Danny Williams: 'If anybody would know what's not in the fundamental interest of Newfoundland and Labrador, it's Stephen Harper.' (CBC)

Newfoundland and Labrador Premier Danny Williams on Friday chuckled off warnings that Prime Minister Stephen Harper made on how the federal Liberal environmental platform could wreck the province's offshore oil industry.

Speaking with reporters after a cultural funding announcement on Thursday, Harper said Liberal Leader Stéphane Dion's proposed carbon tax "is not in the fundamental interests" of Newfoundland and Labrador, which has balanced its books on revenues from three offshore oilfields.

Speaking in Corner Brook Friday, Williams said he cannot take Harper seriously.

"Well, I guess if anybody would know what's not in the fundamental interest of Newfoundland and Labrador, it's Stephen Harper, because he reneged on his promise and he worked against our interest by breaking a $10-billion promise," said Williams, referring to Harper's change of policy by including non-renewable energy in calculating the equalization formula.

"His comment yesterday was laughable."

Harper had promised in writing, before the 2004 and 2006 elections, not to include in the formula those revenues collected from oil pumped off Newfoundland's east coast.

Williams has had a frosty relationship with Harper since October 2006, when Williams, though a Progressive Conservative, said he would encourage Newfoundland and Labrador voters to choose candidates other than Conservatives in the next federal election.

Prime Minister Stephen Harper made public appearances this week in MP Fabian Manning's riding of Avalon. (CBC)

Williams, however, has not endorsed the Liberal environmental plan, and instead prefers the so-called cap-and-trade model favoured by some other provinces, including Ontario and British Columbia.

Under such a plan, companies that emit high amounts of pollution would be allowed to buy credits from green companies.

As well, Williams said Harper is wrong to think the Liberals' Green Shift campaign is enough reason to warrant voting against Liberal candidates.

"This election is not going to be decided strictly on Green Shift. People have to stand back and say, 'OK, fine, what do we get from Stephen Harper and the Conservatives?' They've cut back on funding for volunteers and minority groups and legal rights," Williams said.

"From a Green Shift perspective, as well, Newfoundland and Labrador is just basically waiting to see where all the cards are going to fall here."

Harper only interested in forming majority: Williams

Harper made a series of appearances on Wednesday and Thursday with Avalon MP Fabian Manning and Fisheries and Oceans Minister Loyola Hearn, who represents the adjacent riding of St. John's South-Mount Pearl. Manning is the only one of three incumbent Conservative representatives from Newfoundland and Labrador who has announced plans to run in the next federal election.

Williams said Harper's visit — which included an announcement of support for the 400th anniversary of Cupids as the first English-speaking planned settlement in the country — was all about shoring up support in an area where federal Tories have had their share of knocks.

"It's great for him to come to the province," Williams said. "However, I think people see through the purpose of the visit.... He's scrambling for seats trying to get a majority, but as I've said before, if he gets a majority government, God help us all."

Hearn, meanwhile, said Williams ought to have taken a stronger stand against the Liberal carbon tax plan.

"Just when our offshore energy resources are pushing us into 'have' status, along comes a politician with a permanent new tax that will put the future of our industry at risk," Hearn said in a statement.

"The Liberal carbon tax will have a huge impact on seniors and people with fixed incomes who can't afford to pay more for basics like heating their homes and buying groceries. People in rural Newfoundland and Labrador will be hit even harder, with costs of trucking goods into their communities going through the roof."