EQUALIZATION

Federal equalization has not only outgrown its original purpose, but has been purposefully rewritten to automatically increase every year, which makes absolutely no economic sense.

It is least understood federal programme in Canada. Even though the current formula was implemented by Harper it was supposed to be part of a grand bargain - more equalization in return for pipelines to make Canada and energy superpower. However, provinces like PQ gladly took the higher equalization formula, but still rejected projects like Energy East and LNG export terminals.

Trudeau quietly extended that formula twice with no negotiations with any of the provinces. There is nothing scared about the existing equalization formula. It is not written in stone, it is not a constitutional right, it is not part of the Meech Lake Accord. Those are all myths.