PREMIER REPORTS NO PROGRESS ON EQUALIZATION

Premier Lorne Calvert today expressed his anger that there has been no progress by the federal government on resolving the equalization concerns raised by the Province and documented recently by Professor Courchene.

"Today we learn the federal government has chosen to apply a formula based on the same assumption and flaws that we were promised would be fixed," Calvert said. "This scenario for Saskatchewan is simply unacceptable."

In addition, Calvert indicated disappointment that the Report of the Federal Equalization Panel has been delayed until the spring of 2006. The Panel was to report to the federal government by December 31st, 2005.

"We are frustrated that we will now have to wait another year before reforms can be introduced," Calvert said. "Mr Goodale's decision to extend a badly flawed allocation formula to 2006-07 maintains the longstanding unfairness for our province that has been inherent in the current formula."

The federal government will use a formula in 2006-07 that provides provinces such as Newfoundland and Labrador and Nova Scotia the ability to retain 100 per cent of their oil revenues and receive equalization at the same time as they continue to receive substantial equalization entitlements. This equates to more than $2 billion for those two provinces and zero for Saskatchewan.

In addition, there has been almost no progress in discussions with the Federal Government regarding a Saskatchewan Energy Accord that would provide benefits similar to the Accords negotiated with Newfoundland and Labrador and Nova Scotia last spring.

Calvert added that in September, the Prime Minister told the people of Saskatchewan that discussions on an accord were progressing "very, very well."

"Today, I am reporting to the people of Saskatchewan that there has been no progress on any of the key concerns we have with equalization. Saskatchewan people deserve better than this," Calvert added.

"It is time the Federal Government gave a fair deal to this province."

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