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Calvert expects quick action on equalization

Last Updated: Wednesday, January 18, 2006 | 3:01 PM ET

Saskatchewan Premier Lorne Calvert says if the Conservatives win the federal election, it will be good news for his province's equalization problems.

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Calvert, whose government is NDP, has been pushing for a new deal for Saskatchewan's oil and gas money for more than a year.

Equalization is the money Ottawa pays to have-not provinces. When Saskatchewan's oil and gas revenues increase, its equalization payments tend to be reduced. Calvert has argued that Saskatchewan should be allowed to keep a larger share of oil and gas revenue before equalization is "clawed back."

The federal Liberals acknowledged past problems with a $120-million cheque in 2004, but so far they have not agreed to any permanent solution.

The Conservatives say they would exempt non-renewable resources from the formula, but it might not happen right away.

Calvert said the sooner, the better.

"We would want to see some very quick response," he said. "Mr. Harper has made it very clear that in the new equalization arrangement that he would put in place, non-renewables will be removed, excluded. So that's good news."

Calvert said a new deal should be in place within the first year of a Conservative government.

However, a local Tory candidate says that's not a guarantee.

Tom Lukiwski, who's running for re-election in Regina-Lumsden-Lake Centre, said the change will happen within the first four years.

"It would be quicker in a majority government scenario. It'll take a little longer, perhaps, in a minority government situation," he said. "The bottom line is we're committed to making it happen and we'll do it as quickly as we can."

In November, as the campaign was just getting underway, Calvert said voting NDP was a good idea because the party is likely to hold the balance of power in the next Parliament. Saskatchewan would wield a lot of influence if it had some New Democrat MPs, he said.

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