Atlantic premiers differ on equalization fixes

The premiers of the four Atlantic provinces want Ottawa to revamp its equalization program, but do not agree on how best to do it.

Newfoundland and Labrador's Danny Williams is appealing to Prime Minister Stephen Harper to stick to a written pledge from the last election campaign to keep natural resources revenues out of the equalization formula.

However, Nova Scotia's Rodney MacDonald, New Brunswick's Shawn Graham and Prince Edward Island's Pat Binns favour a new formula that would include such revenues meaning greater revenues for provinces that don't produce oil.

"It comes down to dollars and cents," Williams said following a meeting Wednesday of the Atlantic premiers.

"What works for me may not work for premiers Graham, Binns or MacDonald."

Binns said a 10-province standard rather than the current formula, which is based on the economies of five provinces would be a more fair way to distribute equalization payments.

"[It] is the way the formula would best serve the country long-term. Otherwise, I'm afraid that in a year or two we'll be right back where we were," Binns told reporters.

Equalization is a wholly federal program, in which Ottawa transfers revenues to "have-not" provinces, so that common services such as health care can be delivered at a national standard.

With Ottawa reporting surpluses and the provinces struggling to cover the expenses, the provinces are looking for improvements when the Harper government tackles equalization in the weeks to come.

"The fiscal imbalance is very important the federal government has recognized this," MacDonald said.

"We expect to see everyone treated in a fair and reasonable manner, then no one ends up losing at the end of the day."

Williams has vowed to campaign across Canada against Harper if the federal Conservatives change tack on whether to include natural resources revenues.

Graham, who was elected in September, said he is not in the mood for another round of electoral combat.

"I can simply say that I just finished an election campaign and I'm not ready to enter into another one right now," Graham chuckled.

Despite their differences, the four premiers agreed on several points. They want a speedy decision on equalization, and a promise that no province will be hurt by any forthcoming changes.

They also want Ottawa to transfer funds based on economic growth, and not on the fixed rate that currently exists.