Liberals win support of NDP, independents by promising enhanced review of Churchill Falls MOU
Consumer advocate to lead new independent panel to review MOU and any potential contracts with Hydro-Quebec
In a surprise twist Thursday morning following three days of intense debate, NDP and independent MHAs in the House of Assembly — all four of them — pledged to support a vote on the Churchill Falls MOU after the Liberals agreed to an extra layer of independent review of any new energy deals linked to the Churchill River.
"That's my intention," said independent MHA Paul Lane.
"It was conditional on this," said NDP Leader Jim Dinn, standing shoulder-to-shoulder with Jordan Brown, the NDP MHA for Labrador West.
Independent MHA Eddie Joyce said "definitely" when asked if he will now vote in favour of the MOU.
In a hastily called scrum with reporters that saw political representation from all parties except the Progressive Conservatives, Energy Minister Andrew Parsons announced they'll create a new, independent three-member expert panel chaired by the province's consumer advocate, Dennis Browne.
The panel will review the Churchill Falls MOU, and provide oversight of ongoing negotiations with Hydro-Quebec on what could be a historic and cash-rich — more than $225 billion in revenues to the province over the next 50 to 60 years — suite of contracts for hydroelectric power from the Churchill River.
The panel will provide advice to the Liberal cabinet and summaries to the public and the House of Assembly "in a manner that respects commercial sensitivities and does not jeopardize the province's negotiations," Parsons explained.
The panel will provide quarterly reports, with the first expected sometime in the spring.
Parsons said they'll give more money to the consumer advocate's office, but he could not say how much the extra scrutiny will cost taxpayers.
"We will make sure the funding is there," said Parsons.
Government will approve panel members
The consumer advocate will submit a list of candidates to the provincial government for approval, Parsons said, but the advocate will have the final say on member selection.
"We all want to feel that we're not letting something slip by here," he said, of the additional oversight.
The announcement of the panel followed three days of sometimes rancorous debate, with opposition politicians — including the PCs, NDP and independents — demanding the Liberals subject the MOU to an independent review that would live up to the spirit of the recommendations of the Muskrat Falls inquiry.
"I'm not here to be a cheerleader. I'm here to make sure we do get the best deal for Newfoundland and Labrador," Tony Wakeham, who leads the 14-member PC caucus, said Thursday morning.
The 40 MHAs are scheduled to vote Thursday evening on a motion to accept the MOU and give permission to N.L. Hydro to continue negotiations with Hydro-Quebec.
The PCs say they will not vote in support of the MOU unless it is subjected to an independent review, preferably led by the province's utility regulator, the PUB, and want the government to delay Thursday's vote.
Parsons said that will not happen, and delaying the negotiations could be harmful to the province.
"There will be a vote today," Parsons said in the legislature.
When asked about the new independent panel, Wakeham said it falls short of Justice Richard LeBlanc's recommendatons and the Muskrat Falls inquiry report.
He described the consumer advocate as a "well-known Liberal" and said Browne's independence is tainted because he's already offered his support for the MOU in recent interviews with the media.
Premier Andrew Furey defended the composition of the new panel, saying the consumer advocate is an independent officer appointed under the Public Utilities Act to represent the interest of electricity ratepayers.
As for Browne's historical connections to the Liberal party, Furey said Browne has not been active politically and "we shouldn't be afraid that people have had some involvement in the political process in the past."
'I'd love to see it done'
The Liberals have defended the level of oversight, and Furey signalled there will be additional scrutiny in his address to the legislature on Monday morning, on the opening day of the extraordinary debate over the MOU.
Lane, meanwhile, said he was especially motivated to ensure there was an independent review because he's the only sitting member of the House of Assembly who voted in favour of the Muskrat Falls project, which was billions over budget and years behind schedule.
"I think this project on its face represents a real opportunity. I'd love to see it done, but I just want to make sure it's done right. This gives me comfort," he said of the new panel.
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