Madam Speaker, I am absolutely astounded to hear the Minister of Natural Resources stand in this place today and say that the Premier of Newfoundland and Labrador and the minister of finance for the province of Newfoundland and Labrador really do not understand the deal that the Prime Minister has put before him.
I spent a few years in the house of assembly with the hon. member and he engaged in the same old bafflegab when he was trying to sidestep an issue or when he was trying to deceive the people of Newfoundland and Labrador. This is what he is trying to do today.
The Prime Minister says we can get 100% only until our provincial fiscal capacity equals that of Ontario. Ontario's fiscal capacity, as the member knows, is based entirely on the performance of its economy. If Newfoundland and Labrador's fiscal capacity were based entirely on the performance of its economy, we would get 100% of our resource revenues indefinitely.
However, here is the key. The Prime Minister has artificially jacked up Newfoundland's fiscal capacity by adding in our current equalization payments and the current offshore revenues that we receive. That puts us artificially close to Ontario's fiscal capacity. Therefore, it takes only modest gains in oil revenues to reach the Ontario threshold at which time the clawback provisions of the equalization act kick in again.
Does the Minister of Natural Resources actually think he is fooling anyone by this constant bafflegab? I ask the minister to stand on his feet and explain to us today Ontario's fiscal capacity versus Newfoundland and Labrador's fiscal capacity, and if the clawback will kick in at that time.