Provinces prepare to fight over federal cash
Last Updated: Monday, October 25, 2004 | 8:53 PM ET
CBC News
Ottawa has proposed changing the program that transfers money to the eight poorest provinces so that all 10 provinces can provide similar social services.
The changes would be the first in 47 years. Ottawa has offered to give the eight "have not" provinces $10.9 billion next year, up from last year's $8.9 billion.
The proposal also includes annual increases of 3.5 per cent over the next 10 years.
But the idea is getting a lukewarm reception. Several provinces say they want to share in $12.4 billion next year.
Nova Scotia Premier John Hamm says Ottawa has the money to improve the equalization program, but doesn't do it.
But Ontario, which along with Alberta gets no equalization money, warns that if too much money goes into the program there won't be enough for other federally funded programs.
Ontario Premier Dalton McGuinty said the federal government should concentrate on programs that benefit all provinces, such as better funding for health and education.
But Prime Minister Paul Martin was optimistic that a deal would be settled Tuesday, saying it was just a matter of working out the details.
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