Released on March 21, 2005
Saskatchewan's Premier today called on the federal government to bring fairness and equity to the table and immediately start negotiating a Saskatchewan Energy Accord similar to the recently signed Atlantic Accord.Premier Lorne Calvert addressed the House of Commons Standing Committee on Fiscal Imbalance during its stop in Regina.
"The current equalization program is unable to fairly address fiscal disparities between provinces as it is advertised to do," Calvert said. "Saskatchewan looks upon the existing program as long over due for change and is prepared to work with the federal government to restore and rebuild the program."
Saskatchewan's presentation to the committee showed that prior to the 1982 changes to equalization, Saskatchewan was able to retain a large share of its energy revenues after the effect of equalization claw backs. However, Saskatchewan is currently able to keep, on average, only about 10 per cent of its energy revenues after the adverse effects of equalization claw backs. In some years our province loses more than it raises in energy revenues.
Under their new agreement with the federal government, Nova Scotia, Newfoundland and Labrador are guaranteed to retain 100 per cent of their energy revenues. This will provide an estimated $1.1 billion and $2.6 billion respectively over the next eight years.
"Saskatchewan is not critical of the new offshore energy agreements that guarantee 100 per cent retention of offshore revenues for the Atlantic Provinces," Calvert said. "I embrace them as they recognize that non-renewable resource revenues are one-time in nature and should be retained by the rightful provincial owners of those resources to strengthen their economy."
Saskatchewan estimates that it would have received $4 billion in revenue over the last 10 years if the province had been able to retain its own resource revenue.
"With additional revenue, the Government of Saskatchewan could further enhance Saskatchewan's health and education programs, continue growing the economy through a more competitive tax system and maintain our assistance to farmers and ranchers through programs like CAIS," Calvert said.
Saskatchewan will be continuing its campaign for equalization fairness and equity when the upcoming federally appointed panel on equalization travels to Saskatchewan.
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| Mike Woods Finance Regina Phone: (306) 787-6578 |