British Columbia’s premier says he wants to “support” Newfoundland and Labrador’s plans to sue Ottawa over the federal equalization program, which transfers money from wealthier provinces to poorer ones.
David Eby told reporters on July 15 he hopes to have an announcement on the matter before the three-day meeting of Canada’s premiers in Halifax wraps up on July 17.
Mr. Eby says British Columbia taxpayers are put at a disadvantage by the equalization formula, which is an attempt by Ottawa to reduce regional wealth disparities across the country.
On May 30, Newfoundland and Labrador said the province would file a constitutional challenge against Ottawa over the program “in the coming weeks.”
The Newfoundland and Labrador government has said the formula is flawed, and that the province could have received between $450 million and $1.2 billion in each of the last five years instead of receiving nothing.
Mr. Eby would not confirm on July 15 whether his province would join the lawsuit, but he said the status quo is “completely unacceptable.”
British Columbia has not received payments from equalization in more than a decade.
