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Stephen Harper: Equalization Payment Plan Likely To See Few Changes When It Expires In 2014

CP  |  By Posted: 05/11/2012 4:16 pm Updated: 05/11/2012 6:08 pm

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Stephen Harper Equalization Payments
Prime Minister Stephen Harper says he doesn't anticipate major changes coming to the federal equalization program, which expires in two years. (CP/Getty)

EDMUNDSTON, N.B. - Prime Minister Stephen Harper says he doesn't anticipate major changes coming to the federal equalization program, which is set to expire in two years.

The federal-wealth sharing program is set to end in 2014, and provincial governments are positioning themselves now to negotiate a new deal.

After a local funding announcement Friday in Edmundston, N.B., Harper was asked whether he felt a national debate on equalization was needed.

"There is always a debate on equalization," he quipped. "I've never seen it stop at any point in my political life."

The program, which is worth $15.4 billion this fiscal year, is meant to ensure all Canadians have access to comparable public services wherever they live. Six provinces are collecting equalization this year: Prince Edward Island, Nova Scotia, New Brunswick, Quebec, Ontario and Manitoba.

"We're in discussion with the provinces about their various preferences — on which the provinces are not of a single mind," Harper said.

"I don't anticipate major changes to the program as we move forward."

Loading Slideshow...

  • What Each Province Gets In Equalization

    <a href="http://en.wikipedia.org/wiki/Equalization_payments_in_Canada#Regional_fiscal_disparities_in_Canada" target="_hplink">Here's how much money each province will receive in equalization payments during the 2013-2014 year.</a> Source: <a href="http://www.fin.gc.ca/fedprov/eqp-eng.asp">Department of Finance</a>. (Alamy)

  • P.E.I. - $340 Million

    Per capita: $2,350 (MICHEL VIATTEAU/AFP/Getty Images)

  • Nova Scotia - $1.458 Billion

    Per capita: $1,342 (Tim BREAKMEIE/AFP/Getty Images)

  • New Brunswick - $1.513 Billion

    Per capita: $1,985 (Luke Pinneo/Getty Images)

  • Manitoba - $1.792 Billion

    Per capita: $1,353 (<a href="http://www.flickr.com/photos/jezz/">Flickr: Jezz's Photostream</a>

  • Ontario - $3.169 Billion

    Per capita: $246 (GEOFF ROBINS/AFP/Getty Images)

  • Quebec - $7.833 Billion

    Per capita: $934 (Alamy)

  • Newfoundland And Labrador - No Payments

    (<a href="http://www.flickr.com/photos/60548141@N00/" target="_hplink">Flickr: magnolia1000</a>)

  • B.C. - No Payments

  • Alberta - No Payments

    (MARK RALSTON/AFP/Getty Images)

  • Saskatchewan - No Payments

    (<a href="http://www.flickr.com/photos/justaprairieboy/">Flickr: Just a Prairie Boy's photostream</a>)

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EDMUNDSTON, N.B. - Prime Minister Stephen Harper says he doesn't anticipate major changes coming to the federal equalization program, which is set to expire in two years.The federal-wealth sharing pro...
EDMUNDSTON, N.B. - Prime Minister Stephen Harper says he doesn't anticipate major changes coming to the federal equalization program, which is set to expire in two years.The federal-wealth sharing pro...
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Canuckview
292 Fans
03:32 PM on 05/14/2012
too bad one cannot believe a word the Lyin' King says on anything.
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Daniel Kilgallon
Calgary Heavy Oil
9 Fans
10:49 AM on 05/12/2012
Equalization is BS. Quebec just drains the system and never attempts to improve themselves.

When Alberta is lacking major infrastructure and paying $10 billion a year into this program we see the rest of Canada laughing at us. Social programs are nice, but why should Quebec get the lowest cost of university education, $7 a day daycare, and massively subsidized industries when they pay for it through other provinces money?

Alberta needs things like roads, rail, power lines, schools, fire halls, hospitals. I think when we are forced to run a deficit, Quebec should take second place to getting our money.
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HUFFPOST SUPER USER
Steve Lives
The Venus Project ... look it up
294 Fans
11:50 AM on 05/12/2012
Blame the Alberta government, not equalization. They still have more cash than the rest of the provinces, it just doesn't seem to get to people for some reason...
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OilersFan74
0 Fans
 
03:16 PM on 05/12/2012
We do this silly little thing here called paying off our debt.
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HUFFPOST SUPER USER
opprobrious
More speech. Less Flagging.
922 Fans
10:15 PM on 05/12/2012
There actually was a time where Ontario was the primary payee of equalization payments and Alberta was a continual recipient. You see, genius, this concept has been around since confederation. In fact, it was a part of the original agreement - i.e. a condition on which provinces, such as Alberta, joined confederation in the first place.
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Daniel Kilgallon
Calgary Heavy Oil
9 Fans
12:42 AM on 05/16/2012
There was also a time when Ontario was a continual recipient of Great Britain.
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rr78
61 Fans
03:10 AM on 05/12/2012
And we're supposed to believe him???!!!
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zort
117 Fans
12:26 AM on 05/12/2012
What is the reason Quebec gets so much more than every other province?
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HUFFPOST SUPER USER
4evercanadian
Still my guitar gently weeps
307 Fans
12:34 AM on 05/12/2012
Explained here: http://en.wikipedia.org/wiki/Equalization_payments_in_Canada

