Premier Tony Wakeham of Newfoundland and Labrador has stated that political factors influenced his choice to not hold a public vote on a new agreement for Churchill Falls, despite earlier commitments to do so.

During his campaign for last year’s provincial election, he pledged to conduct a referendum on any Churchill Falls agreement. On Monday, alongside Prime Minister Mark Carney and Quebec Premier Christine Fréchette, Wakeham revealed a new agreement but confirmed that it would not be subject to a public vote. He acknowledged that many might feel “disappointed” by the absence of a referendum.

“What has shifted is the scale of the opportunity now that the federal government is on board. This was never even considered in the previous memorandum of understanding or any discussions prior to that,” Wakeham explained during a phone interview on CBC Radio’s The St. John’s Morning Show on Wednesday.

He mentioned that with the federal government advocating for swift action, the “facts on the ground” have evolved over the past year, especially in light of the U.S. trade conflict.

U.S. President Donald Trump has temporarily suspended 50 percent tariffs on Canadian products for three days, which were set to take effect on August 19, as negotiations for a trade agreement continue.

“We face the prospect of even higher U.S. tariffs, and that threat remains,” Wakeham remarked.

The House of Assembly will convene on September 14 for a special discussion, and Wakeham indicated that Members of the House of Assembly (MHAs) would be equipped with the necessary resources to examine the agreement’s specifics. He noted that the negotiating team would also be present.

This new agreement supersedes a 2024 memorandum of understanding established by the previous Liberal provincial administration, which a subsequent review initiated by Wakeham’s government found to be not beneficial for the province.

The PC caucus walked out during the voting process on the previous memorandum.

When questioned if the opposition might similarly exit, Wakeham remarked that they had previously voted in favor of the last memorandum, asserting that the current agreement is an improvement.

“This is a new and superior agreement that offers more power, greater value, and enhanced transmission capabilities,” he stated.

Wakeham also pointed out that an additional advantage of the new arrangement is Newfoundland and Labrador’s option to sell power to Quebec or retain surplus energy to bolster the province’s industries. He emphasized how the federal government’s involvement enhances the current memorandum of understanding, such as the proposed 2,000 megawatt onshore wind energy project in Labrador, which could see the federal government take a 40 percent equity stake that Newfoundland and Labrador could repurchase in the future.

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Additional benefits of the agreement include loan guarantees for the Gull Island hydroelectric project, which will aid in reducing borrowing costs, investment tax credits, and assistance from Ottawa in constructing the Labrador Transmission Line, he stated.

“All these components collectively represent over $3.5 billion in investment from a federal government that is partnering with us,” he added.

With a Quebec election on the horizon, a change in government could occur. Wakeham noted that while he cannot dictate the outcome, he believes this agreement is advantageous for both provinces.

He expressed hope that a definitive agreement would be finalized by year’s end.

‘Tenuous geopolitical world’

Charlene Johnson, CEO of Energy N.L., attended the announcement on Monday and expressed pride that Newfoundland and Labrador possesses “natural resources that are the envy of the world.”

Her members are excited about the potential job opportunities stemming from the energy projects, which could encompass engineering, fabrication, on-site construction, as well as operation and maintenance.

“We anticipate all those opportunities throughout the entire life cycle of this project,” Johnson stated.

Energy N.L. CEO Charlene Johnson says her members are eager to work on all aspects of the projects. (Danny Arsenault/CBC)

She also remarked on Carney’s statement calling it the largest clean energy investment in North America as “quite significant.”

“The world is currently in need of energy, and Newfoundland and Labrador has the resources and expertise to provide it,” Johnson emphasized. “We are all acutely aware of the precarious geopolitical landscape that surrounds us.”

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