“It is fitting that the 70th anniversary of our Confederation with Canada coincides with the signing of this agreement that supports a better and safer future for generations of new and Labradorian countries. Our association with Canada was based on the promise of a partnership, one that would improve the standard of living of the people our two governments serve. Today, we have kept that promise. Overall, the pension itself is good. $173 million of blank cheques a year for a decade is not a miracle weapon, but it is not an insignificant part of the change either. But it is strange that we are doing well without the owner of Hibernia`s 8.5% stake in Canada in favour of fixed income, because Crown`s holdings in offshore developments are the guiding principle of any provincial oil development. The stakes in Bay du Nord are expected to fund the threat of Nalcor 2: Oil and Gas Edition in the province. The two approaches seem to fundamentally disagree. It is a good thing for the Prime Minister to inform us that we are avoiding the risk of using Hibernia, but then why are we going in the opposite direction with all our other projects? Our official equity positions seem to be closing in on each other. How, when and when $200 million can be found to ease the burden of increasing electricity quotas, is clearly not included in the new Hibernia agreement. Retirement is early, which means that the first $1.9 billion will be delivered to the province by 2030. This equates to 11 unconditional annual grants of approximately $173 million per piece through the end of the next decade and another 26 unconditional annual grants of $50 million by 2056 (save 8 annual payments of $100 million between 2045 and 2053).
The Atlantic Accord itself did not play a leading role in the party. The original 1985 document was negotiated between the federal government and the province of Brian Peckford to ensure that the Netherlands` offshore oil resources (which fall under federal jurisdiction under the Constitution Act 1867) are jointly managed by the two governments and taxed by the province as if they were on land. The agreement was taken over in 2005 by the Danny Williams administration, which managed to withdraw payments that, by mistake, came to feed their share of Hibernia, amounting to about $2 billion, and to exclude the offshore province`s fees from the calculation of compensation against us. The 2005 agreement contained a clause stipulating that it must be reviewed by March 31, 2019, which updates us.