Campbell on Equalization

Canada's Constitution guarantees equalization, but it doesn't spell out what the equalization formula should be. In the fiscal year ending March 31, 2005, British Columbia received $682 million in equalization payments according to federal figures, $979 million by BC's figures. In that same fiscal year BC got almost $4.0 billion in natural resource revenue, over $1.4 billion from natural gas royalties. Those revenues don't count when entitlement to equalization is calculated. It's like being able to claim welfare while ignoring a million dollar inheritance. It shouldn't surprise anyone that the Campbell government badmouthed the previous NDP government about making BC a "have-not province" by playing on public misunderstanding of how equalization works.

On June 2nd, Canada.com quoted Campbell as saying: "There is no such thing as a have-not province in Canada. There are giving provinces and taking provinces. That's what it is." That's a far cry from his rhetoric when he's attacking the NDP.

What revenue sources should be included when determining what the constitutional guarantee means has been a topic for debate for many years . Having reaped unexpected windfall profits from equalization, Premier Campbell is now arguing that "taking provinces" shouldn't receive any more than they do now.

British Columbians should be surprised. Premier Campbell appears to have the same attitude about "undeserving poor" British Columbians as he appears to have about most of the other provinces. Campbell cut welfare payments, made it harder to qualify for welfare, stripped the Employment Standards Act, slashed WCB (WorkSafe) protection, cut most government services (including child protection) and gave one third of one percent of BC taxpayers (about 8,000 people) total tax cuts of almost $200 million per year (each and every year, forever). We can count on the BC government to keep its resources for the most privileged British Columbians. Wherever the poor live, they shouldn't expect to do what Campbell did by reaping millions in equalization payments while stashing away billions in resource revenues, nor should they expect a fair shake from those who are lucky enough to live where natural resources provide temporary riches.