PPC Federalism Policy: A British Columbia Perspective

The People's Party of Canada (PPC) proposes a fundamental restructuring of the Canadian federation, aimed at a significant decentralization of power from the federal government back to the provinces. Party leader Maxime Bernier has branded this vision as the end of “imperial federalism,” arguing that successive federal governments have used their financial leverage to intrude upon areas of exclusive provincial jurisdiction. The core of the PPC’s policy is a return to a more classical interpretation of the Constitution, where Ottawa and the provinces are sovereign and autonomous within their respective spheres as outlined in the Constitution Act, 1867.

A central plank of this policy is a dramatic reform of fiscal federalism. The PPC would abolish the Canada Health Transfer and Canada Social Transfer, the primary mechanisms through which Ottawa sends money to the provinces for healthcare and social programs. Instead of these conditional cash payments, the PPC would transfer tax points of equivalent value. This means the federal government would permanently lower its own taxes (for example, by vacating the Goods and Services Tax), creating “fiscal room” for the provinces to levy their own taxes to fund these programs directly. The goal is to sever the strings attached to federal funding, giving provinces full autonomy to innovate and manage services while making them directly accountable to their own taxpayers. The party also plans to substantially reduce equalization payments and overhaul the formula, contending that the current system acts as a “poverty trap” that disincentivizes recipient provinces from pursuing pro-growth economic policies.

Beyond fiscal matters, the PPC seeks to create a more integrated domestic economy by aggressively tackling interprovincial trade barriers. The party views these barriers as a major impediment to national prosperity, costing the economy billions annually. To dismantle them, a PPC government would use the federal government’s constitutional authority over interprovincial trade (Section 91(2)) to impose the principle of mutual recognition.

This would mean that any product, service, or certified worker that meets the regulatory standards of one province would be automatically accepted in all others.

Ultimately, the PPC’s federalism policy is designed to re-establish a clear division of responsibilities and reduce intergovernmental friction. By withdrawing from provincial jurisdictions, the federal government would focus on its core constitutional duties, such as national defence, foreign policy, and currency. This approach, the party argues, would foster greater accountability, encourage policy diversity among the provinces, and create a more efficient and harmonious federation that respects provincial sovereignty.

The People's Party of Canada's (PPC) policy of radical decentralization would fundamentally reshape British Columbia's relationship with the rest of the country, presenting a unique combination of significant financial opportunities, increased economic freedom, and substantial political challenges. By aiming to end what it calls “imperial federalism,” the PPC’s platform would grant BC a level of autonomy and fiscal responsibility it has not held since joining Confederation.

For British Columbia, a consistent net contributor to the national economy, the most immediate and tangible impact would come from the proposed reforms to fiscal federalism. As a "have" province that pays more into federal programs than it receives, BC would be a direct financial beneficiary of the plan to "substantially reduce" equalization payments. This would mean billions of dollars generated within the province would remain in the provincial treasury rather than being redistributed to other parts of the country.

Furthermore, gaining full control over healthcare and social program funding by replacing federal transfers with tax points would empower the provincial government to design and implement innovative solutions tailored to BC's specific needs — from addressing the opioid crisis to managing healthcare in remote and Indigenous communities — without being bound by federal conditions.

Economically, the PPC's aggressive stance on eliminating interprovincial trade barriers would be a significant boon for BC. The policy of enforcing "mutual recognition" would directly benefit key sectors, such as the province's world-renowned wine industry, which has long been frustrated by protectionist liquor laws in other provinces. A bottle of Okanagan wine meeting BC's standards would automatically be cleared for sale across Canada.

This principle would also apply to professional certifications, enhancing labour mobility and making it easier for B.C. to attract skilled workers and for its own professionals to operate nationally.

However, the policy's implementation would face a major political obstacle rooted in BC's recent history. The mechanism of transferring "tax points" — for example, by having Ottawa vacate the GST — would necessitate that the provincial government levy its own broad-based consumption tax to replace the lost revenue. British Columbians famously rejected the Harmonized Sales Tax (HST) in a 2011 referendum, forcing a return to the PST/GST system. Any government attempting to reintroduce a similar tax, even if it resulted in no net increase for the taxpayer, would face immense public skepticism and political opposition.

In essence, the PPC's federalism offers British Columbia a compelling proposition: greater wealth, economic self-determination, and the freedom to govern its own affairs. This promise, however, is tethered to the immense challenge of taking on the full fiscal burden for its social programs and navigating the politically treacherous waters of tax reform.

- - - - - Make Your Mark! - - - - -

Invest.

• Make us your go-to Website

• Choose us to be your Party

• Elect us as your Representative

Innovate.

• Read our BC Perspective

• Connect with your Association

• Follow us on our Socials

Inspire!

• Share your PPC Photos

• Wear your PPC Colours

• Share or Print this Article (links below)