Executive Council
April 3, 2007

The Facts About a Prime Minister�s Promise

The irrefutable written facts verify repeatedly the promise that was made to Newfoundland and Labrador and other provinces, by Prime Minister Stephen Harper and his Conservative Party. The Honourable Danny Williams, Premier of Newfoundland and Labrador today responded to a media report of an impending advertisement campaign led by the federal government. It is reported the ads will attempt to refute the breaking of the Prime Minister�s election promise regarding equalization.

�I am simply astounded that the Prime Minister continues to attempt to tell the people of this country that he kept his election commitment regarding equalization,� said Premier Williams. �I have heard the Prime Minister and his ministers say that the promise was to protect our Atlantic Accord which was negotiated by the previous federal government. That is absolutely misleading and I implore the Prime Minister to at the very least recognize that this is factually incorrect. The federal government can try to spin this as much as they like. But the fact is that his promise to remove non-renewable resources revenues with no cap and no small print was broken.�

Premier Williams once again released the two letters that were written to him by Prime Minister Harper (then-Leader of the Opposition), in addition to the brochure that was mailed to homes in Newfoundland and Labrador (www.gov.nl.ca/releases/2007/exec/promisebrochure.pdf). The Premier also reminded the Prime Minister of his own Minister of Fisheries and Oceans statements in the media last week.

�In the days immediately following the federal budget, Minister Hearn himself implied very clearly that the promise made to the people of this province was broken,� added the Premier. His words speak for themselves, so for the federal government to continue to tell the people of this province that their promise was kept is very sad and extremely misleading. I would ask the Prime Minister to at least have the courage of conviction to admit that the promise was broken.�

In the local paper, Minister Hearn is directly quoted as saying, �Could we have made a bit more if we had gotten the exact promise, with no cap? We�ll know that in a few days.� (The Telegram, March 28, 2007, page 5). On March 21, 2007, Minister Hearn was quoted on CBC radio saying, �Would I rather see what we clearly committed done? Absolutely.�

�Minister Hearn�s own words are clear recognition that the promise was not kept,� said Premier Williams. �Despite evidence in writing to the contrary and his own Minister�s admission, the Prime Minister continues to insist that his promise was kept. It is inexplicable.�

Premier Williams acknowledged that for this year, the province is not worse off and Atlantic Accord benefits are not being eroded. However, status quo was not what the Prime Minister promised. The Premier also agrees that for now there is no cap on the Atlantic Accord. But the province will be forced in the near future to take the same alternative as Nova Scotia was forced to take in their budget last week which results in a cap on its accord revenues.

�We were promised full exclusion of non-renewable resources, no caps and more importantly, an opportunity to finally put our non-renewable resource revenues to work for the province. Every day these resources continue to be developed, our province inches closer and closer to seeing these revenues come to an end. This is not something that will happen in the short term, but in the long term the resources and the associated revenues will be gone. That is why the Prime Minister�s promise is so important to our province and others like ours, so that we can achieve meaningful and sustainable self-sufficiency in this great federation.�

The Premier also pointed out that contrary to some commentaries recently Newfoundland and Labrador in fact contributes greatly to the Canadian federation, in particular as it relates to natural resource revenue.

�Over the life of our three existing offshore oil projects, projections indicate the federal government could take in approximately $20 billion on those projects, and several billions of dollars on the Voisey�s Bay project,� added Premier Williams. �These are just two examples of the contributions our province make to this federation; contributions which greatly assist the federal government in delivering important programs and services to the Canadian people.�

The facts speak very clearly for themselves, says the Premier. There can certainly be debate on whether people agree with the Prime Minister�s promise, but there can be no debate on the fact that the promise was indeed broken.

-30-

Media contact:
Elizabeth Matthews
Director of Communications
Office of the Premier
709-729-3960, 351-1227
elizabethmatthews@gov.nl.ca


BACKGROUNDER:

Excerpt of a Letter to Premier Williams, March 16, 2004 from Prime Minster Harper (then-Leader of the Opposition)

�Yes. I would support the exclusion of non-renewable resource revenues from the Equalization formula.� (www.gov.nl.ca/releases/2007/exec/HarperLetterMarch2004.pdf)

Excerpt of a Letter to Premier Williams, January 4, 2006 from Prime Minster Harper (then-Leader of the Opposition)

�We will remove non-renewable natural resources revenue from the equalization formula to encourage the development of economic growth in the non-renewable resources sectors across Canada. The Conservative Government of Canada will ensure that no province is adversely affected from changes to the equalization formula.� (www.gov.nl.ca/releases/2006/exec/01harper.pdf)

Conservative Party of Canada Policy Declaration 2005

�We will remove non-renewable natural resource revenue from the equalization formula to encourage the development of economic growth in the non-renewable resource sectors across Canada. The Conservative Party will ensure that no province is adversely affected from changes to the equalization formula.� (//www.conservative.ca/index.php)

Conservative Party of Canada Platform 2006, page 42

�Work to achieve with the provinces permanent changes to the equalization which would ensure that non-renewable resources revenue is removed from the equalization formula to encourage economic growth. We will ensure that no province is adversely affected from changes to the equalization formula.� (//www.conservative.ca/index.php)

2007 04 03                             12:45 p.m.


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