Calgary Shepard Tory MP Tom Kmiec introduced a bill in the House of Commons on Monday to try and force the Liberal government to make changes in the federal Fiscal Stabilization program he says has shortchanged Alberta billions of dollars..Kmiec said Bill C-263, the Equalization and Transfers Fairness Act, is meant to increase transparency and fairness to Canada’s Equalization and transfer regime..The bill advocates fairness for Alberta by removing the $170 per capita cap on Fiscal Stabilization payments, ensuring the federal government cannot unilaterally change the Equalization formula. Bill C-263 also makes a successful Alberta referendum on Equalization “impossible to ignore.”.“The Fiscal Stabilization program is designed to help provinces who experience a massive drop in revenues,” said Kmiec..“In 2015-2016, Alberta’s revenues dropped by $8.8 billion. At the time, however, there was a $60 per capita limit on fiscal stabilization payments, resulting in Alberta receiving only $248.3 million from the fiscal stabilization program. Without the cap, Alberta would have received $2.9 billion.”.In 2018, despite Alberta’s massive and continuing drops in revenues, the federal Liberals extended the existing Equalization formula that was not set to expire for another year in an ominous budget bill without a debate in Parliament..“Canada’s premiers were preparing to debate the equalization formula in the summer of 2018, but the Liberals failed to consult the provinces fully and used their majority to extend the equalization formula to 2024,” said Kmiec..Since 1961, Alberta’s net federal fiscal transfers have amounted to more than $600 billion going to Ottawa..In 2019, a statement signed by all of Canada’s premiers called for the federal government to remove the cap from Fiscal Stabilization payments altogether. The federal Liberals ignored the request and instead increased the cap to $170 per capita..“This is a half measure that doesn’t address the real problems with the federal Fiscal Stabilization program,” said Kmiec..“Based on current revenue projects for 2020-2021, Alberta would qualify for an estimated $3 billion if there was no cap on Fiscal Stabilization payments, but with the new half-measure cap, Alberta will now receive $750 million..“The Equalization and Transfers Fairness Act is the first step to restoring fairness to the province of Alberta. It’s time for Equalization fairness.”.Dhaliwal is an Edmonton-based freelance reporter
Calgary Shepard Tory MP Tom Kmiec introduced a bill in the House of Commons on Monday to try and force the Liberal government to make changes in the federal Fiscal Stabilization program he says has shortchanged Alberta billions of dollars..Kmiec said Bill C-263, the Equalization and Transfers Fairness Act, is meant to increase transparency and fairness to Canada’s Equalization and transfer regime..The bill advocates fairness for Alberta by removing the $170 per capita cap on Fiscal Stabilization payments, ensuring the federal government cannot unilaterally change the Equalization formula. Bill C-263 also makes a successful Alberta referendum on Equalization “impossible to ignore.”.“The Fiscal Stabilization program is designed to help provinces who experience a massive drop in revenues,” said Kmiec..“In 2015-2016, Alberta’s revenues dropped by $8.8 billion. At the time, however, there was a $60 per capita limit on fiscal stabilization payments, resulting in Alberta receiving only $248.3 million from the fiscal stabilization program. Without the cap, Alberta would have received $2.9 billion.”.In 2018, despite Alberta’s massive and continuing drops in revenues, the federal Liberals extended the existing Equalization formula that was not set to expire for another year in an ominous budget bill without a debate in Parliament..“Canada’s premiers were preparing to debate the equalization formula in the summer of 2018, but the Liberals failed to consult the provinces fully and used their majority to extend the equalization formula to 2024,” said Kmiec..Since 1961, Alberta’s net federal fiscal transfers have amounted to more than $600 billion going to Ottawa..In 2019, a statement signed by all of Canada’s premiers called for the federal government to remove the cap from Fiscal Stabilization payments altogether. The federal Liberals ignored the request and instead increased the cap to $170 per capita..“This is a half measure that doesn’t address the real problems with the federal Fiscal Stabilization program,” said Kmiec..“Based on current revenue projects for 2020-2021, Alberta would qualify for an estimated $3 billion if there was no cap on Fiscal Stabilization payments, but with the new half-measure cap, Alberta will now receive $750 million..“The Equalization and Transfers Fairness Act is the first step to restoring fairness to the province of Alberta. It’s time for Equalization fairness.”.Dhaliwal is an Edmonton-based freelance reporter
