View Full Version : Would Canada be better as a loose federation?
ssiguy2 October 3rd, 2005, 06:18 AM I think one of the problems with Canada is our transfer payments and provincial juristictional demands.
Personally I think Canada would be better off as a more lose federation.
No transfer payments as it just breeds accrimony about who gets what and who pays for it.
I think the provinces should have total control of their medical, education, social, cultural affairs and legalities. They collect their own taxes and spend them accordingly.
The federal government would handle all foreign aid, military, international relations, crown corporations {ie Canada Post, CBC/RadioCanada,Via, Bank of Canada, SupremeCourt} coast guard, national emergencies. It would have to still have control over the CPP as it is really not under any squabbling, national in nature and contributions of a national nature. Nobody in the country pays any less or more than anyone else.
It would still control Native and Northern Affairs and the enviornment as they are also national in nature.
It would guarantee total provincial control over things that really matter to Canadians on a more daily basis.
It would continue be a federal government but only federal matters. It would stop the bitching of the provinces that they don't get this or that.
Provincial control over all things to its citisens but would allow the dollar, international relations in the hands of the provinces but still by keeping us together would end the squabbling and yet guaarantee the portability of services like healthcare, universities etc
Thoughts?
ssiguy2 October 3rd, 2005, 06:21 AM ^ correction........at the end paragraph I meant to say internaational relation, dollar in the hands of the FEDERAL government...................D'oh!
big W October 3rd, 2005, 04:57 PM Isn't that the way we are supposed to be anyways?
vid October 3rd, 2005, 05:26 PM Yes, it is.
Except for the transfer/equality payments.
bluenoser October 3rd, 2005, 11:20 PM so basically all you're really saying is that we should get rid of equalization?
addisonwesley October 3rd, 2005, 11:52 PM ^^THAT WOULD BE NICE.
partybits October 4th, 2005, 01:02 AM I think he meant more than just equalization payments. There is other transfers other than equalization. Health, Education and Social I believe are the three (please correct me if I'm wrong) that were lumped into one large Transfer payment.
Essentially this would mean each province is not only responsible for the administration of the majority of services to it's citizens but also the taxation/revenue needed to pay for it.
The immediate result SHOULD be an immediate drop in federal taxes and a corresponding increase in Provincial taxes. However, due to political pressure, provinces will not want to increase there taxes too much and the end result would be service cuts in the majority of provinces.
As for the cancellation of equalizatoin, while this would be a huge benefit for Alberta and Ontario, some provinces would be utterly decimated. Atlantic provinces and some prairie provinces, who already had there Transfer payments cut (read above) will also not be able to get equalization. To make up for this, either taxes would skyrocket, services would be slashed, or a combination of both. This would drive people out of those provinces in droves and cause potential economic collapses. Meanwhile, Alberta and Ontario will have to deal with massive migration of citizens from these other provinces, straining the provinces recoursees.
While getting rid of transfer/equalization payments seems good on paper (read: Reform Party), in reality it could cause a shock to the nation.
However, if done right, it can work. This would involve a very gradual (10-20yr) reduction of Federal transfers. It actualy has been happening throughout the 90's. The unfortunte thing is that as federal transfers have gone down, provinces have not even increased taxes, but in fact many have reduced it. so it is not working becasuse politics are getting involved.
And it still does'nt fix teh equalization issue for the have-not provinces.
I think Equalization worked...right up until Martin decided to make these one off deals with provinces (Nfld, NS, Quebec). While his intentions were good, it proved to be a disaster as now...surprise, surprise...all provinces want in. Alberta is being very protective of there oil, Ontario is demanding $23 billion more, and Sask. wants to strike it's own natural recourse deal.
addisonwesley October 4th, 2005, 01:05 AM Massive migration to Alberta straining the province's resources? I doubt it. Maybe just the massive migration though.
rbt October 4th, 2005, 03:28 AM As for the cancellation of equalizatoin, while this would be a huge benefit for Alberta and Ontario, some provinces would be utterly decimated. Atlantic provinces and some prairie provinces, who already had there Transfer payments cut (read above) will also not be able to get equalization.
The Atlantic provinces can empty out slowly (as they have been for 50 years) or they can empty out quickly. The end result in 100 years or so will be the same.
As long as they try to remain a supply based economy with little city infrastructure of their own, which they will never get by focusing on trade with much larger markets, they're screwed. Time is not their friend and their too far from Boston and Montreal to hope for revitilization by proximity (basically an annexed economy).
ssiguy2 October 4th, 2005, 04:08 AM What it will do it start treating everyone fairly.
Equalisation was a good idea but has gotten completly out of hand.
NS & NFLD will hopefully be turning around with oil.
Its also a hell of a lot better than if Quebec leaves.
The feds could help them to slowing pay off a percent of their debt over say 5 years to help them back on their feet but only relativly speaking. With the taxation powers the provinces will have so will their portion of the federal debt.
In otherwords, the provinces take all the debt out of the feds on a percapita basis with maybe some concetion to the poorer ones.
How they would deal with it would be their own issue. They can restrain spending, increase taxes or nothing at all if they want.
With all the flexibility of their resources which all the provinces are bitching about 24/7 they can do whatever the hell they want.
