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June, 2007

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 Atlantic Accord: Who'll stand up for Ontario?

  By Angelo Persichilli

I don't believe it's necessary, but if Canadians are looking for one more reason not to trust politicians, the dispute between the federal government and two Atlantic provinces fits the bill.

First, let's see what the problem is all about, then examine the way our politicians are dealing with it.

Newfoundland and Nova Scotia are not asking to get the full amount of natural resources revenue from their off-shore. They have got it already and they should be thankful for it. But they want more.

They want that revenue not to be fully accounted when calculating the wealth of their provinces.

The reason is simple: the poorer they are, the more money they get from Ottawa.

We know that the federal money is coming, through the "equalization formula" from the "rich" or "have" provinces, in this case Ontario and Alberta.

So, what the two Atlantic premiers are really asking for is more money from Ontario and Alberta, via Ottawa.

In order to accomplish that, Nova Scotia Premier Rodney MacDonald is asking, not without a certain success, that federal MPs from Nova Scotia defend their province and vote against the federal government.

Of course there is no problem for the Liberal and NDP Nova Scotian MPs. But MacDonald also wants the Conservative colleagues to do that.

The question is: while the federal government of Stephen Harper is defending Ontario, where do Ontario Liberals MPs stand?

Let's rewind the tape of this political soap opera and go back two years.

It was the former Liberal government of Paul Martin which, for electoral purposes, gave in to the demands of Newfoundland and Nova Scotia at the expense of Ontario.

Ontario Liberal Premier Dalton McGuinty complained to the then Liberal government in Ottawa that Ontario could not sustain the financial burden of the "equalization formula."

McGuinty said that the burden on the shoulder of Ontario taxpayers was $22 billion every year.

'NO IMBALANCE'

And it was the present Liberal leader, Stephane Dion, who rebuked McGuinty, saying that there was no "fiscal imbalance."

What did the more than 70 Liberal MPs do to help McGuinty? Did anyone threaten Martin with voting against the Liberal budget, like one Conservative colleague is doing in Nova Scotia? Nope.

And what are these Libeal MPs doing now that their new leader is siding with the Atlantic premiers, ignoring, again, the rights of Ontario the taxpayers?

Are they saying that it is unfair that Ontario keeps giving money to the "poor" provinces, as Dion wants.

Or do they agree with Ontario Finance Minister Greg Sorbara, when he says it's not fair because some of those provinces already invest per-capita more money than Ontario in sectors like education and health?

The Liberals criticize Harper for not honouring a promise.

The Liberal position, on the other hand, is clear.

Dion said in 2004 there was no fiscal imbalance but in 2006 (May 5 -- Mike Duffy Live) he said that "we need to have a clause of this kind that gives a safety net to Ontario." Is that clear? Doesn't sound like it.

On Feb 21, the Toronto Star reported: "At Queen's Park, sources say Premier Dalton McGuinty was disappointed by comments that Dion made to the Star about the fiscal imbalance after he became leader. On Dec. 5, Dion was dismissive about the Ontario premier's crusade for fiscal fairness, suggesting the province is not being treated all that badly by Ottawa."

  

I don't believe it's necessary, but if Canadians are looking for one more reason not to trust politicians, the dispute between the federal government and two Atlantic provinces fits the bill.

First, let's see what the problem is all about, then examine the way our politicians are dealing with it.

Newfoundland and Nova Scotia are not asking to get the full amount of natural resources revenue from their off-shore. They have got it already and they should be thankful for it. But they want more.

They want that revenue not to be fully accounted when calculating the wealth of their provinces.

The reason is simple: the poorer they are, the more money they get from Ottawa.

We know that the federal money is coming, through the "equalization formula" from the "rich" or "have" provinces, in this case Ontario and Alberta.

So, what the two Atlantic premiers are really asking for is more money from Ontario and Alberta, via Ottawa.

In order to accomplish that, Nova Scotia Premier Rodney MacDonald is asking, not without a certain success, that federal MPs from Nova Scotia defend their province and vote against the federal government.

Of course there is no problem for the Liberal and NDP Nova Scotian MPs. But MacDonald also wants the Conservative colleagues to do that.

The question is: while the federal government of Stephen Harper is defending Ontario, where do Ontario Liberals MPs stand?

Let's rewind the tape of this political soap opera and go back two years.

It was the former Liberal government of Paul Martin which, for electoral purposes, gave in to the demands of Newfoundland and Nova Scotia at the expense of Ontario.

Ontario Liberal Premier Dalton McGuinty complained to the then Liberal government in Ottawa that Ontario could not sustain the financial burden of the "equalization formula."

McGuinty said that the burden on the shoulder of Ontario taxpayers was $22 billion every year.

'NO IMBALANCE'

And it was the present Liberal leader, Stephane Dion, who rebuked McGuinty, saying that there was no "fiscal imbalance."

What did the more than 70 Liberal MPs do to help McGuinty? Did anyone threaten Martin with voting against the Liberal budget, like one Conservative colleague is doing in Nova Scotia? Nope.

And what are these Libeal MPs doing now that their new leader is siding with the Atlantic premiers, ignoring, again, the rights of Ontario the taxpayers?

Are they saying that it is unfair that Ontario keeps giving money to the "poor" provinces, as Dion wants.

Or do they agree with Ontario Finance Minister Greg Sorbara, when he says it's not fair because some of those provinces already invest per-capita more money than Ontario in sectors like education and health?

The Liberals criticize Harper for not honouring a promise.

The Liberal position, on the other hand, is clear.

Dion said in 2004 there was no fiscal imbalance but in 2006 (May 5 -- Mike Duffy Live) he said that "we need to have a clause of this kind that gives a safety net to Ontario." Is that clear? Doesn't sound like it.

On Feb 21, the Toronto Star reported: "At Queen's Park, sources say Premier Dalton McGuinty was disappointed by comments that Dion made to the Star about the fiscal imbalance after he became leader. On Dec. 5, Dion was dismissive about the Ontario premier's crusade for fiscal fairness, suggesting the province is not being treated all that badly by Ottawa."