News Release
Office of the Official Opposition

 

 

Grimes says National Post story on 8.5 per cent share of Hibernia should be a wake-up call for government


February 17, 2005

Opposition Leader Roger Grimes says in light of yesterday’s National Post story that raised the possibility that the Government of Canada may sell off its 8.5 per cent share in Hibernia is reason enough for the provincial government to immediately move forward with negotiations with the federal government to transfer these shares to the province.

"Yesterday’s newspaper story should be a wake-up call for the provincial government," said Mr. Grimes. "While a new revenue sharing agreement was signed earlier this week, none of our other offshore issues should be taken for granted. The 8.5 per cent share of Hibernia is a very important piece of our offshore and it should be transferred or sold at an appropriate price to the province. The Government of Canada has already recouped their original investment in the project and are now making millions of dollars profit every year from our resource.

"Premier Williams and Natural Resources Minister Ed Byrne have continuously stated that the 8.5 per cent share of Hibernia would be a major piece to the formation of an Energy Corporation in the province. This Corporation would have assets in electricity development and offshore oil and gas development. There has been very little said publicly about this plan over the past several months and now is the time to move forward in securing this major piece of our offshore industry.

"I call upon government to update the people of the province as to what actions have been taken to ensure this important asset is secured. Lobbying efforts should also continue to have the headquarters of the Canadian Hibernia Holdings Corporation (CHHC), the crown corporation that operates this 8.5 per cent share, moved to this province from Calgary. It is an insult that a federally run corporation that makes their profits from our resource is based in Alberta, not Newfoundland and Labrador. This is not acceptable and government should fight to have this office, and the jobs that go with it, transferred to the province.

"Now is the time to put pressure on the federal government. The 8.5 per cent Hibernia share has the potential to generate millions of extra dollars for this province, while also providing us with a direct voice in the day to day management of our offshore industry. Yesterday’s warning is reason enough to immediately begin the process of negotiating this transfer with the federal government."

 

Media Contact:
Darrell Mercer
Director of Communications
Office of the Official Opposition
709-729-6151 or 709-687-0477