Atlantic & East Coast Report

Newfoundland and Labrador Direction on Lower Churchill

By Myles Higgins

Tuesday, July 25, 2006

Canada has been living with the potential threat of Quebec separation for decades. If not for the millions of tax dollars that were spent prior to the last referendum (read Gomery) there might already be four North American countries instead of three. Recently, the Liberal premier of Quebec has said his province has the economic means to become independent. This admission by Jean Charest has confirmed the beliefs of many separatists and has the potential to turn the tide in their favor once and for all.

With the specter of separation becoming more and more plausible, the direction for Newfoundland and Labrador, with regard to Churchill Falls, should be clear. No development should be considered unless it includes use of the so called Anglo Saxon route. This approach would be expensive as it requires undersea cabling from Labrador to the island and from the island to Nova Scotia, but it should to be done regardless.

This option would allow some of the power to be used in parts of Labrador and on the Island, lessening our current dependence on fossil fuels. Consider as well that the alternative, running power through Quebec, would mean Canada and the U.S. could some day end up dependent on the kindness of a third country, namely Quebec, for an important part of their power supply. This would not only pose an economic risk but a national security risk as well.

We all hope that an independent Quebec would continue to work closely with its North American neighbors but there are no guarantees in international politics. Canada, the U.S. and Mexico have built up an atmosphere of understanding and solid trade structures over decades, yet disputes still take place occasionally. Who knows what kind of relationship a newly minted Quebec would have with its neighbours? As an unknown entity it brings with it many risks.

Newfoundland and Labrador would be foolhardy to consider wheeling Lower Churchill power across Quebec in future. In fact, it would be in the best interest of potential long term power customers across North America to stand behind the province and pressure Ottawa for assistance to develop the alternate route. In the long run it's Canada and the U.S that run the biggest risk from an independent Quebec should trade relationships became frosty.

In addition to the Lower Churchill, serious consideration should be given to impacts on the Upper Churchill agreement. The original, one sided deal, was inked while Hydro Quebec was under the control of a Canadian province. If Quebec becomes an independent nation that contract should be addressed as a part of the "breaking of ties" effort that must surely happen. Not doing so would essentially place the distribution of those massive power reserves in foreign hands and place Canadian interests in the unenviable position of being dependent on little more than international good will.

The road to Quebec sovereignty appears to have been made a little easier lately and I wish them well. I can fully understand where many of those fighting for independence are coming from. The Dominion, as it exists today, is not a place where anyone outside of Ontario is given much respect or understanding. I congratulate Quebecers for standing up and being heard as a people.

Newfoundland and Labrador must also stand up and be heard. The province cannot afford to sit idly by and allow the future to unfold without solid planning and preparation. The reality of an independent Quebec is also a reality where Newfoundland and Labrador is essentially cut off from Canada geographically and is reliant on the whims and wishes of a foreign power to market its resources. This cannot be allowed to happen.

As a side note, it might also be in Newfoundland and Labrador's best interest to ensure that the ever changing Labrador border, which inexplicably continues to move further and further east on Quebec tourist maps, isn't taken too seriously by anyone down the road, but I digress.

Let me clearly say that my intention is not to bash Quebec, in fact I envy them the potential for freedom now within their grasp. Everyone already knows how poorly NL has faired on dealing with a Quebec inside the federation. I don't know why anyone would think it will be easier after Quebec celebrates its first independence day?