Premier Moe hoping to spark equalization discussion

Saskatchewan Premier Scott Moe is proposing changes to the federal equalization payment strategy in hopes of a more equitable distribution of funds across Canada.

Moe discussed the new equalization idea in Swift Current on June 22 when he was the guest speaker at a luncheon hosted by the Swift Current and District Chamber of Commerce.

“It is time for us to have this discussion understanding that that federal government has until April 2019 to make a decision regarding any changes or updates that may come to the equalization formula,” Moe said this past Friday.

He pointed out that during the past 11 years Saskatchewan has received zero funding from the federal equalization. This has occurred despite impacts to the energy industry, and drops in natural resource prices.

Conversely, Quebec has been the single largest recipient province by far from the formula. Over 11 years they have received $100 billion, including $11.7 billion this past year, which accounts for 10 per cent of their provincial government revenues.

“We have had a downturn in some of our natural resource revenues here in the province. Its effected our industry and our jobs in our communities, its effected our bottom line at the provincial level as well. It is sometimes difficult to understand why a program that is there to benefit provinces in more challenging times doesn’t seem to be accessible,” Moe said.

Moe has proposed a 50-50 formula and he wants to have the topic added to the agenda for the Council of the Federation meeting of Premiers this July.

“We feel this is more fair to more Canadians than the existing formula that we have. But we do want to start this discussion across the nation and with provincial leaders.”

Under the proposed Saskatchewan plan, the first 50 per cent of the funds would be distributed on a per capita basis, with the remaining half of the money distributed via the current formula.