Marshall dismisses Dumaresque's numbers

Daniel MacEachern
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Finance minister says former MHA is wrong on Muskrat finances

Danny Dumaresque — File photo


Newfoundland and Labradors finance minister says former MHA Danny Dumaresque — a critic of the proposed Muskrat Falls hydroelectric project — is wrong to say the province will have difficult paying for the project.

Dumaresque told the Telegram and other media that documents filed as part of the boards review of the project show that Muskrat Falls would not qualify for financing on capital markets because the revenue stream, especially in the first 12 years, would be below the basic requirements of the capital market.

You go to the bank to get a mortgage and they look at your income and they say, Well, youve got to allocate 40 per cent of your income to be able to pay this mortgage. And basically what theyve done is theyve looked at the cash flow statement for Muskrat Falls and theyve said well, you havent got enough money here to meet your payments.

Natural Resources Minister Jerome Kennedy said Tuesday that Dumaresque based his claim on one hypothetical scenario in submission to the board.


And Finance Minister Tom Marshall, speaking to a breakfast meeting of the Institute of Charterted Accountants on Wednesday morning, said the provinces strengthening fiscal position — and the loan guarantee from the federal government — means financing the more than $6-billion project wont be a problem.

Danny Dumaresque is wrong in what he said yesterday, Marshall told the audience. Ive been following interest rates since the late 60s. Theyve never been this low. Our credit rating from Standard & Poors is improved, were going to be borrowing with a guarantee from the government of Canada so well borrow at a triple-A rate.


Marshall also said he has consulted with lenders about financing the project.

Last year I met with the major banks, those that are in our lending group, even though we havent given them any business since 2007. I asked them how they felt about the Muskrat Falls project and funding it, he said. Obviously theyre going to wait to see what the final package is, what the actual package is thats put before them, but one of them said that he wouldnt be surprised that given the fact that we havent borrowed for so long and given the fact that weve decreased our net debt and improved our position, he wouldnt be surprised if our bonds sell out in less than 15 minutes on the Muskrat Falls project., Twitter: TelegramDaniel

Organizations: Institute of Charterted Accountants

Geographic location: Newfoundland and Labrador, Canada

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Recent comments

  • port union plant worker
    March 01, 2012 - 10:21

    i kind of like danny Dumaresgue..I don't care what party he's with. He shows backbone as well as good information.. He's becomeing Eddy Martin's and Stunderdales worst nightmare..Keep it up Danny us the facts

    • yes b'y
      March 01, 2012 - 20:38

      Hey Sealcove, is this guy brainwashed or what. First time I heard anyone accuse Danny Dumaresque as having a backbone and good information. He's someone's nightmare alright but not to the people he thinks it is.

  • sealcove
    March 01, 2012 - 10:07

    Lots of brainwasher people on here

    • Yes b'y
      March 01, 2012 - 20:33

      Better to be brainwashed than a fool. Anyone who thinks Danny Dumaresque is helping the cause is a fool.

  • Scott Free
    March 01, 2012 - 10:06

    John Smith might be Little Man Dan himself; what else could explain his constant and pathetic adoration.

  • Jon
    March 01, 2012 - 09:29

    If the Liberal party wants to attract support they would be wise to distance themselves from this guy.

  • Graham
    March 01, 2012 - 09:17

    Old Tommy dismisses everything and everyone that dosent see things the way he does. Danny trained all of them very well. Some peop[le want Dumaresque to just go away...well could the reason for that be that the truth is sometimes very hard to deal with? Just asking.

    • Gerry
      March 01, 2012 - 10:10

      No one wants him to go away more than the Liberals. In case you haven't noticed, people are against anything Danny Dumaresque stands for. Whatever side Dan Dum chooses, it always ends up losing. Please Dan Dum, support this project.

  • Turry from town
    March 01, 2012 - 08:58

    Doomeresque just does"t get it.The people of this province have showed you what they think of you.He has been whining and belley aching since Danny Williams single handedly drove the Liberal party out of town.Now he is running around in circles yelping like a dog with his tail nipped howling for the sake of howling.Well Doomeeesque,you are not a wise man,a wise man has something to say,and a fool has to say something.

  • Scott Free
    March 01, 2012 - 08:44

    Not to defend Dumaresque, but, Marshall has missed financial targets/projections by millions, er, hundreds of millions before; can he get to within billions on Muscrat??

    • Free Scott
      March 01, 2012 - 10:03

      He has missed indeed, by coming in under budget. But I doubt Muskrat will be under budget.

  • John Smith
    March 01, 2012 - 08:43

    You don't believe Tom Marshall, or Nalcor? Why? Do you think they get up in the morning and say...How do we screw the people of the province today? What about Navigant? What about MHI? What about Wade Locke? What about Danny Williams? All liars? All conspiritors?What about the fact that our bills have increased by 60% since 1998? What about the fact that oil reached 110 dollars a barrel today, and will be reflected in our July and August bills? What about the fact that every expert has said we will need much more power by 2017 just five years away? The naysayers keep saying this is a bad deal...yet they can't say why? Do we want to continue to spend hundreds of millions on dirty oil from the middle east? Or do we want to develop our own resource, never be dependent on oil again, unlimited power, stable rates, connection to the mainland grid, ability to sell excess power untill we need it. I would love for the naysayers to come forward and state why they don't want the dam. We have to do something. Unfortunately we can't do as Mr. Vardy wants us to do and turn down the heat, and shut off the lights...that's not going to happen. So we need the power, and this development is the lowest cost option. If the naysayers think gas, or wind or tidal or solar, or thermal is the answer...prove it. Lets see the studies, the reviews, the cost estimates, the cost overuns...let's see it...let's debate it. You can't just keep saying..."sum bad deal b'y"...i mean really?

