Harper said he's "at a loss" to understand Ontario's fears that the federal government might short-change the province on $7 billion worth of investments that had been promised by the previous Liberal government.
Harper said his government will respect the agreement inked a year ago by former prime minister Paul Martin to provide federal dollars for Ontario to help convert coal-fired power plants, expand public transit, boost investments in universities and community colleges and increase funding for settling new immigrants.
"The cabinet approved the full funding of the agreement. I'm really at a loss to understand what the problem is," Harper said. "I'm not sure what the controversy is."
Still, even Harper pegged the value of the agreement at just under $6 billion — some $1 billion less than provincial estimates of the deal's worth.
While provincial officials say a recent letter from federal Finance Minister Jim Flaherty suggests a big chunk of the funding is in dispute, Harper said "that's not the case.
"It's all funded in the budget."
One billion dollars given away to American lumber companies. Another billion dollars promised to Ontario disappears. You want "billion dollar boondoggles"? Harper's been in power 100 days and he already has two of them.
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