PC Leader Ches Crosbie is calling on Premier Dwight Ball to launch a referendum on equalization in response to Alberta Premier Jason Kenney’s announcement that his government will hold one in Alberta.
Ches Crosbie says the equalization program is contained in the Canadian Constitution, and he says a referendum on a constitutional matter, with a clear question, and clear majority, requires the federal government to negotiate.
He says right now the federal government just consults, but there are no negotiations.
Crosbie says he proposed during the election that we have a referendum on equalization.
He says Alberta Premier, Jason Kenney is calling for the same. @VOCMNEWS #nlpoli pic.twitter.com/BX9FuALUe2
— Ben Murphy VOCM (@BenMurphyVOCM) October 29, 2019
In the 2018 budget, the federal government renewed the equalization formula until 2024. Crosbie believes a provincial referendum is the province’s last way to achieve equalization fairness.
During the provincial election campaign, Crosbie made the same call in the PC Party Blue Book. In it, Crosbie says the purpose is not to impress ourselves, but to impress Ottawa and the rest of the country with our seriousness of purpose.
He says the question would have to be fair and not misleading.
Crosbie says the time is now for a referendum on equalization because government is about to embark on a period of discussion and consideration of equalization, thanks to Kenney’s call, and how various province’s should participate.
He says we need to get our position known to the rest of the country, stake out a claim, and the most persuasive way to do that is by holding a referendum.
Minister says Referendum Would Be Expensive, Not Needed
The province’s finance minister says he agrees with PC Leader Ches Crosbie on the need for changes to the equalization formula, but disagrees on the need to hold a referendum.
Tom Osborne says a province-wide referendum on equalization would cost the province around $2- to $3-million. He says a ‘political stunt’ isn’t needed to tell people that everyone wants to see changes to the formula.
. @TomOsborneMHA doesn’t agree with Crosbie and believes a referendum would be a waste of time as it would cost between $2- and $3-million and change nothing. @VOCMNEWS #nlpoli pic.twitter.com/ZKv119g90U
— Ben Murphy VOCM (@BenMurphyVOCM) October 29, 2019
Osborne says Crosbie can side with his “Conservative friends” across the country, but it doesn’t change the fact the equalization formula isn’t fair to the province, and needs changes.
The Finance Minister says equalization changes are tough because in order to get money, you have to take it from another province due to the fixed envelope—meaning only so much money can be used for equalization.
Osborne says NL is the second smallest of ten silos across the country, with the second smallest population. Quebec and Ontario—who are receiving equalization—are not going to take money out of their province and give it to NL.
However, Ontario will not receive equalization in 2019-2020.
Osborne talks about changes to the equalization formula. Says they would like to see non-renewable resources excluded. @VOCMNEWS #nlpoli pic.twitter.com/JIjWAziyPl
— Ben Murphy VOCM (@BenMurphyVOCM) October 29, 2019
