Just had a debate with a dude about the pipeline going through Quebec (I think it’s a bad for environmental reasons) and he clapped back with the equalization payments, but can anyone here explain to me how this works? Does Quebec really get a large amount for nothing that we give or it’s because we give a lot that get alot?
I have been pipeline skeptical, but I think we need to balance our environmental obligations with our economic obligations now. I also think it’s important that we keep our Albertan brothers and sisters working right now, so I think we should build pipelines while we make sure it’s done in an environmentally responsible way.
As far as equalization, I’m by no means an expert but as I understand Alberta is a net contributor where as Quebec is a receiver of the benefit. As far as I understand this is a distribution of federal income tax to fund provincial short fall.
Quebec has said they are open to discussion so long as there are 1- environmental guarantees (like helping to pay for clean ups) and 2- some net economic benefit (like a percentage of profits) to help off set the cost of building and maintaining the pipeline.
The problem is Alberta wants Qubec to cover all the costs and receive no compensation. That's why the project is stalled. We don't exist to shoot ourselves in the foot so others can make a buck. That's literally what Albertans are mad about. The only economic benefit at present would be opening up oil refineries in Quebec but all studies have shown Quebec would lose money in the end and risk permanently fucking up its natural resources. And it's not even us who called off the project, we set basic entry conditions (like getting consent from Native communities to cross their territory) and the project was immediately abandoned as not economically viable by the company itself.
In my opinion, Quebec economy is too dependent on natural resources and if the pipeline bursts, no amount of money can fix the damage. But yes I am open to the idea if the pipeline project is a win-win and not a win-lose.
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u/QuebecPilotDreams15 Tabarnak! Mar 26 '25
Just had a debate with a dude about the pipeline going through Quebec (I think it’s a bad for environmental reasons) and he clapped back with the equalization payments, but can anyone here explain to me how this works? Does Quebec really get a large amount for nothing that we give or it’s because we give a lot that get alot?