Mr. Speaker, today the government of Newfoundland and Labrador and Inco signed a statement of principles to develop the Voisey's Bay site. Whether it is a good deal or not is yet to be determined.
What is clear is that the government of Newfoundland and Labrador had to squeeze out of the project every maximum benefit possible, especially in relation to the jobs to be created. It had to do this because the royalties that will flow to the province will be almost entirely clawed back by the federal government.
A province can only better its lot by developing and benefiting from its resources. What incentive is there to develop if Ottawa claws back the royalties, leaving the provinces no better off?
Until the government changes its clawback arrangements on resource royalties, our have not provinces will always be so. We must be able to retain, reinvest and eventually become contributing partners in Confederation.