The architects of the 2024 MOU say it’s clear that the Wakeham version of the Churchill River development gave up concessions.

Liberal Leader John Hogan says his government insisted on certain things in order to right the wrongs of the past including an assurance that Newfoundland and Labrador would be properly compensated should the price of electricity go up.

Hogan says the Liberals still stand by and defend the original MOU and are concerned about concessions given by the province. Hogan uses the dropping of the escalator clause and the elimination of market-based pricing on the sale of Churchill Falls power as examples of things that this province gave up in this new deal. He states that those are things that Hydro Quebec didn’t want, because they did not benefit Quebec.

Premier says 2 per cent escalator had to go

Premier Tony Wakeham says the Independent Review Committee determined that the 2 per cent escalation clause on Gull Island power had to go.

Wakeham says the escalation clause would have driven up the price to such an extent that the balance owing on Gull Island after 50 years would be in the region of $30 billion.

He compares it to being saddled with a mortgage.

Wakeham says there would have been a large debt to be paid, if the escalation cause had not been dropped and now that debt has been greatly reduced.

Wakeham says instead, they’ve secured price increases which have been built into the contract.

He says that inflation protection is built into the contract which will ensure the Gull Island asset will only have a small amount of debt left in comparison.

NDP admits to ‘mistrust’ of negotiating team

NDP Leader Jim Dinn says he is beginning to harbour feelings of mistrust of Wakeham’s negotiating team.

He says his party originally voted for the 2024 MOU, on conditions of transparency. Although no decision has been made yet on whether they’ll support the new deal, Dinn does say there could have been more debate.