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Eby says B.C. to reveal plan to fight equalization inequities within days

Premier wants to support a plan by Newfoundland to sue Ottawa over equalization formula
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British Columbia Premier David Eby walks past reporters following a meeting between Canada含羞草研究社檚 premiers and Indigenous leaders at the Council of the Federation meetings in Halifax on Monday, July 15, 2024. THE CANADIAN PRESS/Darren Calabrese

British Columbia含羞草研究社檚 premier says he wants to support Newfoundland and Labrador含羞草研究社檚 plans to sue Ottawa over the federal equalization program, which transfers money from wealthier provinces to poorer ones, calling the current formula 含羞草研究社渃ompletely absurd.含羞草研究社

David Eby told reporters Monday he hopes to have an announcement on the matter before the three-day Council of Federation meetings of Canada含羞草研究社檚 premiers in Halifax wraps up on Wednesday. The premier said British Columbia taxpayers are put at a disadvantage by the equalization formula, which is an attempt by Ottawa to reduce regional wealth disparities across the country.

含羞草研究社淭he thing that really frustrates me, and an issue that I含羞草研究社檓 raising at the (Council of Federation) table and generally, is that B.C. taxpayers are sending tax dollars to Ontario through equalization. That is completely absurd. Ontario is not struggling to provide schools or hospitals,含羞草研究社 Eby said.

British Columbia has not received payments from equalization in more than a decade.

Eby claims that equalization 含羞草研究社渉as resulted in the last two years of a billion dollars going to Ontario, while B.C. taxpayers are struggling, just like everyone else, with affordability issues.含羞草研究社

On May 30, Newfoundland and Labrador said the province would file a constitutional challenge against Ottawa over the program 含羞草研究社渋n the coming weeks.含羞草研究社 The Newfoundland and Labrador government has said the formula is flawed, and the province could have received between $450 million and $1.2 billion in each of the last five years instead of receiving nothing.

Newfoundland and Labrador Premier Andrew Furey said Monday that despite his province含羞草研究社檚 court challenge, he含羞草研究社檚 hopeful that upcoming talks with the federal government will allow both sides to avoid legal action.

含羞草研究社淏ut again, we含羞草研究社檙e firm in our proposition that the (equalization) formula isn含羞草研究社檛 being equally applied. It doesn含羞草研究社檛 contemplate the cost to deliver services. As a result, that doesn含羞草研究社檛 reflect the spirit of what was signed in the Constitution,含羞草研究社 Furey told reporters Monday in Halifax.

Furey said he has had 含羞草研究社済ood meetings含羞草研究社 about equalization with Eby, Alberta Premier Danielle Smith and Saskatchewan Premier Scott Moe 含羞草研究社 who has already expressed willingness to join Newfoundland and Labrador含羞草研究社檚 legal action.

Eby would not confirm on Monday whether his province would join the lawsuit, but he said the status quo is 含羞草研究社渃ompletely unacceptable.含羞草研究社

含羞草研究社淚t is my continuing frustration with the federal government that they offer programs to other provinces that are not available in British Columbia,含羞草研究社 he said, adding that Ottawa has announced it will spend $1.2 billion on a hospital that serves First Nations in northern Ontario.

含羞草研究社淟et me tell you, we could certainly use investment like that in B.C.,含羞草研究社 he said.

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