A new report conducted by the Fraser Institute has revealed that any province can force other provinces and the federal government to renegotiate the equalization payments.
A new report by the Fraser Institute shows that any province can force other provinces and the federal government to renegotiate the constitution.
In what will be a welcome report to Alberta Premier Jason Kenney and Saskatchewan Premier Scott Moe, the Fraser Institute made a particular note of equalization payments—finding that the payment system could be restructured.
Speaking to the Fraser Institute, Professor Rainer Knopff stated, “If Alberta charts the correct course, it can bring otherwise reluctant governments to the table to discuss fiscal federalism.”
Equalization has long been a point of contention between Western Canada and Ottawa—so much so, that Premier Kenney is considering a provincial referendum on the subject of removing equalization payments from the constitution. If Kenney is successful, the referendum may trigger the “duty to negotiate” is there is also an element of succession.
Last year, the leader of the Bloc Quebecois, Yves-Francois Blanchet, suggested that Quebec had disproportionally sent money to Quebec to pay for pipelines. In reality, Alberta got the short end of the stick, despite unemployment skyrocketing and industry leaving.
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