What is the story?

British Columbia (B.C.) Premier David Eby has announced a potential partnership with Newfoundland and Labrador in a legal challenge against the federal government regarding unequal funding. Eby criticized the federal government for providing substantial financial support to provinces like Quebec while neglecting urgent funding needs in B.C. He highlighted several key issues, such as the lack of federal contributions to the $4.15 billion George Massey Tunnel replacement project, flood mitigation efforts in the Fraser Valley, and upgrades to the Iona Island Wastewater Treatment Plant.

Eby pointed out that Quebec received $750 million for migrant support, whereas B.C. struggles to secure funding for essential infrastructure projects. Newfoundland and Labrador Premier Andrew Furey echoed these sentiments, arguing that the current equalization formula is "fundamentally broken" and does not fairly distribute funds across provinces. Newfoundland and Labrador, which could have received between $450 million and $1.2 billion over the last five years under a revised formula, announced plans to take Ottawa to court over this issue in May.

The details and numbers

Eby’s primary argument focuses on the disparity in federal funding distribution. He noted that while Quebec received $750 million for migrant support, B.C. struggles to secure funding for critical infrastructure projects, such as:

George Massey Tunnel Replacement: A $4.15 billion project with no specified federal contribution.
Flood Mitigation in the Fraser Valley: Essential after the 2021 floods but lacking federal support.
Iona Island Wastewater Treatment Plant Upgrade: Another project in need of federal funding.

In response, federal Immigration Minister Marc Miller said that B.C. needed to take in more asylum seekers. Eby said his issue with federal funding stretches well beyond the migrant and immigration issues. Eby emphasized that B.C. taxpayers cannot afford to fund everything independently while federal funds flow more freely to Ontario and Quebec. He stressed the need for "fair treatment" based on population and equitable access to federal programs, including those for migrants, economic development, and housing.

Newfoundland and Labrador, facing similar funding issues, highlighted that they could have received significant funds (between $450 million and $1.2 billion) over the last five years if the formula were adjusted to account for the high costs of providing services to its sparsely populated and aging population. This perceived inequity has garnered support from other provinces, with Saskatchewan and Nova Scotia expressing interest in the legal challenge. “My concern is about fair treatment for British Columbia from the federal government,” Eby said Thursday. “And that means something very straightforward to me.

“It means based on our population, that whatever the federal program is, that we get a fair share of that federal program, it could be migrants, could be economic development, could be housing, you name it.”

B.C. may join Newfoundland's court challenge of federal equalization payments, Eby says