Nfld. premier not ruling out joining Sask. challenge of equalization changes

Williams said he's had only general discussions with Saskatchewan Premier Lorne Calvert. But Williams said if the Saskatchewan premier wants his province to add on, to give strength to his application, then that's something he'd seriously consider.

Calvert said Wednesday his province will mount a legal challenge under the Constitution, arguing that Saskatchewan is being treated unfairly.

The Saskatchewan premier is upset with the Conservatives who promised to remove oil and gas revenues from the equalization formula have capped the amount a province can receive under the program.

Williams has been waging a months-long battle against the federal government, claiming Prime Minister Stephen Harper broke a promise to exclude non-renewable natural resources from the formula used to calculate equalization payments.

The prime minister earlier this week dared the provinces to go to the courts over the equalization changes.

But Williams says it wasn't until recently that he seriously considered the option.

"I thought the proper place to have this adjudicated was in the court of public opinion, to have the people decide whether this was fair, whether the breaking of the promise was a good thing to do, or not a good thing to do," Williams said.

Nova Scotia's Premier Rodney MacDonald has also accused Harper of breaking promises on equalization.

Federal Finance Minister Jim Flaherty confirmed Wednesday that his officials are discussing an "insurance policy" with Nova Scotia to ensure the province does not lose money once it decides how to deal with Ottawa's new budget and altered equalization formula.

"We have to figure out a formula, it seems to me, a way of reassuring the government of Nova Scotia . . . that they will be no worse off depending on their choice," Flaherty told a call-in radio show in Halifax.