Saskatchewan seeks to intervene in federal equalization payments lawsuit

Saskatchewan has officially applied for intervenor status in Newfoundland and Labrador’s court challenge against the federal equalization formula, insisting the current system is unfair to certain provinces. 

Saskatchewan’s application, which was issued on January 23, follows Newfoundland and Labrador’s statement of claim filed on June 21, 2024, with the Supreme Court of Newfoundland and Labrador.

Justice Minister and Attorney General Tim McLeod said the equalization framework has failed to achieve fairness for all Canadians. 

"The equalization formula has consistently failed in its intended goal to create fairness for all Canadians," said McLeod.

"Like Newfoundland and Labrador, we have serious concerns with the current formula, which has repeatedly punished provinces with strong natural resource sectors like Saskatchewan." 

The equalization formula aims to offer comparable public services across provinces. 

However, Saskatchewan said it unfairly includes resource revenues and ignores structural costs. 

"Under the current equalization formula, Saskatchewan has not received payments for the last 18 years," said McLeod. 

"Four other provinces will receive nearly $3,000 per resident in 2025-26, while Saskatchewan, Alberta, and British Columbia receive nothing. This hardly seems equitable, even by the most basic standards."

Every Canadian pays, on average, $634 per year into equalization. 

According to McLeod, that burden hardly seems equitable. 

The Supreme Court of Newfoundland and Labrador is set to hear Saskatchewan’s intervention application on October 20.