Canadian premiers talk budget with Harper

OTTAWA, Jan. 16 (UPI) -- The premiers of Canada's 10 provinces and three territories were meeting with Prime Minister Stephen Harper in Ottawa Friday to discuss the upcoming budget.

Harper's minority Conservative government is scheduled to release a federal budget to Parliament Jan. 27 and faces being toppled in a non-confidence vote.

The Globe and Mail said there were significant regional differences of opinion among the premiers. Newfoundland and Labrador Premier Danny Williams and Ontario Premier Dalton McGuinty are both calling for expansion of the federal Employment Insurance program that funds unemployed workers. Ontario in particular has been hit hard by automotive plant closures and layoffs.

To the west, British Columbia Premier Gordon Campbell said he sees tax cuts as a key stimulus to the economy, the report said.

Alberta Premier Ed Stelmach told the CTVnetwork he was concerned about Harper's announcement there would be a deficit.

"We have to be careful these deficits are short-term because the fallout may be inflation and higher interest rates three or four years from now if all governments around the world go to huge deficits and stay in high deficit mode," Stelmach said.