Imbalanced Fiscally
In a socially conscious and conscientious country like Canada encompassing a vast territory, with each of its provinces differently endowed in natural resources, some generously, others barely, the federal government in agreement with the provinces brought in a programme which has the wealthy provinces agreeing that revenues be re-distributed to the less wealthy provinces so that wherever a Canadian citizen resides they would be afforded similar services and opportunities.
This is a method of income distribution through taxation, through the auspices of the federal government - and enshrined in the Constitution -which has served this country well. Particularly in an earlier era when the federal government exerted considerably greater encouragement toward the provinces through transfer payments to actually earmark funds toward education, universal health coverage and social services.
But the equalization track goes beyond the usual transfer payments.
The federal government is now somewhat less centralized in nature and conversely the provinces have become more autonomous; transfer payments are no longer as purpose-specified as they were and that means that the provinces are no longer equal in the provision of these services, since transfer funds can be earmarked for usage as the provinces see fit to a certain extent.
Some provinces have learned the hard way to manage their resources in a more enterprisingly successful manner than others, and some provinces receive a larger hand-out through the federal transfer of funds than others to address the fiscal imbalance. Canada's two 'wealthy' provinces, each considered to be a lynch-pin in Canada's prosperity, Ontario and Alberta, receive no equalization payments.
All other provinces do receive these equalization payments, ostensibly to bring them up to a target level roughly commensurate with that of the 'wealthy' provinces. Relative wealth is also a fluid commodity; sometimes a province suffers a loss of income and revenue from trade losses or other reasons, but at a later date makes up the difference, stabilizing their economic performance once again.
And some provinces discover valuable resources in their geographies which can be exploited and used to address their balance sheet inequities. Most provinces in Canada now have produced balanced budgets, with the exception of hard-put Ontario (the engine of Canadian prosperity) and tiny PEI. Ontario has been protesting its need for a greater share of transferred funds and arguably its needs should be addressed.
But Quebec, which always screams the loudest of the provinces for an ever-increasing share of the hand-out won't countenance an increase for Ontario if it results in a concomittant decrease in the amount it receives. Nor do newly oil-wealthy provinces now able to balance their books wish to see a decrease in their equalization payments, despite their demonstrated lesser need. What a conundrum.
Not really. All provincial revenues and needs should be re-assessed. Above all, those of the Province of Quebec. The noisiest, most demanding province, always feeling hard done by, always campaigning for more of everything should be informed that the time has passed when it could anticipate receiving more of its share than it deserves in relation to other provinces and the simple issue of fairness.
When 'wealthy' Ontario finds itself unable to provide needed services to its citizens to even begin to compare with those that Quebec lauds itself for on our dime like affordable, subsidized child care, generous parental-leave program and dental care, the equation requires a re-visit, audit and redistribution. The trouble is, Quebec shouts long and hard and insists on what it considers is its just due. It's simply not just toward others' needs.
Stephen Harper's Conservative-led government is determined to go down the same tired old road that previous governments have trodden. His determination to win votes in French Canada and Quebec in particular clouds his ability to visit the issue with integrity. Winning the votes required to place his government in a majority with the next election trumps provincial equality.
And more's the pity.
This is a method of income distribution through taxation, through the auspices of the federal government - and enshrined in the Constitution -which has served this country well. Particularly in an earlier era when the federal government exerted considerably greater encouragement toward the provinces through transfer payments to actually earmark funds toward education, universal health coverage and social services.
But the equalization track goes beyond the usual transfer payments.
The federal government is now somewhat less centralized in nature and conversely the provinces have become more autonomous; transfer payments are no longer as purpose-specified as they were and that means that the provinces are no longer equal in the provision of these services, since transfer funds can be earmarked for usage as the provinces see fit to a certain extent.
Some provinces have learned the hard way to manage their resources in a more enterprisingly successful manner than others, and some provinces receive a larger hand-out through the federal transfer of funds than others to address the fiscal imbalance. Canada's two 'wealthy' provinces, each considered to be a lynch-pin in Canada's prosperity, Ontario and Alberta, receive no equalization payments.
All other provinces do receive these equalization payments, ostensibly to bring them up to a target level roughly commensurate with that of the 'wealthy' provinces. Relative wealth is also a fluid commodity; sometimes a province suffers a loss of income and revenue from trade losses or other reasons, but at a later date makes up the difference, stabilizing their economic performance once again.
And some provinces discover valuable resources in their geographies which can be exploited and used to address their balance sheet inequities. Most provinces in Canada now have produced balanced budgets, with the exception of hard-put Ontario (the engine of Canadian prosperity) and tiny PEI. Ontario has been protesting its need for a greater share of transferred funds and arguably its needs should be addressed.
But Quebec, which always screams the loudest of the provinces for an ever-increasing share of the hand-out won't countenance an increase for Ontario if it results in a concomittant decrease in the amount it receives. Nor do newly oil-wealthy provinces now able to balance their books wish to see a decrease in their equalization payments, despite their demonstrated lesser need. What a conundrum.
Not really. All provincial revenues and needs should be re-assessed. Above all, those of the Province of Quebec. The noisiest, most demanding province, always feeling hard done by, always campaigning for more of everything should be informed that the time has passed when it could anticipate receiving more of its share than it deserves in relation to other provinces and the simple issue of fairness.
When 'wealthy' Ontario finds itself unable to provide needed services to its citizens to even begin to compare with those that Quebec lauds itself for on our dime like affordable, subsidized child care, generous parental-leave program and dental care, the equation requires a re-visit, audit and redistribution. The trouble is, Quebec shouts long and hard and insists on what it considers is its just due. It's simply not just toward others' needs.
Stephen Harper's Conservative-led government is determined to go down the same tired old road that previous governments have trodden. His determination to win votes in French Canada and Quebec in particular clouds his ability to visit the issue with integrity. Winning the votes required to place his government in a majority with the next election trumps provincial equality.
And more's the pity.
Labels: Canada
posted by Pieface | 5:38 PM
0 Comments:
Post a Comment
<< Home