Sue Kelland Dyer - Adding Sarcasm & Wit to the Equalization Fiasco
I’m sure Ms. Dyer presented the plan with her tongue firmly planted in cheek, (I know she brought a smile to my face) but she also raised some good points in the process and since Sue hasn’t been doing much writing lately (and I was stuck for an article) I figured I’d share her thoughts with you all. (paraphrasing of course)
The idea was quite novel really.
First the background:
As we all know Stephen Harper promised on multiple occasions, in several locations and in two elections to remove non-renewable resource revenue from the equalization calculation. No Caps. No 50% inclusion. No limitations of any sort. 100% removal was the promise made and the promise broken. Harper claims the government didn't break any promises. Yes, He and the Conservative party did break a promise but since they weren't actually the government at the time he made the promise, technically I guess he's right. (Don't you just love the ease with which sleazy politicians twist the truth)
Anyway, enough said on that.
Another fact is that equalization is based in part on a province’s population. Essentially the federal government does a head count, identifies how much revenue a province has at its disposal and based on both of these figures calculates the amount of equalization to deliver (or not) to the province.
In the Newfoundland and Labrador context, we all need to understand that the backbone of our economy for centuries has been the fishing industry. A fishing industry that has been decimated because of mismanagement and trade negotiations carried out by the federal government. As a result of their mishandling of the file the province’s fishing industry collapsed a couple of decades ago resulting in a moratorium being instituted in 1992. Fifteen years later the cod still haven’t returned.
The moratorium saw over 20,000 people leave the province at the time and the exodus is still going on. As a result, thousands upon thousands of Newfoundlanders and Labradorians are now having their heads counted elsewhere and, in addition to working and paying taxes, are helping to increase the amount of equalization funding provided to other provinces. On the flip side of the coin, since the head count here has fallen so dramatically the amount of equalization available to Newfoundland and Labrador continues to fall.
The idea is simple according to Sue. (I just love this) Since the federal government presided over the collapse of our province’s main industry, Newfoundland and Labrador should simply agree to accept the equalization cap and even the inclusion of 50% of resource revenues, but only when the cod come back.
The federal government presided over the collapse of the province’s economic engine so the least they should do is allow Newfoundland and Labrador to generate economic stimulus needed to replace it.
Good one Sue. I doff my hat to you.