someone said:
I really don’t think it is safe to assume that when they are supposed to be renegotiating education transfers and the like. I would prefer to see them negotiate these things at the same time as they are all interrelated (although I admit the negotiations would be very complex). Indeed, I would like to see things like health and education returns to the original system of per capita transfers so that most equalization would take place within the equalization program. It seems to me that in many ways have not provinces are being equalized twice when both transfers for health and equalization contain elements of equalization.
Here's a little tidbit about Flaherty resheduling payments to Ontario pending a review of the fiscal imbalance. Ontario had a May 2005 signed agreement with Ottawa for $6.9 billion in funding over 6 years but the timing of the payments has now been changed. Flaherty has resheduled $384 million of the $589 million that was due Mar 31/06. He claims he's just holding it back until after some kind of consensus is reached with the other provinces. Harper is giving McGuinty and Ontario plenty of reasons not to trust him:
http://www.theglobeandmail.com/servlet/story/RTGAM.20060511.wxontario11/BNStory/National/home
Federal Finance Minister Jim Flaherty says his budget includes funding for every penny of a $6.9-billion accord the previous government inked with Ontario. But he says Ontario will not get a portion of the money until he fixes the so-called fiscal imbalance between the federal government and all the provinces -- a move that is causing anxiety around Queen's Park.
"We set aside the money. It's in the fiscal plan for the Government of Canada and the agreement will be fully honoured," Mr. Flaherty said in an interview yesterday.
Under the accord between former prime minister Paul Martin and Ontario Premier Dalton McGuinty, the province was to receive about $5.7-billion over five years for a variety of programs, including labour-market training, postsecondary education and public transit. The agreement was later extended by one year and the funding was increased to $6.9-billion.
For the fiscal year that ended March 31, Ontario was to receive $589-million, according to a memorandum of agreement signed by the federal and provincial governments in May, 2005.
But Mr. Flaherty has revised the schedule for paying funds totalling $384-million for a number of programs, including postsecondary education and labour-market training. These funds were initially to have been dispersed before March 31. In the federal budget tabled last week, the government says the timing of the funding will be part of discussions among all the provinces on the fiscal imbalance.
"This is a six-year agreement," Mr. Flaherty said. "We're not holding anything back."
Nevertheless, the federal budget has left Ontario Finance Minister Dwight Duncan with plenty to worry about and his staff seeking clarification over whether Ottawa has reneged on the deal.
"My main concern is that the money that was there in the agreement with Martin as cash is no longer there," Mr. Duncan told reporters yesterday. "My other concern is that we're getting mixed messages from Ottawa."
Mr. Duncan singled out the funding in the accord for climate change as an area of concern. According to a letter he received from Mr. Flaherty, Ontario is still getting all the money it was promised for climate control, but the province will no longer be able to devote the lion's share of the $538-million to closing its coal-fired generating plants. That's because $208-million of the climate-change money will be lumped in with funding for public transit and will have to be spent on measures to reduce the number of cars and trucks on city streets.
Mr. Flaherty defended the change. "Cars, trucks and buses are the No. 1 polluters in Canada," he said. "The more we can reduce motor vehicles, the greater effect it will have on greenhouse gas emissions and pollution."
One observer of Prime Minister Stephen Harper said the changes could be aimed at trying to silence Mr. McGuinty's campaign for a fairer financial deal from Ottawa.
Yesterday, Mr. McGuinty appealed directly to Ontarians. He said a typical family of four will contribute $1,555 this year to support programs in other provinces that receive equalization payments, the national system for sharing cash with poorer regions.
"I just think it's important for Ontarians to understand what's at stake here," he told reporters....