Equalization

Financial Reality is Needed in Maritime Canada: David Mackinnon addresses the Charlottetown Rotary Club, April 2, 2012 in Charlottetown, Prince Edward Island

I’d like to start my presentation with a warning. The warning is that I’m going to speak very frankly about difficult issues. I will be taking fundamental issue with the approach the federal government, P.E.I., Nova Scotia, New Brunswick, Quebec and Manitoba have been taking in relation to the many subsidies the Government of Canada provides to regions.

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Bryan Schwartz

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“If everyone is beholden to government, if you have a supplicant society, people are hesitant about engaging in free thinking and forthright criticism of government because that’s their funder. The other thing is that if you’re dependent on government you are less likely to think imaginatively and innovatively and cleverly about how to solve your own problems.”

To Get There From Here

Rather than aimlessly drifting on a burgeoning stream of federal handouts as the Doer government has done since arriving in office in 1999, Mr. McFadyen declared that he wants, within 20 years, to see Manitoba become a “have” province free of dependence on the rest of Canada to pay 40 per cent of its bills, and to double the population over that same time frame.

Why Alberta Is Not Ontario

Alberta’s early influences were different. European settlement came mostly later with a different mix of immigrants especially early in 20th century, so few migrants to Alberta had any ancestral fear of Americans.

Is Ontario the Patsy Because of Equalization?

Why, he asks, can Manitoba spend $1.2-billion to subsidize electricity prices while it collects $1.8-billion this year in equalization payments? How can Atlantic Canada, with a population of just two million, afford 15 universities? The answer, he says, is the “tidal wave” of funding it gets from Alberta and from Ontario, whose taxpayers provide 44 per cent of federal revenues.