Nine of ten members of Manitoba Hydro's board of directors have resigned.

In a written statement issued by board chair Sandy Riley, on behalf of the other eight members listed, the members say they have attempted for more than a year to meet with Premier Brian Pallister to discuss critical issues related to finance and governance, but have been unable to have a meaningful dialogue. The statement goes on to say the board was informed the government plans to remove Riley as chair; the board sees that as the government's loss of confidence in them and they find it necessary to resign.

Tory MLA Cliff Graydon is the only name left off the statement. Graydon says he was disappointed to hear of the resignations this morning. He says he's been told there could be a new board as early as tomorrow, but he doesn't know exactly when one will be picked.

Premier Brian Pallister says in a statement to Golden West Radio that he has great respect for Sandy Riley, and thanks the entire board for their service.

Pallister suggests the reason for the resignations stems from the board wanting to proceed with a $70-million payment to the Manitoba Metis Federation "in an attempt to dissuade the group from acting on concerns with the Minnesota transmission line." Pallister says the government did not agree with that course of action.

"As a government, we have to provide leadership to our crown corporations. Our responsibility would not be fulfilled by allowing tens of millions of taxpayer dollars being paid out to groups when it has ramifications for future construction projects that our government will undertake. This government has an absolute obligation to stand up for ratepayers and that's what we're going to continue to do," Pallister also says in the statement.

Golden West expects to speak to MMF president David Chartrand tomorrow.