Ottawa, March 23, 2007
2007-025
The Honourable Jim Flaherty, Minister of Finance, and the
Honourable Peter MacKay, Minister of Foreign Affairs and Minister
of the Atlantic Canada Opportunities Agency, today announced that Canada's
New Government will fully respect Nova Scotia's Offshore Accords, and has
offered increased flexibility in making the transition to the new
Equalization system.
Budget 2007 fully delivers on Canada's New Government's commitment to
respect Nova Scotia's Offshore Accord by ensuring that the province keeps
100 per cent of its offshore revenues.
Budget 2007 offers the province a choice about Equalization. Today, Nova
Scotia has chosen the new national formula because it is better for the
province, even though it could stay with its current Equalization formula.
Canada's New Government confirmed that the Government of Nova Scotia
has a full year in which it can revisit the decision that it announced today
in its budget to opt into the new Equalization system.
"As a fellow Finance Minister, I appreciate the difficulty in making
an appropriate permanent decision under such challenging timelines,"
stated Minister Flaherty. "We have therefore provided Nova Scotia with
additional flexibility to decide on which system will be applied for 200809.
This is fair and reasonable." Minister Flaherty indicated the same
flexibility will be available to Newfoundland and Labrador this year should
they so choose.
"It is important to note that if Nova Scotia opts for the new
system, it doesn't have to give up its Accordin fact, the Accord will
be fully respected and continue to provide benefits to Nova Scotia,"
said Minister MacKay. The Accord provided Nova Scotia with $830 million
immediately upon signing.
The province will have until March 2008 to decide which system will be
applied. If Nova Scotia decides to receive payments under the new
Equalization system for 200809, that choice will be permanent. If,
however, Nova Scotia chooses to operate under the previous Equalization
system for 200809, it may do so. It may then take a future decision to
opt into the new program on a permanent basis.
As a result of the decision to opt into the new Equalization program,
Nova Scotia will receive an additional $95 million as compared to the
benefits offered under the current Equalization system and Offshore Accords.
The total benefit to Nova Scotia under the new Equalization formula exceeds
those of the current program.
Nova Scotia will receive over $1.4 billion in Equalization payments and
$68 million in Offshore Accord payments in 200708, and Budget 2007
confirms $639 million in Canada Health Transfers for the province in the
same year. Budget 2007 provides other significant benefits to Nova Scotia in
200708:
$270 million through the renewed and strengthened Canada Social
Transfer (CST).
$24.2 million through a Patient Wait Times Guarantee Trust.
$8.5 million through an Immunization Trust.
$7.1 million in new funding (outside the CST) for the creation of
child care spaces.
$42.5 million through the new Canada ecoTrust for Clean Air and
Climate Change.
$19 million under the National Water Strategy.
$38 million in infrastructure funding.
$15 million for the Life Sciences Research Institute in Halifax.
Over the next two years, Nova Scotia will receive an additional
$327 million in federal transfers and programs compared to 200506.
"Prime Minister Harper has fully preserved the Atlantic Accord
concluded by former Premier Hamm, ensuring Nova Scotia keeps 100 per cent of
its offshore resource revenues," stated Minister MacKay. "As a
Nova Scotian, I am proud of the Government's flexibility in offering the
province the time to choose for itself the system which best suits its
needs."
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For further information, media may contact:
Chisholm Pothier
Press Secretary
Office of the Minister of Finance
613-996-7861
David Gamble
Media Relations
Department of Finance
613-996-8080
