People’s Party of Canada Leader Maxime Bernier said equalization was seen as a way to unite Canada, however, this is not the case. ."When it was started in 1957, the equalization program had a noble intention: to ensure that all Canadians have access to a similar level of services from their provincial government, regardless of whether they live in richer or poorer provinces," Bernier said.."Unfortunately, that is not how it turned out. The program is unfair and inefficient, both for citizens of richer provinces that do not receive equalization payments, like Alberta and Saskatchewan.".Bernier said it's unfair for citizens of provinces that have been on the receiving end for decades (Manitoba, Quebec, Nova Scotia, New Brunswick and PEI), because it keeps these provinces in a state of dependency and underdevelopment.."Equalization payments encourage recipient provinces to maintain large public sectors, keep taxes high, and intervene more in their economies, which drives out investment and lowers employment and productivity," Bernier said.."They don’t have the correct incentives to make their economies more competitive and develop their natural resources, because more private sector growth will lead to smaller equalization payments. It’s a poverty trap.".Bernier believes provinces should not be receiving equalization payments for decades, just like individuals should not be receiving welfare cheques all their lives.."It’s time to stop rewarding provincial governments for not adopting better economic policies," Bernier said.."The Constitution does not commit the federal government to spend $21 billion a year on equalization; does not prescribe any specific formula; and does not define what 'reasonably comparable' means.".Bernier said a PPC government will:.Reduce the total amount of equalization payments to provinces, and make sure only the provinces with the greatest needs benefit from it.Establish a parliamentary committee to review and make recommendations on a new formula that will avoid the welfare trap and provide poorer provinces with the right incentives to adopt pro-growth economic policies and reduce their dependence on federal money.Ensure the new formula respects our Constitution, makes provincial governments more responsible for their policy decisions, and is fair for citizens of all provinces..The Western Standard asked Bernier what he thought of the equalization program and would you reform it if you become prime minister?."If I become prime minister, I will establish a parliamentary committee to review and make recommendations on a new formula that will respect the Constitution, while avoiding the welfare trap and providing poorer provinces with the right incentives to adopt pro-growth economic policies and reduce their dependence on federal money," Bernier said..Bernier told the Western Standard the system is similar to "badly designed welfare programs that discourage recipients from working because they would then lose all their benefits and would be worse off than if they stayed on welfare. That’s what we call a poverty trap." ."There is a vaguely worded commitment to 'the principle' of equalization in our Constitution, but it does not commit the federal government to spend $22 billion a year on equalization and does not prescribe any specific formula," Bernier said."I believe we should reduce the total amount of equalization payments to provinces, and make sure that only the provinces with the greatest needs benefit from it. No province should keep receiving equalization payments decade after decade." .Bernier said he just read the Western Standard article about Charest and equalization, which left him a little confused."All he says is he will 'develop a new equalization payment system for Alberta' which makes no sense," Bernier said."Alberta is by far the richest province and cannot receive payments, which would directly contradict the point of the program. And there is no equalization pot you pay into, it’s paid for by taxes and Albertans pay more taxes because they are richer. There’s nothing he can do to 'change the equalization payment system for Alberta'. I think he’s just throwing meaningless words to pretend he wants to address the issue for Albertans without saying he will reform the program and make it less generous, which would not be popular in have-not provinces."
