VAN MULLIGEN UNVEILS ADS ON EQUALIZATION

Ongoing efforts to press the federal government for fair treatment for Saskatchewan people under the Equalization program were bolstered today when Finance Minister Harry Van Mulligen took Saskatchewan's case to the people.

Van Mulligen unveiled an ad that will begin running in major Saskatchewan daily newspapers this week and weekly newspapers next week. The ad highlights the unfair treatment Saskatchewan receives from Ottawa as part of the Equalization program.

Recently, Queen's Professor and noted economist Thomas Courchene echoed Saskatchewan's concerns in a paper for the Institute for Research on Public Policy entitled Confiscatory Equalization – The Intriguing Case of Saskatchewan's Vanishing Energy Revenues. In his paper, Professor Courchene identifies that Saskatchewan does not receive similar treatment on oil and gas revenues as Newfoundland and Nova Scotia. Professor Courchene's paper is available at www.irpp.org.

"Saskatchewan people deserve a fair deal from the federal government," Van Mulligen said. "Flaws in the Equalization program have cost Saskatchewan people as much as $300 million in a single year according to Courchene. The initial payment of $120 million was a start, but it falls significantly short of what Saskatchewan is entitled to based on the treatment of other provinces under the Equalization program."

"Saskatchewan people should not have to wait until 2009 when the equalization program comes up for review, as the federal government suggests, to be treated with fairness and equity," Van Mulligen said. "Is this part of the new deal Paul Martin promised for Western Canadians?"

Equalization is a federal program enshrined in the Constitution to ensure that all provinces have sufficient revenues to provide comparable levels of public services at comparable levels of taxation. Saskatchewan has consistently argued that our province's resources have been unfairly treated under the federal Equalization program.

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For More Information, Contact:

Mike Woods Finance Regina Phone: (306) 787-6578