October 26, 2004
Newfoundland's newest fight
Every ten years or so, the premier of Newfoundland gets into a very big, very public dispute with the federal government. Here's the latest:
Newfoundland and Labrador Premier Danny Williams is boycotting equalization talks in Ottawa, accusing Prime Minister Paul Martin of reneging on a deal he agreed to both privately and in public.
Williams walked away from the conference just half an hour before Martin was to meet with the premiers to discuss how much money the federal government should contribute to the country's equalization program.
Williams said he was leaving because he says Newfoundland had a deal with Ottawa that would have given the province 100 per cent of offshore oil and gas revenues.
He said Martin made the deal in June, during the federal election campaign, but has now backed off that plan and isn't returning his calls.
Williams said the federal government is trying to put conditions on the deal, such as a cap, that would only allow the province to get 14 per cent of the revenues.
Williams blamed the about-face on the recent increase in oil prices.
"We didn't come here for negotiation. We have already reached an agreement. The deal was done. And it was done at a time when Paul Martin needed the people of Newfoundland and Labrador during the election," Williams told a news conference in Ottawa.
"With all due respect to the particular member, it certainly helped his election... Now what Paul Martin has done, he's actually turned his back on the people of Newfoundland and Labrador when they need him most."
Martin fired back, saying he never received a phone call from Williams. He also said the deal he offered the premier is more generous than what they first agreed on.
"I made an offer to Premier Williams that in all instances is more generous than the one that we discussed, based on the principles that he has publicly set out," Martin told reporters.
"And I'm not quite sure I understand why he won't take yes for an answer," the PM said.
On one hand, I think Newfoundland has to wean itself off of transfer payments from Ottawa eventually, and I've always believed it a bit disingenuous for us to demand we be allowed to keep all our federal transfers and all our offshore oil revenues. On the other hand, if Williams is telling the truth about Martin reneging on a done deal - and frankly, I'm more inclined to believe Williams than Paul Martin - it's another smack in the face for a province which has already recieved way too many smacks in the face.
If you don't live here, you have no idea how Newfoundlanders feel about control of their resources. Ottawa mismanaged the fishery into near-extinction, Quebec gets nearly all the benefit of hydro power from Labrador, and offshore oil development was delayed for years because of vicious jurisdictional fights between the province and the federal government. A lot of us voted Liberal because Martin promised us 100% of our offshore oil revenues, and if he's breaking that promise, we won't forgive the Liberals for...5 or 6 years, maybe.
Posted by damian at October 26, 2004 06:49 PM