Tony Wakeham has committed to holding a referendum on the Churchill Falls memorandum of understanding (MOU) following his election as the new premier of Newfoundland and Labrador. In his victory speech, Wakeham outlined plans to develop critical resources in the province, including Churchill Falls and Gull Island, and emphasized the importance of engaging experts in the process.
Churchill Falls Referendum: A Political Shift
Wakeham stressed that he would work to ensure the local community has a voice in the negotiations surrounding the MOU. He believes that the current agreement, which promises over $200 billion to Newfoundland and Labrador over its lifetime, may not be the best deal achievable for the province. He stated, “I want to take this out of the political arena and put it back into the hands of experts.”
Political Background and Context
- Election Context: Wakeham’s recent victory puts him in a position to influence significant resource development.
- Opposition Views: Liberal Leader John Hogan argued that the deal is already favorable and positioned himself as the best leader to advance it.
- Expert Opinion: Political scientist Kelly Blidook warned that the referendum could complicate negotiations with Quebec.
Reactions from Key Figures
The CEO of Newfoundland and Labrador Hydro, Jennifer Williams, expressed her eagerness to collaborate with the new premier, highlighting the essential role of Crown electricity assets in the province’s future plans. Meanwhile, Quebec Premier Francois Legault congratulated Wakeham and affirmed that the deal is mutually beneficial for both provinces.
Implications of a Referendum
Political analyst Kelly Blidook noted that while an independent review of the MOU is valuable, a referendum carries risks. It could potentially delay the negotiations, especially considering the impending provincial election in Quebec scheduled for October 5, 2026. Blidook remarked, “Taking it to a referendum would be the biggest risk… You could also make the outcome worse.”
Going forward, Wakeham has assured residents that negotiations will proceed carefully, prioritizing the interests of Newfoundland and Labrador while engaging in expert analysis. The next steps in the governance of the Churchill Falls development will be pivotal in shaping the province’s economic landscape.
