Mr. Speaker, there is obviously no limitation on royalties or offshore revenues. Under the terms of the accord, those revenues are treated, with respect to Newfoundland and Nova Scotia, as if they are onshore resources.
I am glad the hon. gentleman clarified this point. He is not talking about offshore resources. He is talking about the impact on equalization. The impact on equalization is the misunderstood piece in this equation.
As I said in my remarks, there are four streams. The own source revenue is owned 100% by the province and equalization is on top of that. The two of those play off against each other. On top of that there is the 30% generic solution, which gives Newfoundland and Nova Scotia that extra bonus. What we are working on is the incremental 70% on top of all of that to reach the fiscal capacity of the second most wealthy province in the country.