ST. JOHN'S, N.L. — Ottawa needs to immediately devise a revised equalization formula so provinces can prepare their budgets for next year, Atlantic premiers said Wednesday.

The leaders met in St. John's to discuss several issues, including the fiscal imbalance and the region's need to attract more immigrants.

While they remain divided on how the federal government can best come up with a formula for the wealth-sharing program that would satisfy all, the premiers agreed there's a pressing need for the finance ministry to respond soon.

Newfoundland Premier Danny Williams said the time "is fast approaching" for each province to beginning planning for 2007.

"We're now in December and of course we have the budget preparation coming up on us now," Williams said at a news conference.

"We're asking the federal government to give us their decision as soon as possible."

The four premiers reiterated their respective positions on the thorny issue of equalization. Nova Scotia Premier Rodney MacDonald wants resource revenues included in calculating equalization benefits, as does New Brunswick's Shawn Graham and P.E.I. Premier Pat Binns.

But Williams is fiercely against that idea, going so far as to promise a nationwide campaign against Prime Minister Stephen Harper if Newfoundland loses out in a new equalization formula.

Despite their clashing positions, each of them insisted it's possible for Finance Minister Jim Flaherty to come up with a plan that benefits all provinces and territories.

"We expect to see everyone treated in a fair and reasonable manner, that no one ends up losing out at the end of the day," MacDonald said.

Added Graham: "There are differences of opinion and I respect that amongst respective provinces.

"But one area where we are unified is the fact that Prime Minister Harper has stated clearly that no province within the Confederation of provinces will be severely impacted by the new formula that is going to be proposed. And we're going to hold him to that commitment."

Binns floated what he said was a tried and true idea - a return to contributing 1.1 per cent of the country's gross domestic product to equalization.

In recent years, the federal government has reduced that figure to about 0.8 per cent.

"It would, I believe, take some of the concern away from some of the contributing provinces like Ontario and Alberta that somehow this is a resource grab on their situation," Binns said.

"We'll have to be a little bit creative, but I know historically it worked."

Provincial finance ministers will meet Dec. 15 with Flaherty in Vancouver to discuss equalization.

Flaherty was unavailable to comment Wednesday, but he has pledged the government will conceive a new funding arrangement for the provinces, despite repeated delays of such a plan.

He has said he doesn't want to interfere in consultations with the provinces on equalization and the fiscal imbalance.

The equalization program is designed to help poorer provinces provide government services and programs to a national standard.