Quote:
Originally Posted by Makarov
No, that's true. But neither is revenue from Quebec's hydro-electric resources or revenue derived from Ontario's manufacturing or transportation industries. And there is no doubt that the returns on investment in the energy industry far exceed those in any other industry.
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Don't Quebec and Manitoba play a numbers game with their Hydro power to help out their equalization numbers.
AFAIK Quebec sells their Hydro at below market rates to residents to reduce the revenue that Hydro Quebec generates which is counted towards equalization.
It would be as if Alberta lowered the royalties on O and G on the condition that fuel costs in Alberta were lowered by a similar amount. They then raise taxes to maintain the same level of revenue but suddenly they have less revenue room on paper so their share of equalization goes up.