Huron Expositor, 2016-11-09, Page 44 Huron Expositor • Wednesday, November 9, 2016
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Canada
Equalization must be fixed to make it work
Canadians are caring
people, as we know
from the generosity
shown across this land in
response to last spring's
Fort McMurray wildfires.
Another example, perhaps,
is Canada's equalization
system, which provides
transfers from the federal
government to regions that
supposedly don't have the
same capacity to provide
public services as more
prosperous areas of the
country.
Alberta's Wildrose Party
formed a panel in February
to examine equalization pay-
ments and their impact on
the country. Its report,
released this week, invites a
discussion about the
program.
The payments are often
portrayed as a siphoning
wealth from prosperous
provinces such as Alberta to
so-called have-not jurisdic-
tions. Such a telling is a sim-
plification: all Canadians pay
the same rate of federal taxa-
tion, it's just that workers in
places like Alberta earn
higher incomes and tend to
work longer hours than those
in some other parts of the
country.
Still, the panel's report
illustrates the foibles of
equalization. It notes, for
example, that by receiving
$10 billion this year through
equalization and other pay-
ments, Quebec is able to set
its undergraduate tuition
fees at less than half the
Alberta figure. As well, the
average monthly fees for
full-day daycare in Quebec
was $152 in 2012, but $825
in Alberta and $925 in
Ontario.
Quebecers pay higher
provincial taxes than Alber-
tans, of course, but the
impact of such transfers is
evident. Alberta taxpayers
have been paying between
$20 billion and $28 billion
more into the federation
each year over the past dec-
ade than has been returned
in transfers, benefits and
spending. This is money
that can't be used to keep
up with the infrastructure
demands of a growing pop-
ulation or be invested in
economic development or
even deposited into the
Heritage Savings Trust
Fund.
It might be palatable if the
programs had achieved its
objective: to lift all Canadians
up to a common standard.
But it hasn't.
"For the years 2010-2014,
average real income per cap-
ita in 2007 dollars in all the
traditional recipient prov-
inces was among the lowest
of all North American juris-
dictions. Prince Edward
Island has the distinction of
being last," says the report.
"A similar pattern is evident
in relation to productivity. In
terms of real growth in GDP
per worker, all recipient juris-
dictions were below the
national average for the years
2010-14 and near the lowest
levels in North America."
It's evident that equaliza-
tion, which is now redistrib-
uting $18 billion a year, needs
to be fixed when it comes up
for renewal in 2019.
Focus on food costs, not advertising bands
You know what would
make your diet better?
More government. Or
so this particular government
thinks.
On Monday, Federal
Health Minister Jane Philpott
announced wide-ranging
changes are coming: better
nutrition labelling to stamp-
ing out trans fats to overhaul-
ing the Canada Food Guide.
Consultations will wrap up in
December, with some
changes in place by the end
of 2018.
Philpott says Canadians
need more individualized
information from their food
guide. Oh, and it'll also be
easier to interpret, though it's
unclear to us how seven to 10
servings of vegetables per
day can be simplified much
further.
The government also is
stepping in to restrict adver-
tising of unhealthy food to
children. Presumably, that
applies to sugary cereals and
snacks kids love. The govern-
ment is going to try to ensure
better eating urges, pre-
empting the work parents
have traditionally done,
which is watching their chil-
dren's diets all by
themselves.
The government's actions
will naturally require robust
consultations and other
research. For instance, in
order to ban advertising of
unhealthy food to children,
the government will have to
sort out what, exactly, counts
as unhealthy.
We all want Canadians to
eat better; bad diet can con-
tribute to heart disease, dia-
betes, obesity and other
health problems. The desire
is laudable; the response
seems overkill. Parents are
already capable of resisting
the demands of their chil-
dren. Processed food doesn't
need to be festooned with
warning labels for people to
know it's not that healthy.
The question is why they con-
tinue to buy it; many eat less
healthy food because it's less
expensive.
There can also be unex-
pected consequences to
advertising bans, such as the
end of sponsorships for good
causes. In Quebec, a program
by which Campbell soup
labels could be traded in for
school equipment ended
because it contravened the
advertising law. and the gov-
ernment will need people to
police the rules.
Instead, the government
should focus on things we
know will improve diet, such
as redoubling efforts to
improve food access, quality
and affordability in the
North. In Nunavut, according
to Food Banks Canada, one-
fifth of all households skip
meals regularly. The govern-
ment promises more for its
Nutrition North Program,
which subsidizes food and
promotes healthy eating. But
much more can be done. The
focus on updated guides,
labels and advertising seems
a bit hard to stomach when
thousands don't have
enough food in theirs.
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