RELEASE

For Release: Immediate
March 22, 2007

Honourable Roy Cullen Calls on Prime Minister to Explain Misuse of Equalization Payments

Ottawa - The Honourable Roy Cullen, Member of Parliament for Etobicoke North, today called on the Prime Minister to explain why money meant for equalization is being used to cut personal income taxes.

"How can the Prime Minister justify the announcement earlier this week by the Premier of the Province of Quebec that the entire $698 million increase in Equalization payments for the Province of Quebec included in the federal budget 2007 will be used to cut personal income taxes for Quebecers. How can this be justified? How will this increase in Equalization payments provide better access to healthcare, education and other social programs for Quebecers if the new funding targeted for precisely this purpose is used not for programs but for cutting taxes?" asked Cullen.

Equalization is the Government of Canada's most important program for reducing fiscal disparities among provinces. Equalization payments enable less prosperous provincial governments to provide their residents with public services that are reasonably comparable to those in other provinces, at reasonably comparable levels of taxation.

"This is an outrageous affront to the taxpayers of this country, and if the purpose of equalization is supposed to be to ensure equal access to equal services across the country, how can this be explained?" continued Cullen.

The Canadian Constitution, Subsection 36(2), says that equalization payments are to be used, "to ensure that provincial governments have sufficient revenues to provide reasonably comparable levels of public services at reasonably comparable levels of taxation."

"Provinces have the absolute authority to spend these transfers in the way that they see best serves the needs of their citizens, but the Constitution of Canada demands that these funds be used to improve services and not to cut taxes," concluded Cullen.

For more information, please contact:
David Cuddemi, Executive Assistant
Room 317, West Block
613-995-4702