Ontario's premier says Ontarians need to raise their voice when it comes to equalization.
Dalton McGuinty told the Ottawa Chamber of Commerce Thursday that drawing attention to the province's lagging economy might help correct what he calls an antique equalization formula that costs the province billions of dollars every year.
"The system is just not working for Ontario - worse, it's punitive," McGuinty told reporters in Ottawa.
Equalization is a complex federal wealth-sharing program designed to provide funds to poorer provinces to ensure residents get the same basic level of health and education services as Canadians living in wealthier provinces.
As the economic outlook changes, Newfoundland and Labrador, a historic have-not province, is starting to see its economy gain momentum.
Last week, Newfoundland and Labrador Premier Danny Williams' Progressive Conservative government tabled a budget that projects a $544-million surplus for the Atlantic province, something driven in part by high oil prices.
On Sunday, Danny Williams stood up for suffering economies in other provinces, and told CTV's Question Period the federal government should do more to help Ontario and Quebec's struggling manufacturing sectors.
Regardless of the attention that's being drawn to Ontario's economic situation, McGuinty says he hasn't received any indication the province will get a break any time soon.
"Rain or shine, no matter what happens, the federal government extracts almost four per cent of Ontario's GDP from our economy every year to spread around the country," McGuinty said.
The premier's warnings come amidst speculation Ontario might slip to have-not status by 2010.
"If we did qualify for equalization, the money would come from us. Out of the $20 billion we send to the federal government," McGuinty said.
Federal Finance Minister Jim Flaherty has been critical about how Ontario has handled its suffering economy and has said the province should be cutting corporate taxes to encourage companies to invest in the province.
Prior to the unveiling of Ontario's 2008 budget, provincial and federal politicians came to a head over the issue.
McGuinty says it's now important to have a serious conversation with the federal government about the issue.
"We need a bilateral conversation with the federal government -- adult to adult."
With a report from CTV Ottawa's Norman Fetterley
