Let the era of bickering re-commence

In what was probably one of the most naive and bone-headed lines in a Canadian Budget speech ever, Canada's Finance Minister, Jim Flaherty announced that with his 2007 Budget,

"The long, tiring, unproductive era of bickering between the provincial and federal governments is over."

Fast forward to PM Steve'S Press conference with the Dutch PM, when asked about all the provinces complaining about him breaking his word, here's what he had to say:

Well, I will answer to the topic of Nova Scotia and the statement made by Premier MacDonald. We were somewhat surprised. We were surprised by the Nova Scotia government's decision over the weekend to stop talking... I'm not sure what the reason was for not continuing the discussions...We obviously want to work productively with provinces. That's why we're engaged with talks to see if we couldn't narrow our differences within the context of the budget, but I am concerned about this allegation we've broken the accords.
We've done no such thing. It's a contract. We don't break contracts. We respect contracts. Normally I expect if somebody says you've broken a contract
they're going to follow that up by going to court to make you abide by the contract. I don't see that happening. It's an allegation without substance. As I say, I welcome continuing to sit down with the Nova Scotia government to resolve this, but I don't think we can let that allegation stay out there forever. At some point we will consult tribunals ourselves if that's necessary to get a ruling on our respect for the contracts because we will respect them.

If we can't resolve them, I don't think we can allow that allegation that we've broken a contract to stay out there indefinitely because it is without substance.

So much for an end to federal-provincial bickering. If he isn't lying, why has an MP quit his Caucus and why are his Conservative buddies calling him a liar? Just wondering.