Premier garnering support of other premiers on Atlantic Accord

Premier Danny Williams today announced that ten of the twelve (excluding Newfoundland and Labrador) provinces and territories have confirmed that they are supportive of Newfoundland and Labrador's position on the Atlantic Accord. Two provinces have deferred opinion at this time; however, they have asked for and are being supplied with additional material on the subject. Premier Williams has been actively pursuing the federal government to allow Newfoundland and Labrador to receive 100 per cent of the provincial revenues from offshore oil and gas.

"I have contacted each premier individually to outline Newfoundland and Labrador's proposal to Ottawa," said Premier Williams. "I am very pleased that these provinces recognize the legitimacy of our argument and support our position. I met with Prime Minister Martin when he was in power for less than a week, and I impressed upon him that this was a priority for our government. In subsequent meetings and conversations with both the Prime Minister and Minister John Efford, I reiterated our position and I am confident this hard work is about to pay off."

The federal government had indicated to Premier Williams that any agreement to give Newfoundland and Labrador increased revenues under the Atlantic Accord should have support of the majority of the provinces. On February 27, the premier provided John Efford, Minister of Natural Resources Canada, with a detailed presentation which Minister Efford requested on the Prime Minister's behalf. Premier Williams has also spoken with each of his provincial colleagues and detailed the province's proposal.

"Essentially, we are asking the federal government to live up to the spirit and intent of the "principal beneficiary" component of the Atlantic Accord. Currently, the federal government receives 86 per cent of the revenues of our offshore petroleum resources, while the province receives a meager 14 per cent," added the Premier. "This revenue sharing is completely contrary to the spirit and intent of the accord and must be addressed now before these non-renewable resources are gone forever. Our province is facing a very serious fiscal situation which must be addressed. We are making tough choices to manage our expenditures and to grow our revenues at the provincial level. We, as a province, are putting into place a long-term plan to grow our economy; however, Ottawa must also be a part of the solution."

Premier Williams expressed serious concern about the fiscal imbalance which exists in this country. He says that Newfoundland and Labrador want to be given the opportunity to be self-sufficient and a contributing partner to the Canadian federation.

"We want to stand on our own two feet and become a "have" province, something which the federal government predicted would happen when they signed the Atlantic Accord back in 1985," said the Premier. "Instead, we have received only a pittance of the revenues from our offshore resources. I am confident the Prime Minister recognizes this inequity and also appreciates the benefits of addressing this situation, both from a provincial and national perspective. Stronger, financially stable provinces will certainly result in a stronger Canada."

Media contact: Elizabeth Matthews, Office of the Premier, (709) 729-3960 or (709) 690-5500

2004 03 12                                        10:45 a.m.