SASKATOON - The federal Conservatives are being accused of using equalization to woo votes in Central Canada, but the premiers of Saskatchewan and Newfoundland and Labrador suggest such action will hurt national unity.
Premiers Lorne Calvert and Danny Williams took their campaign to revamp equalization on the road Tuesday, forming what they called "an alliance for accountability."
In front of about 200 people at the University of Saskatchewan, Williams suggested it is clear why Prime Minister Stephen Harper might back away from his pledge to remove non-renewable natural resource revenue from the fiscal program.
"Why would a prime minister break a written promise that significantly penalizes two provinces like ours?" asked Williams.
"I think we all know why he might do that. We are facing a federal election and . . . in the end, equality among provinces takes a back seat to the electoral urgency of currying favour with the majority."
It's the strongest language to date that Williams has used to push Newfoundland's position.
Saskatchewan and Newfoundland and Labrador have long argued to remove non-renewable resource revenue, such as that from oil and gas, from the equalization formula.
Other provinces, including Quebec and Ontario, want that revenue included.
The $12-billion program is designed to help poorer provinces provide government services to a national standard.
But Williams and Calvert argue that money from oil and gas is a "one-time" revenue that should be used to boost the economies of the provinces where the resources are found.
"All we are asking is the opportunity to put our own finite resources to works for us," said Williams.
"Once these finite resources are gone, they're gone for good."
Before the 2006 federal election, Harper made several promises to remove that revenue from the equalization formula, but he has since backed away from the idea.
And in a recent letter to Saskatchewan's finance minister, federal Finance Minister Jim Flaherty said Ottawa will distribute $11.7 billion in equalization payments under current legislation.
That means Saskatchewan, which is considered a richer province, won't get any money.
Preliminary figures also suggest Newfoundland's equalization payments could plummet, but Quebec is looking at a hike of $1 billion, to $6.46 billion.
Calvert tried to stress Tuesday that the issue was about fairness for all jurisdictions.
"It's not a matter of Atlantic versus Central Canada or Prairie versus Central Canada," said the Saskatchewan premier.
"We share this deep conviction that as you build the strength of our regions and our provinces, you're building the strength of the nation," said Calvert, who is expected to travel to Newfoundland next month in a show of solidarity.
Williams agreed, saying that revamping equalization is not about province versus province.
"We don't begrudge others improving their lot," said Williams.
"But don't pit provinces against each other, don't take from one to give to another and use it against them, don't break firm written commitments - honour them."
