Ontario - A "Have Not" Province?

Ontario, long considered the economic engine of Canada, will receive a federal equalization payment for the first time in its history. But Newfoundland and Labrador no longer needs the money, prompting Premier Danny Williams to say the "Newfie joke" is over.

Federal Finance Minister Jim Flaherty confirmed Monday that Ontario would receive about $347 million. The grants are usually reserved for "have not" provinces.

"Does it worry me? Yes of course it worries me," Flaherty told reporters at a news conference Monday afternoon. "The reality is, Ontario is entitled to enter the program and will be receiving substantial funds. Regrettably I think Ontario will be in the equalization program for some time to come."

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$347 million is not that big of a share of the $14B equalization budget and its impact on ~$210B program spending is minuscule. Still, the fact that over 70% of Canadians now live in so called "have not" provinces, shows that there is a need for a complete overhaul of the equalization program. Instead of merely transferring money from the richest provinces to the less successful ones, there must be a set action plan that would help poorer provinces bring their economies to the national average.