No Consensus Reached on Equalization

Premier Rodney MacDonald said he was disappointed premiers were not able to reach a consensus on equalization during their meetings in St. John's, Newfoundland and Labrador this week.

He said Nova Scotia went to the table hoping that a consensus could be achieved. "We talked about equalization and the fiscal imbalance, but were not able to find common ground."

The premier said equalization, which is enshrined in the constitution, guarantees all Canadians have access to comparable levels of service, at comparable levels of taxation. "It is obvious that equalization has not completely lived up to its stated objectives. No one could ever reasonably argue that Nova Scotia's tax levels are as favourable as wealthier provinces. Similarly, we have challenges in delivering comparable levels of programs and services."

Premier MacDonald said the federal government can make equalization work more effectively. "Equalization needs to be based on transparent principles, fairly applied, fully funded, and seriously address Canada's long-standing fiscal disparities."

"I am confident Prime Minister Harper understands that Nova Scotia and Atlantic Canadians have a tremendous amount to contribute to an even stronger, more prosperous Canada and that he and his government will do everything they reasonably can to support us in our efforts."

"While we did not make the progress I hoped on equalization, we did have very productive discussions on other topics such as national and international trade issues, our fisheries and agricultural sectors, healthy living initiatives, the National Energy Strategy, pandemic preparedness and a national pharmaceutical strategy. As well there was good discussion with the governor of the Bank of Canada on the rising Canadian dollar and its impacts on our economies."

The premier concluded, "I will continue to present Nova Scotia's position to my provincial colleagues and the prime minister in the coming weeks and months; that equalization be based on a 10 province standard, inclusive of all resource revenues and user fees and that the program not be limited by artificial ceilings."

The premier also reiterated that the offshore accord reached with Ottawa in 2005 is non-negotiable. "Any discussion that would impact the accord is a non-starter," he said.