Premier Scott Moe is suggesting a change to Canada’s equalization formula on a national stage.
He wants a 50-50 approach where half of the $19 billion revenue is distributed to provinces on a per capita basis. The other half would remain as is, where the money is given to provinces and territories with a below-average fiscal capacity.
“How do we raise this discussion so we can talk about it coast to coast to coast and have a mature dialogue about what this formula should look like for the future?” Moe said in an interview on the Roy Green Show on 980 CJME.
He explained this would ensure provinces like Newfoundland, would receive more equal funding, instead of Quebec, for example, getting over 60 per cent this year at $11.7 billion.
However, Ottawa renewed the current equalization formula until 2024 this past week.
“I think if this formula was changed to be more reactive, Newfoundland and Labrador — people that have lost their jobs — would appreciate that.”
Moe said it wouldn’t be completely unknown because Canada disperses health and social funds the same way: “This isn’t foreign to us in provinces or across the nation.”