Courting Ontario/ Shafting Quebec

This from the Globe and Mail.
It is already starting. The Grinch that stole Xmas from the provinces is already at work. He loves cutting back on government help to anybody but banks and big corporations. Government needs to be cut back. Not cut back on aid to big business of course but for social programs. What better way to do that then leave the provinces with less money to fund them. The provinces then can pass the buck and say they had to cut because of lack of fed funding and the economic recession. All is right in the capitalist world and the Grinch is in his heaven.



Courting Ontario/Shafting Quebec?
Norman Spector, today at 6:41 AM EST

This morning, Finance Minister Jim Flaherty will be meeting his provincial and territorial counterparts in Toronto, and he will not be bearing good news.With most forecasters predicting that Ottawa will go into deficit next year if not sooner, Mr. Flaherty will be sending an early signal that transfer payments will not be spared from forthcoming federal budget cuts. Tellingly, last week he noted that equalization payments to the provinces have been growing at 15% a year, suggesting that Ottawa is about to cap the magnitude of the annual increases.Some observers interpreted this as a shot across Ontario's bow; that is, as a signal not to expect to receive equalization payments from Ottawa. In fact, as the largest recipient of equalization dollars, it's Quebec that has most reason to be concerned. Moreover, in light of the election results, Stephen Harper's Conservatives may now see their future fortunes tied to Ontario, and not to Quebec.Yesterday, Mr. Flaherty indicated that Ontario would not be displeased by the news he would be imparting today. And the Toronto Star reports today, “Because the McGuinty government has contended for years that equalization contributes to the unequal treatment of Ontarians, the provincial Liberals are not against the cap that Flaherty is proposing.” The key, according to the same report, lies in the type of assistance that Ottawa is prepared to provide Ontario, with greater equity for the province in Employment Insurance being an obvious example.Later this week, as a prelude to an expected election call, Quebec Finance Minister Monique Jérôme-Forget will be providing an update on the province's finances. Watch for the fireworks to begin then, as Mr. Charest launches his campaign for a third term, and for a majority government.