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British Columbia supports Newfoundland and Labrador in challenging equalization

Photo: Darryl Dyck The Canadian Press British Columbia Premier David Eby speaks during an announcement in Delta, B.C., on March 18.

Lyndsay Armstrong – The Canadian Press in Halifax

Published at 6:45 p.m.

  • Canada

The Prime Minister of British Columbia says he wants to “support” Newfoundland and Labrador, which intends to sue Ottawa over the federal equalization program which transfers money from the most rich to the poorest. A formula he calls “completely absurd.”

David Eby told reporters Monday that he hopes to have an announcement on the subject before the end of the meeting of three days of Canadian Prime Ministers in Halifax, which is scheduled to conclude on Wednesday.

Eby says British Columbia taxpayers are being disadvantaged by the equalization formula, which is Ottawa's attempt to reduce regional wealth disparities across the country.

< p>“What really frustrates me, and it's an issue I bring to the [Council of the Federation] table and in general, is that British Columbia taxpayers are sending taxpayers to Ontario through equalization. This is completely absurd. “Ontario has no difficulty providing schools or hospitals,” Eby argued.

British Columbia has not received payments equalization for over a decade.

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Mr. Eby adds that equalization “has paid $1 billion to Ontario over the last two years, while British Columbia has not benefited from equalization. Our taxpayers are struggling, like everyone else, with affordability issues. »

On May 30, Newfoundland and Labrador announced that the province would file a constitutional challenge against Ottawa over the program “in the coming weeks.”

The government of Newfoundland and Labrador has argued that the formula was wrong and that the province could have received between $450 million and $1.2 billion over the course of each of the last five years instead of receiving nothing.

Newfoundland and Labrador Premier Andrew Furey said Monday that despite legal challenge from his province, he hopes that upcoming negotiations with the federal government will allow both parties to avoid legal action.

“But again, we are firm in our proposition that the [equalization] formula is not applied equally. It does not take into account the cost of providing services. Therefore, it does not reflect the spirit of what was signed in the Constitution,” Mr. Furey told reporters Monday in Halifax.

Mr. Furey said he had “good meetings” about equalization with Mr. Eby, Alberta Premier Danielle Smith and Saskatchewan Premier Scott Moe, who has previously expressed his willingness to join Newfoundland and Labrador's legal action.

Mr. Eby did not confirm today whether his province would join the lawsuit, but he said the status quo is “totally unacceptable.”

“I am still frustrated with the federal government for offering programs to other provinces that are not available in British Columbia,” he reiterated, adding that Ottawa announced it would spend $1 .2 billion for a hospital serving First Nations in Northern Ontario.

“Let me tell you, we could definitely use investments like this there in British Columbia,” he said.

Teilor Stone

By Teilor Stone

Teilor Stone has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining Thesaxon , Teilor Stone worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my teilor@nizhtimes.com 1-800-268-7116