Ralph to Ottawa: Keep Your Hands Off Our Oil Money

Ralph Klein just wouldn't be Ralph Klein if he didn't have something to complain about. This time, he says he's received a copy of a leaked report that would see Ottawa including provincial resource revenues included in the equalization formula. The problem is that, according to experts, no such proposal is under consideration.

Roger Gibbins, president of the Canada West Foundation, said he's "baffled" by the premier's comments because Alberta's provincial revenues wouldn't be affected by proposed changes to the program.

Indeed, Klein's musings are a bit confusing, considering equalization is a federal program paid for by federal taxation -- not through cash grabs on the provinces.

All Canadians pay for the program through the levies they pay to Ottawa on such things as income tax and the GST.

Increasing the equalization revenue pie would see all Canadians paying more, not just Albertans.

Paul Boothe, an economist at the University of Alberta who recently helped oversee the equalization program for Ottawa, said Klein's worries of a cash grab are unfounded.

"Certainly nobody is talking about a claim on Alberta's revenues or any other provincial revenues," Boothe said.

Regardless, political observers said Klein is delivering a symbolic message to the rest of Canada going into equalization negotiations.
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But academics and policy experts immediately denounced some of Klein's musings. Just last week, federal Finance Minster Jim Flaherty pledged in Calgary that Ottawa will keep its hands off Alberta's energy dollars if and when it revamps equalization.

Maybe Ralph has just been spending too much time in the sun.