Premier Danny Williams blasted the prime minister's province-wide ad blitz Tuesday, saying the radio and print spots are an insult to Newfoundland and Labrador.

"I think the running of those ads just insults the intelligence and the integrity of the people of Newfoundland and Labrador," Williams said at a news conference.

"The quicker this government could be out of office would make me very happy, so if that's the case, this afternoon. I don't like what Mr. Harper represents, I don't like what Conservatives are representing right now in this country," said Williams, who admitted he hasn't seen the ads.

Williams said he would be happy if the prime minister were voted out of office.

The federal government are countering Newfoundland and Labrador ads in national newspapers by launching a radio and print campaign of their own this week.

The ads, which are only to appear in provincial media outlets, accuse Williams of spreading misinformation about the recent federal budget.

Williams attacked the budget almost from the moment it was released, calling it a betrayal of promises made to his province during the federal election.

Nine days after the budget was tabled, full-page ads appeared in major newspapers across Canada warning voters that if Harper could break a promise to Newfoundland and Labrador, he could do it to any province.

Not to be outdone, the federal government's ads carry the message that Newfoundland comes out financially ahead in the budget, according to an internal government memo obtained by The Canadian Press.

Provincial governments for Newfoundland and Nova Scotia are upset because the budget only allows them access to a new equalization program or the Atlantic Accord on offshore oil revenues.

"Canada's new government promised to protect the Atlantic Accord and it kept its promise," talking points for Tory MPs said in the government memo.

"Premier Williams is wrong when he says that there is a cap on the Atlantic Accord ... Danny Williams is misleading the people of his province in his malicious ad campaign," the memo continues.

It added that it is the federal government's responsibility to respond to the premier's "misinformation campaign."

The print ads running in Newfoundland and Labrador newspapers tell Williams that "the facts do matter" and that his province has "not lost a penny" through the new equalization formula.

The ads also say that the province has been "blessed" by the budget and will stay that way.

Equalization formula

At issue for Williams is a new equalization formula being offered by the Harper government.

Under the old equalization system, every new dollar of revenue earned by provinces is one dollar less received in equalization funding.

The new plan lets provinces opt into a system that would shelter 50 per cent of non-renewable resource revenue from the equalization calculation.

The Atlantic Accord shelters 100 per cent of non-renewable resource revenue over the life of the agreement.

Williams contends that the position of Harper and the Conservatives during the last federal election was to "remove non-renewable natural resource revenues from the equalization formula."

He says that 50 per cent is a breach of the commitment.

Allies become political foes

It is an about-face for relations between federal Conservatives and provincial Progressive Conservatives.

During the 2004 election, then-opposition leader Harper and Williams were in step on the issue. When Harper agreed to exclude oil revenues during that campaign, then-Liberal leader Paul Martin followed suit with a verbal commitment.

After the election, negotiations between Ottawa, Newfoundland and Labrador and Nova Scotia began. But Williams accused Martin of dragging his heels, stormed out of a first-minister's meeting and ordered Canadian flags be removed from public buildings as a sign of protest.

A deal arrived soon after.

Now Williams has trained his sights on his Conservative cousins in Ottawa, pledging to campaign against the province's three Tory MPs in the next election.

The hard-line stance has polarized the former political allies. Harper told the House of Commons last week he agreed with Williams' political opponents at home. Provincial Liberals claim Williams' frequent clashes with Ottawa and oil companies are driving away investment, harming the province.

With files from The Canadian Press