Feds urged to probe N.B. - Quebec power deal
The following appeared today in the Halifax Chronicle Herald.
Power play worries Tory senator
By STEPHEN MAHER Ottawa Bureau
Tue. Dec 15 - 4:45 AM
Sen. Lowell Murray is calling for the federal government to get involved in the proposed sale of NB Power to Hydro-Quebec.
Speaking in the Senate chamber Monday, the Progressive Conservative said Ottawa cannot afford to stay out of the discussion on the proposed sale of NB Power because of the implications for interprovincial and international trade, and also because New Brunswick would be, in effect, ceding legislative power to Quebec, a "broad constitutional issue."
Mr. Murray, who was born in New Waterford and was minister of federal-provincial relations under former prime minister Brian Mulroney, warned that neighbouring provinces have reason to worry if Hydro-Quebec takes over NB Power’s transmission lines.
"The disappearance of the New Brunswick system operator sends an ominous signal," he said. "I will say as objectively as I can that Nova Scotia and Newfoundland and Labrador have every reason to be concerned."
The federal government has stayed out of debate on the proposed deal, under which New Brunswick, in exchange for $4.8 billion, would hand over its power generation facilities and transmission lines to Hydro-Quebec and alter its regulatory legislation to comply with Quebec’s.
Premiers Darrell Dexter of Nova Scotia and Danny Williams of Newfoundland and Labrador have asked New Brunswick to sign a letter promising they will have the right to build their own transmission lines through New Brunswick.
New Brunswick Premier Shawn Graham has refused, pointing out that American regulators would guarantee that other provinces have the right to export power through New Brunswick.
The federal government should not allow that American intrusion into interprovincial trade, Mr. Murray argued.
"A policy of continued silence would be an implicit delegation of the federal government’s jurisdiction in this area of interprovincial and international trade to the USA Federal Energy Regulatory Commission and the Government of Quebec," he said.
"Nova Scotia and Newfoundland and Labrador would then be in the odd position of depending on the U.S. to protect their interests in Canadian interprovincial trade. If these interests are imperilled, it is surely the role of the federal government to protect them."
Newfoundland says Hydro-Quebec has already made it difficult to export electricity from Labrador to markets in New England, and it would be even harder if the Quebec utility controlled New Brunswick’s transmission lines.
Peter MacKay, Nova Scotia’s representative in cabinet, expressed concern last month in an interview with the Telegraph-Journal in Saint John, N.B.
The deal "hasn’t given fair evaluation to what other alternatives may be out there — which would include Nova Scotia, Newfoundland and Labrador and Prince Edward Island," he said.
"What are the alternatives to what has been presented by Hydro-Quebec? We don’t want to see any Atlantic Canadian provinces left out or left behind."