Komarnicki Speaks on Equalization Payments
Punishing Effects on Saskatchewan

Ottawa-Ed Komarnicki, MP for Souris-Moose Mountain, along with other Conservative Saskatchewan MPs, criticized Finance Minister Ralph Goodale for not giving Saskatchewan a fair deal with federal equalization payments, during a Conservative-sponsored motion debated in the House of Commons yesterday.

Komarnicki stated that Saskatchewan in particular has suffered under the equalization payment program, at times losing $1.08 in equalization payments for every dollar of oil produced in Saskatchewan, with a total equalization loss of $4 billion in just 10 years.

“Non renewable resources should not be clawed back,” said Komarnicki. “This is the very base that helps develop a province. In my constituency of Souris—Moose Mountain and part of the sister constituency, the total oil extracted production was 52 million of 153 million barrels of oil, or $2.4 billion of $5.5 billion province-wide.”

Using the Gross Domestic Product (GDP) Saskatchewan received $123 - $146 per capita in equalization payments while Manitoba received $1,100 per capita. “How can that be? Simply put, this is unconscionable.” said Komarnicki. “At the very least this government and the Finance Minister in particular, must give Saskatchewan a deal as least as favourable as that given to Nova Scotia and Newfoundland and Labrador and on a bilateral basis.”

“Saskatchewan should not have to wait for the potential or probability of the panel of experts to exclude 100% of oil revenues when the Finance Minister has already done this for the Atlantic Provinces,” Komarnicki said. “It’s simply a matter of equity and fairness and I can’t understand why the Minister is waffling on this issue.”

The Minister of Finance, a native of Saskatchewan, has an obligation to the citizens of Saskatchewan and those in particular in Souris—Moose Mountain to ensure that the past injustices done to Saskatchewan are not repeated again. He says that Saskatchewan is on the cusp of being a have province. If it is a have province or on the cusp of being a have province, most of the citizens of Saskatchewan do not realize that.

The Atlantic Accord provides not only 100% of the offshore oil revenues to be kept by the Atlantic Provinces but also assures that no equalization payments will be lost. There is also provision that should a better deal be negotiated with any other province, Nova Scotia would be entitled to renegotiate the same benefits.