The document summarizes federal relations with Canadian provinces in September 2018. It discusses rising trade barriers between provinces, which are costing the economy billions annually. Provincial GDP, debt levels, manufacturing sales, and internal trade statistics are presented. Specific issues covered include barriers facing small businesses, competitive pressures, pipeline development, immigration and refugee policies, and the equalization formula. Provincial disputes over these topics with the federal government and each other are also analyzed.

1. Federal Relations with
the Provinces –
September 2018
BY: PAUL YOUNG, CPA, CGA
SEPTEMBER 8, 2018

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Internal Controls
• SME – Business Process Changes
• SME – Emerging Technology
• SME – Financial Solutions
• SME – Supply Chain ManagementContact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
• Overview
• Analysis
• Issues

4. Overview
• This presentation will discuss trade between provinces and the
issue facing provinces in terms of breaking down barriers
• This presentation will also discuss provincial relations either with
the federal government or with other provinces.
• Inter provincial relations are at all-time low as provinces are
putting up barriers to trade.

5. GDP by Province and Debt Change

6. Manufacturing Sales by Province

7. Productivity

8. Internal Trade by Province
Source – Government of Canada

9. Barriers to Trade for SMEs

10. Cost to the Economy
• The business group says internal barriers damage productivity and
competitiveness, harm Canada’s international reputation as a
place to do business, and cost the economy as much as 14 billion
Canadian dollars ($12.8 billion) a year.

11. Trade Barriers Competitive Pressures

12. East – West Pipelines

13. Trudeau and Provincial Relations / Immigration
Refugees / Border
Trudeau’s tweet - https://globalnews.ca/news/3212041/justin-
trudeau-refugees-donald-trump-travel-ban/
1. YTD June 2018 - - https://www.canada.ca/en/immigration-
refugees-citizenship/services/refugees/asylum-claims.html
2. 2017 - https://www.canada.ca/en/immigration-refugees-
citizenship/services/refugees/asylum-claims-2017.html
3. Refugees -
https://www.slideshare.net/paulyoungcga/refugee-crisis-
canada-july-2018
In two years there has been over 30,000 arrests at the border
and you say there is no relation to Trudeau’s Tweet? -
https://debatepost.com/2017/08/16/alysum-seekers-demand-
more-money-and-housing-from-canadian-taxpayers/

14. Federal Government and
Equalization
• “The Globe and Mail first reported earlier this week that the
Liberal government quietly renewed the equalization formula in
its 2018 budget, so it will stay in its current form until 2024. But
Tom Osborne says it's frustrating N.L. is considered a "have"
province under that formula — despite its current fiscal
situation. "We've got a very large geography, one of the most
widely dispersed population in all of the country, we've got very
rural areas. So this province is expensive to maintain," said the
finance minister Friday. "When you look at other provinces with
smaller geographies and twice the population, that's not taken
into account," he added. ” -
https://www.cbc.ca/news/canada/newfoundland-
labrador/finance-minister-wants-new-equalization-rules-
1.4719209
• Equalization payments have long been a contentious issue
between the Canadian government and provinces.
• The payments are once again in the news
this week, after it came to light that the
formula for how the money is
distributed will stay the same until 2024.
• Source -
• Liberals hold 152 seats in areas that received
equalization
• Liberals are concerned about losing seats in
AB and SK as such focus is on their existing
areas to hold power after the next election

15. Blog – Provincial Relations
• http://www.cbc.ca/news/politics/trudeau-trans-mountain-alberta-british-columbia-1.452470
• Election 2015 Promise - http://www.cbc.ca/news/politics/justin-trudeau-s-majority-greeted-with-
optimism-by-provincial-premiers-1.3280093 “After nearly a decade of a prime minister notorious for
public tussles with premiers who challenged his policies, Canada's provincial leaders reacted Tuesday
to the electoral victory of a Liberal leader who has promised to work harmoniously to advance their
interests.
Here are the facts:
• Kinder Morgan Project is in limbo due to NDP BC stalling the building process - http://www.cbc.ca/news/business/pipeline-notley-horgan-1.4519530
• NF and PQ - http://www.macleans.ca/news/why-peace-wont-come-quickly-for-quebec-and-newfoundland-and-labrador/
• Manitoba was threaten by Trudeau if they did not sign the new accord - http://www.cbc.ca/news/canada/manitoba/funding-health-manitoba-1.4255391 -
Trudeau - http://www.cbc.ca/news/canada/manitoba/funding-health-manitoba-1.4255391
• Saskatchewan is standing up to Trudeau carbon tax grab - https://www.thestar.com/news/canada/2018/01/28/just-watch-me-new-saskatchewan-
premier-vows-to-fight-federal-carbon-tax.html
• Trudeau did not support East-West Pipeline - https://atlantic.ctvnews.ca/n-b-premier-makes-last-ditch-effort-to-revive-energy-east-pipeline-1.3597266
or https://globalnews.ca/news/3787809/brad-wall-federal-government-justin-trudeau-cancellation-energy-east-pipeline-equalization-payments/
• Climate Change - https://www.cbc.ca/news/politics/premiers-meeting-provinces-ford-trudeau-1.4746748
• Source - https://www.slideshare.net/paulyoungcga/internal-provincial-trade-barriers-canada-april-2017

