A beaming Premier Andrew Furey is coming off a political high and turning his attention to selling Newfoundland and Labrador’s new draft deal for Churchill Falls to a public that has been scarred by costly megaprojects of the past.
On Thursday, Furey and Quebec Premier François Legault signed a memorandum of understanding to replace a lopsided 65-year-old contract attached to the Churchill Falls hydroelectric project. Hydro-Québec’s latest figures show that it sells power for 51 times what it pays for power from the central Labrador plant.
Thursday’s agreement, will greatly expand hydro production in Labrador, and is expected to yield at least $200 billion for N.L. over the next five decades.
“The sky is the limit with this power,” Furey told CBC Thursday.
Furey is taking to the skies, too, to move the Churchill Falls strategy from announcement to public persuasion. Furey was flying straight to the heart of Labrador Friday, to meet with people — including Indigenous groups — in Happy Valley-Goose Bay, and then to the power-generating town of Churchill Falls.
The government has also started advertising the deal, with a polished campaign that clearly has been in development for some time. A website — ourchapter.ca — went live after the announcement, as the government boasted of the benefits and posted the MOU itself for download.
Social media and online ads, featuring Furey’s own voice, were available Thursday evening.
There was applause, hugs and almost too many politicians to count in St. John’s Thursday, when the premiers of Quebec and Newfoundland and Labrador announced a memorandum of understanding to end the notorious Churchill Falls agreement 17 years early. A new deal, if sanctioned, scores of billions of dollars flow in N.L. coffers for decades to come. The CBC’s Terry Roberts explains.
Furey has also been fitting in media interviews to explain details of the MOU. Apart from a splashy news conference at The Rooms cultural complex, Furey did four one-on-one interviews on Thursday, and had an additional four booked for Friday, his office said.
Furey heads to Labrador — where residents have long complained that their natural resources have been exploited for the gain of others — armed with a deal he says will right historic wrongs. He said the deal, if sanctioned, will mean thousands of construction jobs, sustained and significantly higher revenue, and more energy for Labrador itself.
The money on the table will be hard to ignore, Furey suggested.
“$200 billion has transformative power,” he said.
The Current19:20New hope for N.L. over tentative hydro energy deal
Quebec and Newfoundland and Labrador have struck a new hydro energy deal. It replaces the previous pact that saw power leave the Churchill Falls hydroelectric plant in Labrador at a very low price. The tentative renegotiation will see Quebec pay 30 times the previous price. Premier Andrew Furey and the CBC’s David Cochrane share why the old agreement bred resentment within N.L. for more than 60 years, and how this step forward could change their province forever.
For Furey, signing an MOU with Quebec represents the start of a new chapter for Newfoundland and Labrador.
“This changes everything. It changes everything for all those who stood where we now stand,” he said.
Opposition: Show us the details
The tentative agreement took almost four years to negotiate. With Quebec’s need for more electricity and long-term contracts, Furey maintained that Labrador’s neighbouring province must be ready to pay if it wants more power from N.L.
In September 2023, Furey told reporters in Quebec City to “show us the money.”
To the tune of $200 billion, Furey joked that Quebec has clearly shown N.L. the money.
Now, Newfoundland and Labrador’s opposition leaders want Furey to show them the details.
PC Leader Tony Wakeham and NDP Leader Jim Dinn say a new tentative deal with Quebec over Churchill Falls should be about the people and the province — not politics. They say Premier Andrew Furey could have proved that by letting them see the details early, like journalists.
PC Leader Tony Wakeham and NDP Leader Jim Dinn told CBC they were annoyed that a technical briefing for them was scheduled for 5 p.m. NT Thursday, well after the news conference.
“I’ve essentially heard what the premier had to say today. Certainly, a lot of money is being talked about,” Wakeham said before the briefing.
Said Dinn: “We’ve heard all the rhetoric, the hyperbole there today, and there is a real sense of hope that this is going to be what it is. However, we didn’t get the technical briefing.”
Wakeham wants to ensure the province makes the correct decision if it proceeds with the MOU.
“We’re about to enter into another 50-year agreement with the province of Quebec. So it’s very, very important for us to get this right,” Wakeham said.
Dinn said he is going to review the details to ensure the new agreement is better and protects Newfoundland and Labrador’s interests.
“Before I join in the celebration,” he said, “I would like to have the opportunity to sit with my colleague, talk to our researchers, talk to people who are knowledgeable in this field and find out what exactly this means. Is it as good as it seems?”
Both Wakeham and Dinn said they will have more to say on the deal in the coming days.
The details of the MOU will be debated in the House of Assembly during a special sitting in early January. This will determine whether the province will proceed.
In the meantime, Wakeham is questioning whether Furey will use the announcement as an election ploy before the scheduled fixed-date vote on Oct. 14, 2025.
“Trying to force a deal and getting it done so we can go to the polls, that’s the wrong approach,” Wakeham said.
“It can’t be about the next election. It has to be about the next generation.”
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