Reaction mixed to NB Power deal
Published Friday October 30th, 2009
Deal is fiscally dangerous and politically unwise, say critics
FREDERICTON - Premier Shawn Graham hopes the decision to sell most of NB Power will receive support from New Brunswickers and other provinces once they realize its benefits -- but he may have some work to do to get there.
"I hope that you will come to share my conviction, that this proposed agreement stands to be a turning point on New Brunswick's journey towards self-sufficiency and a better future for our residents, wherever you may live," he said following the announcement.
The immediate reaction from some groups suggests that won't happen right away, if it happens at all.
Opposition leader David Alward condemned the terms of the memorandum, saying it contradicted the Liberals' own goals.
"With this deal we would be going from self-sufficiency to self-destruction," he said, criticizing the government for not being transparent during the negotiation process and for breaking a promise from the 2006 election. "Shawn Graham is for sale, but New Brunswick and NB Power is not."
Alward said earlier in the week that any deal must be good for both individual and industrial customers.
Yesterday, he demanded the government wait until after next September's scheduled election to finalize the deal, in order to allow the public to decide.
"We expected a substantial rate reduction. But no reduction at all, especially when big industry gets a reduction of 30 to 35 per cent, is totally unacceptable."
Newfoundland and Labrador Premier Danny Williams, a vocal critic of the deal this past week, suggested the partnership could be harmful to his and other provinces' energy export goals.
"We've been held ransom by Quebec before," said Williams, referring to recent actions by Quebec and the lopsided Churchill Falls deal between the two provinces in 1968, which still casts a shadow across Newfoundland and Labrador.
"We've had the experience of dealing with Quebec. A word of caution to the people of New Brunswick, because obviously Premier Graham hasn't heard it."
But other Atlantic provinces were not as quick to disapprove of the partnership.
"I congratulate them," Prince Edward Island Premier Robert Ghiz said, adding that it's important to explore all options in the hunt for cheaper, greener energy.
P.E.I. receives most of its power from the New Brunswick electricity grid and Ghiz said the sale of NB Power shouldn't raise rates.
"I don't think that this deal can hurt Prince Edward Island. We already pay some of the highest electricity costs in the region."
Bill Estabrooks, Nova Scotia's energy minister, reacted to the announcement yesterday with some apprehension, saying it added uncertainty to relationships within Atlantic Canada.
"We've had, in Nova Scotia, a long standing relationship with New Brunswick and NB Power and that relationship has changed," he said from Halifax.
He also responded positively to assurances from premiers Graham and Charest that yesterday's announcement did not spell the end of provincial co-operation, but was just one step towards a larger regional vision.
"What we've said as energy ministers in Atlantic Canada is that we're a region of challenges and we each need to play on our own strengths. We have to work together as a region. We're willing to continue to work with all the provinces."
Nova Scotia also has hopes of generating electricity to be exported through New Brunswick to the United States.
David Coon of the Conservation Council of New Brunswick said the access to Quebec's hydroelectric power will be environmentally beneficial.
"It's very good news, because it's going to result in the phasing out of all of our dirty fossil fuel power plants," he said. "That is going to eliminate almost 40 per cent of the hazardous air pollution in the province.
It also will enable us to actually exceed our greenhouse emission targets. It's clear that we will, within the next three or four years, have a cap on greenhouse gas emission that will come in North America-wide."
Graham insisted that the power pact would lead to improvements across the province and would be felt by all of its citizens -- who will ultimately decide its popularity.
"Every single New Brunswicker in every single community will benefit -- north, south, east and west," Graham said.
* With files from the Canadian Press
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