EQUALIZATION PANEL REPORT PENALIZES SASKATCHEWAN

Saskatchewan believes the report released today by the federal panel on equalization failed to address Saskatchewan's right to fair treatment of our natural resource revenues. The panel recognizes that provinces have the constitutional right to retain the benefits from their natural resources, but recommends the continued inclusion of 50 per cent of provincial resource revenues in the proposed equalization formula.

"The panel recommends a cap on Saskatchewan's equalization entitlements that would create a new clawback on our natural resource revenues costing our province $500 million per year," Premier Lorne Calvert said. "This is clearly unacceptable to the people of Saskatchewan."

Saskatchewan's position remains that the equalization program should return to a 10 province standard and that non-renewable natural resource revenues should be exempt. By allowing provinces to retain and invest their resource revenue they can grow their economies and prepare for the day when these resources no longer exist.

"Saskatchewan expects the Prime Minister to honour his election commitment to fully exempt non-renewable resource revenues from the equalization formula," Calvert said.

-30-

For More Information, Contact:

Jay Branch Media Services Regina Phone: (306) 787-6349 Cell: (306) 539-3994