Tuesday, July 25, 2006

On obstruction

So much for the prospect of the premiers uniting behind a sensible plan to boost both transfers and equalization, as Gordon Campbell has torpedoed the effort for now by calling for tax cuts rather than any form of funding:
Canada's premiers appeared no closer to achieving consensus on the delicate issue of equalization as they gathered Tuesday in western Newfoundland for Day 1 of their annual meeting.

Despite assurances from some premiers they were willing to compromise, B.C. Premier Gordon Campbell dashed hopes for a quick deal by dismissing the idea of enhancing the federal funding program, as the so-called have-not provinces are demanding.

Instead, Campbell floated the idea of introducing a new federal tax cut as the best way to raise living standards across the country.
So far, most of the provincial positions have generally at least given rise to some prospect of a constructive agreement. But if Campbell really plans on demanding a policy of duelling tax cuts at both the federal and provincial levels rather than the stable funding needed to allow provinces to provide reasonable services to all Canadians, then there may be no reason for other premiers to move from their own positions. And if that type of stalement stays in place, then Harper may well get away with gutting the federal government and calling it a solution.

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