Group says equalization hurts Ontario
Posted February 15, 2011 11:25 am.
This article is more than 5 years old.
The Ontario Chamber of Commerce is urging the province to renew its fight with Ottawa over equalization.
The group says in a new report that Ontario — which started receiving equalization payments in 2008 — is particularly disadvantaged under the current system when it comes to education, health care and child care.
It says Ontario children have less access to childcare spaces, young adults pay more for their undergraduate education, and people with illnesses are supported by fewer nurses than in all other provinces but one.
The chamber says that’s unacceptable when billions of Ontario tax dollars are tranferred to other provinces.
It says Canada’s current system of equalization damages productivity in all provinces and harms recipients of equalization as well.
And with Ontario and federal governments facing significant deficits, the group says Canada can’t afford to maintain policies that hurt productivity.
The chamber says it’s the perfect time for a national debate on equalization as the renegotiation of the agreements comes due over the next three years.
