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.
It says the formula used to determine which jurisdictions get equalization payments does not account for the high cost of providing services to the country's most sparsely populated and most rapidly aging province. 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.
André Lecours, a professor of political studies at the University of Ottawa, says the province's challenge is unlikely to be successful, but it could prompt discussions with the federal government that lead to favourable change.
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