Premier Jason Kenney

By Connor Gunn

Kenney wants referendum on removing equalization payments from constitution

Jun 7, 2021 | 1:51 PM

EDMONTON, AB– Premier Jason Kenney announced he will introduce a motion in the legislature, for a referendum question asking Albertans if equalization payments should be removed from Canada’s Constitution.

If the motion is passed, it will put the following question on a provincewide referendum ballot on Oct. 18, in conjunction with municipal and Senate elections:

“Should Section 36(2) of the Constitution Act, 1982 –Parliament and the Government of Canada’s commitment to the principle of making equalization payments – be removed from the Constitution?”

For those who may be unfamiliar with equalization payments, the following definition was provided.

“Equalization is the Government of Canada’s transfer program for addressing fiscal disparities among provinces.

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Equalization payments enable less prosperous provincial governments to provide their residents with public services that are reasonably comparable to those in other provinces, at reasonably comparable levels of taxation.”

Albertans fund this program through federal tax contributions, which are then “transferred by the federal government to other provinces for their programs and services.”

The “principle of equalization” is Canada’s primary transfer program for addressing fiscal imbalances.

“Albertans fund equalization through federal tax contributions, which are then transferred by the federal government to other provinces for their programs and services,” the release reads.

Minister of Justice and Solicitor General, Kaycee Madu, says Albertans invest billions of dollars each year in the program.

Kenney says this motion could give Albertans more of a voice on the equalization program.

“Albertans elected this government to get a fair deal for them. That’s exactly what this referendum is about. For too long, Albertans have been forced to subsidize public services in other parts of the country where politicians have been trying to block our pipelines and impair our vital economic interests, even during times of great economic hardship for us. This fall, Albertans will finally get a chance to tell the federal government that they’ve had enough of the unfair equalization program, and want reforms that recognize our province’s role in creating national prosperity.”

The release states that holding a referendum on equalization was a key recommendation of the Fair Deal Panel, which submitted a report to government last year recommending several ways Alberta may be able to strengthen its position in Confederation.

“Alberta averages almost $20 billion annually in net contributions to Confederation. Almost 10,000 Canadians commute from across Canada to work in the oilsands alone. Alberta certainly doesn’t appear to be getting treated fairly and I’m very happy that our government is listening to those that spoke at our Fair Deal consultations,” says Tany Yao, MLA for Fort McMurray-Wood Buffalo and member of the Fair Deal Panel.

If the legislative assembly passes the motion, cabinet will then ask the lieutenant-governor to order the referendum.

Kenney added that Alberta has not received an equalization payment since the 1964-65 fiscal year.

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