Egmont MP raises concern province not being frugal with money from Ottawa WAYNE THIBODEAU The Guardian

Fisheries Minister and Egmont MP Gail Shea, left, and Opposition Leader Olive Crane, right, congratulate Sylvia Poirier of Charlottetown after she was elected the new president of the Progressive Conservative Party during the party’s annual meeting in Summerside on Saturday. The party says it will elect a new leader next September. Guardian photo by Wayne Thibodeau

SUMMERSIDE — The woman who represents Prince Edward Island at the federal cabinet table issued a stark warning Saturday.
Gail Shea is warning the provincial government that federal transfers to the province cannot continue to grow at levels seen in the past.
Shea, the federal Fisheries minister and MP for Egmont,
said she doesn’t believe the province is being frugal enough with the money it is now receiving from Ottawa and she’s fearful the province is heading for “some serious problems.”
“I must warn you that the rate of federal transfers simply cannot continue to grow at this pace,” Shea told party faithful.
“I am very concerned the provincial government is not being frugal with its newfound infusion of money.”
During the PC Party’s annual meeting in Summerside, Shea said while federal transfers grew by 10 per cent over the last four years, the province’s own source revenues grew at less than 4.3 per cent.
The federal government, she said, has pumped $616 million into provincial coffers in 2009/10 — enough to fund the Departments of Health, Agriculture, Environment, Fisheries, Tourism and Transportation and Public Works.
Expenditure growth, Shea added, is growing at a rate of nine per cent in P.E.I.
“As a province we are receiving more revenue than ever, but we’re also posting one of the highest budget deficits ever,” Shea added.
“I am no economist, like most of you in this room, but I can tell if your revenues are growing by 4.3 per cent and your expenses are growing by nine per cent you’re probably headed for some serious problems.”
The MP also discussed federal politics, saying the Stephen Harper government is now only 10 seats away from a majority government after the party won two of the three seats up for grabs in byelections earlier this month.
During her 15-minute address, Shea also addressed the blockbuster deal that will see NB Power sold to Hydro-Quebec.
It was revealed on Friday that Prince Edward Island is part of those talks.
The province hopes to be able to buy cheaper hydro power from Quebec.
Shea encouraged the Opposition government to hold the provincial government accountable to make the right decision going forward on the province’s energy future.
“As a federal government, we have supported an Atlantic Energy Gateway but I think it’s too early to say what will happen around the Atlantic Energy Gateway,” said Shea, adding the gateway is a tremendous opportunity for the region to become a regional energy exporter.
Premier Robert Ghiz has long complained of a fiscal imbalance between the federal and provincial governments.
Shea said that fiscal imbalance has now been corrected in Prince Edward Island’s favour.
In an interview, Shea said she decided to speak out about the province’s finances as a preemptive strike, adding that she expects the provincial government will go on the attack against its federal counterpart once revenues are reduced from Ottawa.
She made that point clear during her speech as well.
“So in the upcoming years I just want you to be aware when the province is blaming the federal government for the deficits, I don’t want you to be fooled.
The province is receiving their fair share of the federal pie and have been for a couple of years now.”

Federal moves:

Saturday’s annual meeting of the Progressive Conservative Party may have dealt almost exclusively with provincial politics, but those who want to represent the party federally were working the room.
It is also becoming much clearer who will be seeking nominations for the federal Conservatives.
Their names were announced during the meeting.
— In Charlottetown, Robert Campbell and Donna Profit will seek the nomination. The convention date has been set. It will be held Friday, Nov. 27, at 7:15 p.m. at Park Royal Church Hall in Charlottetown.
— In Malpeque, former Atlantic Veterinary College president Tim Ogilvie will seek the nomination. A date has not been set for that nominating convention.
— In Cardigan, Stratford lawyer Kerri Carpenter will seek the nomination. She’s originally from Souris. No date has been set for that convention either.