APEC’s most recent Commentary examines the implications of the proposed changes to the Equalization program for the four Atlantic provinces. The report was prepared by Professor Paul Hobson of Acadia University and Professor Wade Locke of Memorial University, both Senior Policy Advisors of APEC.
The study provides estimates of the revenue flows to the four provinces under the current program (Fixed Framework) and the new Equalization program for each fiscal year from 2007-2008 to 2019-2020, the year in which the Nova Scotia and Newfoundland and Labrador Offshore Accords expire.
The analysis illustrates that all Atlantic provinces are disadvantaged in aggregate by the revised Equalization program for the period through to 2019-2020, although the three Maritime provinces are better off in the first two years. For Nova Scotia and Newfoundland and Labrador, the new program violates the letter and the spirit of the Accords.