Released on March 4, 2005
Saskatchewan's quest to obtain fairness from Canada's Equalization program will continue March 7th, 2005, when Finance Minister Harry Van Mulligen makes a submission to the Canadian Senate Committee on Finance. The Senate Committee is reviewing Bill C-24, legislation that establishes the equalization program payments for 2004-05 and 2005-06."In our submission we will be pointing out to the Senate Committee our concerns with the present equalization system, and also continuing our call to the federal government to immediately start negotiating a Saskatchewan Energy Accord," Van Mulligen said.
Bill C-24 covers the 2004-05 and 2005-06 fiscal years. Through this legislation, the federal government is able to reimburse Saskatchewan for past excessive claw back rates on resource revenues. This legislation also establishes the amount of Equalization provinces can receive in 2005-06.
"While we appreciate some restitution for Saskatchewan in our 2004-05 payment, Saskatchewan is concerned over the 2005-06 entitlement which is set at $82 million, a very low payment when one looks back over time," Van Mulligen said. "And If energy prices decline to more traditional levels, Saskatchewan will have no equalization protection next year, given the fixed nature of these payments."
Van Mulligen will also recommend to the Senate that the equalization program be reformed in two steps:
First, Saskatchewan should receive the same opportunity to fully retain our non-renewable resource revenues as Atlantic Canada, through the negotiation of a Saskatchewan Energy Accord.
Second, there should be a comprehensive review of both the existing Equalization program and alternative ways of addressing interprovincial disparities in Canada. The upcoming expert panel provides an excellent opportunity to accomplish this if its membership is prepared to challenge the status quo.
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For More Information, Contact:
| Mike Woods Finance Regina Phone: (306) 787-6578 |