Harper visits N.L. in bid to revive Tory fortunes after fallout with Williams

Since last year, Harper has been labelled persona non grata in Newfoundland and Labrador. Premier Danny Williams, exploiting his extensive political capital in the province, called on residents to vote for anyone but the Tories during his dispute with Harper over the province's ability to retain revenues from its offshore oil sector.

But as speculation mounts that a federal election is on the horizon, the Conservatives are attempting to put the feud with Williams behind them and make the Liberal "green shift" a wedge issue.

In a province that already has among the highest gas prices in the country and depends mainly on fossil fuels to heat homes and generate revenue from its offshore energy industry, the Tories are confident the proposed carbon tax will be an easy target.

At a funding announcement Monday in Mount Pearl, N.L., federal Justice Minister Rob Nicholson opened a speech about youth justice reform by taking an unrelated dig at the Liberal plan, deriding it as "the new GST."

"This is an energy-producing province," Nicholson said after speaking to the Mount Pearl Chamber of Commerce. "You've got to be very, very worried about this."

Some premiers have expressed their support or opposition to Liberal Leader Stephane Dion's vision to curb carbon emissions since it was unveiled two months ago. But Williams has been uncharacteristically silent on the matter.

"I have a position on that at this point, but I'm not prepared to discuss it," Williams said last month.

Pressed for an explanation, Williams responded: "I don't really feel like it, quite frankly."

Fisheries Minister Loyola Hearn, who represents the province at the federal cabinet, said he was hopeful Williams will make his views known.

"I would think that the premier will come out, take a stand on this," Hearn said. "Undoubtedly, he's assessing the total effect on the province and I'm sure we'll hear from him on it very soon."

Harper's two-day visit to Newfoundland and a quick stopover in Fredericton on Thursday appear to be part of a full-court Tory press in Atlantic Canada this week.

There have been several federal funding announcements in Newfoundland, Prince Edward Island and Nova Scotia, with no less than five federal cabinet ministers fanning out across the region to dispense cash.

A senior Conservative government official, who asked not to be named, admitted Tuesday the Tories are putting an increased focus on Atlantic Canada.

The official said they believe the Liberal "green shift" plan has hurt the party and they hope to take advantage of that.

"We think the Liberals are on the run - they know it, we know it," the Tory official said.

Toronto Liberal MP Bob Rae, who wrapped up a tour of Newfoundland on Tuesday, said the Tories' characterization of the carbon plan is misleading.

"The vast majority of families in Newfoundland are going to be significant beneficiaries of any change that the Liberal government brings in," Rae said in an interview.

"Of course, the Tories will lie about our plan. That's what we expect them to do. The fact of the matter is we're talking about the biggest tax cut for ordinary families in a generation."

Rae also appealed to Williams' belief that Harper has treated the province unfairly.

"Everybody knows, from Premier Williams on down, that the Harper approach to government is a disaster for Newfoundland," Rae said.

Harper's low-profile visit to Newfoundland is an indication that the federal Tories believe they can defend their turf on what many see as unfriendly political ground, said Michael Temelini, a political science professor at Memorial University in St. John's.

"The messaging here is harder for the Liberals. It's kind of a leap of faith to suggest that this shift will actually work."

Meanwhile, relations between Williams and Harper remain frosty. The two Tory leaders - Williams emphasizes he is a Progressive Conservative and not of the same ilk as Harper - aren't planning to meet.

When the two men last met in November, Williams told Harper that Ottawa owed the province $10 billion in some sort of compensation following changes to the federal equalization program for have-not provinces.

A spokeswoman for the premier said Harper has yet to offer anything.

"At this point, the prime minister has yet to accept all or any of those options put forward by Premier Williams some eight months ago," Elizabeth Matthews said.

Williams has suggested Harper could make up for the $10 billion loss by transferring Ottawa's 8.5 per cent stake in the Hibernia offshore oil project to the province.

Harper rejected the idea, saying the premier's claim that the province was shortchanged is unfounded.