CALGARY — Prime Minister Mark Carney and Alberta Premier Danielle Smith announced new housing measures in Red Deer on Wednesday, but questions about Alberta’s long-standing concerns with the federal equalization program remained a central issue during the press conference.CTV News asked Carney and Smith about the future of the federal equalization program and whether the two governments could find common ground on the issue.Smith believed that the equalization system needs reform. Her government has argued that Alberta’s economic contribution should be better recognized and that the province should have a stronger voice over federal decisions affecting it.''You can imagine that those who are benefiting from equalization want to keep the program as it is, but it's not fair because the growth in the program grows with the size of the economy,'' Smith responded.''If the economy is growing and everybody is doing better, they should be less reliant on the equalization program,''She also added Alberta is seeking a more balanced fiscal arrangement with Ottawa and greater ability to keep and spend money generated within the province..Carney stated that the federal government is willing to work with Alberta on areas of common interest, such as housing, infrastructure and economic growth, but equalization is a constitutional program that requires broader national agreement. He emphasized “cooperative federalism” rather than reopening the formula unilaterally.''Canadian's have access to reasonably comparable services,'' Carney stated. ''Doesn't mean it's the same, but it's reasonably comparable. The program is reviewed on a regular basis, it's not reviewed every year, we have a review of that coming up.''The exchange also brought renewed attention to a long-standing dispute between Alberta and Ottawa over the province’s place within Canada’s fiscal system. The federal government has consistently defended the equalization program, describing it as a ''constitutional commitment intended to help ensure Canadians have access to reasonably comparable public services, regardless of the province in which they live.''Although Wednesday's announcement focused on cooperation between Ottawa and Alberta to address housing challenges, the discussion surrounding equalization underscored that longstanding differences over federal-provincial fiscal policy continue to shape the relationship between the two governments.
