The burning debate over equalization payments heated up some more Wednesday after Prime Minister Stephen Harper appeared to ease away from a promise to take oil and gas revenues out of the formula.
Saskatchewan Premier Lorne Calvert called Prime Minister Stephen Harper's comments 'a betrayal.' (Ryan Remiorz/Canadian Press)
INDEPTH: Equalization payments
Harper's comments at the western premiers conference in Gimli, Man., displeased Saskatchewan Premier Lorne Calvert.
Ottawa pays billions of dollars annually to the so-called have-not provinces so they can have services and tax levels similar to the rest of the country.
This year, thanks to surging oil revenues, Saskatchewan joined Ontario and Alberta in not receiving any equalization.
The provincial government has been lobbying Ottawa to change the formula so that revenue from non-renewable resources is not included in the calculations. That would put more dollars into the Saskatchewan government coffers.
'It would represent a betrayal to a promise made and a betrayal, I would say, of the support that was earned by this prime minister in the province of Saskatchewan.'-Saskatchewan Premier Lorne Calvert
Earlier this week, federal Finance Minister Jim Flaherty said the government was committed to taking oil and gas out of the formula.
But Wednesday, Harper indicated that was just a "preference." He said the government hasn't made up its mind and was waiting for a special panel on equalization to weigh in on the issue.
Harper's comments were criticized by Calvert, according to the Canadian Press.
Calvert said the federal government indicated a commitment, not a preference.
"It would represent a betrayal to a promise made and a betrayal, I would say, of the support that was earned by this prime minister in the province of Saskatchewan," Calvert told CP.