Fiscal Imbalance Part Deux
Funny how some Liberals have a very short memory. In 1995, the provinces saw their transfer payments cut in an effort to reduce the federal deficit.
Transfer payments for health education and welfare were combined into the Canada Social Transfer and drastically slashed.
In terms of post-secondary education, we have yet to restore funding to pre-1995 levels, which would require approximately 4 billion dollars a year to fix.
Either way, the federal government owes the provinces money. Some call it fiscal imbalance. Some call it fiscal pressures. Either way, there is a problem.
Where one must be cautious when acknowledging the problem is that one should demand a dollar figure from the provinces. Yves Seguin, the former Quebec finance minister (federalist) pegged that number at 40 billion over 5 years. Since then, as Charest admitted to me in Chertsey, the Health Accord and Child Care deal and Cities deal have lowered that amount.
Paul Martin was working to restore the funding to pre-cut levels. However, why was he refusing to call a spade a spade? If all Canadian priorities that needed attention were in provincial jurisdiction, didn’t that mean the provinces should get more money to address those problems?
Regaining the confidence of Quebeckers will require us to be honest with the population. We can call it whatever we want but the federal government has a responsibility now that it has gotten its fiscal act together to at least restore funding to pre-1995 levels.
Once we do that, the provinces cannot blame the federal government for not coughing over the cash. THAT is a federalism of respect. It requires honesty both ways. The honesty begins with the federal government saying we cut too much in 1995.
This is not caving into the provinces. Hardly, it is removing the “blame the federal government” card away from them. They use it justly now, but after funding is restored, provinces will only have themselves to blame if they falter.
Transfer payments for health education and welfare were combined into the Canada Social Transfer and drastically slashed.
In terms of post-secondary education, we have yet to restore funding to pre-1995 levels, which would require approximately 4 billion dollars a year to fix.
Either way, the federal government owes the provinces money. Some call it fiscal imbalance. Some call it fiscal pressures. Either way, there is a problem.
Where one must be cautious when acknowledging the problem is that one should demand a dollar figure from the provinces. Yves Seguin, the former Quebec finance minister (federalist) pegged that number at 40 billion over 5 years. Since then, as Charest admitted to me in Chertsey, the Health Accord and Child Care deal and Cities deal have lowered that amount.
Paul Martin was working to restore the funding to pre-cut levels. However, why was he refusing to call a spade a spade? If all Canadian priorities that needed attention were in provincial jurisdiction, didn’t that mean the provinces should get more money to address those problems?
Regaining the confidence of Quebeckers will require us to be honest with the population. We can call it whatever we want but the federal government has a responsibility now that it has gotten its fiscal act together to at least restore funding to pre-1995 levels.
Once we do that, the provinces cannot blame the federal government for not coughing over the cash. THAT is a federalism of respect. It requires honesty both ways. The honesty begins with the federal government saying we cut too much in 1995.
This is not caving into the provinces. Hardly, it is removing the “blame the federal government” card away from them. They use it justly now, but after funding is restored, provinces will only have themselves to blame if they falter.
par / by Anthony à / at 12:53 a.m.
5 Commentaires:
40 billion over 5 years for Quebec
30 billion over 5 years for Ontario
Those numbers might be higher than what they'll take but presumably the other provinces want cash too. And, if the matter is simply returning money to the provinces, then even Alberta should get a few extra billion a year. Hell, I suspect if Quebec is getting 30 billion and Ontario is getting 20, everyone's gonna need a load of cash or they'll be really pissed.
So let's say a big 15-20 billion a year will keep everyone happy.
Of course, nearly every province is close to being in surplus already and is fully able to raise taxes or cut services to get themselves there. But I'm sure they'll really enjoy getting the cash.
CG, both those numbers are national numbers.
Between those two estimates, the health accord and the Cities and Day Care deals were struck in between.
Restoring 1995 funding and adjusting to inflation would probably be enough
When the Quebec government turns around and spends millions and millions of dollars on opening foreign missions abroad (clearly a federal responsibility) it sort of belittles the whole argument, doesn't it?
Of course, the fact that the provinces have equal if not greater access to revenues sources (i.e. tax bases) than the feds do also makes one wonder...
I agree that provinces have the capability to raise taxes, and they definitely can if they need to. That, however, doesnt change what the federal government did in 1995
Pauvre Antonio,
Tu dis que ce que le Parti libéral du Canada a refusé de reconnaître pendant 10 ans. Il faut dire que le fait d'être dans l'opposition a un effet bénéfique opur le PLC. Certaines vaches sacrées du parti sont remises en cause.
Le hic pour le PLC, c'est qu'il y a de forte chance que ce soit les conservateurs et non le PLC qui règle ce dossier.
Pour ce qui de Mark, les relations internationales ne sont pas une compétence exclusivement internationale. Le gouvernement du Québec entretient des relations internationales parce que, justement, il en a. Le Québec siège à la Francophonies et a des relations étroites avec plusieurs gouvernements et États ailleurs dans le monde.
Et le budget des relations internationales du Québec n'a rien de très mirobolant...tout compte fait, le % du budget du Quéec au MRI reste marginal...le programme des garderies à 7$ coût pas mal plus cher que nos relations internationales...
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