Offshore victory worth the effort (Bedford Sackville Weekly (24/07/08)

Last fall, Premier Rodney MacDonald agreed to two things with Prime Minister Stephen Harper.

The first was to ensure that Nova Scotia retained the full benefits of the Atlantic Accord.

Secondly, they set out to form a panel to resolve the long standing issue of the Crown Share.

Four prime ministers and six premiers over 20 years did not achieve what MacDonald has done.

Accepting the recommendation of an independent panel, the Government of Canada will provide Nova Scotia with $234.4 million for past payments up to March 31, 2008. Going forward, the two governments have agreed to work together to take the steps necessary to implement the chair's recommendation enabling the calculation of Crown Share Adjustment Payments for future years.

$633 million

The panel estimates the value of those payments for future years for the Sable Offshore Energy Project and the Deep Panuke Offshore Project to be approximately $633 million. Any other projects will only add to the figure.

This $867-million deal is essentially back dues on lost oil and gas revenues, which Nova Scotia should have been earning since the 1980s.

This deal is also a commitment that Nova Scotians will receive the full benefit of any future offshore projects. The majority of the money (92 per cent) will be used to pay down the debt and free up millions of dollars in interest savings that will be available at budget time.

I was in attendance for this historic moment for Nova Scotia. It's a tremendous victory, because all future resources in our offshore will lead to more Crown share payments.

Of the almost $870 million coming to Nova Scotia, 92 per cent will be used to pay down the province's debt and eight per cent will be divided equally among three trusts.

The first trust is to secure protected lands to help the province meet its goal of 12 per cent protected land, the second trust is to invest in university infrastructure to help young Nova Scotians better compete in a global economy and the third trust is to conduct more offshore research. Resolution of the Crown Share will help secure the future for all Nova Scotians.