Equalization payments continue to hinder Canadian unity

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https://www.westernstandard.news/alberta/equalization-payments-continue-to-hinder-canadian-unity/70048

Western Canada's reaction to the distribution of Canada's 2026-27 equalization payments underscores the uphill battle Prime Minister Mark Carney faces in seeking national unity.

The federal government recently released figures for how equalization payments would be distributed to provinces across Canada.

Consistent with historical trends, Canada's western provinces will not receive any payments, while the provinces east of Saskatchewan will receive a share of the program funds.

This trend has frustrated individuals in Alberta and British Columbia, and the displeasure has even reached the highest level of Saskatchewan's provincial government.

"This map is a clear indication of which provinces are driving Canada’s economy and how the equalization formula disincentivizes economic growth," said Saskatchewan Premier Scott Moe in an X post on Dec. 11.

The 2026-27 equalization payments, caluclated using the federal government's formula, will be the first payments made under Carney's reign as prime minister, and they come as he continues to try to follow through on his goal of uniting Canada.

"And my message to every Canadian is this: no matter where you live, no matter what language you speak, no matter how you voted, I will always do my best to represent everyone who calls Canada home," said Carney in his first speech as prime minister.

"You know, during this short I went to Saskatchewan and Alberta a couple of times, even though you know we’re Liberals, it’s tough out there. But I went because I intend to govern for all Canadians."

This is not the first time that Moe has turned to X to voice his displeasure with equalization payments, as he made a similar post regarding the 2025-26 payments.

"The federal government has announced equalization payments for 2025 and once again, SK, AB and BC will be helping support the rest of Canada," Moe posted in January.

Albertans and Premier Danielle Smith have long eccoed Moe's gripes with equalization payment distribution.

"Premier Scott Moe is right – the current equalization system isn’t fair or sustainable. It’s time for a better deal that doesn’t put all the weight on a few provinces," wrote Smith in an X post from January.

British Columbia's Premier David Eby spoke out against the federal equalization payment program at a press conference in July.

"There is an equalization formula that we disagree with," Eby said. "We think it's structurally unfair."

Eby also spoke against Carney’s July move to trim ferry fares on Canada's east coast but not on the west coast.

"Not only are British Columbians paying equalization to eastern provinces in the amount of billions of dollars," said Eby, "we have to watch the federal government show up on the east coast and subsidize ferry users that already get a $300 subsidy for each $1 that a BC ferry user gets."

On the opposite side of the issue, Quebec and other Eastern Canadian provinces have long maintained that they are entitled to equalization payments.

"We are entitled to equalization, there is no question of adjusting or changing it," said Quebec's Premier Francois Legault in 2019 in response to complaints about equalization payments that came from Alberta's then premier, Jason Kenney.

Quebec is slated to receive $13.9 billion in funds from the 2026-27 equalization program, while Manitoba will receive over $5 billion, Nova Scotia will get more than $3.5 billion, and New Brunswick will receive over $3.3 billion.

While Carney has stated that national unity is his goal, the unvailing of upcoming equalization payments will likely not soften the Western Canada's hostility towards Ottawa and Eastern Canada.

A survey conducted in Alberta by the Alberta Next panel in October, and released in December, found that 62% of respondents agreed that Alberta had been misstreated by Ottawa in the last decade.

Further, the survey found that 84% of respondents would like to make addjustments to the federal equalization program and other transfer payments in favour of greater fairness for Alberta.

The unvailing of upcoming equalization payments comes as Alberta anticipates the issueing of a petition calling for a referendum on Alberta independence, and a Saskatchewan group tours the province sparking the independence movement in their province.

Carney has appeared to make efforts to build relations with Canada's western provinces, as he signed an MOU with Alberta in November regarding the construction of a west coast pipeline, which, if built, would answer years of calls from the province for such a pipeline.

Other efforts by Carney include adding the Ksi Lisims liquefied natural gas project in British Columbia to his list of major projects in November.

Despite Carney's supposed efforts, the topic of equalization payments remains a significant hurdle he must address in future years if he wants to appease Western Canada without alienating the nation's eastern provinces.