Enough is enough: Outrage surrounding equalization payments
Frustration swept through parts of Canada upon the discovery that Quebec will once again scoop up the lion's share of equalization funds—$13.6 billion out of $26.2 billion—while the Western provinces are left out in the cold.
Every year, criticism is raised about the equalization formula, but nothing has been done to ensure that the Western provinces receive their fair share.
This is why many premiers are now throwing their support behind Newfoundland and Labrador’s bid to sue Ottawa for what they claim are unfair principles in the federal equalization program.
Danielle Smith expressed her opinion via X, saying: “The current equalization system isn’t fair or sustainable. It’s time for a better deal that doesn’t put all the weight on a few provinces.”
Premier Scott Moe is right – the current equalization system isn’t fair or sustainable. It’s time for a better deal that doesn’t put all the weight on a few provinces. https://t.co/GZVrPOn2g0
— Danielle Smith (@ABDanielleSmith) January 2, 2025
Renaud Brossard, vice-president, communications, at the Economic Institute of Montreal, believes that equalization is bad even for the provinces receiving payments.
He explains: “Because of equalization, when a government makes a good decision, it doesn't get the full benefit of that good decision, but it also doesn't bear the full cost when it makes a bad decision.” He gave the example of Quebec Premier François Legault’s decision to ban the extraction of certain natural resources, preventing Quebec from using them for economic growth.
Equalization payments continue to foster growing frustration toward Quebecers, particularly in Western Canada. Renaud Brossard reiterated that the vast majority of Quebecers are in favor of exploiting natural resources: “We've done some surveys at the MEI, and we found that 48% of Quebecers are in favor of exploiting their own oil and gas resources, whereas there's only 30% against.”
Brossard also highlighted the issue of unanimous agreement among politicians in the National Assembly to refuse resource extraction in Quebec: “Unfortunately, when we look at the parties that are currently elected in the National Assembly, none of them say that they're in favor of exploiting those resources.”
With many premiers disagreeing with the equalization formula, and with Canada now on the verge of a general election, we might see some changes in the future.
Alexandra Lavoie
Quebec based Journalist
Alexa graduated with a degree in biology from Laval University. Throughout her many travels, she has seen political instability as well as corruption. While she witnessed social disorder on a daily basis, she has always been a defender of society’s most vulnerable. She’s been around the world several times, and now joins Rebel News to shed light on today’s biggest stories.
COMMENTS
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Jerrold Lundgard commented 2025-01-10 08:19:37 -0500If not for equalization money leaving ALberta, the province of Alberta would have up to date medical schools for physicians, nurses, EMTs, and other medical providers.
Equalization means that the money from Alberta resources goes to Ottawa to die and support “pork barrel” politics -
Bruce Atchison commented 2025-01-09 19:46:21 -0500This proves that equalization is unfair. It incentivises have-not provinces to depend on payments. It also deincentivises rich provinces from bettering the lives of their citizens because the money goes to the poorer provinces. This socialist scam must be scrapped.
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Bernie Moore commented 2025-01-09 13:23:10 -0500Enough is enough the whole thing is set up as a complete scam complete socialism that has never worked shut the thievery down or the west best leave this disgrace called Canada
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Bernie Moore commented 2025-01-09 13:15:58 -0500Nothing for the western provinces and 13.6 billion for the single province of Quebec as Quebec will not open their resources that pay the equallization payments just shut the thievery down
