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  Sask. will sue over equalization: [Premier Lorne] Calvert
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Last EditedMonsieur  Jun 13, 2007 03:52pm
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MediaWebsite - CBC
News DateWednesday, June 13, 2007 09:50:00 PM UTC0:0
DescriptionSaskatchewan will launch a lawsuit against the federal government over equalization payments next week, Premier Lorne Calvert said Wednesday.

Calvert said a lawsuit isn't his preferred way to deal with the dispute over the federal program, but he tried negotiations and calling on Saskatchewan MPs to vote against the budget and nothing worked.

"This is a very poor way to run a country," Calvert said.

Equalization is the $12 billion program where Ottawa makes payments to poorer provinces so they can afford the same services and tax rates as the richer provinces.

Thanks to surging oil and gas revenues, Saskatchewan has received virtually no equalization money in the past few years.

During the election campaign, the Conservatives promised to take non-renewable resources like oil and gas out of the equalization formula — a change Calvert said would mean an extra $800 million a year for provincial coffers.
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