Murray Wood: Who's scary... and who's scary good?
Every Friday, Murray Wood takes a look at the week's news and decides who's hot... and who's not. This week, in a specia...
The Government of Saskatchewan has long had problems with the equalization formula in Canada, and this week it announced it would again be taking this problem to court.
On Wednesday, the provincial government announced it had applied for intervenor status in Newfoundl and Labrador’s case against the formula.
“It’s a flawed program, the increases that are there are flawed,” said Premier Scott Moe.
“I would suggest that we have a non-partisan committee sit down and look at, is equalization actually achieving what it set out to achieve, which was to equalize the services that are available across Canada?”
Moe said he believes the program is going beyond what it was meant to.
The provincial government says Saskatchewan hasn’t been a recipient of equalization for 18 years. It has a problem with how things are calculated, saying it punishes provinces with strong natural resource sectors
Moe pointed to Manitoba, which was expecting to get $4.235 billion in equalization payments from the federal government in 2024-25, and has gotten increasing amounts from the program since 2016-17.
“Very similar resource wealth, and very similar suite of services,” said Moe, comparing Manitoba and Saskatchewan.
He asserted that, through those payments, Manitoba has been able to reduce its taxes lower than Saskatchewan, which hasn’t received equalization money for nearly two decades.
A news release from the Government of Saskatchewan called the equalization formula unfair because it includes resource revenues in its calculations. It also said the formula doesn’t take the structural costs of delivering public services, as would be encountered in a large, sparsely populated province.
Saskatchewan is one of only three provinces not set to receive equalization money in 2025-26, along with Alberta and B.C.
Sask. NDP Leader Carla Beck is supportive of the move. She said there’s a long history in the party with equalization and longstanding concerns.
“We’ve been calling on all leaders — I know I have spoken publicly and sent letters to all leaders — indicating that we’d be looking at a re-write, a fairer equalization plan for this country,” said Beck, saying she hoped Moe was doing the same.
Lorne Calvert, the last NDP premier Saskatchewan had, launched a lawsuit against equalization in 2007 before it was dropped by the new Sask. Party government the following summer.
Moe said the 2007 challenge was against the same program, but was a very different suit.
