Pushback expected at finance meeting
Alberta likely to play defence with other provinces
The Alberta government is likely to be playing defence against other provinces Friday in the first of a pair of meetings on Canada’s finances.
Premier Alison Redford will cochairing a meeting of provincial finance ministers in Toronto that will deal with the thorny issue of federal payments to the provinces, including health and social transfers, as well as equalization.
Alberta Finance Minister Doug Horner — who will take part in the meetings — said he expects there will be pushback from some provinces on Ottawa’s plan to distribute Canada Health Transfer to the provinces on a per-person basis.
That move had long been sought by the PC government and would mean $800 million to $1 billion more for the Alberta treasury, but has been
We’re going to be there to represent Alberta’s interests, but also to protect Alberta’s interests
DOUG HORNER
criticized by other provinces that could potentially see less health cash in the long run.
With the federal equalization program also on the agenda, Horner expects “a robust discussion.”
“We’re going to be there to represent Alberta’s interests, but also to protect Alberta’s interests,” he said. “I think that some of my colleagues across the country might want to change what we think is a fair transfer on a per-capita basis.”
Friday’s meeting — held under the auspices of the Council of the Federation — leads into next week’s annual get-together of the provincial and territorial finance ministers with federal Finance Minister Jim Flaherty.
Equalization — a program aimed at ensuring provinces can deliver relatively similar levels of service at similar levels of taxation — comes up for renewal in 2014 and is expected to be a topic at both meetings as well.
Alberta is one of four “have” provinces that receive no funding because of their strong revenue po- sition. However, critics including Wildrose Leader Danielle Smith believe Alberta is subsidizing cushy social programs and discouraging sound economic policies in other parts of Canada.
Alberta residents and businesses send about $19 billion more in taxes and other payments to the federal government than the province receives in services.
Horner won’t signal how hard the province will push for changes to equalization, although he has said the Redford government thinks the constitutionally enshrined program could be fairer to Alberta.
“We’re not adverse to providing our share but we also want to ensure that share is used in an appropriate fashion — and not incenting behaviour we wouldn’t want to see,” he added.
Liberal MLA David Swann said he believes Alberta is generally fairly treated under equalization.
A per-person formula is the fairest basis for federal health transfers, although factors such as the age of the population could be used to refine the program, he said.
But Swann said the Progressive Conservative government’s own problems with deficits undermine its message to other provinces.
“We have to get our own house in order,” he said.