The province of Alberta is unhappy with the current federal-provincial equalization arrangement. This is not new … it’s been the case off-and-on for most of my life, but this year the province is undertaking a formal referendum on the issue, as Jen Gerson explains in The Line:
Let’s start with all the usual but necessary rigmarole about the Alberta referendum on equalization: a “yes” vote won’t peel equalization from the constitution; even a resounding victory may not actually force the federal government to sit with the province of Alberta to discuss the matter. I mean, it might: this was Ted Morton’s idea, and his argument. That Alberta can force Ottawa and the provinces to engage in some kind of open-hearted exchange by piggybacking on the Quebec Secession Reference is not totally impossible, I guess.
As this Fraser Institute bulletin by Rainer Knopff points out, that reference is specific to questions of, well, secession and probably can’t be re-applied willy nilly to any old provincial grievance. However, Knopff goes on to note that the referendum is necessary to create a provincial legislative resolution on the matter, which would allegedly trigger some kind of duty to negotiate — although certainly no duty to come to an agreement that Alberta would find acceptable.
Most credible individuals begin to handwave furiously when asked to nail the technical legal details about how we’re going to make Ottawa cede a damn thing. Even Morton had to point out that the referendum’s greatest power lies in granting Alberta “moral force” on the question.
In other words, it’s political theatre, and it’s poorly timed political theatre at that.
Equalization is a perennial complaint in Alberta, and not one totally without merit. Although the province doesn’t cut Ottawa some kind of novelty-sized equalization cheque at tax time, we are a comparatively wealthy province, which means the province traditionally sends more money to the federal government through its income and business tax remittances than it receives in rebates and services. There is a sense of injustice, here, which notes that equalization-receiving provinces offer services like cheap daycare, and are now racking up rainy day funds as Alberta falls ever deeper into debt. Meanwhile, we can’t seem to get a pipeline built to transport the very product that provides so much of this national bounty and wealth because other provinces oppose them.
