April 11, 2007

On "Betrayal" in Equalization

Danny Williams is on a murderous rampage against this new equalization formula...

In fact, I would say Williams got lucky, because all offshore revenues should have been included in the formula.

The point of equalization is to make things equal. By excluding offshore revenues, we are telling Newfoundland they are getting more because they complain the loudest.

That is the kind of assymetrical federalism I deplore. It becomes clientelism...

Welcome to Latin America!

Anyway, here is a quote I agree with on the topic...

"my preference is to go with the logic. We have ten provinces in Canada. Then you take into account the ten provinces in the formula. All the revenues affect the -- the fiscal capacity of provinces. You take into account all revenues.”

Person who guesses who it is gets a cookie...

13 Commentaires:

Blogger Glen a dit...

Actually the point of equalization is not to "make things equal" but rather to make all services in Canada relatively comparable.

Perhaps if Charest had spent the money on services rather than on tax cuts you could make the argument that Quebec lacks the level of service in other provinces. Now, not so much.

4/11/2007 1:24 PM  
Blogger Robert_S a dit...

"...we are telling Newfoundland they are getting more because they complain the loudest.

That is the kind of assymetrical federalism I deplore. It becomes clientelism...

Are you not from Quebec?

I guess you don't see the irony in your post.

4/11/2007 1:47 PM  
Blogger Mohamed Mohamed a dit...

"Perhaps if Charest had spent the money on services rather than on tax cuts you could make the argument that Quebec lacks the level of service in other provinces. Now, not so much."

Why is it that people always forget about same levels of taxation while providing these services? Quebec is one of the most over taxed jurisdictions in North America and have every right to spend this money in this manner.

4/11/2007 2:22 PM  
Blogger Antonio a dit...

Robert

learn about equalization and get back to me...

until then, read the above comment

4/11/2007 3:16 PM  
Blogger Jay a dit...

"In fact, I would say Williams got lucky, because all offshore revenues should have been included in the formula."

Why? I think Quebec has already reaped the lions share of money from one of Newfoundland's resources aka Upper Churchill. Electricity it seems is not enough. Quebec wants the oil too?

"...we are telling Newfoundland they are getting more because they complain the loudest.

Thats just rich. Maybe Newfoundland has finally learned from its neighbour. Danny should rename the province Quebec and run as a separatist.

It will work. The precedent has already been set by Quebec.

4/11/2007 3:37 PM  
Blogger KC a dit...

Whether or not Danny has a logical case or not the fact is that Harper PROMISED to fully exclude natural resource revenues with no cap--therein lies the betrayal.

Furthermore, even if there is no reason to exclude natural resource revenue there really wasnt other any profound reason to move to a ten-province standard.

The only real difference between the two situations is that 1) Quebec's government hasn dont any whining post-budget(why would they?) and 2) Harper needs Quebec votes.

There werent any lofty moral principles guiding either of these policy choices.

4/11/2007 3:54 PM  
Blogger KC a dit...

... oh and 3) Quebec came up with a neat gimmicky slogain with no real substance ("fiscal imbalance") to help win the propaganda war.

4/11/2007 3:55 PM  
Blogger Antonio a dit...

wow, you guys really dont know what equalization is...

If Quebec makes money selling Hydro-electricity to other provicnes or to the US, that revenue should be couted towards equalization.

If one day, Quebec is making a boatload of money doing this, we will receive less money out of the program, because we are making more...

4/11/2007 3:56 PM  
Blogger whyshouldIsellyourwheat a dit...

//Whether or not Danny has a logical case or not the fact is that Harper PROMISED to fully exclude natural resource revenues with no cap--therein lies the betrayal.//

The Atlantic Accord with no cap is one of the options Harper gave Williams.

Danny Williams can't stand victory.

The new equalization formula is based on the report of an non-partisan expert panel set up by Ralph Goodale.

Harper gave Danny Williams a choice...a bucket load of money he was promised, or a bucketload and a half of money under the new formula.

4/11/2007 4:13 PM  
Blogger Glen a dit...

"If Quebec makes money selling Hydro-electricity to other provicnes or to the US, that revenue should be couted towards equalization."

How many Quebec politicians will be out there preaching that?

4/11/2007 5:06 PM  
Blogger canuckistanian a dit...

antonio said:
"wow, you guys really dont know what equalization is...

If Quebec makes money selling Hydro-electricity to other provicnes or to the US, that revenue should be couted towards equalization."

wow, i guess it takes one to know one ;-). hydroelectricity is NOT included in the equalization formula. i'm all for a ten province standard that includes all revenue streams...including quebec hydro and pei potatoes.

robert is right...funny that you didn't grasp the inherent irony of your post. fiscal imbalance, fiscal imbalance; sqawk sqawk.

you have been one of the loudest proponents of assymetrical federalism...but only for quebec. people livng in banana republic's shouldn't throw stones.

4/11/2007 5:15 PM  
Blogger Antonio a dit...

and which assymetrical federalism did I approve of?

the one where a province can opt out of a program that should be managed by provinces...

what a shocker!

the fiscal imbalalnce had to do with the government cutting back on transfers in the 90s to balance their budgets,

so says the Tories, the BQ, the NDP, and half the Liberal Party...

we sat on our hands and are now pouting that Harper is taking credit for policies he is implementing that were brought out from our leadership race...

Some call it "unfair"

I call it politics

4/11/2007 5:25 PM  
Blogger NL-ExPatriate a dit...

I find your post very uninformed and not worth of a lenghty explanation of whay D-Equalization a Federally imposed welfare was really is.

AS for your contention that Quebec's hydro revenues are included you aresaddly mistaken. In fact NL had those revenues clawed back from it as if NL were receiving the 1 billion dollars a year into it's own coffers for quite some time and to this day has never been properly compensated for that slight of hand by Ottawa.

4/20/2007 8:55 PM  

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