Mr. Speaker, what seems to be forgotten in the debate is that the development of offshore resources in Nova Scotia and Newfoundland promises new jobs, higher incomes and greater self-reliance for the people of both provinces. The people of Nova Scotia and Newfoundland will be the big winners, and that is the way it should be. Provincial treasuries will also benefit.
To suggest that equalization payments should remain entirely intact was never the intent. I come back to the comment made about the province of Alberta. While it is true that Alberta received equalization payments when they were introduced in 1957, only three tax bases were used at the time: personal income taxes, corporate income taxes and succession duties. As the tax bases were broadened Alberta failed to qualify. If we were to go back today to the original program of personal income taxes, corporate taxes and succession duties, Nova Scotia would receive about $740 million less per year.
We have the right balance now. There is an incentive for provinces to develop offshore resources. There is a transition away from equalization payments. The bottom line is that it provides a tremendous opportunity for these provinces to create new confidence, new employment and new career opportunities.
Given that argument, we have a formula that recognizes incentive and provides an equal footing for all provinces depending on their resource and taxation bases. Would the member agree that it is a fair and sound formula?