Completed
Way Forward Commitment:
Our government will review the 2005 Atlantic Accord arrangement with the Government of Canada, as per its terms. This review will consider the extent to which Newfoundland and Labrador has been the principal beneficiary of its offshore resources, and whether the province has realized lasting fiscal and economic gains from its offshore petroleum resource revenues. The review will also consider the fiscal disparities between our province and others. This is timely in light of the fiscal challenges facing our province, and our misnomer as a have province under the current Equalization framework. In 2018-19, our government will engage the Government of Canada in this review.
What We’ve Accomplished:
- On April 1, 2019, federal-provincial review of the Atlantic Accord concluded with the announcement of an agreement ensuring Newfoundlanders and Labradorians are the principal beneficiaries of their offshore resources, while strengthening the joint management of those resources. The agreement includes:
- A new and guaranteed revenue stream that will deliver $2.5 billion to the province.
- This revenue stream will immediately reduce the Provincial net debt by $2.5 billion, or by approximately $5,000 for every Newfoundlander and Labradorian. In total, the Provincial net debt decreases by 16 per cent, and savings on interest will be worth approximately $100 million by 2056.
- Cash installments starting this year until 2056 have no restrictions on the use of the funds and are “front loaded,” with approximately $1.9 billion, or 60 per cent, being received by 2030.
- The revenue stream is from the federal government’s equity interest in the Hibernia project; and
- A federal commitment to strengthen the joint management of Newfoundland and Labrador’s offshore development in areas such as land tenure, worker safety, regulatory efficiency, and regulator modernization.
- A new and guaranteed revenue stream that will deliver $2.5 billion to the province.
- Through this agreement, Newfoundland and Labrador will continue to receive 100 per cent of its offshore resource revenues as if these resources were on land. The agreement also included a federal commitment to further engage with Newfoundland and Labrador to expeditiously examine the financial structure of the Muskrat Falls Project, so that the province can achieve rate mitigation.
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