Before the throne speech was delivered on Tuesday afternoon, a protester outside the legislature in Fredericton holds a placard at a rally against selling NB Power. (Daniel McHardie/CBC)The Liberal government used its final throne speech before next September's provincial election to make the case for its planned sale of NB Power.

The throne speech, which sets outs Liberal Premier Shawn Graham's agenda for the coming year, focused primarily on the proposed deal to sell most of NB Power's assets to Hydro-Québec for $4.8 billion.

The speech read by Lt.-Gov. Graydon Nicholas highlighted many smaller initiatives that the Graham government would tackle in the coming months. But the proposed deal "represents one of the most significant debates to take place in this legislature in some time," the government said.

"By boldly seizing this opportunity for a new direction in energy in the province, New Brunswick will gain more jobs, lower power rates for all New Brunswickers and a stronger overall economic situation today and in the future.

"At a time when every jurisdiction is fighting for an advantage, this opportunity offers New Brunswick an important competitive edge."

The planned power deal would immediately pay off NB Power's debt and Hydro-Québec has agreed to freeze residential rates for five years and immediately cut large industrial rates to match those in Quebec. The province has estimated the rate package is worth $5 billion.

Energy Minister Jack Keir speaks to a protester outside the legislature building before the throne speech on Tuesday. (CBC)As Nicholas read the throne speech, a rally of several hundred people opposed to the NB Power deal crowded onto the legislature's lawn.

While the protesters were demonstrating against the deal, Graham told a news conference he expects the debate over the sale to be "lively and vigorous."

"Sticking with the status quo would push our goal of self-sufficiency out of reach," he said. "This proposed deal will give us more control over our future and allow us to create the opportunities necessary to achieve self-sufficiency."

Several Liberal cabinet ministers waded out into the rally to talk to the demonstrators, and protester Alta Tait demanded that the province halt the deal.

"He's selling our property," Tait said of Graham. "It's our property. It's like somebody coming in and saying, 'I'm selling your house.' He's selling the house to buy furniture."

Uncompetitive rates

'With so much uncertainty and volatility in oil, gas and coal prices, we cannot expose New Brunswickers to such an unpredictable future.'— Throne speech read by Lt.-Gov. Graydon Nicholas

The throne speech said New Brunswick energy rates are not competitive, making it difficult to attract businesses.

High power rates have "already cost us thousands of jobs in our mills and our manufacturing sector," the government said.

The deal would also eliminate the potential for a rate shock in the future by tapping into an endless supply of hydro power, the government said.

"With so much uncertainty and volatility in oil, gas and coal prices, we cannot expose New Brunswickers to such an unpredictable future. We must act now to protect New Brunswickers from unpredictability and we must do so now."

Graham said that since the energy deal was announced, the government has entered into discussions with several companies looking to do business in the province to take advantage of lower power rates.

"Now with a proposal to make rates lower, we've learned that Fraser Papers will be moving from bankruptcy to profitability," Graham said. "With this proposed agreement, New Brunswick will be a magnet for investments and job creation."

Graham also struck out at the Progressive Conservatives, who have opposed the deal since it was announced. He said the Tories are against creating new jobs in the province and accused them of not offering any alternative suggestions on how to deal with power rates and the provincial debt.

Opposition Leader David Alward said it's too early for him to come up with a plan.

"I think the premier is clearly being quite disingenuous if he would expect that anybody would come out immediately with a plan. We've said our plan, No. 1, is that this is not a good deal.

"Right now we need to make sure that the people of New Brunswick understand what the implications of this agreement are, and then we'll move forward," he said.

Clean power

The Liberal government also used the throne speech to pitch the proposed power pact on its environmental merits.

The Graham government had pledged to ratchet back greenhouse gas emissions to 1990 levels by 2012. However, if the Hydro-Québec deal goes through, New Brunswick would be six per cent below 1990 levels in the same time frame.

"This reduction would meet the national standard under Kyoto, placing New Brunswick at the forefront in climate change achievement," the speech said.

Other initiatives

The throne speech attempted to strike a note of fiscal austerity, less than a year after the Liberals forecast a $740-million deficit in the March budget.

Finance Minister Greg Byrne will table the 2010-2011 provincial budget Dec. 1. The throne speech said the budget will continue to chart a path back to balanced budgets through "annual, incremental spending restraint."

As a way to curtail government spending, the Graham government will create a New Brunswick Shares Services Agency that will "provide common internal common services that are essential to the functioning of government at a reduced cost to taxpayers."

Graham said there would not be any mass layoffs in the civil service with the introduction of this new agency.

If there are any job losses, Graham said the employees would be treated fairly as others have in previous downsizing initiatives.

He said the province is already talking to companies such as Oracle and IBM about developing the new shared services model and replacing "archaic" structures that currently deliver services, such as the distribution of cheques.