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CTF Calls on Redford to Lead Equalization Charge

Author: Derek Fildebrandt 2013/06/05

Sign our petition: Re-negotiate Equalization

Related: CTF Challenges Premiers Wynne, Clark, Wall and Redford to run the equalization gang out of town | B.C. Needs to fight for fairer Equalization deal | Saskatchewan: Wall Needs to Lead on Equalization | Alberta: Redford needs to show some leadership on equalization

CALGARY, AB: The Canadian Taxpayers Federation (CTF) today sent an open letter to Alberta Premier Alison Redford, calling on her to stand up for Alberta in the coming renegotiation of the Equalization program.

In the letter, CTF Alberta Director, Derek Fildebrandt wrote to the Premier: “As the province with the most to lose, westerners look to Alberta for leadership in resisting federal pickpocket schemes like Equalization. But 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.”

In 2011, Alberta’s finance department calculated that Alberta taxpayers provided $18.9 billion – or $5,012 per capita – more in annual revenue to the federal government than we received in services and transfers. The Equalization program costs the federal government $16 billion annually and is up for renegotiation and renewal in 2014.

The letter pointed to the many economic disincentives in the Equalization program including a recent video posted to the PQ’s website where Quebec Premier Pauline Marois states, “If one day, we produce oil and gas in Quebec, why would we let half of this wealth go down the road to Ottawa?” (translated)

“It’s absolutely ridiculous that Quebec is happy to spend Albertan’s tax money on subsidizing their ungrateful university students, much of which is generated by resource development, while they refuse to develop their own resources,” continued Fildebrandt.

The CTF’s letter calls on Premier Redford to demand that the ‘fiscal capacity’ of a province be calculated as though it had developed its resources, the way Alberta and Saskatchewan have. “Taxpayers in both Alberta and Quebec would be better for it,” stated Fildebrandt.

In the letter, Fildebrandt called for the Equalization program to be reformed from “federal welfare program” into a “Federal Fiscal Recovery Program.”

“Rather than incentivise substandard government, a reformed program should provide bridge funding to poorer provinces on the condition that they make necessary economic and fiscal reforms,” wrote Fildebrandt.

Fildebrandt concluded, “If the prime minister doesn’t face serious demands from the West’s federal and provincial leaders, he will not be to blame. Your government and our federal MPs will be. Quite simply, without your leadership, the federal Equalization program will be renewed in its current form, and Albertans will have no one to blame but themselves.”

You can download the CTF’s letter to Premier Redford HERE.


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