Canada’s equalization payments are an antiquated model which rewards failure and punishes success — it could almost be perceived that this is damaging the Canadian economy.
Six provinces will receive approximately $14.7 billion in equalization payments in 2011-12 including Prince Edward Island ($330 million), Nova Scotia ($1.2billion), New Brunswick ($1.5 billion), Ontario ($2.4 billion), Manitoba ($1.7 billion) and Quebec ($7.6 billion). As one notices, Quebec will receive more than one-half of the equalization payments.
Quebec, of course has their grubby little paws out for a handout, as always. What have Equalization Payments done for Quebec? Well, this allows the government of Jean Charest to spend more on social programs, such as health, offering deeply subsidized health care and hydropower. Also it provides low tuition fees for post secondary learning institutions but only for Quebec residents. These are only two of the advantages equalization payments give Quebec.
Does Alberta have this privilege? I guess not. Is Quebec really a have-not province? I would question this.
The squeaky wheel gets the grease and here is an example: the Bloc Quebecois leader Gilles Duceppe recently told Prime Minister Stephen Harper to pay-up or face an election, (which of course is happening). He demanded, “We are asking for simple fairness, elementary justice!”
What was he asking for or rather demanding? He says he is standing up for Quebec, but he doesn’t give a damn about the rest of Canada. The following is his shopping list: $ 5billion in new federal transfers to the province of Quebec; an extra $1.25 billion in additional equalization payments to Quebec; and $421 million for the costs of the ice storm in 1998. With these kinds of demands, why does he not go all of the way back to Confederation? I wonder if he knows each Ontarian contributes $1,800 more per year to Confederation than they receive and Albertans contribute approximately $3,800 more than they get back. I would not mind an extra $3,800 per year. Quebecers, on the other hand, received $12.3 billion more from Ottawa than they sent to the federal government in 2008 alone. Alberta, has contributed a net $102 billion to the federal treasury over the last six years.
It should be made apparent Quebec already receives $8.5 billion in equalization payments. This amount is greater than the total received by the other five have-not provinces combined. I would wonder if people are aware Alberta has remitted $243.6 billion to Ottawa from 1961 to 2002. Quebec, during that same period, received $217.1 billion. Does Quebec appreciate this? Remember about a year ago, poor ol’ Premier Charest, of Quebec, demanded the Alberta tar sands project be shut down. But, he still wanted the transfer payments. One would also question whether or not Mr. Duceppe was delusional when he made his demands or was he dreaming? I would question Quebec’s plans were they to separate from the rest of Canada with regards to this issue of subsidization in the guise of equalization — France certainly would not underwrite their shortages.
They will not separate but will continue to draw on the rest of us as long as we will allow them to do so.
I perceive Prime Minister Harper refused to grant federal money into building a sports complex in Quebec City, but he is putting money towards a federal highway project near Quebec City. This is fine, now let us get on with the rebuilding of the TransCanada highway near Radium with federal money.
With transfer payments like we are paying from Alberta, why do we have a $5 billion deficit? My theory has always been to “fix up your own house” before you give the neighbour money to repair his. With that in mind, I would suggest we give our universities in Alberta extra money toward tuition which would enable many students to attend university for about 25 per cent of the present tuition fees. It would also seem to be prudent for the Government of Alberta to advance money to the provincial health system to finish hospitals and provide other facilities for our population such as better living accommodation for people in need. Our cities and towns are always asking for government grants for infrastructure funding and so forth. Let us consider these requests before sending money to Ottawa which is almost inevitably funneled towards Quebec.
The dollars are earned in Alberta, therefore “the buck” should stop here first.
The Government of Alberta should be spending more in Alberta and for Albertans so we do not have as much money for equalization transfers. If we saved more for ourselves, we could make life much easier for our residents. It would be satisfying to see ‘poor ol’ Quebec have to find their own money to cover their own expenses, for example, pay the same tuition fees as we do and even maybe have to work five days per week.
