Mr. Speaker, I appreciate the opportunity to rise on this issue.
I asked a question about what appears to be a conflict between the throne speech and the economic statement, and the piece of legislation that provides for a formula for Nova Scotia and Newfoundland to have a 3.5% escalator clause every year for 15 years.
I really did not get an answer. I did get some kind of an answer, but it did not address my exact question. The minister must have misunderstood my question, but I know the parliamentary secretary will not.
I would like to point out that in the throne speech it states: “--Equalization payments also grow, but that they do not grow more quickly than our economy as a whole”.
Our economy next year is projected to grow at perhaps .3% or .8% or somewhere around that range, but the legislation for the equalization formula for Nova Scotia says that Nova Scotia will simply get a 3.5% increase every year for 15 years. There are two formulas actually, but the 2005 formula which has been enhanced with this legislation is to have a 3.5% increase every year for 15 years.
Again, the throne speech and the economic update both say that it will be capped at the rate of growth of the overall economy. That is a conflict. They cannot both be right.
I am asking the parliamentary secretary if he can shed a little light on this and help us understand. Is it the 3.5% in the legislation or is it going to be capped at the rate of overall growth of the economy?