Alberta
Equalization payments aren’t just controversial in Alberta anymore! Ontario poll shows overwhelming negative view
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News release from Fairness Alberta
POLL: VAST MAJORITY OF ONTARIANS SAY EQUALIZATION PAYMENTS ARE UNFAIR
Fairness Alberta calls for $8 billion rebate for Ontario
Fairness Alberta has released a poll showing 73% of Ontarians believe ever-growing Equalization payments are unfair given the narrowing wealth gap between provinces since 2015.
The poll, from a weighted survey of 1,000 Canadians recently conducted by the Toronto firm One Persuasion Inc. (MoE +/-3.1%), showed a large majority of Ontarians said it is unfair that Equalization payments rose 23% since 2015, making Ontario’s share of funding the program equivalent to roughly $2400 per family of four (see bottom). Opposition to the status quo on Equalization was highest in the 905 region of suburban Toronto.
(To see the full results of the poll click here)
“Ontarians have been funding unfairly high Equalization payments for others while their own provincial government was struggling to pay for services even before COVID-19,” said Fairness Alberta Executive Director Dr. Bill Bewick. “Given the collapse of the wealth gap between provinces, the so-called ‘have’ provinces should get the share of Equalization that came from their taxpayers rebated until we achieve meaningful reforms to federal-provincial funding.”
As Dr. Bewick outlined in the National Post, even a 50% rebate would mean a bump to provincial budgets of $4 billion in Ontario and $1.5 billion being returned to B.C. and Alberta as their provincial responsibilities come under strain.
“The $21 billion-and-growing price tag for Equalization is totally unnecessary and unaffordable given how much more equal provinces have become since 2015,” added Dr. Bewick. “This isn’t just an Alberta problem. Ontario, B.C., Alberta, Saskatchewan, and Newfoundland make up nearly 70% of Canada’s population and it has become obvious that the program is unfair to all of them.”
A recent study by Ben Eisen and Milagros Palacios illustrates the “Great Convergence” in provincial fortunes since the 2015 energy downturn. While the gap between the median ‘have’ and ‘have not’ fell from $5000 per person in 2015 to only $1600 in 2020, Equalization payments grew 23%. With increases tied to national GDP rather than need, a $20.9 billion windfall is going to 5 provinces (with less than 1/3 of the population) in 2021.
About Fairness Alberta:
Fairness Alberta is a grassroots, non-partisan, and non-separatist association of concerned citizens, aiming to increase awareness across the country about Albertans’ disproportionate contributions to Canada, while also providing clear, factual information on unfair federal policies that will further undermine the prosperity of Alberta and other contributing provinces.
Fairness Alberta previously released analysis and recommendations for reforms to Equalization and the Fiscal Stabilization program, with an overview of fiscal federalism as well at www.fairnessalberta.ca.
Previous releases, interviews, columns, and two presentations to the House of Commons Standing Committee on Finance can be found in the NEWS section of our website. For more information on Fairness Alberta, its mandate, and future plans, please visit our website at www.fairnessalberta.ca.
For further information or to arrange interviews, please contact:
Bill Bewick, Ph.D.
Executive Director
Fairness Alberta
Cell: (780) 996-6019
Email: bill.bewick@
*per-province calculations based on provincial contributions to general revenue proportionally applied to the $20.9b spent on Equalization in 2021. Source for per-province shares is this Library of Parliament document: https://lop.parl.ca/sites/
Alberta
Open letter to Ottawa from Alberta strongly urging National Economic Corridor
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Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
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Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
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