N.B. Liberals express concerns with proposed utility sale to Hydro-Quebec

FREDERICTON - New Brunswick's Liberal government still has some work to do to sell members of its own party on the proposed sale of NB Power to Hydro-Quebec.
The majority of the two dozen delegates asking questions Saturday during a session at the party's biennial meeting in Fredericton expressed concerns with the $5-billion deal.
"I have serious, serious doubts," said Tom Gilbert, a long-time party member from Burton, N.B.
"Let people get the full story, even if you have to go to an election."
The province has signed a memorandum of understanding that would see Hydro-Quebec assume the major assets of the utility, including transmission lines and the Point Lepreau nuclear power plant.
While some delegates applauded the deal and the resulting 40 per cent cut in the provincial debt, others said they worried about the long-term effects of selling the utility.
"I have reviewed the memorandum of understanding in some depth and I have concluded that it is a poor deal, fraught with uncertainty and whatever its short-term benefits it is not in the long-term best interests of New Brunswickers," said delegate Drew Speight during the question period.
But Premier Shawn Graham defended the deal, saying that the status quo would result in rising power rates and dependency on oil from the Middle East and coal from South America.
"Today with this transaction, rather than being dictated by these other countries, we are tying our energy security and future to our next door neighbour with the cheapest source of hydro power in North America and the most stable country in the world," Graham said.
One delegate pointed out that Graham didn't have a mandate to sell the utility because he campaigned on not privatizing NB Power during the provincial election campaign in 2006.
"My opinion changed," said Graham, "and I couldn't allow this opportunity to pass our province by."
Graham said he was elected to make tough decisions and believes the deal is in the best interest of New Brunswickers.
Graham said he's already hearing from business and industry about the growth opportunities as a result of power rates.
The accountability session lasted more than 90 minutes.
"It was fair, it was good and it was constructive," said Energy Minister Jack Keir. "Folks have questions and it was another opportunity for us to get some of the facts out there on exactly where we are going."
But Opposition Conservative critic Dale Graham said the dissatisfaction within the Liberal ranks is just an example of the feeling of all New Brunswickers.
"People are angry, and they feel like this has all been done behind closed doors," he said.
"It's not clear what will happen to jobs at NB Power, and it's not clear what will happen to power rates after the first five years are up."
The power agreement is expected to dominate the upcoming session of the New Brunswick legislature which opens Tuesday with a speech from the throne.