Poilievre says he wouldn’t make any big changes to equalization program

Conservative Leader Pierre Poilievre says he wouldn’t make any “big changes” to the federal equalization program if the Conservatives form government after the next election.

For decades, the program has transferred federal funds to the provinces to allow for a roughly equal level of government services across the country. The government makes payments to provinces based on their ability to raise revenues, meaning that the contributions aren’t necessarily equal across the board — unlike payments like health transfers, which are paid out on a per-capita basis.

A number of provincial premiers have long criticized the program and called for changes. But Poilievre told Radio-Canada’s Téléjournal Acadie in New Brunswick on Wednesday that he doesn’t expect to alter the program significantly if he becomes prime minister.

“I don’t anticipate big changes,” the Conservative leader told host Karine Godin in a French interview.

“We don’t want to cut transfers to people and provinces. We want to cut the bureaucracy in Ottawa. That’s where the waste is found,” he said.

He said the federal Liberals drove up the deficit in part by hiring 110,000 public servants. According to the Government of Canada website, the size of the public service has grown from 257,034 in 2015 to 367,772 in 2024.

The Liberal government has locked in the equalization formula for payments to provinces until 2029 — but the program usually goes through five-year renewal cycles, and a new government could decide to change course on the 2029 plan.

Poilievre has previously avoided weighing in on equalization. Earlier this month, CBC News asked whether a Poilievre government would extend the current formula or enact changes. In response, the Conservative Party pointed to comments the leader made in March.

“You’ll have to wait for our platform to get our plans on all of these types of subjects. I think we all share the goal of enriching all of the provinces by unleashing the free enterprise economy, so that we develop more revenues to fund our programs,” he said at that time.

Alberta, British Columbia and Saskatchewan don’t currently receive equalization transfers. The premiers of those three provinces have recently made gripes about the program.

Earlier this month, Saskatchewan’s Scott Moe posted on X, formerly Twitter, that “once again, [Saskatchewan, Alberta and British Columbia] will be helping support the rest of Canada” in response to the $26.17 billion for equalization set aside in major federal transfer numbers for 2025-26.

Alberta Premier Danielle Smith chimed in, writing that “the current equalization system isn’t fair or sustainable”

“It’s time for a better deal that doesn’t put all the weight on a few provinces.” she wrote on X.

The Alberta government is currently producing a policy paper on equalization following a 2021 referendum in which nearly 62 per cent of voters in the province agreed that Canada should remove equalization from the Constitution.

In July, B.C. Premier David Eby said his government is offering its “full support” to Newfoundland and Labrador’s court case against the federal government over equalization payments.

Newfoundland and Labrador launched the lawsuit last year, arguing the province is being cut out of what could be billions of dollars in the long term.

Like many other federal funding envelopes, equalization payments have traditionally been decided over five-year cycles going back to the 1940s. The most recent significant change came after the 2008 financial crisis, when Ontario started qualifying for payments.

Since then, it has undergone minor technical changes but no significant reforms.