The formula that is currently being used is in the body of the article.
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zort
117 Fans
12:50 AM on 05/12/2012
thank you
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LetsKeepitSimple
80 Fans
11:37 PM on 05/11/2012
My sister has been receiving equalization payments from the province for 32 years, why would she work, sitting at home($1500 mkt value, she pays $129) smoking and watching tv is much easier than working
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Spinning In Circles
32 Fans
11:35 PM on 05/11/2012
I'm happy to contribute to any province that needs the help, that's the joy of being part of such a vast nation. These articles bother me because they seem to start more arguments and divisiveness, which is harmfull and unnecessary.

I'd much rather read the analysis of how they divided the funds than a list of province vs province.
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jpcanada
2 Fans
10:33 AM on 05/12/2012
Absolutely, well written.
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HUFFPOST SUPER USER
sdgreen
73 Fans
11:18 PM on 05/11/2012
Quebec payments need to be cut by at least 50%.
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LunaticCalm
27 Fans
11:24 PM on 05/11/2012
Just because you hate the frenchies dosen't mean you can get away with your sentence without a proper explanation.
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HUFFPOST COMMUNITY MODERATOR
canobserv
719 Fans
08:04 AM on 05/12/2012
I think we should sell Alberta to the Chinese..........Oh Wait!
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HarleyOpenRoad
2184 Fans
10:54 PM on 05/11/2012
Is anyone including the $8 billion gift to the CAW and Ontario with the bailout of GM/Chrysler, paid out of taxpayer's pockets?

Is anyone including the cost to run the federal govt and most of those billions winding up in Ottawa/Ontario?
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LetsKeepitSimple
80 Fans
11:25 PM on 05/11/2012
Last time I checked lots of fed jobs in the armpit of Quebec, Hull, opps mean Gatineau and Shawinigan.

Ottawa should be made a terrirory, including parts of Hull and not be part of the provinces, similar to Wash DC + Canberra in Australia
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HUFFPOST SUPER USER
4evercanadian
Still my guitar gently weeps
307 Fans
12:42 AM on 05/12/2012
I believe that the money was repaid. And the $8 billion was the total bailout from both the US and Canadian governments to the entire industry, not just Canada.

http://online.wsj.com/article/SB10001424052702304520804576341363763683294.html
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YrthWyndAndFyre
Graviora manent
59 Fans
08:01 PM on 05/11/2012
Equalization payments have served their function. The Feds gave themselves unlimited powers of taxation. What happens to the payment scheme next is largely irrelevant, since the leverage is no longer useful.
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Liz Wilson 2
“a small group can change the world
330 Fans
09:34 PM on 05/11/2012
this comment does not suggest an understanding of the purpose of equalization payments
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HUFFPOST SUPER USER
YrthWyndAndFyre
Graviora manent
59 Fans
03:53 PM on 05/12/2012
Oh, I understand their stated purpose. I also understand how they are typically employed - as a cudgel to beat recalcitrant provinces into line. A billion dollars buys a pretty darn big club.
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Grant in Calgary
1982 Fans
07:23 PM on 05/11/2012
Why does it say "No Payments" for the west and NL? We don't receive anything, but "Equalization payments" means someone is paying.
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Liz Wilson 2
“a small group can change the world
330 Fans
08:37 PM on 05/11/2012
Everyone who pays federal income tax pays into the equalization pool. It is NOT a transfer from the coffers of one province into the coffers of another.

Until last year Ontario was the only province that had never received equalization payments. I think last year was the first year that NewFoundland did not receive equalization payments along with BC Alberta and Sask.
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Grant in Calgary
1982 Fans
10:39 PM on 05/11/2012
Do you understand the history of equalization payments? The Have's and the Have Not's. Ontario used to be a "have" province . . . now they're under water. BC and Alberta have been paying for years.
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Spanky McFarlane
ILLEGITIMUS NON CARBORUNDUM.
179 Fans
07:04 PM on 05/11/2012
Billions of ndollarsd leaving Canada to purchase MidEast Oil & our PM can't run a 1500km pipeline from Regina to Thunder Bay during a time when jobs are so desperately needed.

We are stuck with a Party & a PM that has no vision & would sooner 'eat their young' that build a Country.
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HUFFPOST SUPER USER
Russg
99 Fans
07:22 PM on 05/11/2012
While I agree that such a thing should be done, resources are a provincial responsibility. After the fiasco of Trudeau trying to involve the federal government in provincial resource management, and as an Albertan, Harper knows better than to stick his nose in it.

