Did you know Canadian provinces that are willing to develop natural resources — mainly fossil fuel — are paying the other provinces not to develop their natural resources?
The government calls it “equalization”.
Anyone who pays attention to this racket, knows that this program is broken.
Canada is divided into “have” provinces and “have nots”
The ‘haves' contribute to the fund, while “have nots” received cash transfers.
The number one indicator of status in this program is whether or not a province is willing to develop its hydrocarbons.
Alberta, Saskatchewan, Newfoundland, and British Columbia are all “have” provinces. They also make up 98% of Canada’s oil production.
Prince Edward Island, Nova Scotia, New Brunswick, and Quebec are “have not” provinces.
Quebec could one day produce up to 300 billion barrels of oil. Unfortunately, the Quebec government imposed a ban on drilling that has prevented any development.
- Quebec will receive $11.7 billion in federal transfers
PEI doesn't produce any fossil fuels, despite having pockets of natural gas deposits. There has been no drilling since 2007.
- PEI will get $419 million in Equalization this yea
A January 2018 study found that Nova Scotia has natural gas reserves that could be worth up to $60 billion. However, Nova Scotia has a ban on hydraulic fracturing, the method needed to access this deposit.
- Nova Scotia will receive $1.9 billion in cash transfers this year
The known shale gas reserves in New Brunswick are estimated at 15 trillion cubic feet. New Brunswick has a ban on hydraulic fracturing.
- New Brunswick will receive $1.9 billion in federal cash transfers this year
The “equalization” program simply does not make any sense.
As a result of this program, Canada is poorer.
Why create good-paying jobs for Canadians in Eastern Canada, when you can simply rely on never-ending handouts?
Canada’s Equalization program needs to be fixed - sign if you agree!