Newfoundland and Labrador's federal cabinet representative says he would like to see an end to a bitter feud that has divided the federal and provincial governments.

Fisheries Minister Loyola Hearn, who has locked horns with Premier Danny Williams during the last week over Hearn's suggestions that he has inside knowledge of Williams's government, insisted he does not have spies within the provincial caucus and cabinet.

Loyola Hearn maintains that he has many friends in Danny Williams's cabinet and caucus, but has never asked them to spy for him.
(CBC)

Last week, Hearn said he knows as much as Williams about what is happening inside the Newfoundland and Labrador government, including the eighth floor of Confederation Building — the home of the premier's office.

Williams fired back this week, calling Hearn's remarks "infantile," untrue and potentially dangerous.

Speaking with reporters Thursday, Hearn offered an olive branch, and said his remarks were not meant to suggest he has spies near Williams.

Although he reiterated that he has "a lot of friends" in Williams's caucus and cabinet, he said he never asks them to break confidentiality rules.

"You don't do that stuff," said Hearn, adding that he stays a step ahead of "the opposition" by paying close attention to events. "Anybody who is tuned in can be pretty close to that."

Hearn said, meanwhile, that too much is at stake in terms of potential economic development for a political feud to continue.

Pending megaprojects — including the Lower Churchill hydroelectric deal, a processing plant for ore from the Voisey's Bay nickel mine and the province's second oil refinery, not to mention expansion of the offshore oil industry — provide plenty of reasons for the two levels of government to co-operate, he said.

"In order to fully develop that for the benefit of our province and the country generally, because many of them have national implications, we have to work together," Hearn said.

Williams began threatening in the fall of 2006 to campaign against Prime Minister Stephen Harper in the next federal election, after Harper walked away from written campaign promises to exclude offshore oil revenues from a new equalization formula.

In late November, after meeting Harper in St. John's, Williams offered a more conciliatory tone, though he says that his so-called "ABC" — Anyone But Conservative — strategy may be revived if a solution to the equalization impasse is not found.

Williams said he would prefer to work with federal Conservatives on several important projects, particularly the Lower Churchill hydroelectric megaproject.

"The premier is saying quite openly, 'Let's cut out the foolishness … let's get to work, we're serious here,'" Hearn said.

"And if that is the case, he won't have to worry about me interfering."

Williams was not available Thursday. He said earlier he was hoping to receive a response from Harper by next week's first ministers meeting.