Accord fight bad for federal-provincial relations, Tory fortunes: academics

HALIFAX Federal-provincial relations are among the short-term casualties of Ottawas fight with Nova Scotia and Newfoundland and Labrador over their offshore accords, say political scientists from both provinces.

Jim Bickerton of St. Francis Xavier University in Antigonish, N.S., believes the political battle surrounding the federal budget underscores a lack of understanding between the federal Conservative government and Atlantic Canada.

Bickerton says any attempt by Ottawa to portray the new equalization deal contained in the recent federal budget as a fair and generous offer for Nova Scotia and Newfoundland misses the point about why they were given offshore agreements in the first place.

The symbolism of this went much deeper than simply just a broken agreement, says Bickerton.

Agreements signed in 2005 with Paul Martins Liberal government protected the two provinces offshore oil and gas revenues from federal equalization clawbacks. After a long and at times dramatic fight dubbed the Campaign for Fairness, the deals were heralded as key economic development tools.

The current equalization offer forces the provinces to choose between a new formula or their offshore deals, a choice both fear could cost them millions of dollars over the long term.

The broken trust was that the federal government had more or less admitted that this was the regions one great opportunity to reverse its historic subordinate position within the federation and that it was willing to support them in doing that, says Bickerton.

I think thats why this particular broken agreement has had such resonance with Nova Scotians and Newfoundlanders.

Alex Marland, who teaches at Newfoundlands Memorial University, says the current discord is part of a long-standing grievance in the province.

There seems to be here a real sense of people feeling that they are not benefiting from the federation, says Marland, who moved to the province from Ontario 10 years ago.

As a newcomer, Marland says he was surprised by the attitude.

I came from Ontario and kind of thought, Well, of course Newfoundland is taking more out of the federation than its contributing. But living here ... its a complete flip, he says.

Marland says in the current poisonous atmosphere, it would be unlikely that Prime Minister Stephen Harper would attempt to convene a meeting of first ministers any time soon.

I just cant imagine he would want to give a forum to Danny Williams, let alone Rodney MacDonald and Lorne Calvert, who are obviously taking a different approach to this, says Marland.

Williams, a Conservative, has accused Harper of breaking his word to honour the accords, something the prime minister has vehemently denied. Williams has taken an uncompromising stance and has pledged to campaign against the federal Tories in the next election.

MacDonald, who has favoured a more conciliatory approach, returned to talks with Ottawa last week, days after a letter to a Halifax newspaper by Finance Minister Jim Flaherty prompted an angry outburst.

In the letter, Flaherty said Ottawa wasnt negotiating any side deals for a few extra votes. MacDonald responded by breaking off discussions and urging Nova Scotias Conservative MPs to oppose the federal budget.





15:03ET 17-06-07