BC commits to supporting court challenge on equalization, considers filing its own claim
British Columbia’s premier says his government is providing “full support” to Newfoundland and Labrador’s court challenge over federal equalization payments and considering its own claim to ensure fair treatment from Ottawa.
David Eby states that while there are differences in the legal arguments B.C. would present, both provinces share the goal of reversing the “perverse outcomes” from the equalization program for B.C. and Newfoundland taxpayers.
Mr. Eby mentions that his New Democrat government will step in during Newfoundland’s case “at the appropriate moment,” and B.C. officials will collaborate and provide information to support the other province’s claim at the trial level while synchronizing on legal strategies.
Mr. Eby also points out that his government will explore the possibility of filing its own legal claim in B.C. regarding Ottawa’s management of the equalization program.
During a news conference in Halifax, Eby highlights that while a review of the program should occur every five years, Ottawa opted not to engage in renegotiations with the premiers to address their concerns about the equalization formula.
Mr. Eby emphasizes that the constitution is clear that equalization is designed to ensure a basic level of services for all Canadians, yet provinces like Ontario have received federal funds while B.C. has not received anything recently, facing difficulties in providing services.
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“We believe it’s unfair for B.C. taxpayers to send money to the federal government that goes to provinces like Ontario,” he stated on July 17.
He expressed that B.C. is hesitant about pursuing a legal challenge. The province has established connections in Ottawa, and “the federal government fully understands our frustrations, concerns, and anxieties,” he noted.
However, he mentioned that despite direct communications with Prime Minister Justin Trudeau and federal ministers, “it hasn’t made a difference” in advancing discussions on equalization.
“It’s clear that political factors are hindering the federal government from prioritizing the needs of British Columbians… and if politics are a barrier, then we have to take legal action,” he concluded.
