Ottawa, N.S. announce $870M resource deal

Nova Scotia will get $870 million from the federal government as part of a deal that ends the so-called Crown share dispute.

Nova Scotia Premier Rodney MacDonald and Defence Minister Peter MacKay announced the agreement during an appearance at the Halifax waterfront on Sunday.

"This is what's known in Nova Scotia as a large day," MacKay said.

The deal aims to put to rest a dispute that dates back to 1986, when the federal government promised Nova Scotia compensation for giving up its ownership interest in offshore resources.

The amount owed by Ottawa was determined by a panel set up in October to examine both sides in the dispute.

MacDonald has said most of the money will go against the province's $12.4-billion debt.

"Ninety-two per cent of this is going towards our debt," MacDonald said. "The other eight per cent is going into three different trusts."

About $75 million or eight per cent of the total will be set aside for offshore energy research, protected lands and university infrastructure.

The timing of the future payments still needs to be worked out, the officials said.

Source:CBC top stories