Premier Danielle Smith continues to play diplomat in hopes of salvaging Alberta's place in Confederation, tabling fairness on federal transfers and equalization as a must.

"The federal government must provide to Alberta the same per capita federal transfers and equalization as is received by the other three largest provinces, Quebec, Ontario and British Columbia," Smith said in her address yesterday afternoon.

The Premier announced the "Alberta First" panel yesterday to consult residents on next steps, should Ottawa not reset its relationship with the province.

Alberta and Saskatchewan Premiers Danielle Smith and Scott Moe supported legal action against Canada's equalization program, which doesn't provide payments to their provinces. A majority of Albertans (61.7%) wish to remove equalization from the constitution.

"The current equalization system isn't fair or sustainable," Smith wrote on social media. "It's time for a better deal that doesn't put all the weight on a few provinces."

Smith added to those remarks Monday by clarifying that Ontario and Quebec, which have larger economies, should not be beneficiaries of the program.

"We have no issue with Alberta continuing to subsidize smaller provinces with their needs, but there is no excuse for such large and powerful economies like Ontario, Quebec, BC, or Alberta to be subsidizing one another," she said.

"That was never the intent of equalization," the Premier clarified, "and it needs to end."

In a January media appearance, Poilievre stated he would not make significant changes to the equalization program, prompting a reporter to question why Westerners should vote for him.

"First of all, we need to enrich all the provinces, and I'm the only one with a plan to do that," Poilievre replied, nodding to his plan to unleash Canada's economic potential. That includes repealing the "no more pipelines bill," scrapping the energy cap, and revoking the tanker ban.

On the campaign trail, he supported the rapid approval of resource projects within 6 months and proposed setting up "shovel-ready zones" that have pre-established permits for a wide array of infrastructure projects.

"We need to unleash massive economic growth in this country for every single province after the last Liberal decade," he said, noting Canada has suffered with a smaller GDP growth than any other G7 country.

"The Liberals have done nothing but divide provinces against each other," Poilievre said. "I want to unite this country."

Following the 2008 financial crisis, Ontario became eligible for equalization payments, marking the last major change. Subsequent adjustments have been minor and technical.

Former finance minister Jason Kenney stated that equalization payments would increase annually at the national economic growth rate, irrespective of the disparity between wealthier and less wealthy provinces.

Despite a narrowing fiscal gap between "have" and "have-not" provinces, Québec's power exports are not included in that calculation. 

In fiscal year 2025/26, the equalization program will allocate a record $26.2 billion to "have-not" provinces. The largest recipients are Québec ($13.6 billion), Atlantic Canada ($7.3 billion), Manitoba ($4.7 billion), and Ontario ($546 million).

An omnibus parliamentary motion in 2023 quietly amended the equalization formula until 2029, drawing criticism from Western premiers over no consultations.

Equalization has cost Albertans $67 billion since 1957.

The federal government makes annual equalization payments based on the ability of provinces to raise revenues.

Premier Smith tabled a paper critical of overcompensating provinces that "under-report certain sources of revenue." It proposed redistributing excess GDP to all provinces on a per capita basis after the fact. 

She lauded the importance of "nation-building" projects like Energy East to bring Canadians together. It faced considerable pushback from Québecers and Ontarians before its untimely cancellation in 2017.

Smith also warned of consequences if Prime Minister Mark Carney did not reset Ottawa's relationship with Alberta. 

The Premier stated that if a citizen-led referendum petition on equalization gathers enough signatures, the government will respect the democratic process and include the question on the 2026 provincial referendum ballot.

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