An Open Letter to Prime Minister Harper RE: Federal Budget and the Atlantic Accord
Dear Mr. Harper,
I have been watching the fallout of the federal budget in Atlantic Canada from afar, and I have to tell you that I am quite confused. What the big fuss is about, I don't get.
From what I understand, your "new" governments has introduced a new equalization program as apart of your strategy to address the fiscal imbalance. In doing so you have adopted the recommendations made in the O'Brien report, to include 50% of non-renewable resource revenue, along with an option for the Atlantic provinces to choose between the O'Brien and the Atlantic Accord.
According to Dalton Mcguinty, your new equalization program is supposed to be a "principled" approach to equalization. What Dalton said was that this program is designed to prevent "have not" provinces that reach the fiscal capacity of the "have" province from continuing to collect equalization. Essentially, it achieves the goal of equalization. To allow all the provinces to provide equal levels of service.
It sounds like welfare, but you know what, I am cool with that. Plus, its in the constitution.
So what the big stink in Atlantic Canada is about, to me, is with equalization. Atlantic Canadian politicians don't want to be equal, they want to be MORE equal. What the Atlantic Accord does is allow the Atlantic Provinces to achieve the fiscal capacity of the "have" provinces, while still collecting the equalization payments designated for the "have not's". It's a slap in the face of the entire principle of equalization.
But yet, Atlantic Canada is given that choice. In the Atlantic Accord. I do understand why though. You did promise to keep ALL non-renewable resource revenue out of the equation. And if governing Canada were that easy, I believe you would have. But its not that easy. The premiers had a few chances to work something out to that effect, with the fed's pushing for 0% non-renewable's. In the end the compromise position was 50%, and the majority of provincial and territorial premiers (10/13) were happy with the outcome.
In an attempt to keep your promise, you gave Atlantic Canada the Atlantic Accord as one of two choices. When I heard this, I thought to myself "wow, he has navigated a minefield!". I guess I jumped to a conclusion too quick though.
3 Premiers, Newfoundland, Nova Scotia, and Saskatchewan, have all objected now. Whining about cap's and broken promises. And now its "side-deals".
This is where I get to the purpose of this letter.
Please Mr. Harper, do not give into any side deal with Nova Scotia. Even if that's not what you are calling it.
Nova Scotia is already receiving 150ish million more in the next two years with the O'Brien. And when O'Brien becomes worth less than the Accord, they can choose the Accord. And if their fiscal capacity becomes that of a "have" provinces, they will not need equalization. I know you know that in principle, but politics is a bitch.
But with respect to the politics, its a lost cause. In my opinion there is no lost ground that can be made up. By compromising, you will abandon principle for nothing political. You will lose seats in Atlantic Canada even if you give Nova Scotia and Newfoundland exactly what they want.
If you want to salvage some political points in Atlantic Canada, accept Bill Casey back into caucus before the next election if he wants. And please rethink your communications strategy. Because this is the RIGHT equalization program for Canada. It returns us to an era where equalization serves its constitutional purpose and not merely political vote-buying purposes. I have no suggestions to offer to this respect, and it is tough when the media so clearly takes the side of the 3 opposing provinces.
But please, show Atlantic Canadians and the rest of Canada that this is the right approach to equalization, fight through the spin, sell the package as is, not with a side deal. There is alot of support for your approach throughout the country, including in Quebec and Ontario, and don't sacrifice that for no gain politically in Atlantic Canada.
Sincerely,
Kirby Ramsay
BCOMM 08 Mount Allison University
PS: I apologize for any minor errors (if there are any) in the intricacies of the budget, but on a whole, my assessment is in my mind correct.
PPS: When I speak of Atlantic Canada, I am referring to the premiers of Nova Scotia and Newfoundland. I have a great deal of respect for all the people of Atlantic Canada, and am anxiously counting down the days until I move back!
4 comments:
Not a bad letter Kirby, however, it's too late for him to go back on side deals. This has already happened. FEDNOR, like ACOA, off-sets corporate welfare to a certain degree. So to pound on rural ontario for that would be hypocritical.
However, that program is just mere scraps compared to the side deals made (through Industry Can) with big business in Ontario via corporate welfare over the last 25 years.
