Then and now
On Nov. 18, 2010, Premier Danny Williams presented - and Premier Kathy Dunderdale has continued to support - the 13-page agreement providing details of the partnership between our government, Nalcor Energy, and the Government of Nova Scotia and its Emera energy corporation, and confirming the partnership between Nalcor and the Innu Nation of Labrador.
If this proposal is put in place and implemented, the result will be the development of Muskrat Falls. The power would be transmitted from Labrador across the Strait of Belle Isle for use on the island and to provide power for the future industrial development of Labrador, as well as providing hydro power for Nova Scotia or the Maritimes generally, or perhaps New England.
Then premier Williams stated that the agreement reached was a day of great historic significance for us because we can now move forward with development of the Lower Churchill on our own terms, free of the geographic stranglehold which Quebec has had for far too long in determining the fate of the most attractive clean energy project in North America.
I consider Muskrat Falls the last and best chance we have to overcome the disastrously unfair provisions of the original Upper Churchill agreement and to develop Labrador energy and resources effectively.
There is risk in every great enterprise, but the issue is whether the risks are reasonable or not. This 824 megawatts of power can be produced from clean, renewal resources, with interconnections to the Atlantic provinces and, if necessary, to the northeastern U.S. - enabling all to benefit from environmentally friendly, affordable energy.
It will cost us greatly if the Muskrat Falls project does not proceed. A reasonable assessment is that it will result in stability and less cost for consumers in the long term. The Maritime link will be owned first by Emera for 35 years, reverting to us.
As T.S. Elliott once observed: "Only those who would risk going too far can possibly find out how far you can go."
Now:- John Crosbie, "Muskrat Falls is worth the risk", St. John's Telegram, May 25, 2013
Province Not Investing, It's Taking Risks Says Crosbie, Barry
VOCM News, Friday , November 21 2014
Newfoundland and Labrador is in a vulnerable economic situation according to John Crosbie, who blames the Danny Williams/Kathy Dunderdale governments for failing to reduce spending while oil prices were high.
At the Newfoundland and Labrador Employer's Conference, yesterday, Crosbie said government failed to acknowledge the volatility of oil prices and continued with large spending increases and budget deficits, despite the need for restraint during those years.
He says buying into offshore oil fields and Muskrat Falls depends crucially on the future price of oil. As a result, Crosbie says our exposure to risk is huge, and more than it needs to be. He says spikes in oil prices are inherently unpredictable, leaving us in economic risk.
Businessman Bill Barry furthered Crosbie's point, saying government is in no position to assess risk, and has jeopardized our economic future. He says we operate in one of the most expensive resource areas in the world, and our public policy does not reflect that.
Barry says we're not making investments, we're taking risks. While it's great to invest in our future, Barry says we shouldn't risk our future. He says the people who are making these public policy decisions are in no position to assess risk.
Labels: Lowered Churchill expectations