Churchill stake for Innu only fair: Williams

Premier Danny Williams said he will consider a Labrador aboriginal group's request for a minority ownership stake in a bid to develop hydroelectric power on the lower Churchill River.

Innu Nation president Ben Michel, who met with Williams Friday in St. John's, said the Innu Nation is entitled to a five per cent stake in a prospective Lower Churchill megaproject.

Williams said he agrees with the request in principle, partly because he sees a parallel in the government's search for an equity stake for the provincial government in the stalled Hebron offshore oil project.

"If we on the one hand are saying to the developers of Hebron that the people of Newfoundland and Labrador want an equity interest in the oil and gas industry, then it's only appropriate that the Innu people seek an interest, as well, in the Lower Churchill project," Williams said.

"So, subject to the negotiations of all the related issues, we both feel that we're quite confident we can move this file forward."

Williams broke off talks with the owners of the Hebron offshore oilfield this spring, in part because the partners would not turn over an equity stake of about five per cent to the Newfoundland and Labrador government.

Only this week, Williams insisted he will not be hurried into a deal with what he called unsatisfactory terms.

• FROM JUNE 21, 2006: Don't push me on Hebron, Williams tells industry

Michel said the Innu Nation's goals are to achieve self-sufficiency for the approximately 2,000 people it represents.

"What we need to do here is show the province, and the people of the province, that the Innu Nation and the government of Newfoundland are interdependent to each other," Michel said.

The central Labrador Innu community of Sheshatshiu, in particular, has been dependent for generations on land and resources that would likely be affected by a Lower Churchill hydroelectric project.

If negotiated successfully, Michel said, an ownership stake in the deal would be historic.

"This is something that has never, ever happened in the past. It's the first time that the Innu will be part owners of the project," Michel said.

"They are going to have an equity, and they are going to have a real say at the table as to how that project should proceed. That's something that we've never had."

Williams said the provincial government and the Innu Nation are a long way from a deal on the Lower Churchill. However, he said negotiators from both sides will meet soon.

The Innu Nation has for years been pursuing a land claims agreement with the provincial and federal governments.

In May, Williams announced that cabinet had decided to pursue the Lower Churchill project alone. It had been considering bids from other parties, including a joint submission from the Ontario government and Hydro-Qubec.

• FROM MAY 8, 2006: Province to develop Lower Churchill alone

The provincial government's vision for a Lower Churchill project would involve about 2,800 megawatts of power, or enough energy for about 1.5 million households.