News Release

From the Prime Minister's Web Site (http://www.pm.gc.ca/)

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PRIME MINISTER HARPER WRITES GOVERNMENT LEADER PAUL OKALIK ON PLAN TO RESTORE FISCAL BALANCE IN CANADA

March 19, 2007
Ottawa, Ontario

Prime Minister Stephen Harper today wrote Government Leader Paul Okalik to outline the benefits for Nunavut in the fiscal balance plan set out in Budget 2007.

The plan announced today is based on national principles, while treating each province fairly and meeting the government's commitments.

Prime Minister Harper's letter highlighted the following issues:

The fiscal balance plan reforms Territorial Formula Financing to meet the unique needs of the North.

Nunavut will also benefit from the new formula for allocating infrastructure transfers. This provides all jurisdictions with floor funding of $25 million per year, in recognition of the particular challenges facing provinces and territories with smaller populations.

Prime Minister Harper concluded that "our plan delivers important and lasting benefits to the people of Nunavut."

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The Prime Minister's Office - Communications
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