Federal Fisheries Minister Loyola Hearn went on the offensive Friday against Danny Williams, casting the Newfoundland and Labrador premier as an ineffective deal-breaker.

Hearn — a target of Williams's scorn since a new equalization formula was unveiled last month — offered a fierce rebuttal during a speech to the St. John's Board of Trade.

Loyola Hearn said Danny Williams has not been half as effective as premier as Hearn has been as Newfoundland and Labrador's cabinet representative.
(CBC)

"Why are oil and gas exploration companies going elsewhere? Where is Hebron? Where in Hibernia South? Where is the Orphan Basin? Where is the gas potential and development?" asked Hearn, listing offshore oil and gas developments he says have been stalled — or worse — because of Williams's tough negotiating style.

"Where is the royalty regime and the energy plan? Where is the rural renewal? You know, we can't promise and promote the fact that we are open for business when we have a 'not welcome' sign in the window."

The war of words between Williams and Hearn, Newfoundland and Labrador's cabinet representative, has been ramping up for weeks.

On Wednesday, Williams — who called on federal Finance Minister Jim Flaherty to resign — said Hearn's handling of the equalization dispute shows he is negligent.

Williams has said Newfoundland and Labrador was betrayed by the federal Conservatives, who had promised in 2006 to exclude non-renewable resources — including offshore oil and gas — from the new formula.

An independent analysis shows the new formula will cost Newfoundland and Labrador about $1 billion between now and 2020, compared to the current formula.

Worse, there is an $11-billion discrepancy when compared to what the province would have received over the same period, had Prime Minister Stephen Harper maintained the 2006 pledge.

Speaking to reporters after the speech, Hearn fired back at Williams.

"I said in my speech that I'd stick to the high road," Hearn said. "But I have a job to do, and if Danny Williams was doing his job as well as I'm doing mine, we'd be a hell of a lot better off."

Williams, a Progressive Conservative, has encouraged voters to ignore the federal Tories in the next federal election.

Hearn issued a challenge of his own: "Why don't we settle this at the election?"

Hearn, meanwhile, did not get that much of an endorsement from the business community.

"The new equalization program is not the one that Newfoundland and Labrador and other provinces were striving for," Cathy Bennett, president of the Board of Trade, said as she introduced Hearn.

Dispute not helping things: Crosbie

Former federal cabinet minister John Crosbie, meanwhile, agreed that the federal Conservatives have broken a campaign promise.

However, he said the public squabbling between the two Tory governments is not helping things.

The province has a claim, particularly in connection with the Atlantic Accord, and Loyola can be very helpful in getting this resolved," Crosbie said Friday. "But he has to be given a chance … I think there's room for a discussion and a negotiation."