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What federalism!? show me the money
by
Angelo Persichilli
THE HILL TIMES  (Versione italiana)

“John Tory has them running for cover and he hasn’t been elected yet. Do they really think that attempting to weaken us will be helpful to their re-election? I mean, after our election?” The comment comes to me from an Ontario federal Liberal MP who expressed in a very pointed way the general feelings in the federal Liberal caucus about the recent requests from Ontario Premier Dalton McGuinty and Finance Minister Greg Sorbara.

                This strong and open criticism from Ontario against the federal government and the energy agreement with Newfoundland and Labrador and Nova Scotia has caught many politicians, especially Ontario federal Liberal Members of Parliament, by surprise.

                After all, we have gotten used to the periodical fireworks and lingering bickering from the province of Alberta and to the innocuous complaints from Atlantic Canada against the central government.We’ve also been able to rationalize the torture treatments from Quebec, most of the time alleviated by some pompous, but empty constitutional recognition, but costly financial concession.

                But Ontario, never; Ontario is Canada. Remember Conservative premier of Ontario Bill Davis was one of the most strenuous supporters of Liberal Prime Minister Pierre Trudeau in the 1970s and early 1980s.

                Then the Liberal Ontario premier David Peterson, stood shoulder to shoulder with the Conservative prime minister Brian Mulroney on constitutional issues and on Meech Lake. Even the early years of the NDP premier of Ontario, Bob Rae were characterized by the same feelings: Ontario always supported Ottawa, no matter what,when a political warfare was propping up with some provinces.

                “Ontario, under Bill Davis, David Peterson and also Bob Rae followed the lead in being allied in nation-building,”said Patrick Gossage, former director of communications to Trudeau.

                Things started to change during the last years of Rae’s government.

                It was in the middle of a stubborn recession when the then minister of finance, Paul Martin, cut payments to the provinces to get rid of the federal financial deficit. Bob Rae, a strong federalist, threw the first stone at the federal government’s glass house.

                I recall interviewing him on the dispute he had with the unions. He rubbed his thumb and index finger together and said,“No money.”And he attacked the federal government for cutting the transfer payments.

                But hey, he was an NDP provincial premier criticizing a federal Liberal government.

                Then along came Mike Harris who jumped into the federal-provincial relationship like a fox jumping into the proverbial henhouse: and the feathers flew all over.

                But, hey, he was a radical Conservative premier fighting against a federal Liberal government. Furthermore, it was a time when politics was all bluster and a time when Canadian politics featured The Three Amigos. Do you remember the Harbourfront poster with Jean Chrétien, Mike Harris and Toronto mayor Mel Lastman? But in 2003 politics changed. It went, or at least we thought, from a sparkling Asti Spumante celebration to a more sober chamomile tea serving for an afternoon chat with friends.“Boring” David Miller replaced eccentric Mel Lastman; and at Queen’s Park the “smiling” Dalton replaced Mike-The- Chainsaw (Who remembers Ernie the Ghost?); in Ottawa, Paul the “conciliator” replaced Jean the “terminator.” In December of 2003, the three new kids were in town singing a new song in harmony: a new era of cooperation has started.

                It was short-lived: the first “flat note”come from Miller.

                But hey, he’s an NDP mayor against a Liberal government(s).

                The choir was reduced to a “duo”: Dalton and Paul.

                However, they stopped singing and for a while they were just humming.

                Now it is over and the same-party-divorce is out in the open.This time it is a Liberal provincial government, against a federal Liberal government.

                Now it’s quite clear that it’s not a political, partisan dispute: Ontario is rethinking the approach to federalism.

                Even Liberal-Liberal governments have a relationship problem.The Ontario provincial Liberals are saying that $23-billion is at least $5-billion too much to pay for supporting federalism.

                Ottawa is muttering back that it’s talking about tax money paid to Ontario and Toronto by big corporations, including the big banks, from activities all over Canada.They pay in Ontario only because their headquarters are there.

                However, that is not the point. Both Martin and McGuinty are paying for their lavish promises made during their election campaigns, and the fact of the matter is that, whether you are an NDPer, Conservative or Liberal premier of Ontario, the pass code to a friendly federal-provincial relationship is “show me the money.” What’s left from the federalism preached by Pierre Trudeau and other Prime Ministers? “I believe that Pierre Trudeau,”said Gossage, “would be horrified at the bickering over how the fiscal pie is divided up and the total rewriting of the rules of the equalization that brought this bickering about. Martin’s rewriting of these rules has opened up a can of worms and Trudeau would be horrified.

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