Identifying the issues

Throughout its consultations, Panel members listened to a wide range of opinions and ideas about Equalization and how it should be changed for the future.

Most want to see the program put back on track, not abandoned.

While it’s difficult to summarize the wide range of opinions and suggestions, the following provides highlights of the key themes and issues identified through the process. Copies of submissions and summaries of roundtable discussions are available on the Panel’s website.

Improve the Equalization program, don’t abandon it

“The notion of ‘sharing’ has virtues, but fiscal arrangements should not maintain poorer provinces in a state of splendid dependence.” - Bruce Winchester8

While there continues to be strong support for the purpose and principles underlying Equalization, some commentators and analysts have called the program into question, with comments ranging from the lack of performance measures to assess its effectiveness to concerns that it is counterproductive, reduces Canada’s productivity, creates “welfare provinces,” and establishes a permanent sense of entitlement to Equalization. These are growing concerns and important questions to address. At the same time, all provinces, whether they receive Equalization payments or not, continue to be strong supporters of the program, as are most academics and experts. Most want to see the program put back on track, not abandoned.

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