The realities of the equalization pact between provinces and the federal government are specifically for one purpose; that of getting provincial governments off the "welfare" roles and give them the opportunity to prosper using the resources they have at hand, new or old.
What the latest Tory government program has said to Newfoundland and Labrador seems to ride hand in hand with any governments policy on welfare or employment insurance; "You've got yourself in a position where you can make an abundance of money so, it's time to take you off the welfare roles".
Far be it for me to say that, perhaps we have come into the future because it wouldn't be politically correct to say that. This equalization program that has put the "screws" to Newfoundland and Labrador comes hand in hand with what we are told is happening to our offshore resources, that we are seeing big benefits from our offshore resources. While we hear the provincial tories saying that it's all good here on the Rock, the federal government seems to recognize the fact as well and that seems to be whats got the "bee in Danny's bonnet".
The whole purpose of the Atlantic Accord was to advance the offshore industries to the point that we could see the ultimate benefits like Alberta does, but the irksome realisation is that we can't see that for the forest that has grown before our eyes, created by the present administration in the province. It was Brian Mulroney who said that he "wasn't afraid to inflict prosperity on the people of the province of Newfoundland and Labrador".
Maybe the feds really weren't afraid to do it. Maybe we were afraid to accept the reality that we would profit by the offshore accord signed in 1985.Are we afraid of seeing the money come in? Are we getting paranoid of making deals so much that we can't accept the status quo on this one?
I don't think we got the screws on this one. I think we saw the premier put the screws to us. He hasn't signed a deal and time is running out now on the Atlantic Accord. The reality is that the Atlantic Accord could be a story of lost opportunity five years from now.
How so?....
It's like this. Had we seen the other offshore fields progress to the point that they were bringing in untold revenues, would we really care if we had to receive equalization again?
That's the question that none of the Try provincial politicians seems to want to answer.
Are we afraid of making a deal?
1 comment:
I read the equalization section of the 2007 budget several times and can't understand what the brew-ha-ha is all about. We have two options, stick with the deal we have until it expires. Which by my understanding excludes 100% of natural resource revenues and currently there is no cap. So I assume the cap-less nature will remain until the present Atlantic Accord expires. Or, we can opt into the new equalization program, at any time, whereby 50% of the revenues are excluded and we have that cap whereby no province receiving equalization can have a fiscal capacity greater than a province not receiving equalization. That seems fair to me and I'm a Newfoundlander. If Premier Williams has a problem with this, and he is more than in his right to raise objections, I am sure another option would be to just wait for the present deal to expire and then try to make a new one or opt into the new equalization program if all else fails.
Disclaimer: David Marx is a pen-name.
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