Misconceptions

In his speech to ANNOIA today, Danny Williams uttered this nose-stretcher:

Given that success, it should be little surprise that the Government of Newfoundland and Labrador has determined that we want to have an equity participation in our own fields as we go forward.And let me clear up another misconception. We are not insisting on a free ride for our equity.

No?

It's easy enough to see how that "misconception" could have arisen:

Danny Williams, Leader-designate of the Newfoundland and Labrador Progressive Conservative Party, says the Government of Canada should transfer its 8.5% share of the Hibernia project to Newfoundland and Labrador. [Glorious Leader press release, March 12, 2001]

A Progressive Conservative government will seek to acquire the federal government's shares in Hibernia as a way to increase benefits to the Province.

A federal-provincial agreement to transfer ownership of the shares could provide for the federal government to recover its equity investment in the project. That could be done in one of two ways: either Ottawa can wait until it has recovered the value of the investment before transferring its shares to the Province, or it can transfer the shares earlier and be reimbursed by the Province, up to the value of its investment, from future earnings. [Glorious Leader's platform, 2003]

Priorities, as Williams sees it, are for the province to become the true economic beneficiary as envisioned in the Atlantic Accord on offshore oil and gas and for the province to gain a stake in Hibernia... [St. John's Telegram, December 13, 2003]

Although [Ed] Byrne would not provide details, one element of the [PC government's economic] strategy is convincing Ottawa to transfer its 8.5 per cent ownership stake in the Hibernia project partnership to the province. "We want it. I believe, and we believe, that it should come to us... [Ed Byrne in the Western Star, December 16, 2003]

Danny Williams, the Premier of Newfoundland, has demanded the asset be handed over to his province, so it can enjoy a further interest in its own resource. [National Post, March 25, 2004]

"When I saw that Petro-Canada was announced as being up for sale I considered it positive the fact that Hibernia wasn't mentioned," Williams said from St. John's, Nfld. "The fact that it wasn't there indicates that it may be part of an overall compensation package to Newfoundland and Labrador." [Canadian Press, March 29, 2004]

Canada’s 8.5 per cent ownership stake in the Hibernia project – an entirely different kind of public investment – should be transferred to Newfoundland and Labrador which currently has no ownership role at all in its principal offshore petroleum project. [Glorious Leader, July 1, 2004]

Danny Williams, Premier of Newfoundland and Labrador, complicated the matter last year when he asked Prime Minister Paul Martin to "return" its stake in Hibernia, located 300 kilometres east of St. John's, to his province so it could enjoy benefits from the oil industry. [National Post, February 16, 2005]

Even today, Newfoundland Natural Resources Minister Ed Byrne maintains that Canada's share of Hibernia should be transferred to the province. [Western Standard, May 2, 2005]

Prior to being elected, the Danny Williams government expressed its intent to acquire the federal government’s Hibernia share. [Newfoundland People's Separatist Weekly, July 17, 2005]

“Our position before was that they should transfer it to us,” says Williams... [Newfoundland People's Separatist Weekly, October 23, 2005]

Does your party support the transfer or sale of the Federal Government's share in Hibernia to the province of Newfoundland and Labrador provided the Federal Government is kept whole on their expected return at the time of their initial investment? [Glorious Leader's Glorious Letter, 2005/06 federal election]

And especially, because, just seconds before, in Danny's same speech to ANNOIA, he said:

The idea of participation of the producing jurisdictions having some degree of ownership in its own oil fields is not a radical idea. Rather, it is normal state of affairs within the industry worldwide. We have an example right here in our own backyard with the Government of Canada's 8.5% equity interest in Hibernia. This percentage in no way impedes the private operating partner's ability to reap large profits from this project.

To date Hibernia alone has produced approximately $15 billion with over $1.2 billion to Newfoundland and Labrador, over $4.8 billion for Canada, and approximately $8.8 billion for industry.

In fact, the Government of Canada has recouped its investment three-fold to date; a good time, I think, for Ottawa to give its equity interest and MPI benefit to the province.