Premier Pat Binns says that, if recommendations of a Senate Report are implemented by the federal government, the residents of Prince Edward Island would be major beneficiaries. Yesterday, the Standing Senate Committee on National Finance released its report on Equalization Policy. The report strongly supports the essential function of the Equalization Program in ensuring that all Canadians, regardless of where they live, have access to similar quality public services, including health care and education. The report states that the importance of Equalization "has increased over the years, so that it is now an integral part of the economic and social fabric of the country."
The Senators agreed that the basic structure of the current Equalization formula works reasonably well, but that changes are needed to allow the Program to fulfil its Constitutional mandate. The Committee adopted several recommendations to strengthen the program that had been proposed by Honourable Pat Mella when she met with them in Ottawa last October. These recommendations included the removal of the ceiling on Equalization and a restoration of a national average standard to ensure adequate payments into the future.
The Premier stated, "I am encouraged that the Senate Committee listened to the concerns and proposals of Minister Mella and other provincial representatives. Premiers and Finance Ministers of every province have consistently advocated the need for enhancements to this vital program in recent years. I urge the federal Minister of Finance to act on the report's recommendations in a timely manner."
Minister Mella will continue to press for improvements in the Equalization Program at an upcoming meeting of federal/provincial/territorial Finance ministers in Corner Brook next month. The Equalization Program is the largest federal transfer to the provincial government in support of programs and services to the public.