An Act to amend the Federal-Provincial Fiscal Arrangements Act and to make consequential amendments to other Acts (fiscal equalization payments to the provinces and funding to the territories)

Link to law: http://laws-lois.justice.gc.ca/eng/AnnualStatutes/2005_7/FullText.html

An Act to amend the Federal-Provincial Fiscal Arrangements Act and to make consequential amendments to other Acts (fiscal equalization payments to the provinces and funding to the territories)

S.C. 2005, c. 7

Assented to 2005-03-10

An Act to amend the Federal-Provincial Fiscal Arrangements Act and to make consequential amendments to other Acts (fiscal equalization payments to the provinces and funding to the territories)

SUMMARY

This enactment amends the Federal-Provincial Fiscal Arrangements Act to authorize the Minister of Finance to make fiscal equalization payments to the provinces for the fiscal years beginning after March 31, 2004 and to change the manner in which those payments will be calculated. It also authorizes the Minister to pay, under a new legislative regime, grants to the territories for the fiscal years between April 1, 2001 and March 31, 2005 and territorial formula financing payments for subsequent fiscal years. Finally, this enactment also makes consequential amendments to that Act and to other Acts.

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

R.S., c. F-8; 1995, c. 17, s. 45(1) FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT

Marginal note:1994, c. 2, s. 2(3); 1999, c. 11, s. 2; 2001, c. 19, s. 1; 2003, c. 15, s. 3; 2004, c. 22, ss. 2 to 4

1. (1) Sections 3 to 4.3 of the Federal-Provincial Fiscal Arrangements Act are replaced by the following:

Marginal note:Fiscal equalization payment

3. Subject to the provisions of this Act, the Minister may pay to a province for each fiscal year that begins after March 31, 2004 a fiscal equalization payment not exceeding the amounts set out in this Part.

Marginal note:Fiscal equalization payment for fiscal year 2004-2005

4. (1) The fiscal equalization payment that may be paid to a province for the fiscal year beginning on April 1, 2004 is the amount computed in accordance with section 4 of this Act as it read on May 13, 2004 and subsection (4).

Marginal note:Additional payment for fiscal year 2004-2005

(2) The Minister may pay to a province an additional fiscal equalization payment for the fiscal year beginning on April 1, 2004 in the amount determined by the formula

(F - L) x (K/L)

where


is $10 billion;


is the amount of the fiscal equalization payment to the province under subsection (1); and


is the aggregate of the fiscal equalization payments to all provinces under subsection (1).

Marginal note:Additional payment for fiscal year 2004-2005

(3) The Minister may pay to a province an additional fiscal equalization payment for the fiscal year beginning on April 1, 2004 equal to the amount by which

(a) the aggregate of the fiscal equalization payments to the province for the fiscal years in the period beginning on April 1, 2001 and ending on March 31, 2005 that were set out in the Minister’s interim estimate in February 2004

exceeds

(b) the aggregate of

(i) the fiscal equalization payments, as finally computed in accordance with subsection (4), payable to the province for the fiscal years in the period beginning on April 1, 2002 and ending on March 31, 2004,

(ii) the fiscal equalization payment payable to the province for the fiscal year beginning on April 1, 2001,

(iii) the fiscal equalization payment referred to in subsection (1), and

(iv) the additional fiscal equalization payment referred to in subsection (2).

Marginal note:Final computation

(4) Notwithstanding section 8 and subsections 9(1) to (5) of the Federal-Provincial Fiscal Arrangements Regulations, 1999, the estimate that was made by the Minister on October 12, 2004 of a fiscal equalization payment payable to a province for each of the fiscal years in the period beginning on April 1, 2002 and ending on March 31, 2005 constitutes the final computation of the fiscal equalization payment payable to the province for each of those fiscal years.

Marginal note:Time and manner of payment

(5) The Minister may pay the amounts referred to in subsections (2) and (3) out of the Consolidated Revenue Fund at the times and in the manner that the Minister considers appropriate.

Marginal note:Fiscal equalization payments

4.1 (1) The fiscal equalization payments to the provinces

(a) for the fiscal year beginning on April 1, 2005, shall equal $10.9 billion;

(b) for the fiscal year beginning on April 1, 2006, shall equal the product obtained by multiplying $10.9 billion by 1.035; and

(c) for each subsequent fiscal year, shall equal the product obtained by multiplying the fiscal equalization payment for the immediately preceding fiscal year by 1.035.

Marginal note:Provincial allocation for fiscal year 2005-2006

(2) The fiscal equalization payment referred to in paragraph (1)(a) shall be allocated to the provinces as follows:

(a) to Quebec, $4,798,070,000;

(b) to Nova Scotia, $1,343,527,000;

(c) to New Brunswick, $1,347,993,000;

(d) to Manitoba, $1,601,018,000;

(e) to British Columbia, $589,698,000;

(f) to Prince Edward Island, $276,563,000;

(g) to Saskatchewan, $82,172,000; and

(h) to Newfoundland and Labrador, $860,959,000.

Marginal note:Provincial allocation for subsequent fiscal years

(3) The fiscal equalization payments referred to in paragraphs (1)(b) and (c) shall be allocated to each province in the same proportion as the fiscal equalization payment referred to in paragraph (1)(a) is allocated under subsection (2).

