NCA Replace Equalization Payouts Policy Statement

The National Citizens Alliance (NCA) believes that equalization payouts are detrimental to the provinces and Canada as a whole, by adding to the welfare, entitlement federal governance through handouts to less productive provinces, penalizing more productive provinces, and decreasing competition between provinces.

Canada is facing a growing financial crisis from growing federal debt, which is tied to the inefficiencies and waste of the welfare, entitlement federal governance. See our fiscal responsibility policy statement for more information. The NCA believes that we need to take action now to address the root causes of the growing financial crisis.

The NCA supports:

● Exploring alternatives to the equalization payouts that are based upon a ‘hand up’ or productivity based rather than just a welfare handout

● Reducing or abolishing payouts to any province that refuses to allow pipelines or halts pipelines through their provinces, places moratoriums on fracking and oil discoveries without reasonable scientific cause

● Initiating amendment of the Canadian Charter by rescinding in entirety Subsection 36(2):

“Parliament and the government of Canada are committed to the principle of making equalization payments to ensure that provincial governments have sufficient revenues to provide reasonably comparable levels of public services at reasonably comparable levels of taxation.”

The NCA welcomes feedback on its policies. Please send policy feedback to

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