Amendments to the Energy Corporation Act and the Hydro Corporation Act, 2007 were introduced for second reading in the House of Assembly today.
The amendments, if passed, would provide broad authority for the Lieutenant-Governor in Council to issue a unanimous shareholder agreement to provide direction to the board of directors of Nalcor Energy and Newfoundland and Labrador Hydro to alter the terms and service of employment, including remuneration and bonuses.
Specifically, the legislation would:
- Clarify that Nalcor must act in accordance with the priorities of the Provincial Government in carrying out its objects;
- Provide broad authority for the Lieutenant-Governor in Council to give direction to the boards of Nalcor and Hydro related to remuneration and terms of service for non-bargaining unit employees;
- State that direction given by the Lieutenant-Governor in Council does not constitute constructive dismissal or a breach of contract not a claim for compensation;
- State that no cause of action or other proceeding shall arise from any direction given by the Lieutenant-Governor in Council ; and,
- State that there will be no entitlement to compensation as a result from any direction given by the Lieutenant-Governor in Council.
The Energy Corporation Act governs Nalcor Energy and the activities of its subsidiaries (except Newfoundland and Labrador Hydro) with respect to oil and gas and the Lower Churchill development. When Nalcor was established in 2007, the Hydro Corporation Act, 2007, which governs Hydro, was amended and Hydro’s shares were vested in Nalcor.
Nalcor’s 12 subsidiaries include: Hydro; CFLCo; Twin Falls Power Corporation; Nalcor Energy Oil and Gas Inc.; Nalcor Energy Marketing Corporation; Muskrat Falls Corporation; Labrador Transmission Corporation; Labrador-Island Link Operating Corporation; Lower Churchill Management Corporation; Labrador-Island Link General Partner Corporation; Labrador-Island Link Holding Corporation; and the Labrador-Island Link Partnership.
Quotes
“The purpose of these amendments is not to target individual employees; it is to do what is in the best interest of the taxpayers of Newfoundland and Labrador, particularly during these difficult financial times. These amendments follow a commitment by our government to reduce costs at Nalcor and NL Hydro.”
Honourable Andrew Furey
Premier of Newfoundland and Labrador
“The payment of bonuses at Nalcor and its subsidiaries has, and continues to be, an issue of public concern, particularly given the province’s fiscal situation. Last December following the release of the Public Sector Compensation Disclosure listing, I committed to eliminate bonuses for these positions. Following passage of this legislation, there will be a further process to determine details on next steps. That being said, it is our intention to proceed with this matter in a timely manner, once the appropriate work has been done.”
Honourable Andrew Parsons
Minister of Industry, Energy and Technology
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