  • McManus
    March 01, 2012 - 08:12

    Just because you believe you are right does not mean you are right. There are many seriuos questions that remain unanswered and this kind of weak analysis does nothing to advance the informing of the public. I don't believe Nalcor or Tom Marshall, but i do not believe Dumeresque either.

  • Too Funny
    March 01, 2012 - 08:04

    The last thing you want is for Danny Dumaresque to be on your side because you know you're sunk. Just look at what he's done for the Liberal party. Danny, if you really want to stop this project then get out and tell people how great it is - it would be dead by nightfall.

  • Darren
    March 01, 2012 - 07:52

    Marc hit the nail on the head. When it comes to financing Muskrat Falls, the province's fiscal position is strengthening. However, when it comes to health care, infrastructure, collective bargaining, etc, well then the province is going to be running a deficit and we all should be prepared for a significant tightening of the purse strings.

  • Jon
    March 01, 2012 - 07:17

    Dumaresque needs to fade into the background. The man was a former MHA and was recently defeated in the election, meaning people don't want him! The hydro Quebec spokesperson is starting to get nauseating.

  • dave
    March 01, 2012 - 07:14

    Dear Mr. Dumaresque,please go away.Are you that thick headed,that you don't know when your 15 mins. of fame are up,and didn't the good people of Central send you a strong enough message last election????Please just go away!

  • Billr
    March 01, 2012 - 07:04

    What a waste of space. Who cares what Danny Dumbarsque has to say. What ever Doctor slapped his ass to get him started should be thrashed severly about the neck and ears with a wet noodle:-) He has never said anything positive yet. He showed his true colours during the election debate in St. John's. His experience comes from losing elections being kicked off Hydro Boards. Is he a bitter man? You judge. He's one of a bunch of "has beens" who are like groundhogs. They crawl out of a hole, rub their eyes and and say something stupid, hoping it's a slow news day. Even when an economic expert like Wade Lock comes out in a positive way Danny acts like a two year old and says Lockes opinions are tainted. Note to Telegram please move these stories to entertainment section so you don't have to move "news" stories farther back. Maybe next to Born Loser. Hmm, I think I may have stumbled on to a solution to the city's wind turbine problem. It involves a culvert with a windmill at the other end. Put in a heat pump too. An endless supply of hot air, no fall zone needed already in the political gutter.

  • Kevin
    March 01, 2012 - 07:00

    I would like to know how much Quebec is paying Danny to speak on this subject?

  • Marc
    March 01, 2012 - 07:00

    I am suprised to read that it is now Marshall's position that the provinces fiscal position is strengthening. We have been told to expect reductions in government services and those reductions are being dictated to government by decline revenues. At the same time our revenues are delcining, Marshall and his government are about to sign a loan document that will double our provincia debt. Marshall is sucking and blowing at the same time!

  • John Smith
    March 01, 2012 - 06:59

    Danny Dumaresque is making a fool out of himself. Any last shred of credibility or respect he had is completely gone now. He took a document, and went on the open airwaves, and lied. He took what was a hypothetical question about an unlikely scenario, and tried to make it seem as though it was a fact. Shameful. Most large projects like this are funded by 40% up front, and 60%loan...that is the norm. The question asked what would happen if we went to the banks with 25% down. Of course the answer was not enough of a downpayment. The thing is most are chomping at the bit to loan money to this project...even without the loan guarentee. That just makes it even more appealing. The fact that Doomaresque blatantly lied about the document shows me what kind of man he really is. If he represents the position of the naysayers, then they are in hard shape. If you have to resort to lying to make your point, then you have lost the battle.

  • george williams
    March 01, 2012 - 06:58

    dumerasque has been mouthing off ever since he lost election he has yet to be correct on anything he just refuses to go away why is it that he comes out on side of quebec would the fact that his fish business is in quebec

  • louie
    March 01, 2012 - 06:50

    Assuming the financing will be easy as Mr Marshall indicates, how will it affect our rating once it is on the books? $6.2 billion is about two thirds of our deficit. How will our children and grandchildren pay it back when it has to be sold into mainland grids at subsidized prices. Will the government follow the blue pamplet and use the oil revenues to pay for the project or put the whole cost on to the backs of the consumer/ratepayer which is what the present documents before the PUB indicate? We would like to see some transparent information to address these concerns.

  • Abu Simbal
    March 01, 2012 - 06:34

    Dumaresque is a publicity hound and would wear a pink and green suit if he thought it might garner him added attention and the possibility of a few additional votes. The man reminds me of Homer Simpson....just "roll the dice" and whoohoo!

  • Frank M
    March 01, 2012 - 06:27

    Where is the Liberal Party on this? Is Mr. Dumeresque, who has not been a MHS since his defeat in 1996 speaking as a citizen or the representative of the Liberal Party? What does Dwight Ball think of Mr. Dumeresque's opinion on Muskrat falls? It seems to me that there is a lack of control in who and what messages are being delivered by the Liberal party. On the flipside - what else could you expect Tom Marshall to say. He is a senior member of the Cabinet that is promoting this project as viable.