N.B. Liberals critical of NB Power deal
Last Updated: Saturday, November 14, 2009 | 3:57 PM AT
CBC News
New Brunswick Premier Shawn Graham faced some tough queries from members of his own party Saturday about the proposed sale of NB Power to Hydro-Québec.
Graham hosted a question-and-answer session during the New Brunswick Liberals' annual convention in Fredericton.
'I have concluded that it is a poor deal fraught with uncertainty, and whatever its short-term benefits, it is not in the long-term best interests of New Brunswickers.'—Liberal Drew Speight
Many of the Liberal Party members present were clearly skeptical of the deal, including Drew Speight of Fredericton.
"I have concluded that it is a poor deal fraught with uncertainty, and whatever its short-term benefits, it is not in the long-term best interests of New Brunswickers," he said.
Speight contended NB Power's hydro dams, transmission lines and other assets are worth more than the $4.8 billion the province will get and questioned whether the government did a proper appraisal.
Negotiations ongoing
Energy Minister Jack Keir insisted the appraisal was sound, but said releasing the details publicly would undermine the province's position as it negotiates toward a final deal.
"On the one hand, we can't have folks saying Quebec's going to out-negotiate us, and then on the other hand have those same folks say to us, 'Well, tell the public what you're doing with them,' " Keir said. "We're in the middle of a $10-billion negotiation."
Under the proposed deal, announced Oct. 29, Hydro-Québec would take over most of New Brunswick's generating stations for $4.8 billion, which represents the equivalent of NB Power's debt.
For the first five years of the deal, Hydro-Québec would also freeze residential power rates and lower the rates for large industrial customers to the same prices offered to similar customers in Quebec — for total savings of an estimated $5 billion to NB Power customers.
Graham told Liberal Party members the NB Power appraisal will be released after a final deal is signed, likely at the end of March.
Other Liberals said they support the sale but criticized the government for not telling people about it sooner and not promoting it properly.
The proposed sale of NB Power needs legislative approval before it can go ahead. The Progressive Conservatives have demanded an election over the issue and have promised to stall the legislation if there is no immediate campaign.
The Liberal government has said if the deal is delayed past March 31, NB Power's planned three per cent rate hike will go forward, instead of the rate freeze promised in the Hydro-Québec agreement.
