Ottawa's position on this makes me sick. Newfoundland and Nova Scotia are wanting to be put in the same place as Alberta relative to their resources. Until the 1930s, Ottawa controlled the under the ground wealth out west but transferred it to the provinces, making Albertans rich as hell without doing anything but suck the oil out of the ground, just like Ontario gets to pull the ore out of the hard-rock mines in the vast north. Don't buy the sanctimonious hard-work ethic and fiscal conservative clap trap out of Calgary. They live on a hill of gold.
Newfoundland and Nova Scotia also live near a hill of gold - it's just under the sea. All Ottawa needs to do is tranfer the resources under the waters that Nova Scotians and Newfoundlanders have lived off of for centuries - just as Ottawa did for Alberta. But Ottawa won't. Ottawa needs to tie it up with conditions and clawbacks because it apparently believes that an extended period of poverty needs to be imposed now rather than, say, when these have not provinces hit the national average for wealth per person. Newfoundland today rightly told them to stick it.
Newfoundland and Labrador Premier Danny Williams says offshore royalty talks with the federal government are over, describing Wednesday's negotiations with federal Finance Minister Ralph Goodale as fruitless. Williams – who had set a Christmas deadline for a new deal on offshore royalties – said his province and Nova Scotia were told they could not keep their energy revenues without conditions. Describing the federal government's last offer a "slap in the face," Williams said he saw little point in talking further with Goodale. "I am deeply disappointed," he said. "I am not as disappointed for myself as I am for the people of Newfoundland and Labrador," he said.Ottawa is wallowing in surplus and can easily treat the provinces equitably but chooses not to. If Tory leader Harper had half a brain he would be in Atlantic Canada hammering this issue and getting the seats he needs to win. But he would need half a brain. So much for the leadership the country needs.
Comments
Andrew - December 22, 2004 11:38 pm
Aren't the "conditions and clawbacks" that are "being imposed" something along the lines of: If Newfoundland and Nova Scotia become 'have' provinces due to their oil, then they will not be entitled to equalizatin payments.
And, if this is so - then why is this a bad thing? Last I heard the two provinces were trying to have their cake & eat it too....
Alan - December 22, 2004 11:41 pm
I understand it is not that. I understand it is you will be clawed back (something which no other province has had to endure on its path to resource based wealth) before you become a "have province". If there was a delay of the clawback until prosperity that is one thing. But if 80% (or whatever) continues to get clawed back, there never will be prosperity.
Hans - December 23, 2004 10:33 am
Al, I couldn't agree more. Resource-based wealth has been the real ticket to ride for Alberta, Ontario and all the other provinces that were granted resource rights by the Federal Government. All the bullshit about Atlantic Canadian welfare cases need to be viewed through this lens. Now, when NS & NL want to join the party, the Feds get "wise". To me, it seems like a simple equation: The provinces get the resource rights; when the revenue stream becomes a surplus, they no longer receive equalization, but pay into it. What could possibly make more sense than that. Both sides need to make their positions better understood in the public. I don't know much about Danny Williams, but, like, Clyde Wells, he at least stands up for himself and for his province, which may, in the long term, benefit all Canadians.
SayNay? - December 23, 2004 4:54 pm
I thought they were offered an eight year exemption from the clawback which would end once the province's per-capita wealth reached the same level as Ontario or, in the alternative, a guaranteed equalization payment over that time. It seems these Provinces want the resource revenue excluded from the equalization formula. Does that work for you?
It is clear, however, that in economic terms the "clawback" is a disincentive to resource development in the Atlantic Provinces. In fact, it would seem that the whole equalization forumla is a disincentive to economic development in the "have not" provinces ie. 70% of economic gain is "clawed back" - why bother for 30% - but are we not talking about reaching a fair balance here?
What is Alberta's deal on resources and equalization?
Alan - December 23, 2004 4:59 pm
Alberta received its resources and developement subsidization (the CPR) before equalization so it has never had any clawback as far as I know.<p>
We are of course talking about equality and fairness.
SayNay? - December 24, 2004 1:27 pm
I agree that if this prior deal was fair to Alberta then, why would not the same deal be fair to Newfoundland and Nova Scotia now? If it has allowed Alberta to be a "have" province, why would we continue to use this crazy "equalization" system to keep these other provinces down. It really brings into question this whole liberal "share the wealth" equalization nonsense that brought into being after the Altberta deal.