Williams playing 'dangerous game,' federal Tories say

Governing Conservative MPs accused Newfoundland and Labrador Premier Danny Williams of undermining his own province's economy during a testy debate Thursday.

"Premier Williams is playing a very dangerous game with the economy for the people of Newfoundland and Labrador," Natural Resources Minister Gary Lunn told the House of Commons.

Williams's government paid about $250,000 this week for a series of advertisements that blast Prime Minister Stephen Harper for breaking a 2006 campaign promise to exclude non-renewable natural resource revenues from the equalization formula.

Williams said the new formula will ultimately mean a loss of hundreds of millions of dollars in revenues once the terms of the Atlantic Accord expire.

Lunn told the House that Williams's confrontational style over future offshore oil developments is damaging economic growth at home.

"His reckless actions are not improving things like the south Hibernia expansion," said Lunn, adding that a trade show attached to an offshore petroleum conference has been cancelled.

In 2006, talks broke off between the Newfoundland and Labrador government and partners in the Hebron oilfield, after Williams demanded a small equity stake in the project and the partners in return asked for tax breaks.

In January, the provincial government blocked further development of the Hibernia South project— estimated to include at least 223 million recoverable barrels of oil— and asked developers to supply further information.

"Premier Williams doesn't share our commitment to a strong economy and wants to pick a fight instead," said Fabian Manning, a Tory backbencher for Avalon riding.

The question period debate was triggered by Scott Simms, a Liberal who represents a central Newfoundland riding.

"Flaherty will get you nowhere," said Simms, referring to federal Finance Minister Jim Flaherty.

Fisheries Minister Loyola Hearn, Newfoundland and Labrador's federal cabinet representative, made a crack about Simms's height while responding to his question.

"He did not read the budget, so I suggest to him tonight when he goes up, get his step ladder, climb up on the bureau, get your copy of the budget and read it," Hearn said to applause and laughter.

Simms responded by reading into the record comments Hearn made last week that broken promises are not new in politics.

Since then, however, Hearn has echoed Harper's claim that the government has fulfilled Harper's 2006 campaign promises to the letter.