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Prime Minister David Ibe It has been confirmed that BC will formally support Newfoundland and Labrador in how the federal government makes balanced Payment.
“We are distressed about this system because the money we pay goes directly to the people of Ontario and the people of Quebec,” Eby said Wednesday on the final day of the premiers’ conference in Halifax.
Newfoundland and Labrador announced plans in May to take Ottawa to court, arguing the existing system puts it at a disadvantage.
The provincial government said in its announcement that because of fundamental flaws in the formula, the province would have received between $450 million and $1.2 billion each year over the past five years instead of receiving nothing.
“We’re going to step up and make sure this program works for them, supports them,” Eby said.
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However, experts who study Canada’s political system point out that the provinces are responsible for negotiating equalization themselves.
Gerald Baier, a political scientist at the University of British Columbia, said it’s not as simple as British Columbia subsidizing Ontario.
“I doubt that this would qualify BC for equalization, and if it did, it would be a very small amount,” he said.
Alberta, British Columbia, Saskatchewan and Newfoundland and Labrador are the provinces that have not yet received equalization payments.
Eby believes projects like the Massey Tunnel Replacement in British Columbia have been funded by the federal government but still haven’t received the money.
“The best outcomes come from us working closely with the federal government so that when they want to fund these projects, we can tailor it to the realities of British Columbia and help them avoid mistakes,” Eby said.
The move comes at a time of provincial elections, as Eby Increasingly criticized He said the federal government’s funding of Western Canada and British Columbia is unfair.
“It’s partly an electoral strategy, and it seems that at least to some extent, if you have any beef with B.C. politics right now, you can partially blame it on the federal government,” Baier said.
The last major reform to the equalization payment system was made during the Harper government, which required that the total amount of equalization payments must increase in line with Canada’s national growth rate.
Since that change was made immediately after the 2008 financial crisis, the formula has undergone some minor tweaks but no real major overhaul.
— With files from The Canadian Press
© 2024 Global News, a division of Corus Entertainment Inc.
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