Council of Federation Meeting

Premier Rodney MacDonald will be calling for an effective fix to the fiscal imbalance existing within Canada when provincial premiers and territorial leaders meet in St. John's, Newfoundland and Labrador on Thursday, July 27 and Friday, July 28.

The premier said that strengthening equalization should be the foundation of any plan to put Canada's fiscal arrangements in better order.

"I believe the common goal of all of the premiers is to ensure every province and every territory has the resources it needs to provide its citizens with the services they need from government."

"Nova Scotia is relying more and more on its own success and own revenues. We're attracting leading edge companies like RIM and Register.com, and there are encouraging signs of more offshore activity, but we still have a long way to go before we will be truly self-sufficient," said Premier MacDonald.

"My objectives are to make sure my provincial counterparts understand how proposed changes to equalization can impact Nova Scotia, to remind them of Nova Scotia's potential to contribute to a more prosperous Canada and to identify changes the federal government needs to make in order to provide a more level playing field across provinces."

The premier said he will strongly resist any changes that could clawback the hard fought gains Nova Scotia and Newfoundland and Labrador made through their offshore accords. He said the offshore accords should not be looked at any differently than other economic development initiatives supported by the federal government. "All of our offshore revenues are factored into the equalization formula and add to the pool of federal dollars to be redistributed to other equalization receiving provinces."

The premier added that Nova Scotia supports the recommendations of two expert panels that equalization return to a ten province standard that includes Alberta and the four Atlantic Provinces. "The current five-province standard skews the true picture and is unfair to those provinces with more limited revenue generating capacity."

He said the purpose of equalization, which is enshrined in the Constitution, is to provide for a more level playing field where provinces can provide relatively comparable levels of service at relatively comparable levels of taxation.

"I look forward to meeting with my provincial and territorial colleagues and to working out a fair compromise that recognizes that every province and every region of our country will benefit from a more effective equalization program and a stronger, more united Canada," said the premier.