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    Alberta vs Federal Government

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    Wednesday, May 24, 2006
    Alberta threatens to drop out of equalization deal with other provinces


    EDMONTON (CP) - Alberta is threatening to drop out of the federal government's revenue-sharing deal with other provinces if energy income is included in the equalization formula.
    Premier Ralph Klein says he's seeking a legal opinion to see if Alberta has the right to pull out, and says he'll fight "tooth and nail" against attempts by Quebec or other provinces to tap into Alberta's energy windfall.

    "We will participate if the feds and the provinces conclude that there ought to be a 10-province standard," Klein said Wednesday. "But we won't participate if resource revenues are included."

    The premier said the Constitution clearly states that Alberta has control and authority over its resources.




    "This is a political showdown, but this is also a constitutional issue."

    The federal Conservatives will have a battle on their hands if they don't live up to their election promise not to include resource revenues in the equalization formula, said Klein.

    A recently released report prepared for the federal government called for 50 per cent of resource revenues to be included in the calculation of equalization. A report prepared for the provinces called for all resource revenues to be used in the calculation.




    But Klein said he won't stand for that and he's hoping that the sanctity of resource revenues will be reflected in another report being prepared for Ottawa.

    "The federal government has given a commitment that they will resolve the issue by this fall, so we'll wait and see what they do."


    The Alberta premier is girding for what he calls a political showdown with Quebec and Ontario at a special leaders meeting following the western premiers conference in Gimli, Man., next week.

    Alberta expects strong support from premiers in western and Atlantic Canada, and Klein said he wants the issue resolved before he retires in the late fall.

    Equalization is a complex and often misunderstood system of revenue sharing between provinces.

    Currently, the federal government calculates the fiscal capacity of each province, then establishes a standard by averaging the capacity of five provinces: Quebec, Ontario, Manitoba, Saskatchewan and British Columbia.

    Ontario, Alberta and Saskatchewan currently are above the standard, but all other provinces fall below and receive equalization payments from federal coffers to ensure similar services nationwide.

    But most provinces are now pushing for a standard based on the fiscal capacity of all 10 provinces, including energy-rich Alberta, so that they will receive more money.

    Prime Minister Stephen Harper's letter to the provinces during last winter's federal election campaign promised an equalization formula based on an average of 10 provinces and excluding resource revenues.

    Federal Finance Minister Jim Flaherty has said recently that the Conservatives are sticking to that election promise.

    He was travelling Wednesday and was not available for comment.

    #2
    Ralph likes to dwell on "perceived" threats so that he can get everyone stirred up and most importantly it gets 'him' in the news so as to show how Alberta's government is sticking up for our interests.

    Much todo about nothing so far.

    I say not to worry, and for gawd's sake Ralph, wait until AFTER next week's meeting before spouting off.

    Comment


      #3
      I would find it more interesting to hear what the leadership candidates have to say after the meeting next week.

      Comment


        #4
        For once I will basically agree with wilagro! Ralph is shooting from the lip again for no real purpose!
        I doubt he is doing it to get his name in the lights? After all what does he care, his days are numbered and he really doesn't need to impress anyone?
        This equalization thing is going to be quite a tightrope for Mr. Harper to walk? He's got to burn Alberta if he hopes to appease Quebec and Ontario!
        I wonder how the people of Alberta will view this? Will they finally wake up to the fact that this country called Canada will never work for them? Or will they blindly agree to "share" some more? So the Quebecs of this world can continue to live in Utopia, never coming to a state of reality? Living in bliss on the backs of the people of Alberta?

        Comment


          #5
          Gee sure sounds like the oil patch dosent it all those people living in utopia on the backs of everyone,
          My nieces Husband is in the consulting gig and he is up to the 1500$ per day plus bonuses , And who was it exon that made the largest 1/4 profit in U>S history. You had better be careful who you throw rocks at cowman, I dont think those frenchmen are all that expensive.

          Comment


            #6
            Horse, would you turn down $1500 a day if it was offered to you ? If someone has a skill set they can market in this time of an economic boom, then more power to them. I was happier than hell to accept an average of $850 plus for my calves a few years ago, and I will no doubt get less this fall,and so will the consultant if and when things go south in the oil industry .

            Comment


              #7
              Well Horse, we know the oil patch does something for just about everybody in Alberta...including you! Not so sure what we get from the frenchmen? Like what have they done for us lately? Or ever for that matter?

              Comment


                #8
                Maybe one of the number crunchers on this site can provide data on just how much Alberta has forked over in equalization payments over the last ten years.

                Comment


                  #9
                  Well I'm not a number cruncher, but will take an uneducated guess? If we figure $6 billion a year average...voila $60 billion?
                  Three million people in Alberta...if we count all the Johnnie come latelies and other assorted squatters...and you have
                  about $20,000 per person?
                  A family of four...$80,000? Or about $8,000 a year over ten years? Might just make the payment on the SUV?
                  So drive an old junker and know you could be driving an Escapade! All for our good buddies in Quebec?...probably driving an Escapade?

                  Comment


                    #10
                    Oh and one more thing you should realize...the $6 billion average is now around $12 billion, so you need to up those figures? And further...that isn't enough? They actually want a bit more?
                    I guess a trashy Caddilac per family isn't quite good enough....they need a Ferrari or a Lambordini!

                    Comment


                      #11
                      I am all for helping our fellow countrymen, but the money we have sent to other provinces would go a long way to put some of our infrastructure back in shape and build more. The way I see it every dollar invested in Alberta helps the rest of Canada at some point in time because we pay a huge whack of income tax so that must help somebody, or at least provide lots of jobs somewhere.
                      The crisis in the fishing industry in Newfoundland makes Alberta an attractive place to move, watched a program the other evening where a couple nearing retirement were planning to move to Alberta because they knew they could find jobs here. We need those people because there are many jobs retirees can do, that seem impossible to fill given the current labor shortage.
                      I think Alberta can help other provinces and I am sure we are all willing to step up to the plate and do so, but I would like it to be on our terms, putting money where it was needed and will be used to the best advantage for folks who aren't as fortunate as we are, vs having the feds help themselves and pass it around like candy.

                      Comment

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