Madam Speaker, we have to get the facts straight. Alberta received equalization for a short period of time prior to 1962 when resource revenues were not included in the calculation of equalization.
In 1962, when resources were brought into the formula, Alberta's equalization entitlements were clawed back. Accordingly, after 1964-65 Alberta no longer received equalization.
In 1967 equalization became a comprehensive program and virtually all revenue sources were included in the calculation of equalization entitlements.
Newfoundland and Nova Scotia want to be less dependent on transfers. It is a laudable goal, but these two provinces also want to keep all their revenues from natural resources, as do Alberta and other provinces. That is the situation at the present time.
Newfoundland and Nova Scotia want equalization payments to be maintained at the same level despite the fact that they are getting richer. That is a problem.
The equalization formula is applied in a fair and equitable manner to all the provinces. As fiscal capacity varies from province to province, so do equalization payments. These variations reflect each province's capacity to raise revenues.
Furthermore, Newfoundland and Nova Scotia resource revenues already receive special treatment: equalization payments are not reduced dollar for dollar but only by 70 cents.
In conclusion, to provide more generous treatment to Newfoundland and Nova Scotia would be patently unfair to other equalization receiving provinces which do not have the benefit of rich natural resource sectors.