Feds tapped for $375M on subsea link: report

The governments of Nova Scotia and Newfoundland and Labrador have asked the federal government to spend $375 million on a controversial proposal to run an underwater power cable between the two provinces, a published report says.

The Halifax Chronicle-Herald reported the governments asked for $375 million from a federal fund that supports public-private projects.

Premier Danny Williams disclosed the proposal this month, while lashing out against what he called interference from the government of Quebec over the application.

Williams said Quebec had no business filing a complaint over the application, as it has nothing to do with Quebec.

Williams maintains the link would allow hydro power from the proposed Lower Churchill megaproject in Labrador to be routed to the Maritimes, and possibly to other markets.

The Chronicle-Herald reported that Nalcor, Newfoundland and Labrador's Crown-owned energy corporation, disclosed the figure. The overall project cost has not been revealed.

Prime Minister Stephen Harper last week said that the application from Nova Scotia and Newfoundland and Labrador would be judged on its merits.