One formula for whole country: Flaherty

Federal Finance Minister Jim Flaherty said Newfoundland and Labrador Premier Danny Williams wants it all when itcomes to equalization money.

Flaherty delivered a budget on Monday that made Williams furious because the province will face a new equalization formula when the Atlantic Accord expires. It's a condition that Williams said is a "betrayal" of promises the prime minister made to Williams.

Flaherty said he wants one equalization system for the entire country because one-time deals like the Atlantic Accord, make for bickering among the provinces.

Flaherty maintains the Conservative election promise was to honour the accord deal and they did that. But he said the Harper government will not extend the deal once it expires, in as little as four years.

"That was what was negotiated by the government of the day and when they're done, they're done," Flaherty said. "Then we'll move on, everyone will be on the same level playing field across Canada.…So the promise has been kept, the commitment is there. I think quite frankly what the premier is seeking is he wants to have everything. He wants both. Well you can't have both. You have to make a choice."

Flaherty says with all the bickering amongst the premiers surrounding equalization, some unpopular decisions had to be made. The 2007 budget includes more money for the provinces and a new formula for equalization payments, but each province has to choose between the current system and the new one.