Michael raises privatization concerns
NDP Leader Lorraine Michael (MHA, Signal Hill-Quidi Vidi) says there is a very real possibility that the people of Newfoundland and Labrador could go broke paying for the Muskrat Falls development, have to sell the project to pay the debt, and then have to pay whatever the buyer decides to charge for electricity. She raised this issue and other concerns about the Stephen Harper loan guarantee in the House of Assembly today.
“The term sheet allows for a sale or change of control of subsidiaries among the different parties to the loan guarantee,” said Michael
“If NALCOR is unable to meet its financial obligations incurred because of the debt it takes on it appears that NALCOR could lose ownership and control of Muskrat Falls generation facility, the Labrador Island Link and the Labrador Transmission Assets,” she continued.
“Can the premier confirm that NALCOR could privatize by a sale to Emera the assets belonging to the people of the province if it does not have the money to pay its debt for building Muskrat Falls?”
The NDP Leader also wanted to know whether the government would share with the public the “regular and thorough financial and operational reports” the project is supposed to file.