Monday, February 09, 2009

Equalization is very very flawed

David MacKinnon explains that Canada's equalization severely penalizes Alberta and Ontario and is a corrosive factor in the recipient provinces. Instead of ensuring equal services, it actually increases the disparity. Quebec, meanwhile, has had a 62 percent increase in its equalization payments over the past four years. There is little appetite in Ottawa to study the effectiveness of equalization, and so it has hardly been done. However, the Atlantic Institute of Market Studies have shown some of these disturbing discrepancies between "have" and "have not" provinces.

A newspaper article on this speech can be read here.


NL-ExPatriate said...

Where is the equality among provinces?

NL - the highest public debt load in Canada - those greedy devils on the east coast (sarcasm).

NL - the highest unemployment in Canada - those greedy devils on the east coast (sarcasm).

NL - the worst provincial infrastructure in the country - those greedy devils on the east coast (sarcasm).

NL - newly signed Hebron deal alone will add approximately $8 billion to the coffers of the rest of Canada - those greedy devils on the east coast (sarcasm).

NL - billions more flowing to the coffers of the federal government from off-shore development - those greedy devils on the east coast (sarcasm).

NS - Harper strikes a backroom deal with NS so that only NL is affected by this most recent unilateral change to the Atlantic Accord - those unprincipled idiots (no sarcasm here).

The new version of the NEP, created and imposed by a leader from Alberta. How ironic is that?

NL-ExPatriate said...

If the supreme kangaroo court of canukistan hadn’t contravene the constitution where by all of the provinces are supposed to own, control and be the primary beneficiary of their own non-renewable resources we wouldn't of needed the Atlantic Accord and non of this would be an issue. Newfoundland and Labrador Energy plan. NLEP
Equality or Exit!

Under the Atlantic Accord NL was supposed to be the principal beneficiary of the resources on the Grand Banks of Newfoundland when the Accord was signed in 1985 by the Mulroney-Peckford governments. Mulroney oxymoronically said that he was not afraid to inflict prosperty on NL. During the Chretien government, the primary beneficiary was clearly Ottawa. Martin, the then finance minister took over top job and was likely embarrassed by his government's unashamed rip off of the intent of the Atlantic Accord. During a preelection visit, he agreed to a one time payment of 2 billion dollars to make amends. The Liberals tried to weasel out of the commitment. Williams had a fit, flags down, etc. One disturbing comment made by an Ottawa minion at that time was NL will pay (for this acrimony). In the new budget, Ontario gets $1 billion and NL looses $1.6 billion. It is a puzzle to me how the feds can unabashedly change these agreements/accords. What became of the principle 'a contract is a contract' a la Churchill Falls. Incidentally, the equalization payments beginning in January 2009: Ontario - $347 million Quebec - $8.35 billion Manitoba - $2.1 billion New Brunswick - $1.69 billion Nova Scotia - $1.57 billion P.E.I. - $340 million NL - $O. Newfoundland and Labrador Energy plan. NLEP.

NL-ExPatriate said...

The Supreme Court of Canada basically said that the 'only' reason the off-shore could be considered to be owned by Canada is because of third-party international law. The court actually said that the status of these resources is very much in the hands of NL. They demonstrated their meaning by saying, and I paraphrase, 'not-with-standing international laws, NL brought those resources into Canada, and NL can take them back out'.

So in response to this the Atlantic Accord compromise was reached. In that deal the rest of Canada gets to suck the teat of yet more of our resources. Harper has twice unilaterally violated that compromise agreement in order to suck a little more out of NL's share. Talk about bumming off the poor!

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