Fiscal Imbalance Could Leave Ontario Odd Man Out

[Nocrap]

Yesterday's throne speech promised to address the "so-called fiscal imbalance". That was expected.

Jim Flaherty has already been all but calling it a myth and suggests that the Atlantic Accord deal could also be scrapped (Toronto Star)

"The Conservative campaign promise to remove revenues from non-renewable natural resources from equalization calculations has muddied the picture.

Any move to do that could further anger McGuinty. That's because taking energy resource revenues out of the equation would mean that Ontario — one of only two provinces (along with Alberta) that does not receive equalization payments — would have to pay out more than it otherwise would. "

Albertans will be dancing in the streets.

However, I have a problem with Jim Flaherty having anything to do with the debates. He left the opposition party of Ontario to run in the federal election, so how can we expect him to do anything to help the Ontario Liberals?

His conservative party was given a resounding kick to the curb after scandal and corruption paved the way for a Liberal victory.

But perhaps, more importantly, his wife just won his seat. She is now a member of the opposition party in Ontario that will come off smelling like a rose if McGinty is forced to cover Alberta's share. Can you imagine the pillow talk?

Flaherty's Wife Wins His Seat

Of course Ontarians can be reassured with Harper's Accountability Act. There is no way he will allow Flaherty to vote on the issue. He'll make him leave the room, right? Am I right? Anyone?

[GreenWhiteandPink]

There is no fiscal imbalance. It just a ploy some provinces use to blame the feds for their problems. Any government running a deficit has to do one of two things 1) Cut spending 2) Raise taxes, neither is politically popular, so in some provinces choose a third option ...blame the federal government.

[geoffrey]

Non-renewable resource money should stay in the regions that produce said goods in order to diversify their economy. Ottawa has no business in Alberta oil.

However, they do have a business in Maritime oil, as long as we are paying them money, resource revenues should count in the transfer payments.

Actually, in all honesty, there should not be transfer payments.

That being said, the corporate welfare auto industry could now be labelled as non-renewable...

[Nocrap]

Non-renewable resource money should stay in the regions that produce said goods in order to diversify their economy. Ottawa has no business in Alberta oil.

However, they do have a business in Maritime oil, as long as we are paying them money, resource revenues should count in the transfer payments.

Actually, in all honesty, there should not be transfer payments.

That being said, the corporate welfare auto industry could now be labelled as non-renewable...

The idea of confederation was that all provinces and territories could share the wealth. The "Have" provinces would help out the "Have-Nots".

Correct me if I'm wrong, but when Alberta was in an economic crisis, didn't Newfoundland or one of the Atlantic provinces send them fish? Can't remember where I heard that. Maybe one of the debates or perhaps it was ancient history.

I do believe in transfer payments but all revenue should be considered on a year to year basis like income tax. If Alberta is allowed to keep their oil revenues out of the equation, conceivably they could be eligible for transfer payments - just what they need - MORE MONEY!

My point in this case, however, is that when Ontario bellies up to the bar, Jim Flaherty must step back due to conflict of interest. If his wife is a member of the Ontario opposition, he cannot have a say in any decision that would negatively affect the current Ontario Liberal government. This would be partisan politics at it's worse. We will have another provincial election in 18 months and his actions could affect the outcome.

Ethics? Accountability?

[cybercoma]

Non-renewable resource money should stay in the regions that produce said goods in order to diversify their economy. Ottawa has no business in Alberta oil.

However, they do have a business in Maritime oil, as long as we are paying them money, resource revenues should count in the transfer payments.

Actually, in all honesty, there should not be transfer payments.

That being said, the corporate welfare auto industry could now be labelled as non-renewable...

The federal government will not let the maritime provinces collapse, like you're suggesting, thank god. Perhaps if Ottawa didn't take the maritime oil money they wouldn't need transfer payments to the extent that they do now. The maritimes get enough money for very basic services that all Canadians should have (no matter where they choose to live in the country) like healthcare, education, decent roads to drive on, secure airports and shipping ports, etc.... The maritimes simply don't have the manufacturing sector the other provinces do and as such need all the help they can get.

[GreenWhiteandPink]

The federal government has never taken the Atlantic provinces off shore oil revenues per say, they just reduced transfer payments as the oil royalities increased (which is what is susposed to happen under the equalization scheme). Under the the new Atlantic Accord agreement NL and NS can keep both for a 7+ year term, so that we can turn our fiscal situation around. Since the agreement has been reached, NL has had 2 surplus budgets and has paid off 2 billion in debt. If this agrrement had never had been reached NL would never become a "have" province, as our current oil supplies will only last 20 years or so.

PS Newfoundland and Labrador is not part of the Maritimes either.

Maritime provinces= NB, NS and PEI

Atlantic provinces= NB, NS, PEI and Newfoundland and Labrador

[geoffrey]

Non-renewable resource money should stay in the regions that produce said goods in order to diversify their economy. Ottawa has no business in Alberta oil.

However, they do have a business in Maritime oil, as long as we are paying them money, resource revenues should count in the transfer payments.

Actually, in all honesty, there should not be transfer payments.

That being said, the corporate welfare auto industry could now be labelled as non-renewable...

The federal government will not let the maritime provinces collapse, like you're suggesting, thank god. Perhaps if Ottawa didn't take the maritime oil money they wouldn't need transfer payments to the extent that they do now. The maritimes get enough money for very basic services that all Canadians should have (no matter where they choose to live in the country) like healthcare, education, decent roads to drive on, secure airports and shipping ports, etc.... The maritimes simply don't have the manufacturing sector the other provinces do and as such need all the help they can get.

Why do the Maritimes get to exclude their resource revenues and we in Alberta do not? Alberta has a very small manufacturing sector, we have oil and gas, high tech and farmers. Much like the Maritimes. Treat us equally and then I'm ok with the system.

When will the government stop promoting inefficencies by subsidizing unefficient industry and areas? Look at the auto industry. It has been so over subsidized to preserve jobs (and therefore votes) that the whole industry is on the verge of collapse as they have failed to recongize that progress is needed to stay competitive. Toyota will be the number one producer next year because of welfare.

Welfare, corporate or provincal, just leads to further inefficiency and the eventual collapse of whole system.