On Point | Peter Penashue on strained relations with Ottawa

Newfoundland and Labrador's representative in the federal government, Peter Penashue, predicts relations between Ottawa and the province will improve.

"There is no question that there is a lot of tension between the province and Canada," he said.

"But as soon as we have one project that's successful, and I'm thinking about the Lower Churchill, I think the relations will thaw and will work very well."

Penashue said he understands why premiers across the country are frustrated with Ottawa but be believes federal cuts will ultimately result in better services for all Canadians.

"We are going to consolidate the services we are providing," he said.