The member from St. John's is saying that I am right. I thank him for that.
I have tried to figure out, by discussing with federal financial officials, federal ministers, the Prime Minister, Finance Minister Sullivan and Premier Williams what this all means.
Finance Minister Sullivan told me as recently as this morning that based upon the province's projections for fiscal year 2005-06 at $50 a barrel, the flow of provincial own source revenues from our offshore would be $426 million. Minister Sullivan contends that, based upon the agreement he understands has been offered by the federal government, the province of Newfoundland and Labrador would only be allowed to keep $233 million. That is what Finance Minister Sullivan firmly believes. If in fact that is true, that is a difference of $193 million. For a province that is cash strapped and has a severe debt which it needs to get out from under, that is a significant amount of money in one fiscal year.
For fiscal year 2006-07 with three oil fields producing, when we will peak, the projections for the flow of provincial revenues for Newfoundland and Labrador would be $850 million. Minister Sullivan says that in that fiscal year, again the province would only be allowed to keep $233 million, which is a difference of $617 million. In fiscal year 2007-08 the province projects that the flow would be $731 million. It can keep $233 million for a difference of $498 million.
I have gone through this because we have identified three problems. There is the eight year period versus the petroleum production period, whether or not equalization should be calculated in Newfoundland and Labrador's fiscal capacity in reaching the threshold of Ontario, and of course, I just went through the projections and what Newfoundland and Labrador claims it would lose off the table with this deal. That is the problem.
My goal as one member of Parliament from Newfoundland and Labrador is to get the best deal possible for Newfoundland and Labrador. It is not about anything else. I do not have any other agenda. I do not have an agenda of ambition. It is about getting the best deal possible.
Where do we go from here? It is very important that everyone on all sides keep the rhetoric and the name calling down. Both sides have agreed to that. Premier Williams has agreed. Finance Minister Sullivan has agreed. The Prime Minister has agreed. The Minister of Finance has agreed. All the Newfoundland and Labrador MPs have agreed. We all agree that we should cut out the rhetoric and the name calling and get down to business. All I want to do here is to get back to business and sort this thing out.
There are fundamental differences and misunderstandings. Solutions have to be found. If we are ever going to get rid of the debt in Newfoundland and Labrador, if we are ever going to be able to offer the level of services that our people deserve, this is our chance.
I will stand for no less than 100% of offshore revenues accruing to the province of Newfoundland and Labrador on behalf of the people that I represent. I am interested in the two sides getting to the table and getting back to serious negotiation. Stop the posturing. If there are misunderstandings, if there is blame to go around, let us forget it. The main thing is to find a solution.