Monday, May 29, 2006

Harper's Problem - Satisfy Alberta Or Ontario

Canadian Press reports that Alberta Premier Ralph Klein has threatened to pull out of the federal government's revenue-sharing deal with other provinces if energy income is included in the equalization formula. The issue is clearly painted by good ole Rafe Mair in the Tyee. Does Harper cater to his political Alberta roots or to Ontario's promised road to a majority? Equalization is a major issue that will be on the western premiers' agenda when they get together north of Winnipeg this week as reported by Yahoo. Could this Ontario pressure ever lead the Harper Conservatives to any kind of a mini NEP (national energy program) that the Liberals were hated for in blue eyed oil shiek Alberta? But as Rafe says as gas starts moving closer to $2 a litre, Harper will have a hard time not catering to Ontario's industry and gas consumers somehow.

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