FREDERICTON - New Brunswick Premier Shawn Graham says his government's decision to sell major pieces of NB Power to Hydro-Quebec is part of a larger plan to put the province on a more secure economic footing.
In his annual state of the province speech Thursday, Graham said the sale of the Crown-owned utility's assets fits with his Liberal government's goal of making the province economically self-sufficient, which includes lowering personal and business taxes.
"This is where our energy agreement with Quebec plays an important role," he said in a speech to the Fredericton Chamber of Commerce.
Controversial deal
Under increasing public pressure and opposition in his own cabinet and caucus, Graham's government renegotiated the original deal it had to sell almost all of NB Power to Hydro-Quebec for $4.75 billion, which equalled the Crown utility's debt.
Under the new deal, worth $3.2 billion, Hydro-Quebec gets seven hydroelectric generating facilities, two diesel units and transmission rights associated with those units. Hydro-Quebec will also buy the Point Lepreau nuclear generating station.
New Brunswick maintains control over its transmission and distribution systems. Graham said he listened by changing the agreement, which will be finalized by March 31.
Mea-Culpa
Afterwards, Graham admitted his government has not done a good job of communicating with the people of the province.
"We've been so busy governing, maybe we should have done a better job communicating," he told reporters.
Graham said he wanted to use the speech to help "connect the dots" to show how reforms in education, health care and taxation and the power deal all work towards making New Brunswick self-sufficient.
Protest
Organizers of the 1,000-seat dinner said extra security was brought in because someone might disrupt the premier's address over the controversial sale.
