Casey votes against Conservative budget

OTTAWA (CP) The Conservative government is scrambling to avert an embarrassing political spectacle after one of its own opposed the federal budget implementation bill in a preliminary vote Tuesday night.

Nova Scotia MP Bill Casey says the bill which sets the March 19 budget into action breaks a promise by Prime Minister Stephen Harper to his home province on resource revenue.

He joined the Liberals and the NDP in opposing adoption of the bill at report stage, but it still passed 158-108 with the Bloc Quebecois supporting the Conservatives.

Casey is vowing to vote No again later this week when the bill goes to third and final reading in the House of Commons unless there are changes allowing Nova Scotia to reap the full benefit of its offshore oil and gas wealth without losing any equalization payments.

Casey risks being kicked out of the Tory caucus but he says he must vote his conscience and hopes for a compromise before the final vote.

If its put back or they tell me theyre going to put it back, Ill vote with them.

Finance Minister Jim Flaherty met with Casey late Monday in attempt to reach a compromise, and then held another high-level meeting Tuesday. But Casey was not invited to that meeting and said hes heard nothing that would prompt him to back down.

I feel very strongly about this, he said after talking with Flaherty in the House.

I wish I didnt have to make this decision, but if the accord is not put back Im voting against the budget.

On the surface, the government appeared in no mood to bargain following repeated attacks by the NDP and Liberals during question period. The opposition parties accused the Conservatives of going back on an election promise not to touch the offshore agreements that exempt Nova Scotia and Newfoundland from a clawback on equalization.

We are keeping our promise on the budget, insisted government House leader Peter Van Loan, who rhymed off a laundry list of national programs the Tories are funding as part of the fiscal plan.

In addition to protecting and fully meeting our commitment to respect the offshore accord, we are also providing things are that are benefiting real families in Nova Scotia.

Flaherty rebuffed calls to amend the legislation, saying the Conservatives have honoured their promise to fix the fiscal imbalance in the country and the provinces will benefit.

But the Conservatives have taken a beating over the issue in Nova Scotia and Newfoundland and Tory MPs there are feeling the pain.

Casey and Newfoundland Tory MP Norm Doyle had a brief, grim-faced huddle with Flaherty following question period, said MPs who watched from their seats.

The offshore accord was negotiated with former prime minister Paul Martin in the waning hours of the 2004 election campaign and was heralded in both Atlantic provinces as an avenue to shed their have-not status.

The latest federal budget forces the provinces to choose between their agreements and a newly revised equalization formula. Since it means more cash in the short-term, Nova Scotia opted in its recent budget to take the new revenue-sharing scheduled proposed by Flaherty.