SASKATCHEWAN DEMANDS EQUALIZATION FIX

The Federal Equalization program needs to be fixed so Saskatchewan can keep its natural resource revenues to re-invest in our economy.

Today, Saskatchewan released its vision for changes that will fix the Equalization program. The Province's submission to the Federal Government's Expert Panel on Equalization and Territorial Financing and the Federal Minister of Finance calls for fair treatment of Saskatchewan's natural resources.

"We will continue to demand that the Federal Government fix the problems with the treatment of Saskatchewan's natural resources," Premier Lorne Calvert said. "We will pursue every opportunity to get our message across to Ottawa. We will continue to do so until we reach an equitable agreement that sees the financial rewards from our natural resources reinvested in Saskatchewan."

The Saskatchewan Government has been demanding changes to the funding formula for the last number of years. But recently, a number of independent experts have bolstered the province's arguments with studies identifying the unfair treatment of Saskatchewan's resources under the Equalization program.

"Our resources are owned by the people of Saskatchewan," Finance Minister Harry Van Mulligen said. "We should be able to use them to build on the substantial economic growth we have had over the last two years. Yet, at times, we have been penalized by excessive Equalization clawback rates that have exceeded 100 per cent. This has resulted in the financial benefits from our energy resources being exported to other provinces."

The Panel is holding consultations across the country looking at ways to strengthen Equalization. Panel members present their final report to the Federal Minister of Finance in December.

"We are not asking for special treatment," Van Mulligen said. We are only asking for fair treatment. All jurisdictions must be treated equally under federal programs. The Equalization program isn't working like it should. It's time to fix it."

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For More Information, Contact:

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