Document Information

Date: 1980-07-09
By: Sub-Committee of Officials on Equalization, Gérard Veilleux
Citation: Sub-Committee of Officials on Equalization, Report to Ministers of the Sub-Committee of Officials on Equalization, Doc 830-81/056 (9 July 1980).
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DOCUMENT: 830-81/056

CONFIDENTIAL

July 9, 1980

Report to Ministers of the Sub-Committee of Officials on Equalization

The Committee heard the three changes to the Best Efforts Draft proposed by the Government of Quebec.

The changes are as follows:-

1) the deletion from Section 96(1)(b) of the es efforts draft of the words “for social and economic wellbeing”;

2) the word “province” in 96(2) of the draft would be changed to “provincial governments” so that the section would read “Making equalization payments to provincial governments …”;

3) the deletion of the last clause of Section 96(2) beginning with the words “or to the principle …”

The proposed changes received the support of all provinces except British Columbia which reserved its position. Some noted that these changes may make it more difficult to meet the reservations of British Columbia.

Since changes were being suggested, other provinces too the occasion to propose further changes, more particularly with respect to Section 96(2) of the best efforts draft.

Manitoba and Saskatchewan proposed that Section 96(2) be re-worded to read:-

“Parliament and the Government of Canada are further committed to the principle of making equalization payments to ensure that provincial governments have sufficient revenues to provide reasonably comparable levels of public services at reasonably comparable levels of taxation.”

These changes as proposed by Manitoba and Saskatchewan were also supported by Prince Edward Island, New Brunswick, Nova Scotia and Quebec; Newfoundland and Ontario reserved their positions, and British Columbia, Alberta, and the Federal Government were opposed.

Gerard Veilleux

Chairman

Draft Propasa1 discussed by First Ministers

EQUALIZATION AND REGIONAL DEVELOPMENT

“96(1) Without altering the legislative authority of Parliament or of the legislatures or of the rights of any of them with respect to the exercise of their legislative authority, Parliament and the legislatures, together With the Government of Canada a d the Governments of the Provinces, are committed to

(a) promoting equal opportunities for the well-being of Canadians;

(b) furthering economic development to reduce disparity in opportunities for social and economic well-being; and,

(c) providing essential public services of reasonable quality to all Canadians.

(2) Parliament and the Government of Canada are further committed to the principle of making equalization payments to provinces that are unable to provide essential public services of reasonable quality without imposing an undue burden of taxation, or to the principle of making arrangements equivalent to equalization payments to meet the commitment specified in Section 96(1)(c).”

(3) The Prime Minister of Canada and the First Ministers of the Provinces shall review together the questions of equalization and regional development at lease once every five years at a meeting convened pursuant to section 97.