Did Hydro-Québec Try to Silence One of Its Critics?

There is a troubling pattern emerging in the debate on the NL Hydro and Hydro-Québec MOU – one that should alarm every Newfoundlander and Labradorian who believes in open debate and fair treatment. When I raised legitimate concerns about a deal that could disadvantage our province for generations, did powerful interests from outside respond with what to me seems obvious: an attempt at intimidation?

The curious request from Le Journal de Montréal was regarding my Senate expenses – all of which are fully transparent, compliant with the rules, approved through a rigorous process and publicly disclosed under the strictest parliamentary standards. I wrote the terms of reference and was the founding Chair of the Senate Audit and Oversight Committee, a committee of which I remain a member. I have been a member of the Senate Rules Committee for twelve years. I know how to do things correctly. Normally, such inquiries are routine. But in this case, the source and the timing seem to tell a more cynical story. The query by this media organization requested, among other things, the residence location of my “spouse and dependent child”, and about my “family situation”, and questions about my staff.

I don’t think this sudden curiosity arose in isolation. Le Journal de Montréal is owned by Quebecor, a powerful Quebec-based media and telecommunications conglomerate founded by Pierre Karl Péladeau. He also served as Chairman of the Board of Hydro-Québec. The Péladeau family still controls Quebecor, and there are long-standing linkages between the company and Hydro-Québec through board members, commercial partnerships, and shared interests.

Need more? The journalist tasked with delving into my senate activities and personal life? No, not a reporter who covers federal politics or legislative expenditures or even the personal lives of politicians. It is the reporter who has emerged as one of Quebecor’s principal investigative voices on issues related to Hydro-Québec. You be the judge.

It is therefore difficult to ignore the coincidence that this media inquiry followed by days my first public criticism of the Memorandum of Understanding signed between Newfoundland and Labrador Hydro and Hydro-Québec regarding the potential development of the Gull Island hydro project. Specifically, I was and am critical of a 40% ownership stake and heavily discounted electricity pricing scheme that Hydro-Québec is being offered by John Hogan and the Liberal government. Of course it falls in a hotly contested provincial election campaign. In my widely covered substack article from last week, I deliberately avoided any political comment, yet when Hogan was asked about it by the media his response noted my political affiliation as the reason for my views. I did not invite the political aspect of this. I didn’t mention politics it as I wanted my argument to stand on merit – even in the middle of a provincial election campaign. But now I’ll be as direct as John Hogan was: if the Liberals win this election, the deal will go through and will ignore all the respected and knowledgeable voices against this deal. Voices that are PC, Liberal, NDP and independent. If the PCs win, there’ll be a deep, truly independent analysis of the MOU and if it’s deemed to be the best we can get, then fine. But there will also be alternative markets and customers considered for our power. We should not be bound to view that Hydro-Québec is the only partner available to Newfoundland and Labrador.

The MOU, negotiated quietly in the backrooms of Montreal and without transparency and delivered to us in a press conference featuring the premier dramatically tearing of a sheet of paper, clearly grants Hydro-Québec a dominant position in a project that belongs to the people of Newfoundland and Labrador.

Many of us in this province remember all too well the injustice of the 1969 Churchill Falls contract – a deal that allowed Hydro-Québec to reap billions while Newfoundland and Labrador received pennies on the dollar. That agreement has stood for more than half a century as a symbol of imbalance and betrayal, locking us into one of the most lopsided resource deals in Canadian history. And recall, fellow Newfoundlanders and Labradorians, that Hydro-Québec will still own 34.2% of the Upper Churchill Hydro Generating operation forever – long after the 2041 unfair pricing agreement expires. And the MOU under consideration now grants Hydro-Québec 40% ownership of the Gull Island project. I’ll remind readers that there is no expiration date on ownership.

And now, as the province faces a chance to develop Gull Island – a project that could bring prosperity to Labrador and beyond – we are told to trust the same utility that profited so handsomely from our last misfortune. It appears that Hydro-Québec – or those aligned with its interests – would rather intimidate critics. Let me be clear: no amount of media spin, veiled threats, or manufactured controversy will deter me from defending the interests of Newfoundland and Labrador. I was asked to sit in the Senate to serve Newfoundlanders and Labradorians and I will not be silenced because a powerful provincial utility or its media allies in Quebec find my questions inconvenient.

Gull Island must be developed on terms that reflect fairness, transparency, and provincial benefit. And if there are those who seek to manipulate public discourse or intimidate critics to achieve otherwise should be exposed for what they are – external interests trying to solidify their own advantage – and our disadvantage.

Newfoundland and Labrador deserves better. Canada deserves better. And I, for one, will continue to speak out until we get it.

The Honourable David Wells is a senator and has represented Newfoundland and Labrador in the Senate of Canada since 2013. He served as Deputy CEO of the CNLOPB, Director of Policy and Chief of Staff to Federal Ministers, sits on the Senate Energy and Environment Committee and wrote the Terms of Reference for and is the founding Chair of the Senate Audit and Oversight Committee. He lives in Newfoundland and Labrador.