REGINA - Saskatchewan has been told not to expect any equalization money from Ottawa in 2007-08, provincial Finance Minister Andrew Thomson said Wednesday.
The word came in a letter from federal Finance Minister Jim Flaherty, who said the government will distribute $11.7 billion in equalization payments provided for under current legislation. That means Saskatchewan remains on the list of richer provinces that receive no payments, along with Ontario, Alberta and British Columbia.
Saskatchewan has been lobbying to get revenue from non-renewable natural resources excluded from the equalization formula, a move that would mean an estimated $800 million for Saskatchewan. The Conservatives promised in the last federal election campaign that they would reform the program to address the so-called fiscal imbalance in the country.
"They are guaranteeing $11.7 billion in total, including $1.7 billion to Manitoba. They are honouring the Atlantic accords for Newfoundland and Labrador and Nova Scotia, yet they will not guarantee that they will meet their commitment for $800 million to Saskatchewan,'' Thomson said in a prepared statement.
Nova Scotia Finance Minister Michael Baker also complained about Flaherty's proposed equalization figure Wednesday, saying it's less than his province got last year.
The provinces appear to be evenly split on the question of equalization, and the issue is likely to dominate a meeting of the premiers' Council of the Federation in Toronto on Feb. 7.
Flaherty said the government remains committed to strengthening the provincial and territorial equalization programs but refuses to use an ad hoc approach.
"When the government brings forward proposals for new principle-based programs, any increases introduced will built upon the amounts I am providing now for 2007-08,'' he wrote.
