Nova Scotia signs on to new Equalization Formula

Now that's leadership... on both Mr. Harper's and Mr. MacDonald's part.

PRIME MINISTER HARPER AND NOVA SCOTIA PREMIER MACDONALD RESOLVE DISPUTES OVER ATLANTIC ACCORD

October 10, 2007
Ottawa, Ontario

Prime Minister Stephen Harper and Nova Scotia Premier Rodney MacDonald today announced that they have resolved Nova Scotia’s concerns related to interpretation of the Atlantic Accord. In accordance with the principles of the 2007 federal budget, Nova Scotia will be able to opt into the new equalization arrangement without risking any of the benefits it would have received from the 2005 Accord.

“Canada’s New Government has established a new national equalization formula that applies equally to all provinces while also committing to fully honour the Accords with Nova Scotia and Newfoundland and Labrador by ensuring that they would not lose benefits already agreed to,” Prime Minister Harper said.

The Prime Minister made it clear that Nova Scotia and Newfoundland and Labrador will be able to opt in to either the 2005 equalization formula or the new equalization formula but not a combination of both. Their benefits under the Atlantic Accords will be protected no matter which equalization formula they choose.

“Today’s announcement ensures that Nova Scotia continues to be the primary beneficiary of our off shore resources,” explained Premier MacDonald.

Prime Minister Harper and Premier MacDonald also announced that they have agreed on a process to determine the value of the “Crown Share” under the original 1986 Atlantic Accord. A joint, three-member panel will examine the longstanding dispute over the value of the payments and method of calculating them and report to both governments by March 15, 2008.

“These are not easy issues,” the Prime Minister observed. “The Atlantic Accord is a highly technical agreement over which people of good faith can have differing interpretations.”

Prime Minister Harper concluded by thanking Premier MacDonald and his officials for their contributions to the resolution of the disputes. He also acknowledged the helpful advice provided by Nova Scotia Member of Parliament Gerald Keddy and the Honourable Peter MacKay, federal Minister for Nova Scotia.

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The Prime Minister’s Office - Communications