ANTIGONISH, N.S. - Anger about the federal government's ongoing battle with Nova Scotia and Newfoundland over offshore oil and gas revenues isn't limited to Atlantic Canada, says federal NDP Leader Jack Layton.

Layton, who was in Nova Scotia for the provincial New Democrats' annual convention in Antigonish on Friday, said voters in his Toronto riding are asking many of the same questions.

"The reaction I get is that Stephen Harper can't be trusted,'' said Layton.

"They say to me, `Didn't he give his word to these people? Wasn't it actually a contract that had been signed off? What's he doing breaking that promise?'''

Nova Scotia and Newfoundland argue the federal budget violates the terms of deals both provinces signed with Ottawa in 2005 to end the clawback on offshore oil and gas revenues.

The budget forces the provinces to choose between an enriched equalization formula or stick with their offshore accords -- but the provinces want to be able to take advantage of both.

The federal Conservative government insists it hasn't broken any promises, because the provinces are free to choose.

Still, Ottawa is dealing with growing acrimony from the two Atlantic provinces, as well as from Saskatchewan Premier Lorne Calvert. Calvert argues his province is being treated unfairly by the equalization program and is planning a legal challenge.

Newfoundland and Labrador Premier Danny Williams and Nova Scotia Premier Rodney MacDonald have both said they haven't ruled out legal action, though MacDonald has been continuing discussions with federal officials.

He was reportedly talking with Foreign Affairs Minister Peter MacKay on Friday, and MacKay said those discussions could continue on the weekend.

MacDonald's press secretary, Joe Gillis, wasn't aware of any talks on the weekend but said there were no major developments to report.

"There's nothing different than at this point yesterday,'' Gillis said early Saturday evening.