Privy Council Office

Privy Council Office

March 19, 2007 21:55 ET

Prime Minister Harper Writes Premier Danny Williams on Plan to Restore Fiscal Balance in Canada

OTTAWA, ONTARIO--(CCNMatthews - March 19, 2007) - Prime Minister Stephen Harper today wrote Premier Danny Williams to outline the benefits for Newfoundland and Labrador in the fiscal balance plan set out in Budget 2007.

The plan announced today is based on national principles, while treating each province fairly and meeting the government's commitments.

Prime Minister Harper's letter highlighted the following issues:

- Newfoundland and Labrador will continue to receive the full benefits provided under its offshore Accord, without a cap, while keeping the Equalization regime it had when it signed those Accords.

- The province will have the right to opt into the new Equalization regime permanently at any time it chooses to do so in the future.

- Our formula for allocating infrastructure transfers provides all jurisdictions with floor funding of $25 million per year. This recognizes the particular challenges facing provinces and territories with smaller populations.

Prime Minister Harper concluded that "our plan delivers what we promised to the people of Newfoundland and Labrador."

A copy of the letter is available on CCNMatthews' Web Site at the following address:

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