MONTREAL - Federal Finance Minister Jim Flaherty says it's OK for Premier Jean Charest to use equalization money from Ottawa to cut income taxes in Quebec.
Flaherty said in Montreal today there's nothing in the Constitution that prevents Charest from doing this.
Charest said during the Quebec election campaign he would use $700 million in recently announced federal money to cut income taxes in the province.
But the fate of Charest's promise is up in the air because the Action democratique du Quebec now holds the balance of power after the election and has said it won't support the plan.
On the subject of the Quebec vote, Flaherty says it's positive the parties that campaigned against a sovereignty referendum finished first and second.
Flaherty also says now that the federal budget has passed, the Conservative government wants to work on environment and justice bills.
