In the Media

Equalization payments are discouraging at least two provinces–Nova Scotia and New Brunswick–from developing their natural resources and generating prosperity for their residents, finds Nova Scotia, New Brunswick and the Equalization Policy Crutch, a new essay released jointly today by the Fraser Institute and the Atlantic Institute for Market Studies (AIMS), two independent, non-partisan Canadian public policy think-tanks. “Equalization makes it easier for Nova Scotia and New Brunswick to forego natural resource development that would help spur economic growth while Saskatchewan, for example, is developing its natural resources and is now a net contributor to Canada’s equalization program,” said Ben Eisen, director of research and programs at AIMS.

AIMS Director of Research Ben Eisen and Fraser Institute Senior Fellow Mark Milke authored the study, “Nova Scotia, New Brunswick, and the Equalization Policy Crutch” and Eisen appeared on CBC Radio Mainstreet to discuss it with host Stephanie Domet. Eisen remarks that “Keeping an open mind and a positive attitude towards resource development is one approach to driving prosperity that governments in the region should take.”

Two independent Canadian public policy groups don’t have much good to say about equalization grants. The Fraser Institute and the Atlantic Institute for Market Studies says the grants act as a disincentive for the development of natural resources in New Brunswick and Nova Scotia. AIMS Director of Research Ben Eisen says equalization makes it easier for “political actors” to turn their backs on developing natural resources, even though they’re a potential source of jobs, revenue, and economic growth.

Equalization in Canada means that Saskatchewan, a "have" province, is sending money to "have-not" provinces like New Brunswick and Nova Scotia. Those two provinces have raked in more than $27 billion in equalization since 2005. And it's those payments, according to the Fraser Institute and the Atlantic Institute for Market Studies, which discourage those provinces from developing their natural resources. Ben Eisen, director of research and programs at AIMS says equalization makes it easier for the two eastern provinces to forgo natural resource development that would help spur economic growth. At the same time, Saskatchewan is developing natural resources here and sending some of that revenue to places like New Brunswick and Nova Scotia. Eisen says if governments there want to help create jobs at home, raise income for workers, and increase tax revenues, they should pursue policies that do not harmfully restrict resource development.

In a radio interview on the John Gormley show, 650 CKOM, AIMS policy analyst and co-author of "Declining Equalization Payments and Fiscal Challenges in the Small 'Have-not' Provinces" discusses the results of that report and argues that provincial governments in Canada must begin to recognize their own fiscal demands and choose policies that meet them rationally, instead of waiting for federal support.

NationTalk covers the release of a joint FCPP/AIMS paper outlining the fiscal challenges facing Canada's small 'have-not' provinces, particularly in the context of declining equalization payments.

Manitoba’s share of federal transfer payments has shrunk dramatically over the last five years and it’s mostly Ontario’s fault. A study released today by the Frontier Centre for Public Policy and the Atlantic Institute for Market Studies looked at federal equalization payments made to four small, historic "have-not" provinces–Manitoba, New Brunswick, Nova Scotia, and Prince Edward Island.

Manitoba's share of federal equalization money has shrunk dramatically over the last five years, and it's mostly Ontario's fault. That's according to a new study released Wednesday that bolsters the province's long-standing frustration over flat federal transfer payments. The study, done by the Frontier Centre for Public Policy and the Atlantic Institute for Market Studies (AIMS), found Manitoba's share of Ottawa's total equalization pie has shrunk more than 24 per cent since the recession. That's the biggest drop of any of the historic "have-not" provinces.