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Ottawa, October 23, 2003
2003-052

Minister Introduces Continuation of Payments Legislation for Equalization Program

John Manley, Deputy Prime Minister and Minister of Finance, tabled legislation in the House of Commons today to protect the continuity of equalization payments to Canada’s equalization-receiving provinces.

The equalization program is renewed every five years, following discussions with the provinces and territories. The legislation tabled today will ensure that the federal government continues to have the authority to make equalization payments in the event that renewal legislation has not been passed when the current legislation expires on March 31, 2004. The passage of full renewal legislation will supersede this precautionary measure.

"This measure is a precaution to ensure that payments on which the provinces depend are not interrupted," said Minister Manley. "We are committed to tabling full renewal legislation in time for passage by the March 31, 2004, deadline, but as prudent managers we must protect the public services that provinces fund through the equalization program for the benefit of their residents."

Minister Manley met with provincial and territorial finance ministers and treasurers to discuss the renewal of the program on October 10, 2003. At that meeting the Minister confirmed that he would meet with the provincial and territorial ministers again before final decisions on renewal are made. "Equalization renewal involves many complex issues, and further work will be necessary to ensure we have the best possible solutions to the issues raised by my colleagues at our recent meeting," said Minister Manley.

By addressing relative fiscal disparities, the equalization program enables Canadians in every province to benefit from reasonably comparable public services at reasonably comparable levels of taxation.

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