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News Release |
February 14, 2005
PRIME MINISTER PAUL MARTIN
AND PREMIER DANNY WILLIAMS
CELEBRATE NEW REVENUE SHARING ARRANGEMENT
The Governments of Canada and Newfoundland
and Labrador today signed the arrangement that will assist the province in
becoming the principal beneficiary of its offshore resource revenues. The
Arrangement between the Government of Canada and the Government of
Newfoundland and Labrador on Offshore Revenues reflects the Agreement in
Principle reached between both governments on January 28, 2005.
Prime Minister Paul Martin, Premier Danny Williams, R. John Efford, Minister
of Natural Resources Canada, and Loyola Sullivan, Minister of Finance and
President of Treasury Board for Newfoundland and Labrador, participated in
the signing ceremony for their respective governments.
"I made a promise to the people of Newfoundland and Labrador, and I was
determined to make good on that promise. Today, I am delighted to do just
that," said Prime Minister Paul Martin. "This agreement presents a
remarkable opportunity for the people of this province to seize their
potential and build for themselves and for their children a more prosperous
future."
“We celebrate today a better deal on the Atlantic Accord for Newfoundland
and Labrador,” said Premier Williams. “This new arrangement to share our
offshore resource revenues is another step forward to secure a future of
self-reliance and prosperity for Newfoundlanders and Labradorians. We will
optimize opportunities and realize our true potential with a great sense of
renewed pride.”
The Arrangement gives Newfoundland and Labrador 100 per cent protection from
equalization reductions or “clawbacks” for eight years as long as the
province receives equalization payments. In addition, the Arrangement
provides for a further eight-year extension as long as the province is an
equalization receiving province in 2010-11 or 2011-12, and that its per
capita debt- servicing costs have not become lower than that of at least
four other provinces.
The province will receive an up-front payment of $2 billion which equals
about three-quarters of the agreed-upon estimate of potential benefits from
this agreement between now and 2012. This payment will serve as a
pre-payment of the new 100 per cent protection.
“With 100 per cent of the province’s offshore benefits delivered through
this new deal, the people of Newfoundland and Labrador have a golden
opportunity to move forward economically,” said R. John Efford, Minister of
Natural Resources Canada and Regional Minister for Newfoundland and
Labrador. “I anxiously await the day that Newfoundland and Labrador earns
its way out of equalization, and this agreement points us in that
direction.”
"Becoming the principal beneficiary of our province's rich offshore
resources is an integral component in achieving sustainable financial health
in Newfoundland and Labrador," said Loyola Sullivan, Minister of Finance and
President of Treasury Board. "With this new arrangement for offshore
resource revenues, we now have an important new tool to enable us to
diversify our economy and lay the groundwork for financial stability."
No amendments to the Canada-Newfoundland Atlantic Accord or Equalization
legislation will be required. Payments under the offshore revenue
arrangement will be made separately from the Atlantic Accord and the new
Equalization-Territorial Formula Financing framework. The
Canada-Newfoundland Atlantic Accord was signed 20 years ago on February 11,
1985.
Media contacts:
PMO Press Office: (613) 957-5555
Elizabeth Matthews
Director of Communications
Office of the Premier
Government of Newfoundland and Labrador
(709) 729-3960 or (709) 690-5500
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