Federal budget 'built a welfare wall around Atlantic Canada': Brison

Nova Scotia and Newfoundland and Labrador signed deals with the former Liberal government in 2005 to end the practice of clawing back equalization money based on offshore revenues.

But when it introduced the federal budget last week, the Conservative government gave both provinces the option to choose between a new formula that includes 50 per cent of resource revenues in equalization calculations, or maintain the status quo.

Took the deal

Nova Scotia's Tory government begrudgingly opted into the new formula, which will provide more cash immediately, but puts the province at risk of losing money from oil and gas resources in the future.

The province's decision was included in the provincial budget, released Friday.

Liberal MP Scott Brison, who represents the riding of Kings-Hants, said he was shocked the provinces were asked to effectively abandon the offshore accords for which they fought adamantly two years ago.

Brison, who will join other Liberal MPs in Halifax today for a news conference, said Prime Minister Stephen Harper turned his back on both provinces.

"This (federal) budget has built a welfare wall around Atlantic Canada, and has made it far more difficult for us to become a 'have' region," he said in an interview.

"Ripping up those accords would never be an option in a Liberal government."

Ottawa has argued the provinces were given a choice, and has since given Nova Scotia a year to change its mind.

But Nova Scotia Premier Rodney MacDonald has said his province, which has long fought for a better equalization deal, had little option but to take more money now and effectively ditch the offshore accord.

The province also brushed aside the year-long extension, saying there would likely be no new information to consider in a year.

Stay of execution

Mike Savage, the Liberal MP for Dartmouth-Cole Harbour, agreed the two formulas didn't represent much of a compromise, and the extra year will make little difference.

"At best, it's a stay of execution," Savage said yesterday.

"What we want is the full honouring of the Atlantic Accords. Just because the players have changed and Stephen Harper has come in, does not mean he has the right to break his word."

Conservative MP Peter MacKay, who is Nova Scotia's representative in federal cabinet, has defended his government's decision, though he was unavailable for comment yesterday.