Some people believe that Québec owes Canadians and a quick look will lead most to agree. With 23% of the Canadian population, the province receives 55% of the country's equalization payments and offers social programs that are unaccessible to other Canadians.
Still, a closer look reveals that transfers (including equalization) from Ottawa only account for 25% of the province's revenues. In comparison, Ontario receives 22% of its revenues from Ottawa. Some people will maintain that a 3% difference is enough to label Québec a parasite. In reality, if Ontario were to get that same percentage (25%), the additional amount would come to $3B. Sounds like a lot?... well... that's what Queen's Park spends in nine days.
Other provinces are more dependent on federal transfers than Québec. Manitoba and Nova Scotia receive 36%; New Brunswick, 37%; Price Edward Island, 43%. Newfoundland and Labrador once received more than 50% of its revenues from Ottawa. Today, it's at 23%, the Canadian average.
The Québécois aren't living at the expense of other provinces. If they have more generous social programs, it's because they pay higher taxes... and because they are more in debt...
Click here [Google translation] for the whole story.
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14 comments:
Thanks for that. I blogged something awhile ago about Alberta and Quebec with a link to the equalization formula and a little history lesson about how even Alberta, in the 60s received equalization. Guess folks forget about that.
Don't know about you, Michel, but I'm also sick of hearing disingenuous right winged radio hosts and pundits ramming down everyone's throat that Alberta supports Quebec with their oilsands.
I'm also tired of folks on Globe and CBC comment boards writing about us like we're sub-human. Many believed we were not even entitled to that long overdue HST compensation. Compared to Ontario and BC HST compensation they got right away, the 2.2 billion that had to be fought for was a bargain basement price if you ask me.
hi Michel...excellent post. I am so sick of hearing Quebec haters going on about how they're paying to keep Quebec in Canada. Blah Blah Blah. And not surprisingly most of those rednecks seem to come from Alberta.
So my answer to them is simple. Alberta's value to Canada? Stephen Harper, or less than nothing.
Quebec's value to Canada? PRICELESS... ;)
James,
The basic point here is that Québec pays for its richer social programs with its own money. Are you suggesting that because it gets equalization, it should refrain itself from doing so and have programs equivalent to those in other provinces?
As per government website: "Equalization payments are unconditional – receiving provinces are free to spend the funds according to their own priorities."
James, Jealous, are we?
You don't want us to have equalization payments, but you want our federal tax contributions? How adorable!
You see, Michel, James is the kind of example I was talking about. A more polite one, but an example nonetheless.
James,
Dumont has a right-wing agenda. You can twist it anyway you want, but he's not going to stand there without saying a word while someone is hinting (even remotely) that Québec isn't cash-strapped.
The important thing here is that the author of the article is offering a very simple way to assess a province's prosperity. The Canadian average for federal contribution is 23%. Think about it. The "normal" level of federal contribution to the cost of each citizen is at 23% of her/his province's revenue. Québec is at 25%. There is no doubt that it could do better, but the whole point of the article is that it's not as bad as most would like to think.
I personally don't understand how this equalization formula works, but do you really think it's in federalism's interest to have a prosperous Québec? For lack of better arguments to promote Canada, it seems rather convenient for the country's unity to keep the Québécois under the impression that they need Ottawa to maintain their financial security.
Now... on one hand, you use the argument of richer social programs to justify that Québec doesn't need equalization. On the other hand, you use Dumont to question the article's main point that Québec isn't the parasite to the federation that so many want to believe. What's your point?
James' point is the same as that of a majority of English-Canadians on this and other topics regarding Quebec's alleged corrupt and degenerate nature...
Their point is: "Don't bother us with facts".
And your point is?
James,
Not a week goes by in this country without a string of articles in English newspapers (including Quebec’s) depicting Quebec as failed state, a corrupt culture, a racist-xenophobic-antisemitic-islamophobic… society, a potential “Cuba of the North”, when not a potential “Quebeckistan”, with fascistic laws; a province that can only survive thanks to generous Canadian handouts, which we perpetually beg for under threats of separation; an outcome which should never be let to happen lest we commit a genocide toward our English minority. (And I’m probably forgetting a few key elements of the relentless ambient narrative.)
Obviously, not every English-Canadian thinks this way. But anyone who spends a bit of time on these issues quickly realizes that such opinions are very present, and firmly held for truths. Especially, we quickly realize that no matter how many times we counter them with hard facts, it doesn’t change a thing. We only have to wait a day or two for the next National Post, The Gazette or Calgary Herald editorial to pick exactly up where they’d left.
Regarding equalization. For years now we’ve been subjected to this narrative: “Quebec suckles the cash of hard working Canadians so we can pay ourselves luxury social services”. And no matter how often we come up with hard facts to try and rectify that erroneous picture – like Michel did again here --, someone like you will stubbornly try to cling to your comfortable Canadian narrative. For years we’ve been showing that, on a per capita basis, Quebec is “not” sucking up the lion’s share of equalization payments. For years we’ve been countering that our 7$/day daycare program has no link to those payments: We could scrap the program and lower our provincial taxes, but we’d still get the same amount in federal transfers. They are not linked! But guess what: I’ve yet to come across a single English newspaper articles that would acknowledge that. And I’m ready to bet 100$ that we won’t have to wait 2 weeks before another article comes out denouncing Quebec on these same old grounds.
So you’ll excuse me if I don’t whip out a violin to play a sad tune for your hurt feelings. As for my lack of class, I’ll return the compliment: Bravo for turning my 2 line comment into a suggestion that I’m a racist. (What race are you btw : The "English race"?)
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