N.S. equalization worries prompt number-crunching

Provincial officials are working the numbers to determine how much Nova Scotia stands to lose under a new equalization formula proposed by Ottawa, the premier said Wednesday.

The province has agreed to temporarily accept the new formula in order to get more in equalization transfer paymentsnow.

However, signing onto the federal government's proposal could cost the province $1 billionthrough aclawback of offshore wealth in the future, Acadia University Prof. Paul Hobson has said.

"I'm certainly not going to argue with those numbers," Premier Rodney MacDonald told reporters. "We will not sign any agreement where Nova Scotia loses one penny."

The province is gathering all the information it can on the issue in order to make its case to Ottawa, he said.

Nova Scotia temporarily lost control of offshore oil profits when it accepted the federal government's extra $79 million in equalization payments under a revamped formula.

In accepting the deal,provincial officialssaidthey wanted toavoid tax increases and program cuts.

Nova Scotia has a year to lock in its choice.

MacDonald said he'll continue to push Prime Minister Stephen Harper to live up to his promise not to claw back offshore resource revenues.

Shortly after he became prime minister, Harper called the offshore oil accord negotiated by John Hamm the former premier'sgreatest legacy.

At a tribute to Hamm, the prime minister promised he would not penalize the province for cashing in on its offshore oil industry.

Newfoundland and LabradorPremier Danny Williams is also upset with the new equalization rules. When independent calculations showed his province would get $1 billion less, he called for thefederal finance minister to resign.