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PREMIER MOVES EMERGENCY MOTION ON EQUALIZATION

Released on March 22, 2004

Premier Lorne Calvert moved an emergency motion in the Legislature today confirming Saskatchewan's position that the federal government must address the flaws that exist in the Federal Equalization program which have resulted in a loss of as much as $300 million per year to the province.

On March 19th the federal government admitted there were errors in the program and provided the province with $120 million, which had been unfairly clawed back in previous years. This money represents only a portion of what Saskatchewan is owed based on an analysis by noted economist Dr. Thomas Courchene. Today's emergency motion speaks to a remaining concern that despite the federal government's recent actions and commitment for a future review, Saskatchewan is still not being treated in a fair and equitable manner.

"Saskatchewan deserves fairness and equity from our federal government," Calvert said. "While the initial payment of $120 million is a start, it falls significantly short of what Saskatchewan is entitled to based on the treatment of other provinces under the Equalization program."

Equalization is a federal program enshrined in the Constitution to ensure that all provinces have sufficient revenues to provide comparable levels of public services at comparable levels of taxation. Saskatchewan has consistently argued that our province's resources have been unfairly treated under the Equalization program.

Recently, Professor Thomas Courchene echoed those concerns in a paper entitled Confiscatory Equalization – The Intriguing Case of Saskatchewan's Vanishing Energy Revenues. In this paper, Professor Courchene identifies that in 2000-01 Saskatchewan suffered an equalization loss or claw back of about 108 per cent of all provincial resources royalties from oil and gas activity in the province.

"There is simply no reason for Saskatchewan to be treated differently from provinces like Newfoundland-Labrador and Nova Scotia when it comes to resource revenues," Calvert said. "I intend to continue pressing the federal government to stop punishing the province for economic growth in the resource sector."

"Saskatchewan people deserve a fair deal from the federal government – we expect no less."

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For More Information, Contact:

Rob Cunningham
Executive Council
Regina
Phone: (306)787-6349
Cell: (306)539-1126

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