Hibernia stake could be sold: leaders

All three leaders of the major federal parties are agreeable to selling Canada's minority stake in the Hibernia megaproject to Newfoundland and Labrador, according to letters released Tuesday.

Newfoundland and Labrador Premier Kathy Dunderdale released the correspondence, which include a request from Dunderdale for answers to 14 specific policy questions that range from a loan guarantee for the Lower Churchill hydroelectric megaproject — which all leaders have already backed — to fisheries science, the seal hunt and the future of the 5 Wing Goose Bay air force base in Labrador.

Dunderdale solicited the leaders' opinions a week after she already had endorsed Harper and the Conservatives, arguing that she believes they will form the country's next government.

Among the issues is an ongoing campaign by Newfoundland and Labrador to acquire Ottawa's 8.5-per cent stake in Hibernia, which began producing oil in 1997 after years of delays and setbacks. Canada took the stake to ensure Hibernia's development.

Both Conservative Leader Stephen Harper and Liberal Leader Michael Ignatieff opened the door to a possible sale. Harper said the Conservatives  would base any possible sale "on the basis of fair market value." Ignatieff said the "Liberals are prepared to begin negotiations" on terms.

NDP Jack Layton, though, used stronger language. "We believe that the Government of Canada, as an equity partner in the Hibernia project, has more than recouped its investment which was designed to help kick-start the project," said Layton.

In his response, Layton also said negotiations should recognize Newfoundland and Labrador as the principal beneficiary of the resource "and the fact that this share was never intended to create a windfall for the Government of Canada." He added an NDP government would "move quickly to resolve this issue."

Goose Bay base

Dunderdale asked leaders to outline the future of 5 Wing Goose Bay, the base in Happy Valley-Goose Bay that has been troubled since foreign low-level training flights wound down years ago.

Harper's response may spark further controversy, as the Tories have been accused of abandoning prior pledges to move a rapid-response battalion to the Labrador base.

Asked last week whether the promise stands, Harper told reporters at a campaign event in Conception Bay South, "Our promise on 5 Wing Goose remains our commitment and we remain committed to the Canadian Armed Forces across this country."

Harper's letter, sent to Dunderdale on Monday, includes no mention of that pledge, and instead focuses on repairs, upgrading, contamination remediation and marketing efforts at the base. "Our 80 infrastructure projects are planned for the next fiscal year in the Happy Valley-Goose Bay area — including roof repairs, conversion of heating systems and transformers, and environmental compliance work," he wrote.

Ignatieff said the Liberals would maintain and expand operations at 5 Wing Goose Bay, citing "its strategic location, the incredibly vast flight training area, and the infrastructure already in place."

Layton said the base should be kept running "especially in light of the potential impact of global warming and its effect on Canada's northern strategy."

Response times

Dunderdale asked each leader whether he would commit to a recommendation from the Wells inquiry into offshore helicopter safety for a dedicated search-and-rescue helicopter in St. John's with a wheels-up response time of 15 to 20 minutes.

In his letter, Harper reiterated standing government policy that Gander remains the best choice for federal search-and-rescue services. However, he indicated that there may be changes if he forms the next government.

"Canadians are fortunate to have one of the most effective Search and Rescue Response systems in the world," Harper wrote, "but there is more that could, and should, be done."

Ignatieff did not commit to meeting the Wells inquiry recommendation in full, but would consider it. "We will consider all aspects of search and rescue including the appropriateness of response times. It is our view that a 15-20 minute response time should be the objective for all industries," Ignatieff wrote.

New prison

Dunderdale asked the leaders if they would agree to the federal government paying 70 per cent of the cost of building a new facility that would replace Her Majesty's Penitentiary in St. John's, parts of which date back to Victorian times.

Harper avoided the specific funding question in his response, but pointed to the Conservatives' policy on crime.

"We are the only federal party with a serious plan to reduce crime and make streets and neighbourhoods safer, and we are the only party with a plan to make the necessary investments in correctional facilities," he wrote.

Ignatieff said he would "work with" the provincial government on funding a replacement to HMP.

Layton said a new penitentiary is "long overdue" and the old one should "be replaced as quickly as possible."