Annette Ryan of the Prince Edward Island Department of Finance, responds to critics of equalization. She argues that it is unfair to expect equalization to reduce inter-provincial disparities when no one argues that within-province transfers should eliminate all intra-province disparities. Ryan demonstrates her point using within-province data on incomes, showing that there is as much intra-provincial as inter-provincial disparity.

Ryan takes up the issue of the removal of non-renewable resource revenue by arguing that equalization has not prevented Saskatchewan, a recipient province, from developing an important resource sector and questions why equalization would prevent other provinces from doing so. Finally, she points to the consensus among all provinces on equalization reform, namely removal of the ceiling and return to a national rather than five-province standard.

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