Money in hand

Outside of work, I don't pay much attention to federal or provincial budgets - except where I might be able to save a few dollars in taxes.

This year's federal and provincial budgets, within a week of each other, involve something further than just number crunching and abstract mention of programs and services and various groups who allegedly benefit from them.

One can see the rationality of the federal stand on the new equalization funding formula. After all, collectively, it's supposed to be a better deal for provinces - mostly other ones than Nova Scotia. Hasn't that been the case for 140 years?

There is a long history to this. We in the east have perhaps a deeper understanding of things as they pass into history - and then threaten to come around again and kick our collective arses.

The federal “offer” to upgrade equalization payments - but cap the Atlantic Accord's future provisions of 100 per cent of our keeping offshore royalties - has our premier, Rodney MacDonald, mad as hell. Mind you, in good Highland fashion, he will take the extra $80 million in upgraded equalization this year and fight for the accord for the future. He's recruiting provincial MPs and MLAs of any stripe to help out.

Newfoundland and Labrador Premier Danny Williams is somewhat more direct, wanting to dethrone fellow Tory Harper right now. Entertaining, but not likely to be nearly as effective as MacDonald's taking the loot and preparing to rumble.

After all, getting MPs and MLAs on side for this noble cause could well set a very useful precedent for the province and region.

Now, I tend to agree with Kings-Hants MP Scott Brison on the accord being aside from equalization payments - new formula or old.

Past Tory federal governments had tended to side with the provinces in offshore royalty issues. In fact, as opposition leader, now-Prime Minister Stephen Harper brought the subject up, leading, in part, to Paul Martin's Liberal government signing the eight- to 16-year accord with Nova Scotia and Newfoundland and Labrador.

Things are different now, though, because Harper seems to be making headway in Quebec. His focus is there - and, of course, on the majority government Quebec electoral support could give him in the not-so-distant future.

The province's leaders had to decide whether to take the new equalization funding formula and reduced accord benefits from next year on, or bet the offshore is going to pay off even better in the next six to 14 years of the agreement's lifetime. It opens a whole new question: just how valuable are our offshore energy resources? Was it ever realistic to have such high expectations? Are they a gigantic treasure trove just beginning to be harvested? We don't really know. Numbers keep changing.

The issue casts doubt on something we've sort of psyched ourselves up for over the past three decades. What's bothersome is the federal government is making us face the questions right now.