B.C. Premier David Eby says the provincial government will for now support but not directly join a constitutional challenge by Newfoundland and Labrador to the current system of equalization payments.
But if B.C. won't join now, it may do so in the future and may even launch its own challenge, Eby added.
He made these comments from Halifax where he spoke with Newfoundland and Labradors' Premier Andrew Furey. The two premiers were participating in the annual summer meeting of the Council of the Federation representing provincial and territorial leaders and have become political allies on a number of subjects including equalization payments.
The equalization payment system distinguishes between have-provinces that do not receive payments and have-not-provinces through a formula with Ottawa administrating.
The formula is supposed to change every five years, but Ottawa rolled over the existing formula into the current cycle, a move that prompted the challenge from Newfoundland and Labrador 鈥� considered a have-province even as it struggles to maintain various services.
B.C., meanwhile, has raised concern about the fact that it pays into the system, but lags behind other provinces when it comes to receiving federal support on a per-capita basis.
"We feel that's unreasonable for B.C. taxpayers to be sending money to the federal government to be distributed to (have-not) provinces like Ontario through the equalization program, which is part of our constitution," Eby said.
While its premier said British Columbians understand the idea behind equalization payments to ensure a minimum level of services for all Canadians, they are struggling to understand why they have to pay into a system subsidizing services in Ontario.
"Ontario has challenges, absolutely, we all do across Canada," he said. "But delivering basic services is not one of their challenges."
Eby, who was born in Ontario, gave this political fight also a personal dimension. "A lot of Ontarians I know and love include my own mom," he said. "But I don't think British Columbia taxpayers should be sending money to support her in Ontario."
Eby said Newfoundland and Labrador will have "full access to British Columbia for their legal team" in preparing the case.
"It's unusual at the trial level to be intervening," Eby said. "But we will have that conversation about whether it's beneficial to intervene at the trial level or whether to wait until the Court of Appeal level for British Columbia to intervene."
Eby said B.C. is not anticipating joining because it would like to bring forward arguments that are in some cases contradictory to Newfoundland's arguments.
"We have a distinct perspective that we think should be part of the litigation," Eby said. "The spirit of our concerns is the same, but there are technical matters where we disagree. So the thinking is it might be better for us in British Columbia to launch our own challenge and then to meet at the Supreme Court of Canada and to coordinate our actions that way."
Furey said he would be happy to find a resolution outside the courts.
"Courts take time," he said. "They take money...but we would be open to a conversation with Ottawa."
However, Furey also pointed out that his province had reached out to Ottawa to discuss the formula, only to be rebuffed.
"So that's why we had to go the judicial route."
Eby said B.C. is taking his step reluctantly, but echoed Furey when he said efforts to resolve various concerns had not paid off.
"If politics are in the way and we are not able to get there because of politics, then we have to go to court."
