Mr. Speaker, I would like to ask the member from Newfoundland a question about equalization. I know he is interested in this.
His province and my province of Nova Scotia were given the opportunity to have a different equalization formula as an option in the 2007 budget implementation speech. That option included a 3.5% escalator clause every year until 2020. The budget speech says that all equalization increases will be capped at the rate of overall growth of the economy, which is about zero percent. That contradicts the legislation that was passed just a little over a year ago that says that Nova Scotia and Newfoundland and Labrador have a 3.5% automatic cumulative escalator clause until 2020. I wonder if he is aware that that has been taken away now.
There is a contradiction. The words in the budget say that all equalization be capped, but the legislation says that Nova Scotia and Newfoundland and Labrador have a 3.5% increase every year, cumulative until 2020. Which will happen?