Furey says upcoming talks with Quebec premier are discussions, not negotiations, on Churchill Falls

On the eve of Quebec PremierFranois Legault'svisit toSt. John's, Newfoundland and Labrador Premier Andrew Furey downplayed the significance of any discussions about the Churchill Falls contract.

Furey, speaking with reporters Wednesday, said "very high-level" discussions would happen Friday but wouldn't go so far as to call them negotiations.

"At this point I would use the word 'discussions' and not 'negotiations.' What happens after Friday, I will certainly provide an update," he said. He added, however, that Legault seems to be approaching the talks "with a sense of urgency" to secure new sources of energy for Quebec.

"I think if you look at the disruption in the energy markets, specifically as it pertains to Quebec, there is an urgent need in Quebec, not just for export but for domestic use," Furey said.

In January, Furey saidthere wasn't aguarantee negotiations wouldeven happen, adding it wasimportant to noteHydro-Quebc still owns nearly 35 per cent of Churchill Falls (Labrador) Corporation Limited. At the time, Furey said if negotiations were to happen, he was "comfortable" with Newfoundland and Labrador'snegotiating position.

On Wednesday, he reiterated that point.

"Newfoundland and Labrador is in a great position, and we will make sure that we exercise the appropriate timeline to do the right deal for Newfoundland and Labrador," Furey said.

"Since I took over we managed to take care of Muskrat Falls with the rate mitigation deal. We are in a good position because of that. The economy has turned around. We're not on bended knee to Quebec. Quebec is coming to us."

Churchill Falls supplies nearly 15 per cent of Quebec's electricity needs. The contract, which took effect in 1969, is set to expire in 2041, and has been a sore spot for Newfoundland and Labrador for decades. The province is locked into selling electricity to Quebec for the rock-bottom price of 0.2 cents per kilowatt-hour to Quebec, who then sells it at a massive markup.

Legault has said there'sinterest in expanding theChurchill Falls dam and building a new projectat Gull Island, also on the Churchill River.

On Wednesday, Legaulttold reporters said striking a new deal will take time and won't be easy.

"There's an opening for both sides. Of course it will have to be a win-win agreement," he said.

"We know that it's important for us to renew the contract after 2041 as soon as possible because it needs about 15 years before building a new dam. So we need to know what will be our capacity starting in 2041."

Legaultsaid Newfoundland and Labrador will have some demands, which he said he will listen to and balance to find a deal that is a good fit for both sides.

Need a gesture of good faith: Brazil

Interim PC Leader David Brazil said the situation is "alarming" and "confusing."

"We're reading that the premier of Quebec is talking about coming here for negotiations. The premier of Newfoundland and Labrador is talking about having discussions. We need to know what's happening on Friday," Brazil told reporters.

"Is there already a deal that's been struck? Is there already some conversations about what Quebec will benefit from this? What the time frames will be? The initial conversation here should be about how do we rectify the wrongs of the past and make sure that in good faith there's a negotiated deal that benefits the people of Newfoundland and Labrador."

Brazil said there's a lot of making up to do for the last 60 years and there has to be a gesture of good faith and Furey needs to release the details of the meeting after it happens.

He said he would like to see some compensation paid to Newfoundland and Labrador.

Furey said there haven'tbeen discussions among officials from Quebec and Newfoundland and Labradorabout anewChurchill Falls contract, other than the conversations he has had withLegaultover the last 2 years.

The premier wouldn't provide details Wednesdayon what will be discussed in Friday's meeting, saying he didn't want to revealNewfoundland and Labrador's commercial interests ahead of time.

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