Saskatchewan’s agriculture minister says Ottawa’s offer to be flexible in funding a farm aid program is a step forward, but still doesn’t address inequities in paying for such programs.
Safety nets are traditionally funded 60 percent by Ottawa and 40 percent by the provinces. Last week, federal agriculture minister Lyle Vanclief told reporters Saskatchewan and Manitoba may be allowed to pay less than their share of a new program in the first year, as long as they make it up in the second.
“The up side is I see they’re talking about being flexible,” Saskatchewan agriculture minister Eric Upshall said in Regina. “It doesn’t really help much. You just rob Peter to pay Paul in terms of year to year.”
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
The down side is the province will still have to pay 40 percent of a new program. Upshall has repeatedly said Saskatchewan taxpayers shouldn’t have to pay that much because the province has more than 40 percent of Canada’s farmland and just three percent of the tax base.
“You can’t penalize a large agricultural province with a small tax base,” he said. “It’s just not fair. Every time we’ve seen a program come and go … the taxpayers have had to pick up a disproportionate share.”
But Upshall also said he doesn’t want to be seen as holding up the program, so he has split the issues.
“Who is going to pay is not the important issue right now,” he said. “Negotiating the program and getting it ready as quickly as possible is.”
Upshall said he is disappointed that producers may not get money until June, but that allows time to discuss the cost-sharing arrangement.
