Quebec stalling N.L. energy project: Williams
Last Updated: Friday, December 4, 2009 | 8:34 AM NT
CBC News
Newfoundland and Labrador premier Danny Williams went all the way to Alberta Thursday to take a shot at Quebec.
During a speech to a Calgary business group, Williams said that Quebec is trying to create an Eastern Canadian energy monopoly.
Williams further warned that Hydro-Québec is trying to derail Newfoundland and Labrador's Lower Churchill River hydroelectric project.
"We have the best green project in North America right now on the sidelines. It could mean a lot of work for Newfoundlanders and Labradorians , Nova Scotians, New Brunswickers, Prince Edward Island, Quebecers, and Ontarians," said Williams. "This is a mega project, of several billion dollars, that is very, very important — not only to us as a province but also to the region. So that's another reason here, to give people the details of exactly why that project is being stalled by Quebec."
This is the second time Williams has taken this message outside the province. He recently gave a similar speech in New York.
Williams is angry about a deal struck between Quebec and New Brunswick in October to sell the majority of New Brunswick's energy assets to Quebec.
Williams said in late October that if the deal goes through, it will be bad for Newfoundland and Labrador, the Maritime provinces and Ontario.
"If [Quebec also] acquires P.E.I. and Nova Scotia [power], we will find ourselves in a situation where one province will have energy control of the entire Maritime provinces," said Williams. "It will be attempting to strand Newfoundland and Labrador. So good, cheap, competitively priced energy can't be offered to that whole region.
"We are in a situation where Ontario, which is probably at its most vulnerable moment in its history, will be on its knees on a go-forward basis. That's not a good situation for the country."
At the time, Williams lashed out at Quebec.
"Quebec is a province that receives roughly $16 billion a year in transfers from Canada as a have-not province. So, the irony here is a have-not province that receives significant largesse from the rest of the country … is now going around and buying up energy assets."
Newfoundland and Labrador has been preparing to develop a hydroelectric mega-project on Labrador's Churchill River for years. It intends to sell some of the power generated there to the northeastern U.S. states and had been hoping to negotiate a deal with New Brunswick to transport the power via that province instead of through Quebec.
Williams said his government will not allow Quebec to block his province from selling power to the U.S.
"[The Lower Churchill project ] will be developed, and it will be developed on our terms, and as I've said before, over my dead body am I going to hand this over to [Quebec Premier] Jean Charest and Quebec."
New Brunswick Premier Shawn Graham and Charest announced the historic deal in Fredericton in late October. It would see Hydro-Québec buy the majority of NB Power's assets for $4.8 billion, which represents the equivalent of NB Power's debt.
As part of the deal, Hydro-Québec would freeze residential power rates in New Brunswick for five years. During the same time, large industrial rates would be lowered to the prices offered to the same customers in Quebec, but they would not be frozen. That component of the deal is worth an estimated $5 billion to NB Power customers.
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