Elected officials in Quebec say they are confident the province and Newfoundland and Labrador will reach a mutually beneficial Churchill Falls deal.
A report by a Newfoundland and Labrador government-appointed committee — published Tuesday — found that the memorandum of understanding (MOU) has “several fundamental issues” and that “in its current form [it] is not in the public interest.”
N.L. Premier Tony Wakeham convened the review committee in December, promising any eventual deal will be put to a public referendum.
The MOU, signed by former Quebec and N.L. premiers François Legault and Andrew Furey in 2024, was expected to be formalized in April 2026.
Tuesday, Wakeham announced a new three-member negotiating team and said “there needs to be material improvements to this deal before we would ever consider signing it.”
Quebec Premier Christine Fréchette said in a social media post that she and Wakeham spoke on Monday and they both “agree on the importance of reaching a win-win agreement in the near future.”
“Today, more than ever, it is essential to collaborate with our neighbours to ensure the economic and energy development of both Quebec and Newfoundland and Labrador,” she said, noting that she would be meeting with Wakeham “soon.”
Speaking alongside Prime Minister Mark Carney at a news conference on Tuesday, Quebec Energy Minister Bernard Drainville said the provincial government remains committed to securing another “win-win” agreement with the government of Newfoundland and Labrador.
However, it is uncertain whether reaching a deal before the Quebec election on Oct. 5 will be achievable.
“The goal is to reach an agreement as quickly as possible. And we’re confident we can do that,” Drainville told reporters in Saint-Michel-des-Saints, Que.
“We think that the first agreement — let’s call it the agreement [in] principle — was a win-win agreement for both Quebec and Newfoundland,” he said.
Prime Minister Mark Carney is offering Ottawa’s support but says the Churchill Falls MOU is primarily a matter between N.L., Quebec and Hydro-Québec. Meanwhile, Quebec’s Energy Minister Bernard Drainville says he hopes they can achieve a deal quickly.
In an emailed statement Tuesday, Hydro-Québec said the Crown corporation welcomes the appointment of a negotiating team as well as the government of Newfoundland and Labrador’s desire to resume discussions.
The statement says that any final agreement must be “based on balanced conditions and be beneficial to Hydro-Québec’s customers.”
“In this regard, no agreement will be reached on terms less favourable than those initially agreed upon,” the statement reads.
Potential federal input
At the same news conference in Saint-Michel-des-Saints, Que., Carney said he agrees with Drainville’s comments.
Carney added that he and federal Energy Minister Tim Hodgson have had a “number of conversations” with both premiers about the deal.
“If there are things that we [the federal government] can do, we will do them,” Carney said, noting that negotiations are mainly between the two provinces and Hydro-Québec.
Pascal Paradis, the sovereignist Parti Québécois energy critic, said in a social media post that Wakeham is attempting to “torpedo the Churchill Falls agreement” with the publication of a committee review initiated by the N.L. government.
“We will complete our analysis of the report. However, Quebec should already be concerned that the Newfoundland premier is calling for federal intervention,” Paradis said.
The report accuses the former Liberal government of meddling in negotiations between Newfoundland and Labrador Hydro and Hydro-Québec, asserting control over key decisions and “actively” directing Hydro’s negotiating team.
In an interview on Tuesday, Paradis said the Coalition Avenir Québec (CAQ) government gave way to “Newfoundland’s narrative” that the deal is inequitable. He called on Fréchette to “tell the federal government to stay out of the negotiations.”
“It must be remembered that it is Quebec’s investments, it is Quebec taxpayers’ money that built the facility at Churchill Falls,” Paradis said.
Test for Fréchette
In an interview, Greg Kelley, the energy critic for the Quebec Liberals — the Official Opposition in the province — said he doesn’t believe the federal government’s involvement is needed at this stage.
“We have the expertise and we can collaborate with Newfoundland and we can find a deal and we just have to see the premier of Quebec show some leadership on that front,” Kelley said.
Fréchette became premier on April 12, following Legault’s resignation.
Ruba Ghazal, leader of the province’s second opposition party Québec Solidaire, agrees, saying in an interview that the CAQ “underestimated the risks of the agreement with Churchill Falls.”
“Quebecers need results and we also need this agreement to be done with [great] transparency. It’s the responsibility of Christine Fréchette to do so,” Ghazal said.
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