Former New Brunswick premier Frank McKenna says that Ottawa must end "handouts" to Atlantic Canada and stimulate the region through other incentives.

"I would prefer that we get rid of anything that smacks of handouts or giveaways and retool them into something in the nature of an investment tax credit or a tax cut," he told the Globe and Mail in a story published Saturday after a Thursday speech to Liberal campaign workers in Ottawa.

McKenna explained that the Atlantic Canada Opportunities Agency (ACOA), which provides assistance to business, should be replaced by a series of overhauls to the tax incentives and employment insurance system, which he described as a "trap."

The former premier is generally credited with improving New Brunswick's economy while being in office for 10 years until 1997.

The Liberal reaction to McKenna's unorthodox views on business incentives to the Maritimes has been muted.

The government has made no statement about modifying the ACOA or any of the other regional economic development programs.

McKenna, a personal friend of Liberal Leader Paul Martin and once thought to be potential successor, said he regrets not running in this election to promote his ideas for the region.

A seat was not available for him to run in New Brunswick and he didn't want to stage a comeback from outside the province, he said.

"I would have like to run on this record," McKenna said, "so I regret not being there."

McKenna was expected to become a key cabinet minister had he run for the Liberal party.