IT’S NOT TOO LATE TO FIX

There is plenty of blame to go around when it comes to the debacle that is the renewal of Canada’s equalization formula.

Equalization is the system under which the federal government distributes funds to ensure all provinces provide comparable services. Introduced in 1957, it is expected to pay out $18.3 billion this year. Saskatchewan, which had been experiencing a boom in the potash and oil-and-gas industries, has not received any equalization payments since 2008.

As anyone in Saskatchewan and Alberta knows, that boom ended a while ago. But the formula remains the same.

Saskatchewan Premier Scott Moe unveiled a “50-50” proposal last week, which would split half the $18-billion equalization pot among all 10 provinces on a per-capita basis. But, as The Globe and Mail first reported just a day later, the Liberals had already passed an extension of the current formula until 2024 as part of the large Budget Implementation Act.

Records show provincial politicians were informed about the Trudeau government’s intention, but it seemed to be missed by officials in both Alberta and Saskatchewan. This is an embarrassment to both of these governments. The feds, however, clearly did zero consultation with the provinces on this issue and have a clear political reason to keep the formula — in which Quebec is the winning province — as it is.

One must wonder where Conservative Leader Andrew Scheer and the rest of the MPs representing Alberta and Saskatchewan were on this file. While Scheer was busy trying to embarrass the prime minister over outrageously expensive play structures in the dying days of this sitting of the House of Commons, time could have been better spent holding the Liberals accountable on equalization.

The swing set was worth $7,500. A new equalization formula could be worth billions to his Saskatchewan constituents.

As Calgary Herald columnist Don Braid put it, “Everybody involved looks either secretive or stupid. … Except the feds, who are just sneaky ….”

This subject should be on the agenda of a meeting between the premiers and the federal government next month. It is not too late for the Liberals to do the right thing when it comes to looking at the equalization formula. The renewal does not actually take effect until 2019, so there is time to reintroduce legislation that would have proper consultation and a fairer approach. Moe’s proposal could open discussions.

Both provincial and federal politicians have a chance to redeem themselves on this issue, and can prove to the electorate that they will put the economic health of Canadians over playing political games.