Federal Government Misled Province on Impact of New Equalization Program

http://www.releases.gov.nl.ca/releases/2007/fin/0413n04.htm (full Release)

The Honourable Tom Marshall, Minister of Finance and President of Treasury Board, today confirmed that the federal government has misled the Provincial Government and the people of Newfoundland and Labrador regarding the true implications of the new equalization program as outlined in its 2007 Budget. According to figures released by Memorial University economist Dr. Wade Locke, the net impact of these changes is that the new equalization program will provide the province with $1 billion less than the existing equalization program over a 13-year period. It is also $11 billion short of what the Prime Minister promised the province in writing over that same 13-year time frame.“We identified this problem more than a week ago and immediately wrote the federal government seeking clarification,” Minister Marshall said. “We have yet to hear back from them. The fact that they don’t bother to respond to us, but manage to find the time to speak with and offer clarification to independent economists, is insulting to the elected government and people of Newfoundland and Labrador. The Government of Canada has an obligation to explain themselves. The federal budget legislation contradicts everything we have been told by Ottawa.”