Billions on the line as opposition prepares for special sitting of N.L. legislature in wake of Churchill MOU
Political leaders preparing for special sitting of House of Assembly
Newfoundland and Labrador's provincial government might be advertising a new chapter for Churchill Falls, but opposition leaders fear they will end up ripping a page from Muskrat Falls's ill-fated playbook.
Elected officials will be back in the House of Assembly starting Monday morning for a special four-day sitting to allow politicians to debate the terms of the memorandum of understanding between N.L. Hydro and Hydro-Québec.
If sanctioned by its 2026 target, the MOU would deliver more than $200 billion to Newfoundland and Labrador over five decades.
The agreement would overwrite a contentious 65-year contract that expires in 2041.
The new agreement includes provisions that Newfoundland and Labrador has long sought, including significantly greater revenue from hydroelectric sales, recall rights, development of the Gull Island megaproject and — years down the road — an escalator clause that will increase annual revenue payments.
36-hour debate
Premier Andrew Furey has called the document historic. He said the impact of the deal will span generations — but that's not stopping opposition leaders from raising red flags.
The upcoming debate in legislature will total 36 hours over four days.
PC Leader Tony Wakeham believes the documents require more time for scrutiny, pointing to the provincial budget as a comparison, which gets over 75 hours of review and debate.
"There's a sense of rush around this whole MOU process and that's unfortunate," Wakeham told CBC News on Friday.
"Is this about the next election or is it about the next generation? That's what people are asking."
The MOU is non-binding, despite provincial advertisements promising jobs, power, and a strong future.
At face value, NDP Leader Jim Dinn said the deal looks favourable, but with less than a month to review the terms of the agreement, he wants to see some independent oversight.
"No deal has been ripped up yet," said Dinn. "[But] I would be mystified that the government would not want to [forego oversight] in light of the Muskrat Falls inquiry."
In any major financial arrangement, Dinn says due diligence is crucial.
"Whether it's to buy a house or whatever else, you can either take the real estate agent's word for it, or you're going to do your own homework to make sure that this is indeed the best deal possible," he said. "That's not necessarily calling into question the agent's integrity, but it is about due diligence to make sure that this is what it is."
Both opposition parties held town halls last week to give the public the opportunity to raise their own questions and concerns.
Debate procedures
Government House leader John Hogan sent a letter to opposition parties on Dec. 23, outlining the rules and timeline of the MOU's debate.
The procedures include doubling the allocated speaking time for MHAs and party leaders and welcoming non-members to the House floor for questions.
The galleries will be open to the public, but only non-members invited by the Liberals will be allowed on the floor of the House of Assembly. This includes N.L. Hydro CEO Jennifer Williams and Walter Parsons, who will attend the debate on Jan. 6 and 7.
JP Morgan and Power Advisory will also attend the debate as non-members.
"JP Morgan contributed to the financial analysis required for the negotiation preparations and the negotiation process itself," N.L. Hydro spokesperson Jill Pitcher told CBC News.
"Power Advisory provided advice on power valuation, market trends, new electricity supply costs, and other electricity data required for the negotiation preparations and during the negotiations."
Officials will sit from 10 a.m. to 12 p.m., 1 p.m. to 5 p.m., and from 6 p.m. to 9 p.m. NT each day.
The debate starts at 10 a.m. on Monday and concludes Thursday night. It will be streamed online each day.
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With files from Mark Quinn