The government of Newfoundland and Labrador supports the Alberta premier's call for changes to the federal government's equalization formula.
Newfoundland Liberal gov backs Smith’s call for equalization rethink | The Counter-Signal | Quinn Patrick:
May 10, 2025 - "Alberta Premier Danielle Smith has garnered the support of Newfoundland and Labrador’s Liberal government for a reset on how the federal government distributes equalization payments.
"Smith has called on Alberta to stop subsidizing provinces with productive economies like Ontario, Quebec and British Columbia.... 'That was never the intent of equalization, and it needs to end,' said Smith.
"Spokesperson for Newfoundland’s Liberal government Greg Gill responded by telling the National Post that he agreed with Smith’s sentiment on Thursday. 'Equalization is intended to ensure … fairness for all citizens. Currently, this fairness is not achieved for Newfoundland and Labrador,' said Gill.
"[Gill] said the equalization program hurts residents by negating the high cost of delivering services to the remote areas of the sparsely populated province.... Additionally, he argued that the program currently penalizes the province for developing offshore oil and its other natural resources.
"Last year, Newfoundland filed a court challenge against the federal program on the basis that it doesn’t make good on its constitutional purpose. The lawsuit seeks relief over several issues: the exclusion of service delivery costs in payment calculations, the fiscal capacity cap, the inequitable distribution of excess equalization program funding and the gross domestic product growth ceiling....
"Smith said in March that Alberta would no longer agree to 'subsidizing other large provinces who are fully capable of funding themselves.'
"Of the $26.17 billion in equalization payments earmarked for 2025-26, Quebec and Ontario will take the lion’s share for a combined $14.15 billion. Quebec alone will get $13.57 billion.
"On Monday Smith called for Albertans to begin receiving equitable per capita federal transfers and equalization payments at the same rate as Ontario, Quebec and B.C."
Read more: https://www.thecountersignal.com/p/newfoundland-liberal-gov-backs-smiths
No comments:
Post a Comment