More details needed on Hebron amendments

The cancellation of significant Hebron fabrication work originally scheduled to be completed in this province requires more explanation and detail, says Opposition Leader Yvonne Jones. The issue was raised earlier today in the House of Assembly.

In the House of Assembly, Natural Resources Minister Kathy Dunderdale wouldn’t provide the section of the Benefits Agreement that states an equivalent amount of work would have to be completed in the province and wouldn’t provide the value of the lost work, stating that both aspects could be classified as commercially sensitive information.

“As an equity partner in this project, Natural Resources Minister Kathy Dunderdale confirmed that Nalcor was part of this decision and they agreed that this fabrication work would not take place in the province, and knew since September,” said Ms. Jones. “Unfortunately, the minister was unwilling to provide basic information such as the value of this lost work. There is no way for the people of the province to know whether we are getting equivalent investment unless these details are released. These are the kinds of concerns that we expressed in the past dealing with the secrecy surrounding Nalcor.  

“The value of fabrication work and materials is one aspect, but there is also the value of salaries and benefits that would be paid to employees working on these contracts, and spin-off benefits to other businesses. There was supposed to be a pre-drilling program associated with this project that would have created significant direct and indirect benefits for local drilling and service and supply companies. Unfortunately, the minister stated today that only direct benefits are used to calculate how much value is associated with contracts and this means that any spin-off benefits associated with this work will now be lost.

“There is also uncertainty about the impact of this decision on shipyards throughout the province. One such community is Marystown where the shipyard was expecting a significant amount of fabrication work. The minister didn’t provide a breakdown of what the economic impact will be on these areas and the lost business and employment opportunities.

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