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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害羞草研究所檚 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害羞草研究所檚 premier says he wants to support Newfoundland and Labrador害羞草研究所檚 plans to sue Ottawa over the federal equalization program, which transfers money from wealthier provinces to poorer ones, calling the current formula 害羞草研究所渃ompletely absurd.害羞草研究所

David Eby told reporters Monday he hopes to have an announcement on the matter before the three-day Council of Federation meetings of Canada害羞草研究所檚 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.

害羞草研究所淭he thing that really frustrates me, and an issue that I害羞草研究所檓 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,害羞草研究所 Eby said.

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

Eby claims that equalization 害羞草研究所渉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.害羞草研究所

On May 30, Newfoundland and Labrador said the province would file a constitutional challenge against Ottawa over the program 害羞草研究所渋n the coming weeks.害羞草研究所 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害羞草研究所檚 court challenge, he害羞草研究所檚 hopeful that upcoming talks with the federal government will allow both sides to avoid legal action.

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

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

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

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

害羞草研究所淟et me tell you, we could certainly use investment like that in B.C.,害羞草研究所 he said.

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