Calgary Herald

Pushback expected at finance meeting

Alberta likely to play defence with other provinces

- JAMES WOOD JWOOD@CALGARYHER­ALD.COM

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.

 ?? Edmonton Journal/files ?? Alberta Finance Minister Doug Horner expects some pushback from some provinces on thorny issue of federal payments to provinces.
Edmonton Journal/files Alberta Finance Minister Doug Horner expects some pushback from some provinces on thorny issue of federal payments to provinces.

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