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Latest Headlines
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Nov 16, 2009 1:29:00 PM MST
NB Power sale expected to dominate new session of provincial legislature (NB-Legis-Opens)
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FREDERICTON _ Premier Shawn Graham´s controversial plan to sell New Brunswick´s public power utility to Hydro-Quebec is expected to dominate debate when the provincial legislature opens Tuesday for its final session before next year´s election.
The Liberal premier faces a tough task selling the idea in the weeks ahead and has even drawn opposition from members of his own party over the proposal.
This past weekend at the party´s biennial convention, a majority of delegates who asked questions during a session on the proposed sale of NB Power were critical of the deal.
Graham was asked how he could have signed a memorandum of understanding with Hydro-Quebec, when he campaigned against privatizing the utility in 2006.
"I wasn´t going to let this opportunity pass us by," he replied.
Under the proposed deal, Hydro-Quebec would get all the major assets of NB Power, including transmission lines and the Point Lepreau nuclear power station, for $4.75 billion _ an amount equal to NB Power´s debt.
Residential rates would also be frozen for five years and industrial customers would see an immediate 30 per cent cut in rates, with the savings expected to equal about $5 billion.
Government house leader Mike Murphy said while he expects a lot of discussion on the power deal during question period, the real debate will be in the new year.
"The Electricity Act would be coming forth around the end of January or early February and that´s certainly when the rubber hits the road with regard to the great debate that lies ahead," Murphy said.
"The reality is, I think we´re going to see one of the longest sessions on record."
The governments of New Brunswick and Quebec have given themselves a deadline of the end of March to finalize an agreement.
But the Opposition Conservatives are vowing to try to stop that from happening.
"We will be focused on that issue and will do everything that we can as the official Opposition to stop that transaction," said Paul Robichaud, the Opposition house leader.
The government can also expect to face opposition to the deal outside the legislature.
Petitions have been circulated around the province and a Facebook page in protest of the deal has attracted about 24,000 members.
Organizer Doug Williams is also asking people to protest outside the legislature Tuesday.
"If the government wants to change the Electricity Act and pass the legislation, they can just do that and it doesn´t really matter what the Opposition does," he said.
"We think that public will is the only thing that´s going to stop the deal."
Williams wants a referendum or to delay the deal until after the next election in September.
"Premier Graham said he wasn´t going to do this ... and to go back on it now in such an obvious way is just wrong," he said.
Aside from the NB Power sale, the government is expected to substantially revamp the community college system in the province.
The provincial operating budget, which is usually delivered in March, will be tabled Dec. 1, along with the capital budget.
Finance Minister Greg Byrne has already stated that the deficit for the current fiscal year is expected to top the forecast of $741 million.
The government has been faced with additional costs including a new contract for the province´s doctors and the H1N1 vaccination program.
The Liberals hold 33 seats in the legislature, while the Conservatives have 22 members.
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