Check out this release from the Ontario Chamber of Commerce.
It calls on the federal party leaders to audit federal transfers to provinces like Equalization in order to insure the programs are accomplishing their goals.
All this would be in support of the Ontario Chamber's call last year for efforts to address what it sees a fiscal imbalance in Confederation whereby Ontarians contribute $23 billion more to the country than they get back in federal transfers and programs.
There are a few simple observations:
1. Rhetorically, if Ontario is being seen as a burgeoning have-not province, what does that make Newfoundland and Labrador?
2. If an audit and benchmarking concludes the existing transfer systems need to alter radically because, for example, Newfoundland and Labrador hasn't been able to get ahead after 55 years of hand-outs, what policy implications will that have? There is only so much money to go around and a Harper administration will be facing huge demands from provinces like Ontario and BC for cash.
3. A Harper minority will be looking to add seats in Ontario, just as they have been doing for weeks now. That's the way politics works in this country, contrary to the bumpf being peddled by one Connie operative locally. The pressure would ramp up on a Harper administration to trash his plans cut spending and lower federal expenditures.
4. My guess is that Newfoundland and Labrador will be viewed as having already gotten its deal through the offshore agreement last year. The deal won't be ripped up but when the bargaining begins, our cash will count against us getting extras. One of the unstated reasons Danny stormed out of the Oct 04 meeting was knowing that his counterparts were going to push him a bit for his efforts to get a side deal. Don't expect much sympathy for our case in the near future.
5. Harper's general fiscal approach seems aimed at reducing federal outlays through cuts and program redesign like the one mapped for Equalization. He's going to have trouble doing that in light of the anticipated political pressure from the provinces. A minority government won't be able to resist the provincial demands.
6. From the local perspective, though, Newfoundland and Labrador needs to take a hard look at the real impact of any Harper changes to federal transfers. This province remains heavily dependent on federal transfers of all types. The best example of this is in the offshore deal. Contrary to what people were told and many believe, it was actually a way to keep or increase federal transfers rather than replace actual earned income lost to Ottawa by some means.
7. No matter which government sits in Ottawa on January 24th, this pressure from Ontario and elsewhere will be hard to resist. The only thing I'd say with some confidence is that this province's ability to influence federal decision-making will be no greater then than it is now. In fact, it might be much less.
In the past, this province has had to go to war with Ottawa on a regular basis irrespective of which party is in power. While this election is being shaped by some as an Anti-Ottawa, i.e. anti-Liberal fight, things have often been worse under the Conservatives.
Check Crosbie's memoirs on this:
- A 1988 call by Peckford for financial assistance met with Crosbie's famous "stop biting the hand that feeds you line."
- Regular fish fights including the feds decision to give France an allocation of Northern Cod, a species they hadn't fished for almost a century at that point.
Don't forget:
- The original Atlantic Accord - while still being a landmark agreement between Ottawa and a province - contained the very clawback provisions on Equalization that people who supported it then (like Loyola Hearn and Norm Doyle) later blamed on the Liberals.
A detailed assessment of the Conservative platform and the specifics of the letter from Harper to Williams suggests more than a few areas where a Prime Minister Harper would clash with Danny Williams. That's without the burgeoning pressure from Ontario for more federal cash and the likely political pressure on Stephen Harper to win seats where he doesn't have them now.
