Equalization panel aims to find fairness for Alberta
http://www.cbc.ca/news/canada/calgar...erta-1.3453666
Alberta's contribution to equalization payments has come under fire during the economic downturn and now the Wildrose Party wants a team of experts to come up with a way to fix it.
A panel of economists from Alberta, Ontario and Nova Scotia will analyze the equalization program and submit a report to the Alberta legislature by October 15.
"These are Albertans hard earned dollars and we have to suffer here in Alberta as a result of what's provided to the rest of Canada," said opposition leader Brian Jean.
Equalization was initially set up to ensure that Canadians are offered the same standard of living regardless of where they live.
Alberta's contributions to the program have exceeded the amounts transferred back since the 1960's, whereas other provinces have received more than they put in.
On average over the past 10 years, Alberta pays between $15 to 20 billion a year in equalization payments to Ottawa.
Now Alberta's ability to pay is hampered by an economic recession due to falling oil prices.
But Alberta panelist and economic expert Frank Atkins says looking into equalization right now is not due to the downturn.
"As a matter of fact, it's when Alberta is really booming and really paying into equalization that you can really see the fundamental flaws in the equalization system."
Atkins says the panel is non-partisan, and aims to find a more fair formula for the whole country. They will be asking for public input.
Atkins will be joined by David MacKinnon and Ben Eisen from Ontario, and Marco Navarro-Génie from Nova Scotia.
The current equalization agreement expires in 2019.
It's about time.
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