As political divisions emerge over Bay du Nord, N.L. PCs lash out at federal Liberals

A report by Radio-Canada that suggests the proposed Bay du Nord oil project is causing division in Prime Minister Justin Trudeau's cabinet has ignited an angry response from opposition politicians in Newfoundland and Labrador.

The provincial legislature must reopen immediately for an emergency debate, and the seven Members of Parliament from Newfoundland and Labrador have to stand up firmly for their province, David Brazil, leader of the Opposition Progressive Conservatives, said Thursday afternoon.

"The money generated here pays for health care, schools and roads. This is too important not to have an open debate," Brazil told reporters.

PC energy critic Lloyd Parrott said any politicians from the province who are not vigorously opposing any suggestion that Bay du Nord will be rejected should be ashamed.

"This is about about our future, right now more than any time in our history," said Parrott.

Brazil and Parrott were responding to a report published Thursday morning that revealed deep divisions within Trudeau's inner circle over the fate of Bay du Nord.

Norwegian oil giant Equinor and its partners are proposing to develop the massive oil field in the Flemish Pass, some 500 kilometres east of St. John's.

The plan is to use a floating production, storage and offloading vessel capable of producing up to 200,000 barrels daily.

Equinor executives have strongly suggested their intent to proceed with the project, with an investment decision expected within the next two years, and first oil by as early as 2028.

The province's oil industry is betting heavily on Bay du Nord following a series of crushing blows in the wake of the pandemic. Provincial leaders have also expressed support for the industry, saying the jobs and revenues its generates are needed to help deal with a staggering economic crunch, and aid the transition to a low-carbon economy in the future.

But the project will not proceed without approval from Ottawa, with Environment Minister Steven Guilbeault expected to decide next month whether to give the project the environmental green light.

Sources have told Radio-Canada, however, that Guilbeault is caught between opposing sides of the debate around the cabinet table.

Radio-Canada is reporting that several Liberal ministers from Ontario, Quebec and British Columbia want to reject Bay du Nord.

Meanwhile, sources have said deputy prime minister Chrystia Freeland, citing the economic benefits it would bring to Newfoundland and Labrador, is in favour. St. John's South-Mount Pearl MP Seamus O'Regan, the federal labour minister, is also defending the project, according to Radio-Canada.