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The following are excerpts from the speech given by New Brunswick Premier Shawn Graham on Thursday as he and Québec Premier Jean Charest announced the signing of a memorandum of understanding that would see the selling of most of NB Power’s assets to Hydro-Quebec.

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The Daily Gleaner/Stephen MacGillivray photo

Premier Shawn Graham and Québec Premier Jean Charest were at Government House Thursday to make an announcement on the sale of NB power to Hydro-Québec. after the signing, the parties posed for a photo. From left are Nathalie Normandeau, Québec minister of natural resources; Thierry Vandal, chief executive officer, Hydro-Québec; Québec Premier Jean Charest; NB premier Shawn Graham; David Hay, chief executive officer of NB power, and Jack Keir, NB minister of energy.

When I first suggested to Premier Charest that we engage in discussions about energy co-operation, I will admit that I didn’t know if we would be able to achieve an agreement.

Our government has set an ambitious objective for itself, that of setting our province on a path to self-sufficiency. Our test, ultimately, was whether an eventual agreement would get us closer to our objective.

I am confident that New Brunswickers will agree that it does.

I am therefore pleased to announce that Premier Charest and I will sign an important Memorandum of Understanding between our two governments.

This proposed agreement has many virtues:

• It creates a true win-win for both our provinces

• It strengthens the bonds of friendship that unite us

• And it will lead to greater economic prosperity in both New Brunswick and Quebec.

For New Brunswickers, the benefits are numerous:

• Lower power rates for New Brunswick residents and New Brunswick businesses, in every corner of the province.

About $5 billion worth of lower rates, with 60 per cent of the reductions going to residential and small business customers;

• A freeze of residential power rates for five years;

• The elimination of almost 40 per cent of our provincial debt;

• A better climate for job creation in every community, in manufacturing, in resource industries, and for small business;

• The continued status of NB Power as a New Brunswick-run company, with the same employees, the same trucks, and the same reliable service;

• And, of course enabling New Brunswick to keep moving forward on the road to selfsufficiency by 2026.

Taxpayers and ratepayers are the big winners today. NB Power’s $4.8 billion dollar debt will no longer be a risk for our future generations.

And ratepayers would see reduced rates to an extent that would have been impossible for NB Power as a standalone entity.

The five-year rate freeze would avoid rate increases of at least three per cent per year and save the average home that heats with electricity about $1,400.

At the end of the initial fiveyear period:

• Power rates would only increase to keep pace with inflation and new generation needs;

• And residential ratepayers would enjoy additional savings of at least $465 in every year after 2015.

For our business community, this proposed agreement offers the promise of combating the effects of the high Canadian dollar, and the downturn in our forest and resource industries.

Industrial users will have rate parity with those in Quebec, creating a level playing field for those backbones of our economy.

So, combined with the more than $380 million in tax cuts featured in our Plan for Lower Taxes in New Brunswick, this proposed deal will help New Brunswickers create opportunity today, while building jobs both today and tomorrow.

We have taken great care in putting this proposed agreement together. And we’re continuing to exercise due diligence now to ensure we can have a good agreement that helps us realize our full potential for the benefit of all New Brunswickers.

I understand, however, that New Brunswickers will have questions and concerns. I acknowledge that there is a lot of detail here to digest.

This is a significant change, in a corporation that belongs to all of us.

There will be debate and discussion.

Questions will need answers. Concerns will have to be heard.

I will advocate for this agreement, but I will also take the time to listen.

I will listen to the concerns raised by our opposition. I have spoken with Mr. Alward, and offered all of the details to him and to his caucus.

While we disagree on many things, I believe he will approach this agreement in a spirit of careful analysis and bipartisanship.

The upcoming sitting of the legislature, I am sure, will understandably be dominated by this proposed agreement. It is the proper place for the debate to occur.

I’m looking forward to this important part of the process beginning when the legislature resumes in less than three weeks.

I’m pleased to announce today that in addition to debating the throne speech and legislation flowing from this proposed agreement, I will be asking a legislative committee to provide input on the necessary changes to the regulatory system.

I would be remiss if I did not recognize the work of the employees of NB Power.

Understandably, they will be feeling anxious today, and I hope that our announcement alleviates some of their concerns.

It was important to us that NB Power’s employees remain in place, their collective agreements be recognized, and for existing employees, our government will continue to hold their pension plan.

For NB Power’s customers, the white and orange vehicles stay on the road and regional customer service offices remain throughout the province — including the headquarters here in Fredericton.

I also acknowledge the work of NB Power’s senior management.

David Hay, it is thanks to the hard work of you and your team that NB Power is positioned so well, and that we were able to reach a proposed agreement that would provide so many benefits to New Brunswickers.

It’s also very important for me to speak to the community of Dalhousie, which will see its generating station phased out.

We will stand by your community and we are already hard at work to find a variety of new opportunities for you.

I hope you will come to share my conviction that this proposed agreement stands to be a turning point on New Brunswick’s journey to selfsufficiency and a better future for all our residents, wherever you may live.

Shawn Graham is the premier of New Brunswick. Send your comments to letters@ dailygleaner.com.