OTTAWA, ON: The Canadian Taxpayers Federation (CTF) issued open letters today to the premiers of Ontario, British Columbia, Saskatchewan, and Alberta, urging them to stand up for their provinces in the current round of Equalization negotiations as the existing agreement approaches an end in 2014.
“Since taking office, the Harper government has boosted Equalization payments 47 per cent,” said CTF Federal Director Gregory Thomas. “They’ve taken $112 billion from taxpaying Canadians in provinces with healthy growing economies, and given it to provincial governments with huge debts, heavy taxes, and no plan for prosperity.”
“It’s time for ‘have’ premiers to stand up for taxpayers,” Thomas added.
Thomas noted that provincial governments have borrowed $166 billion since the Harper government took office, pushing total provincial debt to $477 billion in seven years.
While the European Union has adopted a treaty that forces national governments to cut deficits or lose bailout money, Canada provides annual bailouts surpassing $62 billion to provinces in the form of transfer payments, with no fiscal accountability whatsoever.
“How can 25 formerly warring European nations, speaking 23 different languages, agree to force balanced budgets on one another, while Ottawa is powerless to rein in the borrowing of Prince Edward Island and Nova Scotia?” asked Thomas.
CTF Alberta Director Derek Fildebrandt wrote to Premier Alison Redford: “As the province with the most to lose, westerners look to Alberta for leadership – if Alberta is willing to take it on the chin and accept a renewal of the current Equalization program in 2014, we can hardly expect British Columbia and Saskatchewan to put up a fight on our behalf.”
CTF Ontario Director Candice Malcolm wrote to Premier Kathleen Wynne: “despite Ontario becoming a ‘have-not’ province in 2009-10 for the first time in Canada’s history, other provinces still look to Ontario for leadership in ensuring Equalization is equitable and fair to all Canadians. As the formula stands, it is not fair to the citizens of Ontario.”
CTF Prairie Director Colin Craig congratulated Premier Brad Wall for voicing his frustrations with the current program. “We hope you will work with premiers of other ‘have’ provinces to be just as vocal in pushing for reform.”
CTF British Columbia Director Jordan Bateman drew the attention of Premier Christy Clark to a video posted on the Parti Quebecois website, where Quebec Premier Pauline Marois asks “If one day, we produce oil and gas in Quebec, why would we let half of this wealth go down the road to Ottawa?”
“To keep the flow of our [B.C.] money going, Quebec resists developing its resources and growing its economy,” said Bateman, “as not doing so would increase its ‘fiscal capacity,’ and therefore cut its Equalization take.”
Federal Finance Minister Jim Flaherty went on the record in his March budget speech, saying “We will not reduce transfers… Funding for these important social programs will continue to rise each and every year our government is in power.”
“Premiers need to stand up to Ottawa and stand up for taxpayers,” said Thomas. “The legacy of the Equalization program is a growing mountain of debt. If Europe can unite to pursue fiscal sanity, so can Canada. If Ottawa won’t provide leadership, these premiers need to saddle up.”
The open letters to provincial premiers can be downloaded here:
Letter to B.C. Premier Christy ClarkLetter to Alberta Premier Alison RedfordLetter to Saskatchewan Premier Brad WallLetter to Ontario Premier Kathleen WynneCTF Federal Director Gregory Thomas
