Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act (S.C. 2005, c. 30, s. 85)

Marginal note:Restriction

23 Despite any other provision of this Act, no payment shall be made under sections 20 to 22 by the Minister to the Province except to the extent that the aggregate of the payments determined under those sections for the fiscal year and the preceding applicable fiscal years exceeds $2 billion.

Marginal note:Restriction

24 For any given fiscal year between April 1, 2006 and March 31, 2012, the Province will not receive the additional fiscal equalization offset payment provided for in section 21 if it does not receive a fiscal equalization payment for that fiscal year.

25 [Repealed, 2015, c. 4, s. 115]

Marginal note:Additional fiscal equalization offset payments for the 2012-2020 period

• 26 (1) For any fiscal year between April 1, 2012 and March 31, 2020, the Minister shall make additional fiscal equalization offset payments to the Province, determined in accordance with the formula set out in section 22, if

  • (a) the Province qualified for a fiscal equalization payment in either of the 2010-2011 or 2011-2012 fiscal years;

  • (b) the Province’s per capita debt servicing charges as of March 31, 2012 were not lower than those of at least four other provinces; and

  • (c) the Province receives a fiscal equalization payment for that fiscal year.

• Marginal note:Determination of per capita debt servicing charge

  (2) For the purpose of paragraph (1)(b), “per capita debt servicing charges” as of March 31, 2012, means the amount determined by the Minister in accordance with the formula

  (A - B - C + D) / E

  where

  A

  is the total of a province’s debt servicing charges for the 2011-2012 fiscal year, based on figures published in the fully consolidated audited financial statements presented on a full accrual basis of accounting in the province’s Public Accounts for the 2011-2012 fiscal year, with any necessary adjustments, as required, to include all of the debt charges related to unfunded pension liabilities, post-employment benefits and debt charges of government organizations and entities whose inclusion would be consistent with the accounting principles of full consolidation;

  B

  is the portion of A, if any, related to borrowings made by a province on behalf of self-supporting government business enterprises that are not dependent on transfers, grants or other direct funding from the province to fund their day-to-day operations or debt repayments;

  C

  is the portion of A, if any, related to borrowings made by a province on behalf of municipalities that are not in default on their interest payment obligations to the province;

  D

  is the total of a province’s debt servicing charges for the 2011-2012 fiscal year related to borrowings made by the province on behalf of municipalities that are in default on their interest payment obligations to the province, if these are not already included in A; and

  E

  is the total population of a province on July 1, 2011 based on the latest Statistics Canada official estimates available as soon as all provinces have released their Public Accounts for the 2011-2012 fiscal year.

Marginal note:Restriction

27 For greater certainty, if the Province does not meet the conditions set out in paragraphs 26(1)(a) and (b), it will not receive the additional fiscal equalization offset payment provided for in section 26 for any of the fiscal years between April 1, 2012 and March 31, 2020.

Marginal note:Transitional payments for the 2012-2020 period

• 28 (1) If for any fiscal year between April 1, 2012 and March 31, 2020 the Province does not receive an additional fiscal equalization offset payment but it received an additional fiscal equalization offset payment for the previous fiscal year, the Minister shall, for that fiscal year, pay to the Province a transitional payment equal to two thirds of the additional fiscal equalization offset payment it received for the previous fiscal year.

• Marginal note:Transitional payments for 2012-2020 period

  (2) If for any fiscal year between April 1, 2012 and March 31, 2020 the Province does not receive an additional fiscal equalization offset payment and did not receive an additional fiscal equalization offset payment for the previous fiscal year, but received an additional fiscal equalization offset payment for the fiscal year two years before that fiscal year, the Minister shall, for that fiscal year, pay to the Province a transitional payment equal to one third of the additional fiscal equalization offset payment it received for the fiscal year two years before that fiscal year.

Marginal note:Review of the Canada–Newfoundland and Labrador Arrangement

29 On or before March 31, 2019, the Minister, on behalf of the Government of Canada, and the minister designated by the Province for the purpose will review the Canada–Newfoundland and Labrador Arrangement, in accordance with clause 8 of that Arrangement.

Marginal note:Discussions

30 The Government of Canada shall enter into discussions with the Province if requested to do so by the Province under the terms of clause 9 of the Canada–Newfoundland and Labrador Arrangement.

Marginal note:Determination

31 A determination, for any fiscal year, of the additional fiscal equalization offset payment for the Province and for any other calculation that is necessary to be made for the purposes of this Part shall be made by the Minister at the same time as the final computation of the amount, if any, of the fiscal equalization payment that is payable to the Province is made for that fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act.

PART 3General Provisions

Marginal note:Appropriation

32 The amounts authorized to be paid under this Act shall be paid out of the Consolidated Revenue Fund by the Minister at the time and in the manner, subject to section 33, that the Minister considers appropriate.

Marginal note:Regulations

• 33 (1) The Governor in Council may make regulations, on the recommendation of the Minister,

  • (a) prescribing the time and manner of making any payments under this Act;

  • (b) respecting the determination of the amount referred to in subsection 12(2);

  • (c) respecting the determination of any matter that under this Act is to be determined by the Minister; and

  • (d) prescribing anything that is required or authorized to be prescribed by this Act.

• Marginal note:Approval of the minister designated by the Province

  (2) The Minister may recommend the making of a regulation under paragraph (1)(b) only after receipt by the Minister of the approval of the proposed regulation from the minister designated by the Province for that purpose.