Senators Voice Concerns
PEI Representatives Say Changes
Leave Provinces Shortchanges
Prince Edward Island senators are joining the chorus of concerns about the federal budget, warning that changes to equalization and transfers are leaving P.E.I. shortchanged.
The government’s budget implementation was expected to be referred to the Senate finance committee late Monday before moving on to a possible third reading.
None of P.E.I.’s three senators — Elizabeth Hubley, Catherine Callbeck and Percy Downe — is on the finance committee. But Downe, a former committee member, said he has been told the bill could be in for a rough ride.
“Some of our colleagues from Nova Scotia and Newfoundland have said they have some question about it and they’ll be looking for answers . . . If it is referred back to the House (of Commons) I know they plan to add some strong comments and perhaps make some recommendations for changes,” he said.
Nova Scotia Premier Rodney MacDonald and Newfoundland and Labrador Premier Danny Williams have asked to appear as witnesses before the expected Senate hearings. The two have gone to war with Prime Minister Stephen Harper because of Ottawa’s plans to remove the Atlantic Accord protections that would temporarily keep natural resource income from being deducted from equalization payments.
The Guardian contacted the premier’s office Monday, but Premier Robert Ghiz was not available to comment on the budget issue.
A recent study from the Atlantic Province Economic Council suggested that the revamped equalization deal could have impacts that resonate beyond the Atlantic Accord, cutting into the anticipated revenues of recipient provinces like Prince Edward Island and New Brunswick.
Callbeck said she thinks the whole Atlantic region should take a close look at this budget.
“The numbers in the APEC studying were very worrying,” she told The Guardian. “It goes up for the first couple of years but under the new equalization model by 2019, Prince Edward Island will have received $196 million less.”
Callbeck said she’s as concerned, if not more concerned, about the shift of cost-sharing programs like the Canada Health Transfer and the Canada Social Transfer.
“They’re calculating them on per capita,” she said. “In this budget they say we are getting an increase of $7 per Islander under the Canada Social Transfer. Alberta is gaining $102 per capita.
“From what I see this budget will be widening the gap between the richer and the poorer regions.”
The concern about the budget seems to be breaking down more alone regional lines than party lines. MacDonald and Williams have been scathing in their assessments of their fellow Conservative Harper, while Atlantic Liberal premiers such as P.E.I.’s Robert Ghiz and New Brunswick’s Shawn Graham have been tight-lipped about the federal budget.
Federal Liberal Leader Stephane Dion, meanwhile, is supporting the federal budget.
“Part of our job here is to represent our regions and to give legislation a second look,” Downe said. “This is a chance for senators to speak up for their region’s interests. I’m looking forward to seeing the Finance minister come in to testify.”
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