Roger Melanson disappointed by federal budget transfers

New Brunswick's Liberal Finance Minister Roger Melanson says he is disappointed with the new federal budget.

Melanson says he is pleased to see the federal government is in a position to balance its budget, but contends it has a responsibility to help New Brunswick get there too.

"We would hope and we had wishes where if the federal government is in a balance or surplus, they will look closer and be a stronger partner to help provincial governments, and certainly New Brunswick here, in transferring a sufficient amount of money for us to be able to offer what we have to offer."

Melanson says New Brunswick has constitutional requirements to provide health care, education and services to seniors.

He says the existing formula for transfer payments based on GDP puts a lot of pressure on the provincial government.

Although equalization payments to so-called have-not provinces are increasing by $672 million this year, less than one per cent of that, just $3 million is coming to New Brunswick.

N.B. transfers at 'all-time' high

But Mike Allen, the Tory MP for Tobique-Mactaquac, says overall transfer payments to New Brunswick are higher than they've ever been.

"It's $700 million more than it was since 2006. And quite frankly, I mean, Mr. Melanson — I guess I'm not necessarily surprised. I guess if we were giving him 80 per cent of his revenue, he'd probably want 90," said Allen.

I think Mr. Melanson should look at the province of New Brunswick and look in the mirror because he's got a spending problem.- Mike Allen, Tory MP

"It's almost a third of the revenue of the province of New Brunswick and, like I said, an all-time high. So, I think Mr. Melanson should look at the province of New Brunswick and look in the mirror because he's got a spending problem."

Total federal transfers to New Brunswick will hit an all-time high this year, but increasingly the formulas that determine those amounts favour other provinces.

For example, equalization payments from the federal government to provinces has increased by $3.2 billion over the last six years, but almost all of that has gone to Ontario and Quebec.

New Brunswick's share dropped by $23 million, as of last year, and is increasing by just $3 million this year.

Most of the increases to New Brunswick now come through federal health and social transfers, which unlike equalization, do not favour poorer provinces, but flow equally to all, based on population.

This year, the federal health transfer to New Brunswick is increasing by $36 million to $718 million, while the social transfer is increasing by $6 million to $273 million.

Allen contends New Brunswick will also benefit from new infrastructure funding.

NDP MP Yvon Godin, however, suggests few New Brunswick communities will qualify because the program is only for public-private partnerships and they don't have the required private investment.