16. Kinder Morgan
Canada is losing out to
FDI -
http://business.financialp
ost.com/news/economy/i
nvestment-outflow-from-
canada-already-
underway-in-real-time-
rbc-head
https://twitter.com/twitter/statuses/983454989820588033
Could it be BC wants more moneys from Ottawa?
https://www.theglobeandmail.com/news/british-columbia/bc-
officials-confirm-ottawas-last-minute-cancellation-of-child-
care-news-conference/article37983746/
There is no way a court challenge can happen in the next six
weeks.
I also cannot wait for Kinder Morgan to sue the Liberals under
NAFTA for not getting the project through the roadblocks.

17. BC and Trudeau
Tweet – Dominic Leblanc
Your govt is to blame for what has happen at the provincial
relationship levels and not premiers or the former govt.
The role of the federal govt is to represent all Canadians and not
voting blocks. Your leader is only interested in meeting with
people that will vote for him
https://www.slideshare.net/paulyoungcga/internal-trade-and-
provincial-matters-canada-106006321

18. Newfoundland and Labrador vs PQ
Source - http://www.thetelegram.com/business/newfoundland-
and-labrador-reminds-quebec-about-canadian-values-on-hydro-
project-133442/
Finance Minister Cathy Bennett said
Thursday she is disappointed Quebec
asked the federal government to not
extend a loan guarantee for her province’s
Muskrat Falls hydroelectric project.
Bennett says Quebec just announced it
would post a surplus of $2.2 billion in the
2015-16 fiscal year while receiving $10
billion in equalization payments.
Equalization
“Ottawa has quietly renewed the equalization formula to
keep it in its current form to 2024, but the move seems to
have caught those looking for changes to the sometimes
contentious federal program off-guard.
Provinces such as Saskatchewan and Alberta – “have”
provinces under equalization still suffering lingering
economic effects as a result of a sharp downturn in oil and gas
sector activity – said this week they are looking for
modifications to the program.
”
https://www.theglobeandmail.com/politics/a
rticle-ottawa-renews-equalization-formula-
to-remain-in-current-form-to-2024/

19. PEI and Carbon Tax
• “With a fight brewing between the country's largest province and
the federal government over carbon pricing, Canada's smallest
province says it's already fighting Ottawa's plan to implement a
price on carbon emissions across the country. On Wednesday,
P.E.I.'s Environment Minister Richard Brown confirmed the
climate action plan his government is preparing to submit for
Ottawa's Sept. 1 deadline will not include a carbon tax”
Source - https://www.cbc.ca/news/canada/prince-edward-
island/federal-carbon-tax-ottawa-pei-1.4743185

20. Comments
• “But sources say negotiations hit a snag two weeks ago when Alberta’s government sought
exemptions to the deal. One source said Alberta is proposing an exemption that would
ensure at least 20 per cent of public procurement contracts go to local companies.” Source -
http://www.theglobeandmail.com/news/politics/alberta-seeks-exemption-in-provincial-
trade-deal-to-favour-local-firms/article30752429/
• “Finance Minister Cathy Bennett said Thursday she was disappointed Quebec asked the
federal government to not extend a loan guarantee for her province’s Muskrat Falls
hydroelectric project.”Source - http://globalnews.ca/news/3029610/newfoundland-and-
labrador-reminds-quebec-about-canadian-values-on-hydro-project/
• “New Brunswick’s premier says there’s still a strong need for the proposed Energy East
pipeline despite the federal government’s approval of two pipeline expansions in western
Canada.”Source - http://globalnews.ca/news/3106253/energy-east-still-needed-despite-
approval-for-western-pipelines-n-b-premier/