Originally posted by Starhawk
The federal government can force Alberta to comply with Kyoto and a yes I know people who run small business and they succeed due to proper management and not tax breaks.
That's not why it's stupid.
And no the federal government will not and cannot force Alberta to do anything because of equalization payments being cut and the rising threat of Alberta seperation.
Originally posted by chithappens
If the federal government will not cut subsidies, it is likely because of the threat of capital flight.You said Alberta might cut their equalization payments - what exactly are equalization payments? I might know but I do not want to assume.
In Canada, the provinces that make the most money pay into a federal fund that redistributes the surplus cash to provinces that need it. For a long time it was only Ontario, British Columbia and Alberta that paid into it. Then a provincial NDP party ran B.C. into the ground so they no longer pay into it and a provincial Conservative government put Ontario in massive debt so they contribute little to it anymore. Saskatchewan has become very successful now, so only Alberta and Saskatchewan are the only contributors to the fund. Meaning that 15% of the national population pays a big chunk to the other 85%. B.C. is recovering and will probably contribute again. Those are the three westernmost provinces and because of alienation of the west by the federal liberal government over the last ten years seperation has become a growing movement. If they seperate all equalization payments will be gone, so the other provinces will start running massive debts and I don't even want to imagine what will happen to Quebec if the equalization payments stop.
The legacy of the recently retired Alberta premier, Ralph Klein, is that Alberta simply ignores the dictates of the federal government and the federals won't do anything about because Alberta holds the equalization payments as leverage.
Oh, and Alberta/Saskatchewan has the second largest oil field in the world and also share the largest uranium deposit in the world (based on recent estimates) that the federals need and that is even more leverage considering the demand for fuel and the movement back towards nuclear power.