For instance, to date, Corporate welfare is an entrenched practice in Canada. Between 1982 and 2005, Ottawa
authorized $18.4-billion in grants and loans to various companies and organizations. Of
this only $7.1-billion is repayable. However, to date, less than $1.3-billion has been
repaid to taxpayers. Guess where most of these handouts went to? The greedy maritimes? Nope. Wrong.
To the top companies in Ontario, BC, and Quebec. Let's take a look:
-$10.9 million in support of economic development in rural Eastern Ontario.[FEDNOR]
-$900-million aid package for Canada's aerospace industry, with most of the money going to businesses in the politically key province of Quebec.
-Pratt & Whitney (Quebec) received $691.8-million in corporate welfare checks & loans. Of that total, they repaid $21.1 million or a mere 3.1 per cent. How's that for a non-repayable handouts?
-Honeywell (Ontario) received $116.0-million in corporate welfare loans. From those handouts, only $6.2-million was repaid. A dismal 5.4 per cent. Brutal.
-Ballard Power (BC) received $29.4-million in government handouts. Guess how much the company repaid the Canadian taxpayers? If you guesses 0, you are right.
It is also worth noting the blatant trolling that goes on for government handouts between the government and many companies (i.e. when it comes to lobbying the
federal government for handouts)
When governments change hands, do you think this practice stops? Nope. Top recipients in BC, Ontario and Quebec substitute
Liberal insiders for Conservative insiders.
Take Pratt & Whitney, who I mentioned above, as an example. The
lobbyist registration system shows Pratt & Whitney has enlisted Conservative-insider
Yaroslav Baran to lobby the federal government. Another insider Geoff Norquay, a
former communications director to Stephen Harper, has an extensive list of clients. In
fact, one of his clients is Alcan (Ontario), a company recently handed money by the Conservative
government. Not to mention, one that may sell all its shares to a firm across the pond.
If you're not convinced, take a look at the registered lobbyist in the big three: Industry, Finance and Foreign Affairs. There are 2,234 registered lobbyist in Industry Canada alone. Want to take a guess at where most of them reside? The Maritimes? Please. It's the pork barrel capital of Canada (Ontario & Quebec)
So the next time you guys want to demonize the east as a bunch of welfare bums looking for handouts, you better check your facts, because were not on the receiving end of most of the pork. ;-)
NB Taxpayer, Thank you for the very informative comment.
I am just as much opposed to Corperate welfare as I am to side deals on equalization.
The evidence that you have provided here is the kind of stuff that makes me lose my faith in the Canadian political system as it exists today
While Harper hasn't shown many signs he may be preparing for a major system overhaul, he has tackled the equalization formula. A bold move in a courty as diverse as Canada.
The intent of my letter was not to call Atlantic Canadians welfare receiving bums, or greedy, in fact it was far from it. I beleive that the people of Nova Scotia and Newfoundland have got a good deal out of this program. As has Ontario, Saskatchewan, Alberta and Nunavut. This letter was a way of expressing my satisfaction with what he has done and a plea not to give into the pork barrel politics or Rodney Mcdonald, Lorne Calvert, and Danny Williams.
Equalization is one of many things that need to be addressed in this country, including those you talked about in your response.
Let me be clear to you that if Ontario, Quebec, Nunavut or any other province or territory were up in arms over something that I believed was good for the country as a whole, I would speak out against them as well.
The Conservative government has been anything but perfect, especially in recent months. I believe that this is one issue that they have stood by their principles on, something that they have pretty much abandoned since being elected.
Don't get me wrong Kirby, I was glad to see that our country finally had a PM who was willing to put his neck out on the line in order to solve the fiscal imbalance or the fiscal balance as Flaherty called it.
However, what I took acception to was the name calling (by many individuals from Ontario and Alberta) who saw MacDonald and Casey as simply beggars instead of what they really are: principled politicians who stood up for the people of Nova Scotia. Plus, I wasn't much impressed with the lack of statemanship shown by our PM through all of this.
Btw, sorry about that last comment accusing you of calling us welfare bums, it wasn't directed at you as the last part of my post was from another comment directed at a blogger who was a little over the top. I just meant to cut and paste the corporate welfare statistics.
And just so you know, I read your blog daily as it is very informative. Keep it up.
Dear Kirby,
I dont understand your blogs.
Regards,
annon.
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