Moe’s fight for equalization equity rings false

Premier needs to fix the program, not blame others, writes Ryan Meili

This month kicked off with Canada Day, a celebration of a vast, improbable nation held together despite — or perhaps because — of its differences. One perennial difference is around the practice of equalization. At its heart, equalization is about fairness, about ensuring that all Canadians can expect decent public services, whether they live in a “have” or a “have not” province. It’s an important program, but there are real flaws in how the payments are calculated, and we should have the opportunity to have that conversation rather than having the current formula extended with no discussion.

Many have pointed out how hydroelectric power in Quebec and Manitoba keeps their energy prices low, meaning their natural wealth skews the formula and keeps them receiving payments. Saskatchewan has challenged the current framework before, with then-premier Lorne Calvert arguing that it penalized provinces that depend on revenue from non-renewable resources. He even had the support of Brad Wall in that fight, though that support disappeared when Stephen Harper asked him to back off.

Now that it’s politically convenient again, Premier Scott Moe has waded back into the equalization debate with a proposal for a new formula. But instead of fixing what is unfair about the current program, it simply cuts it in half, keeping the same unfair distribution and adding a new transfer payment that goes to all provinces, based on population rather than need.

Worse, and stranger, than the shortcomings of his proposal was Moe’s decision to highlight his own government’s momentous failures in child care and university tuition, which seemed to be an attempt to shame other provinces by comparing costs for these services.

Saskatchewan was a “have” province when the Sask. Party took power, and during the ensuing decade of unprecedented revenues, Moe’s party allowed tuition to skyrocket and made no meaningful investments in child care. A recent study shows that Saskatoon has the worst access to child care of any Canadian city, with 100 per cent of children living in what’s called a “child care desert” with less than one child care space for every three children. Regina is not far behind, with 67 per cent of children living in child care deserts.

Governing is about choices, and Moe’s party has stubbornly avoided upstream investments in things like child care and advanced education that improve our lives and grow our economy. They have chosen instead to sink billions into expensive megaprojects like carbon capture, the Global Transportation Hub and the Regina bypass. After a decade of record revenues, we’re left with record debt, a record of missed opportunities, and a government determined to blame everyone but themselves.

In this context, it’s worth noting that Moe has chosen to highlight the budget choices of one province in particular, and in doing so, stoke divisions within the country. Equalization is meant to be a nation-building project. Moe’s decision to single out one province is part of a pattern where his government seeks to distract from the real problems faced by Saskatchewan people, problems of unemployment in a slowing economy, problems of persistent poverty, problems in accessing quality education and health care. He seems to think that by pointing the finger at Ottawa or at other provinces, he can avoid being held accountable for his government’s record.

The greatest irony in this is the idea of Moe and the Sask. Party presenting themselves as champions of fairness. The past decade has been characterized by growing inequality in our province. For every dollar the incomes of the lowest 20 per cent of earners increased in that time, the highest 20 per cent saw their incomes increase by $7. Social assistance caseloads continue to grow, while the benefits available to people in poverty are continually eroded. No serious action is being taken to close the gap in education, health and justice between Indigenous and non-Indigenous people. If Premier Moe has suddenly discovered the virtue of fairness, there is no shortage of things he can do here in Saskatchewan to take action.

Equalization is an insurance policy. Like all insurance policies, you hope never to have to collect, but you want the support to be there. Saskatchewan has benefitted from equalization, and while we have everything we need to be a “have” province, the way our economy is going under Moe, we may find ourselves needing that support again.

Those who would argue that the current equalization formula is unfair have a strong case, but Moe’s plan does nothing to address that unfairness. His ham-fisted half measure, his baiting of interprovincial resentment, and his government’s dismal record when it comes to investments in fairness make Moe a poor choice to chart the course to a better deal for Saskatchewan.