I think this is one that the provinces and oil companies need to take the lead on. If they do so, and choose to involve the federal government (I imagine they would have to), then I can't imagine much outcry.
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Liz Wilson 2
“a small group can change the world
330 Fans
08:38 PM on 05/11/2012
You are right that Harper is an Albertan at heart, that is why he continues to act as the PM of Alberta.
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HUFFPOST SUPER USER
4evercanadian
Still my guitar gently weeps
307 Fans
09:17 PM on 05/11/2012
But he is sticking his nose into it. I see the eco-terrorism charges and removing "barriers" to environmental impact assessments as definite federal government interference in what is happening.
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LetsKeepitSimple
80 Fans
11:30 PM on 05/11/2012
Ha, he's trying, the Libs +NDP might shut down Alberta and import Ven+MidEast oil to Alberta(based on their talk, although they arent that stupid)
Even trying to turn the Sarnia pipeline around is a struggle with all the special interest groups funded by all kinds including Saudi Arabia, now why would they be concerned about environmental issues in Canada, geez no idea...
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chicnstu49
12 Fans
06:16 PM on 05/11/2012
I really hope they cancel equalization payments, when you see the breakdown its so ridiculously unfair. Esspecially when Alberta is demonized for having the oil sands, a resource which is apparently helping to fund (along B.C., Saskatchewan) the majority of provinces.
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Liz Wilson 2
“a small group can change the world
330 Fans
06:29 PM on 05/11/2012
and at one point in time these provinces were on the recipient end of the equalization payments.
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Mastiff
Via ovicipitum dura est.
283 Fans
07:55 PM on 05/11/2012
I'm curious where you found that out. I've checked and can't see any years since 1961 where Alberta received a payment.
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HUFFPOST SUPER USER
sdgreen
73 Fans
11:22 PM on 05/11/2012
Yes indeed, and the NDP want to abolish the tar sands so says Tommy Mulcair. In BC, NDP Adrian Dix wants to kill resource development and increase heavily taxes to corporations and banks. These NDP policies will kill Canada's economy with untold thousands of jobs.
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HUFFPOST SUPER USER
4evercanadian
Still my guitar gently weeps
307 Fans
12:56 AM on 05/12/2012
Adrian Dix is almost certainly going to be the premier in BC next year, so you better start getting used to it.
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mytwocents999
3 Fans
05:49 PM on 05/11/2012
Wow, whoever it was at the Huffington Post who picked the pictures for the slideshow above sure has a slanted biased view... Notice that the picture for each province is of fields, the ocean, a nice city shot, a flag, etc. Then you get to the picture of Alberta and they chose a photo of an oilsands upgrader. Sheesh.

The ironic part is, it is precisely for the fact that Alberta has the oilsands that the some provinces receive a large transfer payment! haha
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piperboo
11 Fans
06:16 PM on 05/11/2012
Perhaps they show the upgrader because the industry it represents is the only reason why Alberta has money to contribute in the first place.
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Alberta Bob
4 Fans
06:34 PM on 05/11/2012
Is that to say then the CN Tower is the reason that Ontario requires equalization? And that pipers are worth over $1.2B in Nova Scotia? I'm with the OP here.
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Grant in Calgary
1982 Fans
07:25 PM on 05/11/2012
f/f
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LetsKeepitSimple
80 Fans
05:25 PM on 05/11/2012
The big problem with the plan is that it encourages provinces to spend inefficiently to enjoy bigger payments. It would be better if payments were not increased when provinces make bad decisions. Almost like paying welfare receivers larger payments if they drink and or smoke. Good for them, but encouraging smoking and drinking, and having others pay the bill is not a good choice IMO.
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HUFFPOST SUPER USER
Kenneth T Tellis
47 Fans
06:21 PM on 05/11/2012
Its okay for you to say that, because you are already a SIMPLETON!
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LetsKeepitSimple
80 Fans
07:17 PM on 05/11/2012
I post it here, the truth, to encourage debate.
I find that people when they can not argue the facts yell loud and/or insult. Many people equate typing in capitals to yelling, is that the best you can do?
Instead of yelling and insulting, thinking is an option, but I will agree it is more difficult to think than to yell, same as its easier to spend money than to earn it.
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Liz Wilson 2
“a small group can change the world
330 Fans
06:31 PM on 05/11/2012
getting rid of equalization payments is the best way to destroy Canada
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LetsKeepitSimple
80 Fans
07:15 PM on 05/11/2012
What about tying some progress to them, like I said giving people more welfare because they drink is not smart IMO.
Current payouts encourage poor behavior
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HUFFPOST SUPER USER
Russg
99 Fans
07:24 PM on 05/11/2012
I don't see how that would destroy Canada. It's not like the provinces who are receiving payments could survive on their own.

Not that I endorse eliminating the program. Just sayin'.
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