FELDSTED: Equalization is broken, and the federal government is complicit in perpetuating a system of support to provinces that is unequal, unfair and unreasonable
Quebec to receive
$1.4-billion equalization boost while oil-producing provinces face deficits
Justin Tang/The Canadian
Press ~~ Bill Curry/Globe & Mail ~~ December 9, 2018
Quebec will receive $13.1-billion in equalization
payments next year – a $1.4-billion increase – while Alberta, Saskatchewan and
Newfoundland and Labrador continue to be left out even though Canada’s
oil-producing provinces are facing deficits and hard times.
The equalization system is … aimed at ensuring
provinces can provide reasonably comparable levels of public services at
reasonably comparable levels of taxation … it is a frequent source of tension
between the “have” provinces and the “have not” provinces that receive the
payments.
The governments of Alberta, Saskatchewan and
Newfoundland and Labrador – where government finances are heavily influenced by
the state of the energy sector – are all running budget deficits … in contrast,
Quebec’s government announced last month that the province’s finances for the
year were sitting at a $3-billion surplus …
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Equalization is broken. The federal government is complicit in perpetuating a system of support to provinces that is unequal,
unfair and unreasonable.
The equalization formula was due to expire March
31, 2019, and it followed that there should have been extensive consultation
with provinces prior to renewal. Instead the federal government extended the
formula to 2024 under its June 2014 Budget Implementation Act.
Debates over equalization payments are never easy. Many, especially in the west, were pushing
for changes, but this debate ended before it even began. The government avoided controversy by ducking its
responsibility to treat provinces equally and fairly.
Actions speak louder than words and this action is
not acceptable. Our federal government is too timid to exercise its authority
and build the pipelines we need to market our resources. Pretending that its
reluctance is a result of its commitment to fight climate change is ridiculous.
The world is not reducing carbon emissions to meet Paris Agreement targets.
It is delusional for our government to believe that
it is, and that Canada can contribute significantly to reducing atmospheric
carbon dioxide levels. Common sense and critical analysis are not government
strong points. We deserve better.
John Feldsted
Political Consultant
& Strategist
Winnipeg, Manitoba
Equalization is about incomes, not outcomes. Since AB, SK, and NL already have more than enough revenue to meet the national standards in Equalization on their own, what's unfair about it?
ReplyDeleteHow about the fact that Quebec goes stupid in debt -- still manages to have a balanced budget -- and yet still receives a ridiculous amount from the Equalization Fund. That makes no sense at all. And then there's the fact they vehemently oppose the very resource development projects that provides them with billions in Equalization payments ... that's disgusting.
DeleteHere's the telling tale of STUPIDITY from October 2017 ... Montreal Mayor Denis Coderre celebrated the Energy East (cancellation) announcement on Thursday, suggesting that citizen groups and local politicians from the Montreal-area played a key role in putting a stop to the project.
ReplyDeleteWHAT A MORON!!!
Equalization rewards incompetence. NB receives 30 % of their annual budget from equalization. Why risk anything? By the way...P.E.T when making up the equalization formula left out Quebec's income from ALL of their hydro electric business from the formula. Of course eastern Canada is in no hurry to update anything.
ReplyDeleteThe elephant in the room is western separation.
That call seems to be getting louder and louder once again ... and all because of another individual named Trudeau
ReplyDelete