Minister to Press Ottawa for Adequate Funding For Equalization

FINANCE--Minister to Press Ottawa for Adequate Funding For Equalization

Nova Scotia Finance Minister Peter Christie is heading to Ottawa this week to impress on the federal government the need to adequately fund the equalization program, ensuring the same quality of services to all Canadians.

Mr. Christie and his provincial and territorial counterparts are meeting with federal Finance Minister John Manley on Friday, Oct. 10. For several months now, the provinces have been pushing the federal government to make changes to the equalization formula.

"We have several key issues that we want the federal government to address," said Mr. Christie, "including enhancements to the equalization program, the federal commitment to additional health care and census relief. These are all factors that could seriously impact not just this year's budget, but future budgets as well. We need to hear from Ottawa so we can make proper budget decisions and to continue providing essential services to Nova Scotians."

Mr. Christie said the federal government has reported surpluses in the tens of billions of dollars over the past several years, and therefore has the fiscal capacity to address the provinces' concerns over equalization.

"Nova Scotia has worked hard to present balanced budgets while investing in health care, education and maintaining a competitive economy," said Mr. Christie. "Without some recognition by Ottawa of the potential impact of nationwide pressures, it will be difficult for us to meet our obligations." He added that government is already investigating ways to reduce spending to meet the province's financial challenges.

The census issue alone could have a significant negative impact on those provinces receiving equalization, including Nova Scotia. Statistics Canada recently released final census figures, that showed Nova Scotia's population is growing at a slower than expected pace.

A lower population base could mean less equalization money in federal transfers for most provinces. The total negative impact on the provinces could be close to $390 million. The minister said the specific dollar impact on Nova Scotia wouldn't be clear for months.

"Two things all political parties in Nova Scotia say they agree on is a balanced budget, and making minority government work. We believe all parties should pressure Ottawa for an adequately funded equalization program," said Mr. Christie.