Editor,
In recent weeks a couple of contributors have expressed opinions in the Journal Pioneer and the Guardian, which have mischaracterized the trends in federal provincial public finances.
As minister of Finance and Municipal Affairs, I feel compelled to correct statements made by Derek Key, which appeared recently in the Guardian and Journal Pioneer.
Mr. Key has made factually incorrect and misleading assertions regarding the finances of Prince Edward Island, which are potentially damaging to the Province.
First of all, Mr. Key states the share of the provincial government’s total revenues provided by the Government of Canada has grown to 46 per cent. This is incorrect.
The Province’s April 2011 budget, which was recently tabled in the Legislature, shows that federal funding will account for 41.2 per cent of the province’s total revenue in 2011-12.
This percentage is actually a decrease over each of the previous two years. In the longer term, an argument can be made that the Province has become less dependent on the Government of Canada, as before the mid 1980s, the federal government provided over half of provincial government revenues.
While the federal government has provided some welcome, but temporary funding for stimulus projects in response to the recent economic downturn, core federal funding for our priority areas of health and education has not kept up with the increases in the costs of providing these services.
It should be of concern to all Islanders, including Mr. Key, that in 2009-10 the Government of Canada unilaterally imposed constraints on our major core funding such that the Province has received $51 million less over the past three years from what it otherwise would have recorded.
These impediments are placing serious strains on the Constitutional commitment that all provinces should have sufficient revenues to provide reasonably comparable public services.
Rather than misleading Islanders, Mr. Key should acknowledge that federal funding is a legitimate and necessary source of revenue without which this Province’s ability to provide quality public services such as health and education would be compromised.
The values of Canadians reflected in our Constitution do not contemplate second-class public services for citizens of less affluent provinces.
Neither should Mr. Key or other commentators.
Wes Sheridan
Minister of Finance
and Municipal Affairs
