Honourable senators, this item was adjourned by Senator Plett for the balance of his time. After my intervention today, I ask that he retain his time.

Honourable senators, I’m pleased to make a few comments today as it relates to the Speech from the Throne.

Dear colleagues, on a cold February night in 1985, I joined many other Newfoundlanders and Labradorians at the Hotel Newfoundland in St. John’s to witness the signing of the Atlantic Accord between the Government of Canada and the Government of Newfoundland and Labrador, which was a comprehensive document establishing the joint management for the development of the oil and gas industry in our province.

That day in 1985 was a historic day for the people of our province. A historic agreement was signed that evening which has proven to be a game changer for Newfoundland and Labrador.

Colleagues, I truly believe that this day — December 12, 2024 — will go down in the history books of our province and our country as not only the day that the game changed, but, indeed, today the world has also changed as we have known it.

At a news conference just a few short hours ago, the Premier of Newfoundland, the Honourable Dr. Andrew Furey, and the Premier of Quebec, the Honourable François Legault, signed a memorandum of understanding, or MOU, on a new Churchill Falls agreement. It’s a game changer, indeed.

For those of you who may not be familiar with the Churchill Falls story, let me tell you a few things about it.

The original Churchill Falls contract was signed 55 years ago, in 1969. I was only five years old at the time. Joey Smallwood was our premier. The signing in 1969 created great economic activity and much-needed employment for the people of our province.

The glory of that massive hydroelectric project was short-lived, as it was discovered that, while the water would flow endlessly over Churchill Falls, the financial benefits would flow to the provincial coffers of Quebec and not to the people of Newfoundland and Labrador.

The 1969 agreement was to stay in place until 2041. It has been a matter of enduring resentment throughout Newfoundland and Labrador. The original contract failed to include an escalator clause as part of the agreement.

Because there was no escalator clause, Hydro-Québec has been purchasing the Churchill Falls power for a bargain basement price of 0.2 cents per kilowatt and selling it for a large, inflated price.

Since 1969, the contract has made more than $28 billion for Hydro-Québec while only returning $2 billion to the people of Newfoundland and Labrador in the same period. As I said earlier, that fixed rate and unfair deal were to be in place until 2041.

That was until today, when Premier Dr. Andrew Furey tore up the 1969 agreement. He and Quebec Premier Legault announced and signed a new historic partnership agreement that will be a real life-changer, bringing benefits for the people of my home province and which, more importantly, will reap benefits for generations of Newfoundlanders and Labradoreans for decades to come.

An important part of today’s agreement is that it comes with the support of the Innu Nation. Grand Chief Simon Pokue was one of the signatories to the agreement today. The chief called this a historic day for both provinces and the Innu.

The agreement signed today also respects the New Dawn Agreement, which guarantees that the Innu of Labrador will be included in all future energy projects developed in our province.

What does this new agreement entail? What does it mean to the people of Newfoundland and Labrador?

On a go-forward basis, Hydro-Québec’s cost per kilowatt of power will increase from 0.2 cents to 5.9 cents per kilowatt. That is 30 times the current price.

The present price of 0.2 cents provides $20 million a year to the coffers of Newfoundland. The new price, beginning next year, will provide $1 billion a year to the coffers of Newfoundland and Labrador.

Between now and 2041, when the old contract was to expire, this new price will provide an extra $17 billion to Newfoundland and Labrador because, once the deal is finalized, it will be retroactive to January 1, 2025. In 2041, that will double to $2 billion a year, and then it will double again to $4 billion per year in 2056.

The new agreement also includes a price escalator clause — which was absent, as I mentioned earlier, in the 1969 contract — that will be based on market value over the life of this new 50‑year agreement.

We are finally benefiting from increased prices.

Three new developments are also included in the agreement, all of which are expected to increase capacity in Labrador by 3,900 megawatts. Quebec has agreed to pay Newfoundland and Labrador $3.5 billion to co-develop the aforesaid projects.

For the past 55 years, Newfoundland has lost billions of dollars. Because of this new agreement today, over the next 50 years, Newfoundland and Labrador will reap billions of dollars.

For Quebec, the MOU means half a century of reliable hydroelectric power that Hydro-Québec can bring to its customers. This new deal will mean between $200 million to $250 million for each province.

The second part of the agreement relates to the long-discussed Gull Island hydroelectric project, one of the last great undeveloped hydroelectric projects in North America.

This project will create 2,250 megawatts of power on its own. This project on its own creates thousands of well-paying construction jobs. This project on its own will reap billions of dollars for the coffers of Newfoundland and Labrador for generations to come. This project, under the agreement signed today, is a game changer on its own.

The Gull Island project will be a new entity owned 60% by Newfoundland Hydro and 40% by Hydro-Québec. Hydro-Québec will be the project lead, manage its construction and absorb any cost overruns. Believe me, after Muskrat Falls, that’s welcome news to us.

