Press release - A PPC government will review and reduce equalization

Red Deer, ALBERTA, August 31, 2021 – The People’s Party pledges to review the equalization formula and reduce the overall payments of the programme to ensure that it will be fair for all Canadians and will give the right incentives to provinces that have been receiving it for decades. Party leader Maxime Bernier made this announcement this morning at a campaign rally in Red Deer, Alberta.

Statement by Maxime Bernier:

“When the equalization programme was started in 1957, it was to ensure that all Canadians have access to a similar level of services from their provincial government, regardless of whether they live in richer or poorer provinces. It was seen as a way to unite the country.

Unfortunately, that is not how it turned out. The program is unfair and inefficient. Both for citizens of richer provinces and for those of provinces that have been on the receiving end for decades, because it keeps these provinces in a state of dependency and underdevelopment.

Equalization payments encourage recipient provinces to maintain large public sectors, keep taxes high, and intervene more in their economies, which drives out investment and lowers employment and productivity. It’s a poverty trap.

Provinces should not be receiving equalization payments for decades. It’s time to stop rewarding provincial governments for not adopting better economic policies.

A People’s Party government will reduce the total amount of equalization payments to provinces, and make sure that only the provinces with the greatest needs benefit from it; establish a parliamentary committee to review and make recommendations on a new formula that will avoid the welfare trap and provide poorer provinces with the right incentives to adopt pro-growth economic policies and reduce their dependence on federal money; and ensure that the new formula respects our Constitution, makes provincial governments more responsible for their policy decisions, and is fair for citizens of all provinces.”

The People’s Party’s updated platform on equalization is available here.

– 30 –

Contact: For more information, please write to: [email protected]