News Release
Office of the Official Opposition

 

 

Government Lower Churchill EOI process too expensive

Government must explain usage of $410,000

January 11, 2005

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."
 

Media Contact:
Jeff Mackey
Office of the Official Opposition
709-729-6427