For more than 20 years, the cracks in Canada’s system of equalization and regional subsidies have been increasingly obvious. But few have had the knowledge, or the political will, to find a solution to the problem.
The release of two new studies last week makes it clear that we must confront some painful realities.
A paper by the Winnipeg-based Frontier Centre for Public Policy conclusively demonstrates that public services in the provinces that fund equalization, including Ontario, the largest contributor, are inferior to those available in recipient provinces.
This is shocking, considering that equalization was established in 1957 to help the so-called “have-not” provinces provide the same levels of public services to their citizens as the wealthier “have” provinces, without having to resort to punitive levels of taxation.
Of course, Ontario is now itselfreceiving equalization payemnts. But the money coming into the provinceis far exceeded by the money going out from Ontario taxpayers to the otherhave-not provinces, via Ottawa.
Despite a 50-year history of massive fiscal transfers – $2,500 in 2008 alone for every man, woman and child in Ontario and Alberta, for example – the most disturbing thing is that there has been no measurement system in place to determine whether or not this is effective, efficient and fair to all Canadians.
Does it really matter if public services are better elsewhere than in Ontario?
[More]
Notes:
I’ve been following this situation the past couple of days because it’s important and needs a lot more exposure. The great sucking sound Canadians hear as their tax dollars disappear originates in one place and as we all got to see the other day the culprit is readily apparent.
It’s time to re-write this movie and end the pain.
My view — in the next general election there should be a VERY clear referendum question:
“Should Quebec be kicked out of Canada?”
The answer?
A loud and clear “OUI”.
After four decades of this bullshit I’m very tired of being blackmailed and we are far better off without the “crabgrass politicians” they continue to elect.
Crabgrass should be weeded.
So go ahead Quebec. Call that election and permit Canada to give Harper his NEW mandate.
I know Captain Kirk said we had to “dream big” last night and then I read this in all places, the Toronto Star:
“But times have changed. Polite fictions aren’t going to cut it anymore. This is a time for courageous leadership and honest dialogue – in the interests of all Canadians. In this, Ted Morton, the new Alberta finance minister, is exactly right.”
…. Am I dreaming? The Star agrees wiith Ted Morton ? … even Albertans wouldn’t elect him Conservative leader because he was too conservative for their chattering class.
There are 2 big problems in Canada; Equalization and disproportionate government union jobs bleeding the private sector dry and thus killing real job growth. But unlike the EU’s problems or US deficits; our 2 big problem items are fixable. All that needs to happen is more articles from the Star like this one and informed voters will replace MPs and MPPs because “fictions aren’t going to cut it anymore”. This century will be Canada’s.
Liberal incompetence has done more damage to Ontario than equalization, but equalization has damaged the country as a whole, it is a subsidy for politicians, that is all.
Good points nomdeblog but I wonder if your last sentence would be more appropriate if it read “should and can” instead of “will” as t think the latter word is a little too positive when one considers the hesitancy of the average Canadian voter to change.
You are especially right in mentioning the disproportionate government jobs, outside of them bleeding the private sector dry they unfortunately form a massive voting block
which when combined with the teacher’s unions and various crown corporations make the status quo very difficult to overcome.
Let’s make it real easy. All members of parliament must be required to swear allegiance to Canada. Quebec, don’t let the door hit you on the way out.
BTDT that’s an even better idea.
And whose going to kick Qubec out? Certainly not any of the present federal parties and Quebec will not now leave on their own until the sucking is complete. Nothing left in that teet with apologies to our lady readers.
Agree Don, the century “will” be Canada’s only IF the voter gets sufficiently informed to throw a lot of the bums outs. And maybe I’m dreaming but if the Star keeps printing articles like that and with McGuinty talking about selling the LCBO (government union busting by stealth) then my dreams might come true before we reach the tipping point you warn about of more CUPE voters then us.
Ohhh … and Quebec will leave the same time that Greece leaves the EU. Meanwhile what is really happening in Quebec and Greece is the negotiating process of the end of welfare transfers to bloated public sectors and entitlements in failed states.
Re: #6 — “And whose going to kick Qubec out?”
Everyone!
Take it to the bank.
No one will unfortunately ‘kick Quebec out’ as the Country has three ‘butt kissing’ left leaning parties running this Country. ‘More Please’ has become Quebecs national cry and the federal government will continue to shower them with our tax dollars saying ‘please dont leave’ and officially apologize for the English defeating the French on the Plains of Abraham which started all this ‘bull….’ in the first place.
Again, my apologies to Jack’s sensitive readers.
The twin tapeworms of “equalization” and government unions are parasites that the host could nourish while it was fat. But there is no more fat.
According to Statistics Canada there are 3.5 million Canadians employed in the public sector out of 16.9 million working Canadians – 20.7 per cent! This means we only have 4 Canadians in real jobs to support those employed by the public sector. Obviously we need some public services…cops , firemen and and …maybe that’s it? Everything else is a candidate for possible privatization.
Those Provinces with the largest public sector are also receiving ‘equalization”. The solutions are pretty obvious
While we are on the subject of privatization, theres no reason that some policing, firefighting and even some military services couldnt be tendered and contracted out.
I read somewhere that the second largest foreign army in Iraq and possibly in Afghanistan, are contract militia like the American Blackwater private firm supplies. http://en.wikipedia.org/wiki/Blackwater_Worldwide
I really don’t want to kick anyone out of Canada. I would like everyone to pay their own way though. If Quebec wants daycare let them have daycare paid for by Quebecers.
If we got rid of equalization would there be any reason for Quebec to stay?
johndoe124
The answer is “NO” that’s why we should get rid of equalization.
“The twin tapeworms of “equalization” and government unions are parasites that the host could nourish while it was fat. But there is no more fat. ”
THAT is the elephant in the room and it doesn’t matter about Quebec because all the provinces and the feds are in on the “deal”. If one cared to examine government decision making from whatever level over the years, those decisions are made to ensure that the cash flow goes to government to fund their salaries, perks and especially their pensions.
No political Party will “kick Quebec out”, because that would effect all government employee pensions and payrolls. Those pensions are invested in the same bonds and corporations that we use to fund our retirement. As for “us” – we don’t count in any of these decisions. You got health care? Well, you got health care because government employees wanted health care, CPP, northern allowance, and any and all other tax perks available to you if you qualify.
“We” will have to wait until the seat count rises outside Quebec, which it will eventually and then an election can be held to enable the ROC a proper voice at the table. Once seats outnumber Quebec’s, then things will happen.
Expect a fight when it does.
As I said the last time this issue came up, the equalization scheme was and is a vote getter. (Quebec?)