In order to understand the context of Part 3 you must first first read Part 1 and Part 2
It is fair to say that the next federal election may bring us the opportunity to negotiate the transfer of the 8 1/2% share of the Hibernia development from the feds to Newfoundland and Labrador.
It is also fair to say the value of this asset could be worth 3 - 5 hundred million annually.
The NDP is already willing to negotiate, the Conservatives would negotiate if it became a priority and the Liberals would follow suit in a close election.
During the next federal election Ontario will be seeking promises from all parties and those promises will include energy issues. Ontario remains in a critical position as it relates to power supply which is reliable and cost effective. Ontario is also interested in a east-west power grid so it can return to being the industrial economic power house of Canada.
Ontario wants to keep growing - whereas Danny is not interested in the same for Newfoundland and Labrador. If he is; he must be missing the point that our natural resources including energy is our competitive edge.
Industry needs and wants:
cheap labour (I guess we have that figured out now) ie. China
cheap, reliable, and if possible green power (yes green power gives them an edge now)
raw resources
Newfoundland and Labrador has 2 of the 3 components.
If we export our reliable and cost effective power to Ontario or Quebec or the Maritimes or some combination of them we are down to 1 component - raw resources (such as minerals).
We have done this once before.
Remember the Upper Churchill?
Right - well we had raw resources and great potential for cost-effective and reliable power but we exported it all to Quebec (short a few megawatts). In turn they ended up with our raw resources which were then refined using our energy.
Not only did they receive tremendous profits from the cheap price but they got all the industrial jobs as well.
Well Ed Martin, the current President and CEO of Newfoundland and Labrador Hydro is running around Ontario selling our great cost effective power to them and talking about how good it would be for Ontario.
Quote from Ed in a story by CBC news on Friday August 18-06
"You know, a phrase that's been used up here, I've heard the minister use, is 'low-hanging fruit.' You look at a project like the Lower Churchill — it's very technically sound, it's cost effective and it's ready to go."
and this from an article in the Toronto Star on Thursday August 17-06
But the real prize is Ontario, a province that's intent on expanding its use of renewable electricity and weaning itself off coal. At the same time, it's looking at a 10,000-megawatt power shortfall around the same time Lower Churchill would begin to flow."It's a perfect marriage," Martin said. "A big part of the country needs a big hunk of power. We've got a big hunk of power."This should be a relatively easy process to push. And to me, that would be our preference."
I hope you are taking note of the commentary and how one could be so stupid to suggest for everybody to see, that Ontario plans expansion and greening up while Newfoundland and Labrador are doing what?
So Ed thinks it will be easy to push - really Ed!
A big part of the country needs a big hunk of power he says. Well how do you become a big hunk of the country. Geographically we are - I guess he means economically. Yeah Ed and without power how are we going to grow and attract industry? Wind - nope more expensive and less reliable, it needs back-up. Natural gas - nope not unless those business people interested in that, such as Dean MacDonald, Danny Williams, and Steve Marshall are planning to sell us the non-renewable and globally price sensitive product, right to our homes like cable. Oh that would be good.
One more point - if Ontario needs 10,000 more MW's in 10 years or so - ED HOW MANY MW'S WILL NEWFOUNDLAND AND LABRADOR NEED? IF YOUR ANSWER IS NONE OR VERY LITTLE YOU ARE STATING THAT THIS PROVINCE WILL NOT GROW INDUSTRIALLY OR OTHERWISE. IS THAT THE POLICY AND POSITION OF THE DANNY WILLIAM'S GOVERNMENT? IS THIS A GLIMPSE OF THE NEW ENERGY PLAN?
Part 4 will deal with the scary price of development and the scarier outcome if we export the power.
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