Newfoundland and Labrador launching court case against federal equalization program

Equalization Payments News

Newfoundland and Labrador launching court case against federal equalization program
Constitutional ChallengeNewfoundland And LabradorSiobhan Coady
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ST. JOHN'S, N.L. — The government of Newfoundland and Labrador says it plans to take Ottawa to court over the federal equalization program.

ST. JOHN'S, N.L. — The government of Newfoundland and Labrador says it plans to take Ottawa to court over the federal equalization program .

The government also contests the cap imposed on equalization payments, since it is determined by factoring in 100 per cent of what Newfoundland and Labrador makes from its natural resources but does not consider costs borne by the province to develop them.The province says in a news release that without the cap, it would have received between $450 million and $1.2 billion in equalization payments in each of the last five years instead of receiving nothing.

"I think the best strategy would be to get some kind of support from like-minded provinces," Lecours said in an interview, pointing to Alberta and Saskatchewan, both of which have argued that revenue from natural resources should be excluded from the cap determination. The sounds of drilling, sawing, banging, yelling and smashing at 4 a.m. reverberate through the wall separating Samantha McArthur's bedroom from her next-door neighbours' home. This early May 17 morning is like many others in the past year and a half — the noise and vibrations emanating from the middle Hess Street North row house for hours makes it impossible for McArthur, and her neighbour Patrick Flynn, to sleep.

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