On October 18, Alberta is holding a referendum to finally establish consensus on the province’s view of Equalization payments and whether the government should halt such payments.
While Premier Jason Kenney says that the vote will be merely “symbolic,” if Albertans vote “yes” to remove section 36(2) of the Constitution Act, 1982 – Parliament and the government of Canada’s commitment to the principle of making equalization payments, the province will be forced to pass a resolution and subsequently negotiate with Ottawa.
The issue is hotly debated and complex, and Equalization has long been a source of grievance for many Albertans.
As such, The Counter Signal reached out to Project Confederation‘s Executive Director Josh Andrus to see what his thoughts were on Equalization, Alberta’s relationship with the other provinces, and what the vote will mean for Alberta.
QUESTION: What do you think the effect of Equalization is on Alberta’s economy and position in Canada?
JOSH: Alberta has been contributing [to] the economy of the rest of Canada to the tune of $611-billion dollars since the program’s inception in 1957, with over $240-billion alone being within the last thirteen years. Since the price of oil cratered in 2014, Alberta has seen over $20-billion per year of our tax dollars being spent in other jurisdictions, despite high levels of unemployment, under-employment and personal bankruptcy. This means that in order to maintain the level of services that the provincial government provides, it has had to run up massive deficits and raised taxes on its citizens in 2014 to address the impending economic crisis.
Albertans have had historical spats with the rest of the country since before becoming a province in 1905, and our position as the country’s piggy bank must be addressed.
QUESTION: If the vote receives a majority to repeal Equalization payments (Kenney says this is more symbolic than anything), how do you think Alberta should proceed?
JOSH: According to Alberta’s Constitutional Referendum Act, a majority vote in favour of any constitutional question in a province-wide referendum is binding on the provincial government to then pass a resolution on the floor of the legislature. According to the Quebec Secession Reference (1998) by the Supreme Court of Canada — any province that passes a constitutional resolution on the floor of the legislature triggers a “duty to negotiate” with the rest of the country.
In this case, if the “yes” vote wins a majority, the provincial government will then have to pass a resolution on the floor of the legislature seeking to remove Section 36(2) of the Constitution Act, 1982 – Parliament and the Government of Canada’s commitment to the principle of making equalization payments. This will trigger the “duty to negotiate” with Ottawa. So, while the referendum itself is not binding on Ottawa and therefore “symbolic”, the events that a “yes” vote trigger[s] are binding and therefore not symbolic.
QUESTION: What do Equalization payments and the vote say about Alberta’s relationship with Eastern provinces, specifically Quebec?
JOSH: Albertans have long been proud of our success, and for decades have helped build this country. And, on average, we contribute $20-billion dollars in equalization transfers to the rest of the country. Now you would think they would appreciate it and leave us alone. But that isn’t exactly what happens — nor is it a historical appreciation. Quebec alone collects an average of $13-billion from Equalization and yet has consistently stood in the way of our economic development, which has contributed to a pipeline bottleneck that is strangling our ability to export our energy products.
The federal government not only takes our money, but [also has] — consistently — ignored our concerns, failed to address our problems, and [has] consistently attempted to nationalize our natural resources. While Premier Peter Lougheed did manage to get natural resources into the constitution as a provincial control, the federal government has used their definition of environmental concerns to directly supersede that constitutional right – and were upheld by the Supreme Court just this March regarding the constitutionality of the Carbon Tax.
But here’s the thing — Alberta has two justices on the bench — Quebec and Ontario have a combined six. And, all Supreme Court members are not appointed by their respective legislatures but by the sitting Prime Minister. Of the nine current Supreme Court Justices, four were appointed by Prime Minister Justin Trudeau — who represents the Quebec riding of Papineau.
Quebec, with its abundance of natural resources, should not be a have-not province. We have contributed billions and billions, year after year, to Quebec, only to see them use the money to fund lavish social programs — such as $10-per-day daycare — and balance their budget using the proceeds raised from hardworking Albertan tax dollars. All the while, their political leaders have mocked us and blocked our economic development. Enough is enough.
The only way to demonstrate clearly that constitutional reform is required to strengthen national unity and give Alberta an equal footing in this perhaps doomed confederation is to win this referendum. The constitution was supposed to ensure that all provinces would be equal in this confederation; however, Equalization is proof that some provinces are more equal than others.
