I am pleased to rise today to inform my honourable colleagues about some very positive news regarding our efforts to get changes to the Equalization program. In particular, I refer to the results of a report released last week by the Standing Senate Committee on National Finance. The report, titled The Effectiveness of and Possible Improvements to the Present Equalization Policy, included eight recommendations to the federal government on changes to improve the current Equalization program.

The recommendations in the report include many of the arguments this province has been advancing to the federal government on behalf of the people of this province. In October of last year, I personally made a presentation to this Senate Committee and brought forward our case for a better deal on Equalization. The Senate report confirms that our case for a better deal is legitimate and should be acted upon by the federal government. Among other things, the recommendations include: removing the ceiling on Equalization payments, restoring the 10-province standard, changing the 30:70 Generic Solution so as to increase the share of the province�s entitlements that are protected when its non-renewable resource revenues increase, and undertaking an evaluation of the Equalization provisions of the Atlantic Accords to determine if they have met the intent for which they were designed. These last two points recognize that the existing arrangements don�t give this province a fair share of the benefits of our offshore resources.

As honourable members may recall, on December 6, 2000, this House unanimously passed a resolution to seek changes to the Equalization program to make it more responsive to the needs of Newfoundlanders and Labradorians. I would like to take this opportunity today to thank the members of this honourable House for their continued support in seeking a fairer deal for the people of this province.

The fact that a Senate committee recognizes the need to improve the current Equalization program is indeed a positive step for the people of this province. While we fully recognize that this committee cannot force the hand of the federal government to implement these important recommendations, we believe that this report validates the position of this province and points clearly to the need for positive changes to the Equalization program. We remain fully committed and even more determined to move this issue forward and we call upon the federal government to act on the Senate Committee�s recommendations.

2002 03 25                         2:00 p.m.