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Archived HOT STUFF May - June, 2005
 
May 29, 2005 - "One More Report"
  • All 13 premiers in Canada form The Council of the Federation. Ontario Premier McGuinty is the chairperson. Alberta Premier Klein is the vice-chairperson. This Federation announced a five-member panel to look at how Canadians can deal with the fiscal imbalance problem. The panel can talk to provincial and territorial governments, the federal governments and external experts. The panel delivers its report before the end of 2005. No one is required to take any actions because of this report.
  • What is the fiscal imbalance problem? Provinces and territories send money to the federal government. The federal government distributes the money as the federal government sees fit, to assist "have not" provinces or to reduce deficits. The federal government built a surplus of money by cutting funding returned to provinces.
  • How does the federal government view the imbalance problem? In December 2002, the Hon. Stephane Dion, President of the Privy Council and Minister of Intergovernmental Affairs, quoted then-Prime Minister Chretien: "It is illogical for one level to choose to reduce taxes and then claim it lacks the fiscal resources needed for new investments." In other words, premiers can raise taxes to make up for the money Ottawa takes to create a federal surplus.
  • Premier McGuinty demands more money returned by Ottawa. Premier Klein warns Ottawa to stay away from Alberta's money, and wants Ottawa to treat Albertans fairly and with respect.
  • You must have Adobe Reader installed on your computer to read:
        The Council's announcement online at http://www.councilofthefederation.ca/pdfs/NR-Panel-May27.pdf
        The 2000 Western Finance Ministers' Report online at http://www.scics.gc.ca//pdf/850077008_e.pdf.

  • Analysis
  • If the report recommends drastic changes that benefit Alberta, the federal government is not obligated to act on these recommendations.
  • Given the federal government's historical perspective on provincial rights and responsibilities, it is unlikely that the current federal government is in favour of changes that will benefit Western Canada, particularly Alberta. Alberta's current economic situation is a source of exploitable income for the federal government. Alberta's economic future is not a source of interest for the ruling party in Ottawa.
  • Alberta's current economic situation is based on non-renewal resources. The short-sighted agenda of the federal government makes no allowance for economic diversification.
  • No matter what the report recommends, no matter what the federal government implements (if anything) as a result, Albertans must take steps to securing their future without the aid or burden of federal handouts.
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    May 6, 2005 - "West could be a powerhouse"
  • The seven premiers of Canada's northern and western regions agree the "economic powerhouse potential of Northern and Western Canada is being held back by political glitches," as reported by Canadian Press. During their annual conference, the premiers specifically identified the federal government as the source of most of these "glitches." N.W.T. Premier Joe Handley spoke about the Mackenzie Valley natural gas pipeline project. He believes work would already be underway if his government controlled royalties and resource development. Recently, Imperial Oil announced the multi-billion dollar project is on hold due to regulatory issues including royalties and taxes. Nunavut Premier Paul Okalik expressed very basic infrastructure needs. Nunavut has two million square kilometres of land, sea and water, no usable roads, and no true port. Premier Okalik noted, "We have diamonds, gold, and oil and gas, and we'd love to be able to take advantage of it."

  • Analysis
  • Once again, leaders in the West and North of Canada state basic and obvious needs. Once again, Ottawa politicians ignore basic and obvious needs - because these are the needs of the West and the North. Albertans rely on the whims of Ottawa politicians to give back money that could otherwise be spent here, in Alberta, to improve business opportunities, health care, education, and other basic needs. We have ample proof that the money we send to Ottawa does not return to help Albertans.
  • Why send the money at all? Ottawa imposed this on us and calls it our "duty."
  • We are so bound to duty that we continue to fund a highly suspect system that controls Canada's confederation. By providing funding, we tell Ottawa and the world that we agree with the actions taken by Ottawa.
  • It is time to take our duty seriously, by preparing for our collective future.
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