Newfoundland and Labrador Premier Kathy Dunderdale speaks to reporters in St.John's on March 21, 2011.Paul Daly/The Canadian Press
Premier Kathy Dunderdale says the political capital she staked on her federal cousins in last week's election will soon pay off - despite a near Conservative shutout in Newfoundland and Labrador.
Ms. Dunderdale backed Prime Minister Stephen Harper after he promised a loan guarantee, or unspecified equivalent, to help develop the $6.2-billion Muskrat Falls hydroelectric project in Labrador.
Despite that newfound political support, provincial voters sent high-profile Tory candidates packing. Just one of seven federal seats went Conservative by a slim 79-vote margin in Labrador.
Ms. Dunderdale cast that result in the best light on Monday as she told reporters that Mr. Harper has assured her the loan guarantee is still on.
"We talked about the work that we have before us and he told me that he was eager to get on with it, as am I," she said of a phone call with Mr. Harper last week.
The Premier said it's not clear exactly when she'll receive a signed loan guarantee. Having something to show for her entente with Mr. Harper would advance project funding as she prepares for a provincial vote set for Oct. 11.
"We'll work out the detail of that over the next few months," she said.
"I will be looking for that, not because of what it does for my political fortunes, but because it's the right thing for the people of Newfoundland and Labrador."
Ms. Dunderdale blamed the election results on residual effects from her old boss's "Anything But Conservative" or ABC campaign. Former premier Danny Williams launched the blistering attack during the 2008 election, accusing Mr. Harper of breaking a promise to protect offshore oil and gas profits from federal transfer payment clawbacks.
The Conservatives lost three seats and were defeated in all seven ridings.
The ABC campaign was still resonating during the most recent election, Ms. Dunderdale said Monday. "People pay attention to politics in this province.
"While we had some assurance that things have changed, the people of the province obviously needed more. And that's fair enough - the people are never wrong in this business."
Mr. Williams had slowly smoothed relations with Mr. Harper before he stepped down as premier in December, saying his work in politics was done.
Ms. Dunderdale said it's more important now than ever to have an open line to Ottawa. Newfoundland and Labrador needs federal help with the struggling fishery, health care, and especially with plans to transform itself into a major North American source of greener energy, she said.
"I'm glad that I forged a new relationship with the Prime Mminister," she said.
"I feel that I read the country pretty well. And it's extremely important when we have a majority government for the next four years that we have a good relationship with that government."
Provincial NDP Leader Lorraine Michael said Ms. Dunderdale should be more interested in reading the mood of the province.
"Our people here really had a very solid analysis of Mr. Harper and [his]government and what his priorities were. And they don't like it," she said Monday outside the legislature.
"That's why they only got the one seat ... in Labrador."
Voters were worried about social programs, health care and the shortage of affordable child care, she said.
"I heard concerns that you can't trust Mr. Harper, and how do we know he's going to come through with the loan guarantee anyway because he has promised us stuff before and it hasn't happened."