For the NSEF group (Nova Scotians for Equalization Fairness) and their top supporters, MLA Derek Mombourquette has been a disappointment on the equalization file. That file is about getting more money from the province to lower our taxes and boost our economy from the billions they receive for that purpose.

He contradicted Senator Dan Christmas who suggested the island’s economics represented a “dying” economy. He refused to fight for an increased transfer (or “operating grant”), despite the province charging us continually increasing provincial service fees each year. And he insulted the intelligence of anyone remotely familiar with the topic of equalization—including the CBRM's Chief Administrative Officer, suggesting the provincial equalization transfer… wasn’t an equalization transfer.

The province changed the name to distance the funding from "equalization," but the CBRM CAO Marie Walsh wasn’t having it. Here are her comments as reported by the CBC’s Tom Ayers to clarify the point:

But there’s a reason for Derek Mombourquette’s reluctance to support increasing the Equalization transfer and reducing our taxes—an essential step for our economy to start growing at a sustainable rate.

The reason is the same for almost every young MLA that doesn’t want to sabotage their position within their party.

Jody Wilson-Raybould is a great example (at the federal level) of what happens to someone that doesn’t stay on message and get in line for the party. She was kicked out. Closer to home, Eddie Orrell and Alfie MacLeod's departure from their MLA roles was suspiciously correlated with supporting Cecil Clarke in his provincial PC leadership bid, in a losing effort to Tim Houston. Let's be clear. It’s the same effect at both levels of government, and for each of the big three parties.

Derek wouldn’t do anything for us on our equalization grant or to get control of the provincial service fees that are slowly bankrupting us because he wasn’t allowed to do so.

There’s really not much reason to expect that Derek—like most other MLAs of any party—will do anything differently unless either he or Geoff MacLellan becomes the leader of the party. The Premier's announcement of relinquishing his role as Premier and leader of the party is therefore a potential opportunity for the CBRM.

If a CBRM-based MLA became Premier, it could be Derek or Geoff pulling the strings the hardest in Halifax. At the stroke of a pen (or keyboard), the budget item for provincial equalization could be increased allowing significant property tax breaks for the CBRM’s businesses and residents.

I voted for Derek Mombourquette in his by-election win. But for a return of my support, he needs to change the situation we see on this chart. Follow the red line as it passes above the green line (that's bad news). That's our provincial service fees (that we pay them) surpassing and creating a net loss of millions versus what we receive in our operating grant (aka the provincial equalization transfer). The entire CBRM council is fully aware of this trend and recognizes it as a threat to the economic sustainability of our municipality.



I’ve heard repeatedly from multiple sources behind the scenes that Derek often feels constrained by the party.

At this point, the PCs (under Tim Houston) have offered to double Equalization payments to the province, resulting in about $15 Million more for the CBRM. Houston commits to renegotiating after 1-year. But the practical increase to the transfer would be unlikely to be clawed back after 1-year, especially given how positively received it would be to CBRM residents.

The NDP who may be less likely to win the government in the next election has an even better offer of $50 Million per year. Based on my Equalization calculator, if applied to lower our taxes, that amount could bring us in line with the HRM (aka: equalize our tax rates). So the NDP and I might be running the numbers similarly.

The lone holdout is the Liberal Party, and they currently have a majority government. To get this done, we need all three parties to make an offer.

This isn’t a partisan thing. It’s a strategic thing.

If every party makes an offer, we’re guaranteed to get something—as long as they follow through.

Granted, not following through on a promise is a big problem in politics, so we have to keep that in mind.

Despite the popularity of other investments (NSCC Marconi relocation, healthcare redevelopment), we cannot give Derek Mombourquette a very good grade specifically on his support for Equalization in the CBRM. It’s essentially an F, at the moment.

But that doesn’t mean Derek Mombourquette still isn’t our best shot at getting an offer for a better deal for the CBRM from the province while his party holds power.

I think he should step up and make a run for that leadership role. It’s a great political experience for him. And for equalization fairness advocates, I’d suggest it significantly elevates our chances of negotiating with Premier Mombourquette (should the Liberals maintain power in the next election).

After all, Premier MacNeil came to the CBRM Chamber of Commerce and said equalization gets “zero attention.” Based on the lack of an offer, I believe him. Could we really get any worse than that?

What I don’t believe is that Derek Mombourquette is incapable of altering course if there is a big change at the top of the hierarchy. Maybe the Premier role is the missing ingredient to get our dire financial challenges sorted out.

Mombourquette has to be a better option for Cape Breton than a mainland MLA or politician. Would a mainlander Premier really come up with a better offer than our own MLAs?

Ultimately, we need to get leaders in place who maximize our chances of getting them to fix our broken transfer funding. It's pushing us towards insolvency as our costs rise, but it stays the same. And, the fix is simple. Just increase the amount of equalization transfer all eligible municipalities receive. The NDP and the PCs have already made offers.

What offer might Premier Mombourquette have for us?

[Authorized by Joe Ward]