Sask. will sue over equalization: Calvert

[CBC News]

Saskatchewan will launch a lawsuit against the federal government next week over equalization payments, Premier Lorne Calvert said Wednesday.

More...

 

[FiveParadox]

Re: Federal–Provincial Tension

I am happy to see that The Honourable Lorne Calvert M.L.A. (Saskatoon Riversdale), the Premier of Saskatchewan, is standing up for the people of the Province of Saskatchewan, and for Canadians everywhere. It is, however, rather depressing when the Government of Saskatchewan is providing greater federal leadership than the Government of Canada. The Governments of Nova Scotia and Newfoundland and Labrador should also be applauded for their positions in opposition to this shameful federal administration.

I, for one, hope to see The Right Honourable Stephen Harper P.C., M.P. (Calgary Southwest), the Prime Minister of Canada, has his ass handed to him through the judicial process that is to ensue. In the meantime, let us hope that the Atlantic offshore revenue agreement can be salvaged, if The Honourable Senator Céline Hervieux-Payette P.C. (Bedford), the Leader of Her Majesty’s Loyal Opposition in the Senate, has the conviction required to engineer this failed budget’s outright defeat.

 

[Unforgiven]

I sure agree with that and I wonder what sort of backdoor deal will be slapped together once someone stands up to Harper?

 

[BitWhys]

and Harper's response was to make fun of it during QP as if the other nine premiers wouldn't notice the lack of respect. he must enjoy being in damage control mode all the time.

 

[Unforgiven]

It's like a drug or something for them. And they wonder why they have to tall all the backbenchers to shutup and say nothing unless it's scripted by the PMO now. They've turned stupid into a commodity and cornered the market.

 

[FiveParadox]

Re: Conservative Fissures

Perhaps Mr. Harper will continue this shameful display of federal mismanagement.

If so, we might even be able to hope for the Conservative Party of Canada to tear itself apart from the inside. Perhaps Conservatives will begin to recognise their error in merging as one radically-disorganised party, and dissolve themselves back into the Progressive Conservative Party of Canada and the Canadian Alliance (and, in the process, relegate such regressive members to the opposition side of the House of Commons for another one or two decades).

 

[BitWhys]

don't hold your breath. Keddy and MacKay have already proved they're perfectly happy being lackeys.

 

[tdway]

What is Saskatchewan suing over? They had no accord with the Feds over natural resource revenue.

The provinces want a change to the equalization program. They didn't want natural resource revenue included in the calculation and Harper delivered. Promise made, promise kept.

"Why are they so upset" you might ask. Because not only did they want to have the resource revenue excluded from the calculation, but they want to keep the amount of money they were receiving to stay the same. So they wanted to "have their cake and eat it too". I'm sorry, but you can't double dip.

N.S. and N.L. have the option of keeping the Atlantic Accord and not be apart of the new equalization program. But low and behold they will be getting more money under the new program. And yet they complain. If they don't like the new program, stick with the Accord.

Saskatchewan is on the brink of becoming a "have" province (could have been achieved many years ago if they had a oil friendly gov't). So now that they will no longer be suckling on the Canadian teat, they are scrambling at anything to keep the money flowing from Ottawa.

To the people of Saskatchewan, stand up and be proud of what you have done so far and take control of your own destiny. Don't be dependant on the federal government!!!

 

[FiveParadox]

Re: Saskatchewan’s Legal Pursuits

This coming from someone who openly promotes the dissolution of the Confederation. :roll:

Saskatchewan is pursuing legal action, because this Government refuses to respect its solemn word, and it refuses to respect the Provinces of Canada. Canadians now have no reason whatsoever to trust the Conservative Party—the only option now is for the Senate to refuse to pass this Government’s flawed and shameful budget implementation legislation. (This is why I support the principles behind an appointed Upper House—the right and prerogative to act independently of the executive.)

 

[BitWhys]

...They didn't want natural resource revenue included in the calculation and Harper delivered...

8O

:lol:
C-52
section 64
subsection 3.5 (1)
article (e)

:roll:

 

[FiveParadox]

Re: Section Citation

I’m afraid you may be looking at the wrong section of the bill, BitWhys. :-?

65. The description of M in section 24.2 of the Act is replaced by the following:

M—is the amount obtained by multiplying the total equalized tax transfer for the province as determined in accordance with section 24.7 by the quotient, rounded to the nearest hundredth, that is obtained by dividing an amount equal to the cash contribution specified in subparagraph 24.1(1)(a)(i) by an amount equal to the aggregate of the cash contributions specified in subparagraphs 24.1(1)(a)(i) and 24.4(1)(a)(i).

