The Opposition is questioning the decision to eliminate the 2 per cent escalation clause set out in the original Churchill Falls MOU.

That, according to the Liberals, means that NL loses the guarantee that the price paid to the province would rise over time.

Premier Tony Wakeham says having a 2 per cent escalation clause put the province in a vulnerable position.

“As you know, in the previous agreement, there was a potential for a significant mortgage for all intents and purposes, left on Gull Island of almost $30 billion.  That’s been reduced now, and that present value of that will be around $200 million, so that was a significant part of that as well.”