Colleagues, if I sound happy and pleased today, it’s because I am. I truly believe that, today, Newfoundland has closed the door on a deal and an agreement made in 1969 that forever left a bad taste in our mouths. We have felt cheated. The people of my province have felt cheated.

As a young person growing up in Newfoundland and Labrador, I heard across the kitchen table Churchill Falls being discussed many times, always in a negative way.

When Quebec was mentioned in any aspect, the negative feelings came to the forefront because of a lopsided agreement that we, as a people, loathed. It has nothing to do with the people of Quebec. After all, I am a Habs fan.

For years, Newfoundland premier after Newfoundland premier has tried to right this wrong, whether through diplomatic channels or the court system. All these efforts failed.

Today, I feel confident we have turned the page and that a new, brighter future is on the horizon for my children, grandchildren and generations to come.

As a Newfoundlander and Labradorean, I hoped and prayed I would live to see 2041 — that I would be alive to witness the righting of a wrong. Because of this agreement today, 2041 has arrived on the shores of our province 17 years early.

As Premier Furey said earlier this afternoon, today, everything changes for Newfoundland and Labrador. As Premier Legault said this afternoon, this is a win-win agreement.

I know I speak for all my colleagues here from Newfoundland and Labrador — Senators Wells, Ravalia and Petten — when I say that we have heard the story of Churchill Falls through our lifetimes. Today is a new beginning.

With my few words here today, I am not fully able to explain what Churchill Falls has meant to the psyches of my fellow Newfoundlanders and Labradoreans. I’ve always been a proud Newfoundlander and Labradorean. I have to admit, I’m a little prouder today. I wish my dad were alive to witness this historic occasion.

In closing, I wish to give credit where it is due. This may sound strange coming from a Conservative, and a proud one at that: To all the people who worked behind the scenes and away from the bright lights for the past couple years, both in Newfoundland and Labrador and in Quebec, I say thank you. I am confident history will show the long hours of work they did and dedication they provided produced a better and more secure future for the people in both of our provinces.

Premier François Legault from the province of Quebec is the first premier of that province to publicly admit that for Newfoundland and Labrador, the 1969 Churchill Falls contract was a bad deal. It was that statement, I believe, that created the positive working environment to see today’s deal become a reality.

To the premier of my own province of Newfoundland and Labrador, The Honourable Dr. Andrew Furey, I wish to say a sincere thank you for his hard work and determination in achieving this historic agreement. No deal or agreement is going to please everyone, but I believe Premier Furey and his team have accomplished an incredible deal for the people of Newfoundland and Labrador today. I believe it is an accomplishment that many in my province believed would never happen. Many in my province believed it was not possible.

It is one thing to correct and gain financial benefits from the mistakes of the past, but finalizing future economic opportunities is the icing on the cake in this agreement, a balanced approach where both parties win. I believe that the history books will record today as a day that Newfoundland and Labrador turned the page, and Premier Furey will be remembered for making that happen.

Today, regardless whether my fellow Newfoundlanders and Labradorians are Conservative, Liberal, New Democrat, Green or have no political affiliation, I believe the great majority are proud and happy of what has been accomplished. Today’s agreement is about correcting the mistakes of the past, about turning the page on a new day for the wonderful people of Newfoundland and Labrador and laying a solid foundation for a more prosperous future for all those coming behind us. It is indeed a proud day for all of us.

I will conclude my final remarks with the words of the final verse from the “Ode to Newfoundland”:

As loved our fathers, so we love

Where once they stood we stand

Their prayer we raise to heav’n above

God guard thee Newfoundland. . . .

I have a question for Senator Manning.

Yes, go ahead.

Thank you for finally ensuring that the Innu of Labrador and Quebec — whose borders are not the same to us — are part of the memorandum of understanding. Senator Manning, can I count on you to ensure that the Innu Nation will always be honoured in this agreement and will be an active participant? Furthermore, will you support me when I remind the Government of Quebec that we are entitled to this kind of agreement, too? Thank you.

Yes. I can talk fast, but I’m not sure I can talk that fast.

Thank you for the question. As you understand, I certainly don’t have any say in who is involved and who is not involved, but I was delighted today to see the Grand Chief be part of the signatures on the agreement.

The Grand Chief spoke and said that the New Dawn Agreement guarantees Innu involvement, and there will be no future developments in Labrador or anywhere in the province unless the Innu are at the table. I think that message is loud and clear.

I think, again, today’s agreement, as I said, is correcting the mistakes of the past in regards to the financial side of things for Newfoundland and Labrador, but I also believe that having Innu leadership at the table is a way of correcting the mistakes of the past as well. I’m very confident that there will be no development of any kind happening in Newfoundland and Labrador anymore — for that matter, anywhere in Canada — unless First Nations people are part of those discussions, and I’ll support that every day.