I don’t seem to be able to find any subsection 3.5(1), nor any subclauses thereof.

 

[BitWhys]

I’m afraid you may be looking at the wrong section of the bill, BitWhys. :-?


I don’t seem to be able to find any subsection 3.5(1), nor any subclauses thereof.

oops

Section 64

“revenue source” means any of the following sources from which provincial revenues are or may be derived:
(a) revenues relating to personal income;
(b) revenues relating to business income;
(c) revenues relating to consumption;
(d) revenues derived from property taxes and miscellaneous revenues; and
(e) revenues derived from natural resources

edited. hope you don't mind

 

[FiveParadox]

Re: Resource Revenue

Ah, perfect. Thanks, I looked around for what you were talking about, but the bill is huge. :lol:

Looks to me, quite clearly, that the Government is lying through its teeth to Canadians, hoping that nobody realises that the legislation is available online or from the Library of Parliament via mail. How stupid do the Conservatives believe Canadians are? The Senate should strike clause (e) from the legislation, and return it to the House of Commons for reconsideration.

 

[BitWhys]

...Looks to me, quite clearly, that the Government is lying through its teeth to Canadians, hoping that nobody realises that the legislation is available online or from the Library of Parliament via mail...

That's the funny part. The way its set up Nova Scotia and Newfoundland and Labrador have to pull the trigger on the Accord themselves so the more you get into the details the more small-minded the Conservatives look. Harper is underestimating Canadian's sense of fair play. It doesn't matter who pulls the trigger, the Accord shouldn't even be on the table.

The same twisted logic held afa the election promise was concerned until Saskatchewan spoke up since they were offered no choice in the matter at all Harper can't pin it on them. :lol:

 

[tdway]

Oops, I stand corrected. Here is the info on the changes to the equalization formula taken from the finance department's website (http://www.fin.gc.ca/FEDPROV/eqpe.html).

• Budget 2007 introduces a new program legislated through 2013-14 to provide long-term predictability for provinces. The new program is based on the recommendations made by the Expert Panel on Equalization and Territorial Formula Financing (O’Brien Report).
  • Equalization payments will be determined using a 10-province standard.
  • 50% of natural resource revenues will be excluded in determining each province’s fiscal capacity and the standard.
  • The new Equalization program will include a fiscal capacity cap to ensure that Equalization payments do not raise a province’s total per capita fiscal capacity above that of any non-receiving province.
  • Provincial fiscal capacity will be measured using five tax bases – personal income tax, business income tax, consumption tax, property tax and natural resources.
  • To ensure stability and predictability, Equalization payments will be made based on a single estimate system. Payments will be based on a three-year weighted moving average of provincial fiscal capacity lagged two years. Payments will be determined in advance of the year and will not be subject to revision.
• Under the new Equalization program, provinces will get the greater of the amount they would receive by fully excluding natural resource revenues, or by excluding 50% of natural resource revenues.
• Nova Scotia and Newfoundland and Labrador will maintain the benefits of the Atlantic Accords. The two provinces be able to continue to operate under the previous Equalization system to receive the full benefits that they are entitled to under the offshore agreements. These provinces can choose to permanently opt into the new program at any point prior to the expiry of the offshore accords.
• In recognition of recent significant impact of the property tax change on British Columbia, the new program provides additional protection to British Columbia by retaining the existing adjustment factor for its residential property tax in the calculation of its Equalization payments for a three-year transitional period. Payments to other provinces will not be affected.

All it all, it means $1.5 Billion more going to the provinces for this coming year compared to the old formula.

 

[BitWhys]

...All it all, it means $1.5 Billion more going to the provinces for this coming year compared to the old formula.

Be aware this is reflective of increased central revenues, not some great sacrifice on the part of the government of the day.

 

[tdway]

The new formula was based on "expert panel's" suggestion on how to amend the formula. I'm going to go out on a limb a say that you are not a big fan of the new formula. Can you please recommend a formula that attempts to correct the current fiscal imbalance and provides more money to the "have-not" provinces without completely raping the have provinces?

 

[BitWhys]

The new formula was based on "expert panel's" suggestion on how to amend the formula. I'm going to go out on a limb a say that you are not a big fan of the new formula. Can you please recommend a formula that attempts to correct the current fiscal imbalance and provides more money to the "have-not" provinces without completely raping the have provinces?

Actually I couldn't care less about the actual new formula right now since the way its spelled out in the bill basically goes right over my head. I'm just saying the new funds aren't any sort of miracle, is all, and even if the new formula IS the greatest thing since sliced bread its still a broken CPC promise that without question could have been handled with much more finese.

mind you considering its Harper and Flaherty that last point is probably a bit of a stretch.