The feds would be there strickly as an umbrella for nationwide issues and international affairs.
Just as the provinces taxes would soar the feds would be greatly restricted like city governments are now, just certain select ways of raising revenue.
Everyone would be treated the same for once.
Its unfortunate it has come to this but something fundamental has to change.
I don't know what I get sick of more, Quebec's constant demands or Atlantic Canada's sob stories.
partybits October 4th, 2005, 04:39 AM Okay...lots of critisism...fair enough.
AddisonWilson...that's what I meant. A massive amount of migration from other provinces all looking for employment and not necessarily having the skills needed in the province. Could cause increased unemployment, infrastructure issues in the major cities, etc.
RBT...I'm not saying that there is'nt problems with the Atlantic provinces, but pulling the rug out from under them is'nt the answer. It would be better to have them "empty out slowly" instead of suddenly because you thrive to avoid shock and the ensuing aftershocks (an way off topic example...the sudden fall of communism in USSR vs the gradual capitilization of China...which one has been more succesful?).
So, would'nt it be better to wean them off equalization as there natural resourse revenues rise. Could'nt we give corporations tax credits for locating offices in Atlantic offices (Corporate welfare haters can proceed to bash me!). It is always better to be gradual is what I'm trying to say.
ssiguy2...while all your points sound good in theory, in practise it has the potential to fail miserably. Has equalization failed miserably....no...it served a great purpose uniting the country. But admittedly it needs fixing. Keep in mind this never would have been an issue before the massive cuts imposed in the 90's. Consequence of slaying the deficit dragon.
As for Quebec, they are more likely then ever to leave with no equalization payments. Despite there talk of being autonomous, one thing they never would want stopped is these payments, and in fact fight for more. Without it, they would have even less of a reason to stay in Canada (sadly enough, it almost sounds like a bribe for nationalism).
In regards to all prov'l gov'ts taking a per capita slice of the federal debt...once again good theory, but how is that going to be implemented. You think the provinces will ALL agree to this. Poorer provinces will demand relief, Quebec will say this is not there issue but that of Anglo-Canada, Ont. will just go berzerk after giving all this money to equalization for decades only to be slammed with the majority of debt ($200 Billion). Alberta will also go nuts after finally paying off there debt be slammed with approximatly $50 Billion in debt.
Can it be resolved...just look at the success of past provincial/Federal agreements. Meech Lake and Charlottetown kinda give you an idea.
Your all right in some degree that there is a problem. But why is it that whenever there is an issue people resort to extreme measures. It would be easier to fix the equalization issue than to scrap it entirely. And it would'nt be so unfair to the have-nots. I think all Canadians don't mind giving a hand towards the less prosperous provinces, they just don't want it to go to waste is the issue.
I'm going to get ganged up again, ain't I....LOL
addisonwesley October 4th, 2005, 04:54 AM YES. A federation made up of:
"The west, aka. Prince Rupert's Land. Ontario and Quebec should be named upper and lower Canada, their own countries, respectively. The NWT, the Yukon, and Nunavut should become one nation for the Inuit and other northern first peoples. And the maritimes a nation of their own, with the exception of NFLD, they could either be a country as well or go back to being a British colony."
And the federation could have it's meeting place in London, UK.
.affed October 4th, 2005, 06:14 AM Canada is by FAR the most loose federation in the world.
American, Brazilian, Mexican, Indian, Nigerian, Australian states, Argentinian provinces, German Lander, Swiss Cantons, Russian Oblasts and Republics, etc don't have nearly as much power as Canadian provinces. If anything Canada's problem is the ridiculous amounts of power given to the provinces. A strong central power is necessary for national unity and cohesion. Fuck the provinces!
touraccuracy October 4th, 2005, 06:52 AM ^I always thought that American states had way more power over themselves than Canadian provinces.
rt_0891 October 4th, 2005, 06:59 AM ^^ Texas and California yes, but for the other states, not necessarily.
rt_0891 October 4th, 2005, 07:10 AM As for Quebec, they are more likely then ever to leave with no equalization payments. Despite there talk of being autonomous, one thing they never would want stopped is these payments, and in fact fight for more. Without it, they would have even less of a reason to stay in Canada (sadly enough, it almost sounds like a bribe for nationalism).
I think this clearly highlights why Western Canada no longer cares about whether Quebec stays or separates. Funding Quebec is like feeding the cookie monster. It's never satisfied and there's no return. Instead of a thank-you for a thought of appreciation, they keep whining how they're not getting enough. Quite frankly, the money would be better spent improving the quality of life for the rest of the country.
Quebec is already the highest taxed jurisdiction in NA, yet it can't even keep its finances straight. I will never understand why.
samsonyuen October 5th, 2005, 12:36 AM Look at gay marriage, even though it's recognized by one state, the federal court can turn it down. In Canada, the province did what it wanted, basically. California and Texas, and other states all have equal authority over state issues. There is no preferential treatment for the two biggest states just because they're more populated.
Buster October 5th, 2005, 03:31 AM Quebec is already the highest taxed jurisdiction in NA, yet it can't even keep its finances straight. I will never understand why.
Cheap daycare?
Great idea, just too damn expensive for the rest of Canada to subsidize.
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