BC Pledges Support for Court Challenge Over Equalization, Mulls Its Own Claim

British Columbia Premier David Eby looks on prior to a photo opportunity with Canada's premiers at the Council of the Federation meetings in Halifax on July 16, 2024. (The Canadian Press/Darren Calabrese)

British Columbia’s premier says his government is providing “full support” to Newfoundland and Labrador’s court challenge over federal equalization payments and mulling its own claim in an effort to ensure fair treatment from Ottawa.

David Eby says there are differences in the legal arguments B.C. would make, but the two provinces are united in the goal of reversing what he described as “perverse outcomes” from the equalization program for B.C. and Newfoundland taxpayers.

Mr. Eby says his New Democrat government will intervene in Newfoundland’s case “at the appropriate moment,” and B.C. officials will share information to support the other province’s claim at the trial level while co-ordinating on legal strategy.

Mr. Eby says his government will also look at whether the province should file its own legal claim in B.C. over Ottawa’s handling of the equalization program.

He told a news conference in Halifax that a review of the program is supposed to happen every five years, but Ottawa made an “explicit decision” not to sit down with the premiers and renegotiate the equalization formula to address their concerns.

Mr. Eby says the constitution is clear that equalization is meant to ensure a basic level of services for all Canadians, but provinces such as Ontario have received federal funds and B.C. has seen nothing in recent years while struggling to deliver services.

“We feel that it’s unreasonable for B.C. taxpayers to be sending money to the federal government to be distributed to provinces like Ontario,” he said on July 17.

He said B.C. is “reluctant” to take the step of a legal challenge. Provincial officials have built relationships in Ottawa, and “there’s no question the federal government understands our frustrations, our concerns, our anxieties,” he said.

But he said direct communications with Prime Minister Justin Trudeau and federal ministers have “not mattered” when it comes to moving the needle on equalization.

“It’s obvious that political considerations are blocking the ability of the federal government to prioritize the needs of British Columbians … and if politics are in the way and we’re not able to get there because of politics, then we have to go to court.”