When the hon. opposition leader stood up he tried to promote his feelings toward Newfoundland and Labrador in a passionate way. I think the deputy opposition leader said the same thing.
Let me go back to the June election of this past year and before that when the opposition leader spoke very clearly about the defeatist attitude of Newfoundlanders and Labradorians. Now he is saying that the Prime Minister of the country is not keeping his word.
When I asked the deputy opposition leader to explain the four components of the proposed deal that was on the table for Newfoundland and Nova Scotia, he could not explain them. That is what I find most disturbing about this issue. The proposed deal is on the table. If people disagree with it, then they should know exactly what they disagree with. It is very simple.
Let me explain for members opposite what is on the table. First, Newfoundland and Labrador is receiving 100% of the provincial share of revenues, that includes royalties, corporate tax, personal tax and all other fees having to do with the offshore oil and gas industry. Those things have been there since day one.
Now we add to those revenues, the equalization as well as the offset mechanism clause that was put in the Atlantic accord in 1997, which is that 30% is exempt from equalization forever. That 30% is then added to the provincial share of the royalties and the revenues, which is 47%, and that is added to the equalization.
In the Atlantic accord that was signed in 1987 there was also the 70¢ of every dollar that we have to talk about. From 1999 until 2003 only 7% of that 70¢ was clawed back. In other words, we were receiving 93% up until the end of 2003. In 2004 we did it on a declining formula, where from 2004 to 2011 it will go down to zero. In other words, we will be losing 100% of that 70¢ if the Atlantic accord is not reopened.
The Atlantic accord is under my responsibility as Minister of Natural Resources. The Prime Minister, through the Minister of Finance, has committed to reopen the Atlantic accord which has seven years of life left. It is supposed to terminate in 2011 at which time another accord would be negotiated for the future. However, even though the accord has another seven years left, we have reopened it and added 100% of the provincial share of the royalties and revenues, with equalization of 30% on top of that. Now it is 100% of that 70¢ on top of that. We must clearly understand.