PREMIER RECEIVES RESPONSES TO LETTERS ON EQUALIZATION

Premier Lorne Calvert received the response he was looking for from the Leaders of Canada's three major political parties.

Last week the Premier sent a letter to Prime Minister Paul Martin, Conservative Leader Stephen Harper, and NDP Leader Jack Layton asking for each to clarify his party's position on how oil and gas revenues should be treated under Equalization. The request was in response to a recent promise by the Prime Minister to allow Newfoundland and Labrador to keep an even greater share of their offshore oil royalties.

"Equalization is on the agenda of the three major political parties," Calvert said. "Each has affirmed their commitment to changing the flaws in the funding formula. Each recognizes the penalties imposed on Saskatchewan under the current entitlement calculation. This is good news for Saskatchewan, and every other recipient province."

"I am encouraged by the responses. We have promises for action from each party to fix the flaws in the Equalization program, and post-election we will make sure that they follow through."

Both the federal New Democrats and Conservatives responded that they would return to the ten-province standard. The Conservatives went further, noting that they would remove all non-renewable resources from the formula.

The federal Liberals have promised a comprehensive review of equalization and noted they would accelerate the review process.

"Entitlement dollars go toward the essential public services that we are struggling to maintain," Calvert said. "Sustainable funding from Ottawa is necessary to preserve the integrity of our health care system in particular. This debate is about adequate funding and fair treatment. That is all we have ever asked for, that is all we will continue to seek."

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