Quick Laurentian Resolution Needed for Jobs and Growth

PREMIER’S OFFICE--Quick Laurentian Resolution Needed for Jobs and Growth

The Nova Scotia and Newfoundland governments must show leadership and bring needed stability to the Laurentian sub-basin area, Premier John Hamm said today. A federal tribunal charged with arbitrating the dispute decided today to hold a second phase of hearings over the next year.

"A speedy resolution to all issues is required," said the premier. "Delay stymies economic growth and the time is clearly right for oil and gas development off our shores. The continuation of this legal process will mean the unfortunate loss of at least one drilling season and the accompanying benefits, which will go to France, rather than Nova Scotia or Newfoundland."

Premier Hamm reiterated Nova Scotia’s call for offshore stability to encourage the oil and gas industry to pursue development opportunities in the Laurentian sub-basin. During a telephone conversation with Newfoundland Premier Roger Grimes this morning, the two leaders committed to meet as early as next week to identify a co-operative solution.

"Our provinces need to reach an interim agreement for oil and gas development in the disputed territory," said the premier, who has approached Newfoundland and Labrador on several occasions since fall 1999 to establish co-operation of the area until the current dispute is settled. "This will demonstrate the vision the industry values when making decisions that involve commitments not of months or years, but often decades."

The tribunal, chaired by retired Supreme Court justice Gerard Laforest, reported that it did not find "a conclusive and final boundary" had been established by agreement between Nova Scotia and Newfoundland and Labrador. While the disputed boundary was established in both federal and Nova Scotia law, Newfoundland law is silent on the question.

Nova Scotia government officials are in Ottawa this week to help identify possible solutions to the dispute. In the meantime, the Nova Scotia government will continue to advance the province’s interests in three fronts:

• working with the Newfoundland and Labrador government to reach an interim agreement for oil and gas exploration in the disputed territory;

• encouraging Ottawa to co-operate in establishing clear lines dividing offshore jurisdictions; and

• pressing the province’s case before Phase 2 of the Laforest tribunal.

The premier stressed that every valid argument will be made to defend the interests of Nova Scotians during Phase 2 of the tribunal hearings.