May 8, 2017 The Right Honourable Justin Trudeau, P. Prime Minister of Canada Langevin Block 80 Wellington Street OTTAWAON KIA 0A2 Dear Prime Minister Trudeau: According to a heavily redacted federal Department of Finance memo obtained by Blacklock’s Reporter, your government appears to be considering making the various provinces’ carbon tax policies an issue in the renegotiation of the federal Equalization program which is scheduled to occur in 2019. Inote that this memo is dated October 14, 2016 - just 11 days after your announcement that the federal government would impose a carbon tax on provinces that did not enact their own carbon tax. There is also a second Finance ‘memo on the same issue dated November 22, 2016, but its content has been completely redacted. Both memos are enclosed. Any effort to tie transfer payments to a province's position on carbon tax would be a serious violation of the principles of fiscal federalism in our country. T note that recently, a candidate for the federal Conservative leadership was widely criticized for suggesting that, as Prime Minister, he would withhold transfer payments from provinces that did not follow his economic policies. Your government appears to be considering a similar threat to provinces that do not follow your carbon tax policies. This is unacceptable. poeseginaThe Right Honourable Justin Trudeau, P.C, MP, Page 2 May 8, 20: As you know, Saskatchewan taxpayers have made a significant contribution to federal equalization payments over the past decade. Saskatchewan taxpayers’ total contribution to equalization through federal taxes has been well in excess of $5 billion over the past decade, while our province has received zero in equalization payments. We continue to contribute, even though we are now well into our third year of greatly depressed commodity prices and reduced provincial revenue. Iam writing to seek your assurance that there will be no linkage by the federal government between provincial carbon tax policies and federal transfer payments or any other type of federal payments to provinces, such as infrastructure funding. Any such linkage would be a serious attack on federal-provincial relations in Canada. Sincerely, Enclosure ce Honourable Bill Morneau, P.C,, MP. Minister of Finance Honourable Rona Ambrose, P.C., M.P. Leader of the Official Opposition‘Document released under the ‘Access to information Act eg epee Document divuigué en vertu de la | ed marion ——oreg Pp Miwiiatnaee CTS <<} —— Moone Su. SENT Carbon Pec and Bealeton ~ er aun) fhe resT of Ce meme has boon reclacteal."ADM Micalle Kovacev ‘Direstoc, Roper Cheriend (613-369-3887) ‘Acoess to Information Act Documentaivolgué en vertu de taDocument released under the Access to Information Act « a Décument cvuigue en vertu de Lo) suraccas 4 Nnformation ae ezine) ae Me rest of He memo has bu reolactéd .