REGINA — Saskatchewan has applied for intervenor status in Newfoundland and Labrador's challenge against the federal equalization formula. Saskatchewan's application was issued on Jan. 23.
Newfoundland and Labrador filed its statement of claim with the Supreme Court of Newfoundland and Labrador on June 21, 2024.
"The equalization formula has consistently failed in its intended goal to create fairness for all Canadians," Justice Minister and Attorney General Tim McLeod said. "Like Newfoundland and Labrador, we have serious concerns with the current formula, which has repeatedly punished provinces with strong natural resource sectors like Saskatchewan."
Though equalization was meant to ensure reasonably comparable access to public services across the provinces, the formula unfairly affects Saskatchewan and other provinces due to the inclusion of resource revenues, the government states in a press release.
Saskatchewan also asserts the formula fails to take into account the structural costs of delivering public services and overcompensates recipient provinces by distributing surplus payments to them.
"Under the current equalization formula, Saskatchewan has not received payments for the last 18 years," McLeod said. "Four other provinces will receive nearly $3,000 per resident in 2025-26, while Saskatchewan, Alberta and British Columbia receive nothing. This hardly seems equitable, even by the most basic standards."
Saskatchewan taxpayers pay for equalization through federal income taxes like income tax and GST. Every Canadian pays, on average, $634 per year to the $26 billion equalization program, which results in a $786 million total contribution from Saskatchewan taxpayers.
This intervention application is set to be heard in the Supreme Court of Newfoundland and Labrador on Oct. 20, 2025.
