical challenges.
Wakeham expressed confidence in the deal’s benefits for both provinces, despite uncertainties like the upcoming Quebec election. He aims to finalize the agreement by the end of the year, signaling a positive outlook for the energy projects and their economic impact on the region.
