Editing Paul Martin (section)

===== Equalization =====

Martin also introduced changes to the equalization program, under which the Federal Government is constitutionally obligated to redistribute federal revenue to provinces having less ability to raise revenues through taxation than wealthier provinces. The goal is to ensure uniformity of public service provision across the nation. This was received well in "have-not" provinces, but [[Nova Scotia]] and [[Newfoundland and Labrador]] sought to retain income from natural resources on federal marine territory that would generally be taken, or 'clawed back', by the federal treasury in lieu of equalization payments. In the 2004 federal election campaign, Harper provided a written promise that Newfoundland and Labrador and Nova Scotia under a Conservative government would receive 100 percent of the revenue generated from their natural resources without an equalization clawback, a promise he reneged upon when elected Prime Minister. NDP leader [[Jack Layton]] followed suit soon after with a similar guarantee, and later Martin promised that under a Liberal government both provinces would receive the same deal, except only for oil resources.<ref>{{cite news|title=Nfld. premier says PM broke promise|author=CBC News |publisher=CBC |date=October 26, 2004|access-date=April 26, 2014|url=http://www.cbc.ca/news/canada/nfld-premier-says-pm-broke-promise-1.485010}}</ref> Negotiations over the agreement were harsh, with [[Premier of Newfoundland and Labrador|Newfoundland and Labrador Premier]] [[Danny Williams (Canadian politician)|Danny Williams]] at one point ordering all Canadian flags removed from provincial government buildings in December 2004.<ref>{{cite news |title=Newfoundland's flag flap 'disrespectful,' PM says|author=CBC News |publisher=CBC |date=December 24, 2004 |access-date=April 26, 2014 |url=http://www.cbc.ca/news/canada/newfoundland-s-flag-flap-disrespectful-pm-says-1.471078}}</ref> The dispute was resolved when the federal government agreed to Martin's original campaign promise.