Poilievre says he wouldn’t make any big changes to equalization program

Conservative Leader Pierre Poilievre has stated that he does not intend to make any major changes to the federal equalization program if the Conservatives win the next election. The equalization program has been in place for decades, distributing federal funds to provinces to ensure a relatively equal level of government services across the country. Payments are made based on each province’s ability to generate revenue, rather than on a per-capita basis like health transfers.

Despite longstanding criticism from several provincial premiers calling for changes to the program, Poilievre emphasized in an interview with Radio-Canada’s Téléjournal Acadie in New Brunswick that he does not foresee significant alterations if he becomes prime minister. He emphasized that the Conservative Party’s focus is on reducing bureaucracy in Ottawa rather than cutting transfers to provinces or individuals.

Poilievre criticized the Liberal government for increasing the deficit by hiring 110,000 public servants, leading to a significant growth in the size of the public service. He highlighted the need to address wasteful spending in Ottawa rather than making drastic changes to the equalization program.

The current equalization formula is set to remain in place until 2029, but Poilievre’s stance suggests that a Conservative government may not deviate significantly from the existing plan. While Alberta, British Columbia, and Saskatchewan do not currently receive equalization transfers, their premiers have raised concerns about the fairness and sustainability of the program.

Premier Scott Moe of Saskatchewan and Premier Danielle Smith of Alberta have both expressed dissatisfaction with the current system, calling for a more equitable arrangement that does not disproportionately burden certain provinces. Alberta recently held a referendum in which a majority of voters supported removing equalization from the Constitution, prompting the government to produce a policy paper on the issue.

In addition, British Columbia has lent its support to Newfoundland and Labrador’s court case against the federal government over equalization payments. Newfoundland and Labrador initiated the lawsuit, claiming that the province is being deprived of potentially significant funding in the long term.

The equalization program, like other federal funding mechanisms, operates on five-year cycles and has undergone minor adjustments over the years. The most recent major change occurred after the 2008 financial crisis, when Ontario became eligible for payments. Despite periodic technical modifications, the program has not undergone substantial reform in recent years.