'Be reasonable' over equalization, Flaherty urges N.L. MPs
Finance minister tells heckling Liberal MP to stop 'screeching'
Last Updated: Monday, February 2, 2009 | 5:28 PM ET
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IN DEPTH: Federal budget 2009
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Features
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- AUDIO: Alison Myers reports: The oil industry's wish list for the budget (Runs 1:36)
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- YOUR MONEY: How the economy is affecting you
Federal Finance Minister Jim Flaherty faced heckling by Newfoundland and Labrador MPs in Parliament on Monday over proposed changes to payments their province receives from Ottawa under the federal equalization formula.
The MPs are furious over what they view as an attack on their province in the recently tabled federal budget, which includes provisions that they say removes the province's opportunity to collect $1.6 billion over three years.
Labrador MP Todd Russell told the House of Commons during Monday's question period that the Conservative government is "lacking" in transparency and openness over the provisions.
"Will the finance minister put everything on the table and release his detailed calculations and projections, which show the full impact of his changes?" Russell asked.
In his response, Flaherty said the government's budget includes provisions to stop what he calls "unequal equalization" across Canada by restraining unsustainable growth of payments, which drew a slew of shouts from members across the aisle.
Flaherty then appealed to Speaker Peter Milliken for quiet, while also firing a shot at Russell.
"The member over here is screeching," Flaherty said of Russell amid the din of shouting in the Commons. "Screech is a product of Newfoundland, I know, my friend, but relax now. You're being a bit noisy. I can hardly speak."
The minister was referring to a kind of rum bottled in Newfoundland.
Flaherty added recognition of commodities prices was included in the O'Brien commission's formula on equalization financing, and offered to brief Liberal MPs on the figures in his office.
"We have to be realistic about that in the interest of our country, our whole country, and not just Newfoundland and Labrador," Flaherty told the House.
Changes hit province 'like a ton of bricks': Byrne
Following Flaherty's briefing, Liberal MP Gerry Byrne said the finance minister failed to offer the same briefing to provincial finance officials about his attempts to "unilaterally amend" the formula.
"There was no indication, there was no pre-briefing given whatsoever," Byrne told the CBC late Monday afternoon. "This hit them like a ton of bricks out of nowhere. That's no way to run a federation."
Newfoundland and Labrador Liberal MPs have said they are lobbying Liberal Leader Michael Ignatieff, who has not said whether he will respond to an appeal from Premier Danny Williams to act on the budget over the provisions.
Four of the six Liberal MPs from the province have said they will not vote in favour of the budget, despite the Liberal leader's signalled intention to support the Conservatives if the Liberal amendment demanding periodic stimulus updates is approved.
Byrne said he has not yet decided how he will vote on Tuesday but added Prime Minister Stephen Harper "has 24 hours to correct this wrong."
"I have no intentions of supporting this budget as it stands today," he said.
For his part, Russell indicated he'll vote in favour of the budget, saying there are valid arguments for party solidarity under Ignatieff.
With files from the Canadian PressShare Tools
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