Mr. Speaker, most revenues generated from Crown owned hydroelectric facilities are equalized in the business income revenues base of the equalization program. These revenues appear as remitted profits of government business enterprises which are combined with corporate profits to yield business income revenues. Because equalization entitlements are determined for business income revenues as a whole and not for the individual components that make up this base, entitlements associated specifically with revenues generated from Crown owned hydroelectric facilities are not available.
Some revenues from hydroelectric facilities are equalized in the water power rentals base. These include revenues from privately owned facilities and, in the case of British Columbia, revenues from Crown owned facilities received under the Columbia River Treaty.
In 2003-04, equalization entitlements generated from business income revenues were negative $290 million for Quebec and positive $191 million for Manitoba. Entitlements generated from water power rentals were negative $271 million for Quebec and negative $16 million for Manitoba.