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Kelvin Parsons, Opposition Natural Resources Critic and
MHA for the District of Burgeo - La Poile, is questioning government’s
announced Expressions of Interest (EOI) process for the Lower Churchill
power development. "Sources have told the
Opposition this process will cost in excess of $410,000 just to determine
who might be interested in pursuing this development somewhere down the
road," said Parsons. "I think more information must be released for the
public to determine whether this is a good expenditure in a time of fiscal
restraint. This process will likely conclude with no new serious investors
coming to the table and over $410,000 wasted.
"Government may try to legitimize this expenditure as
being necessary to advertise the Churchill River to potential investors
around the world. While I believe in due diligence, an expenditure of this
magnitude is an irresponsible use of public funds. This project has been on
the public agenda throughout North America and the World for over 20 years,
and serious investors should already be aware of the site and a simple
reminder in the most popular publications should suffice."
Parsons says the entire EOI process raises questions
about the will of the current administration to move forward with the Lower
Churchill file. "In making this announcement today, the Premier announced
that he is effectively putting off development talks for the next 18-24
months until the EOI process is complete. While this process may attract a
lot of attention, I doubt any new serious investors will come forward who
have the ability to develop the project with acceptable benefits to this
province.
"What the government should be doing is moving forward
with talks with potential investors and making representation to the federal
government. At this time, with the Kyoto Protocol looming and a minority
government in Ottawa, the time to move forward with this development is now,
not two years down the road. The Premier should have started a process that
could see more detailed negotiations begin soon. He has wasted the past year
and now put off the development for a further two years."
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