Aerial panoramic view of a beautiful modern cityscape during a vibrant sunny sunrise. Taken in Calgary Downtown, Alberta, Canada.

August 8, 2024 (EDMONTON, AB)

ALBERTA GROUP SUBMITS ANALYSIS SHOWING WHY ONTARIO SHOULD BE FIFTH PROVINCE CALLING FOR EQUALIZATION REFORM

Today, Fairness Alberta sent a letter and brief to the Premier of Ontario showing that the current equalization formula is unfair and unaffordable, and called on Ontarians to join the growing number of provinces calling for deep reforms.

In the last few months, B.C. and Newfoundland’s leaders announced they are bringing the federal government to court over the unfairness in equalization. Saskatchewan’s government declared equalization unfair around the time Albertans voted in their equalization referendum in 2021.

“Ontarians are paying about $2500 per family of four this year to their neighbouring provincial governments while they struggle with front line services and a higher cost of living,” said Dr. Bill Bewick, Executive Director of Fairness Alberta. “Governments of all political stripes are demanding to make equalization more fair; Ontario’s support would create a supermajority that no federal decision-makers could ignore.”

In the briefing note to Ontario, Fairness Alberta shows that the reforms it has proposed would free up $3-5 billion from Ontarians by reducing the size of equalization, and potentially gain it billions more in payments depending how a revised formula accounted for different costs of living.

“This $25 billion formula now pays around $500 million to Ontario because its payments are pushing the so-called ‘have not’ provinces past the median and above Ontarians,” Dr. Bewick noted. “Sharing with poorer provinces is great – to a point. With all the ways the federal government is interfering in provincial services and paying for it with debt, this equalization largesse is totally unfair and unaffordable.”

The letter and brief to the Ontario government can be seen here.

The grassroots, non-partisan, and non-separatist group Fairness Alberta has detailed equalization’s flaws in numerous columns, including most recently in the Hub Bill Bewick: B.C. and Newfoundland are right to complain about equalization—but where is Ontario? – The Hub.

Our previous releases, media coverage, and two presentations to the House of Commons Standing Committee on Finance can be found in the NEWS section of our website. For more information on Fairness Alberta, its mandate, and future plans, please visit our website at www.fairnessalberta.ca.

For further information or to arrange interviews, please contact:
Bill Bewick, Ph.D.
Executive Director
Fairness Alberta
Cell: (780) 996-6019
Email: [email protected]

Table of net eq per province and per person (from the Hub column) is based on proportion of federal revenues from each province and equalization payments to each province.

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