Minister to Make Pitch for Fair Share of Surplus

Finance Minister Neil LeBlanc travels to Ottawa today to make a strong pitch for a reasonable share of the federal surplus to ease the burden on Nova Scotia taxpayers. The minister is attending a two-day meeting with his federal and provincial counterparts.

Mr. LeBlanc said the federal government must take a balanced approach to dealing with its budget surplus, which is more than $90 billion.

"Starting in 1994-95, the federal government made substantial cuts to the Canada Health and Social Transfer payments, which we use to help provide health, education and other social services to Nova Scotians," Mr. LeBlanc said. "In the next federal budget these payments should be restored to 1994-95 levels, which would mean $125 million to Nova Scotia."

Nova Scotia and the other provinces will also be asking that Ottawa remove its cap on equalization payments. Mr. LeBlanc said the federal government can also help by cutting income taxes in a manner that does not negatively impact on the provinces.

The minister said the provinces are making reasonable requests from Ottawa in light of the huge federal surplus and the fact that the federal government has a responsibility to adequately fund important programs such as health care and education. Mr. LeBlanc said the provincial requests would amount to about $18.5 billion, which Ottawa can well afford with its $90-billion surplus.

"Cutbacks in transfer and equalization payments to the provinces played a major role in Ottawa getting to this surplus position. The time is right for Ottawa to start putting part of that money back," Mr. LeBlanc said. "We as provinces want to stress to Minister Martin that when he finally decides how to deal with the federal surplus, he takes into account the fiscal realities of the provinces who are not yet in the same position."