Monday, May 09, 2005


Harvest Moon

Thomas J. Courchene, Queens Professor and Economist extraordinaire (Saskatchewan born and educated to boot), makes the case of why Saskatchewan should be next in the Frankenstein Federalism that is currently being practiced in Ottawa. If the latest announcements were actually about fiscal redress this would be the case, however, it smells way too much like old vote buying.

Courchene notes that, in fiscal year 2000–01, Saskatchewan’s energy revenues totaled $1.04 billion, or just over $1,000 per capita. However, these energy revenues triggered even larger decreases in Saskatchewan’s equalization entitlements, over $1.13 billion, representing an average tax-back rate on Saskatchewan’s energy revenues of 108 percent. Thus, Canada’s equalization program has more than fully confiscated Saskatchewan’s energy revenues. This is just one of many fascinating revelations in the paper. Apparently, it isn't all the fault of those nasty socialists.

Lorne it is time to call Paul and tell him to meet you in Davidson for a cinnamon bun and have him bring a brown envelope - wait wrong PM.

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