Marginal note:Time and manner of payment

(4) The Minister shall pay the fiscal equalization payment to the province in equal monthly instalments on the first and third working days after the 15th day of each month during the relevant fiscal year. For the purpose of this subsection, “working day” includes any day that is not a Saturday or a holiday.

Marginal note:Payment for fiscal year 2004-2005

4.2 (1) The Minister may, on the request of a province made in the prescribed manner on or before March 10, 2005, make a payment to the province for the fiscal year beginning on April 1, 2004 in an amount not greater than the amount by which

(a) the estimate, calculated by October 12, 2004, of the fiscal equalization payment referred to in subsection 4(1) for the province for the fiscal year beginning on April 1, 2004

is less than

(b) the estimate, calculated by October 12, 2004, of the average of the fiscal equalization payments for the province for the fiscal years in the period beginning on April 1, 1999 and ending on March 31, 2003.

Marginal note:Deductions

(2) Where a province has received a payment under subsection (1), the Minister shall, in the prescribed amounts, reduce the fiscal equalization payments to the province for the fiscal years in the period beginning on April 1, 2006 and ending on March 31, 2016. If, on March 31, 2016, the total amount of that payment has not been recovered, the Minister may recover the amount remaining as a debt due to Her Majesty in right of Canada out of any sum of money that may be due or payable by Her Majesty in right of Canada to the province pursuant to this Act or any other Act of Parliament.

Marginal note:Additional payment in fiscal year 2004-2005

4.3 Notwithstanding subsections 4(1) to (3), the Minister may make an additional fiscal equalization payment in the fiscal year beginning on April 1, 2004

(a) to Quebec, in the amount of $69,640,666.74;

(b) to Nova Scotia, in the amount of $8,674,951.83;

(c) to New Brunswick, in the amount of $6,951,991.15;

(d) to Manitoba, in the amount of $10,813,779.78;

(e) to British Columbia, in the amount of $38,634,050.87;

(f) to Prince Edward Island, in the amount of $1,280,669.01;

(g) to Saskatchewan, in the amount of $9,196,695.51; and

(h) to Newfoundland and Labrador, in the amount of $4,807,195.11.

PART I.1 TERRITORIAL FINANCING

Marginal note:Payments to territories

4.4 Subject to the provisions of this Part, the Minister may pay to a territory

(a) for each fiscal year in the period beginning on April 1, 2001 and ending on March 31, 2005, a Formula Financing Grant and a Supplemental Formula Financing Grant not exceeding the amounts calculated in accord­ance with sections 4.7 to 4.9; and

(b) for each fiscal year that begins after March 31, 2005, a territorial formula financing payment not exceeding the amount calculated in accordance with section 4.92.

Formula Financing Grant

Marginal note:Definition of “Agreement”

4.5 (1) In this section and in sections 4.6 to 4.9, “Agreement” means

(a) in the case of Yukon, the Territorial Formula Financing Agreement made with the Government of Yukon in 1999, as extended to 2004-2005;

(b) in the case of the Northwest Territories, the Territorial Formula Financing Agreement made with the Government of the Northwest Territories in 1998, as extended to 2004-2005; and

(c) in the case of Nunavut, the Territorial Formula Financing Agreement made with the Government of Nunavut in 1998, as extended to 2004-2005.

Marginal note:Terms defined in Agreement

(2) In sections 4.6 to 4.9, the definitions in the Agreement apply.

Marginal note:Final calculation

4.6 (1) Notwithstanding any provisions in the Agreement requiring the revision of estimates and payments of Formula Financing Grants, the amount of the Minister’s final calculation of the aggregate of the Formula Financing Grants payable to a territory under the Agreement for the fiscal years in the period beginning on April 1, 2001 and ending on March 31, 2004 shall be equal to the Formula Grant Estimate made between February 12 and March 31, 2005 in accordance with the Agreement.

Marginal note:Information

(2) The Minister shall make the final calculation of the aggregate of the Formula Financing Grants on the basis of the most recent information provided by Statistics Canada or any other source to the Minister in relation to the matters set out in the Agreement.

Marginal note:Adjustment to fiscal years 2001-2002 to 2003-2004

4.7 For the fiscal years in the period beginning on April 1, 2001 and ending on March 31, 2004, the Minister may adjust a territory’s Formula Financing Grant in accordance with the Annex to the Agreement entitled “Schedule and Amounts of Payments and Adjustments”, using the final calculation determined in accordance with section 4.6.

Marginal note:Basic Formula Financing Grant for fiscal year 2004-2005

4.8 (1) Subject to subsection (2), for the fiscal year beginning on April 1, 2004, the Minister may pay a Formula Financing Grant

(a) to Yukon, in the amount of $465,707,930;

(b) to the Northwest Territories, in the amount of $678,442,202; and

(c) to Nunavut, in the amount of $755,849,868.

Marginal note:Reduction

(2) The amount referred to in subsection (1) in respect of a territory shall be reduced by the amount of the Formula Financing Grant paid to the territory for the fiscal year beginning on April 1, 2004 pursuant to

(a) item 15 for the Department of Finance set forth in the Main Estimates for that fiscal year, as laid before the House of Commons during the thirty-seventh Parliament and as enacted by paragraph (2)(a) of Appropriation Act No. 1, 2004-2005, chapter 8 of the Statutes of Canada, 2004; and

(b) any item for the Department of Finance set forth in the supplementary estimates for that fiscal year, as laid before the House of Commons during the thirty-eighth Parliament and as enacted by any other appropriation Act.

Marginal note:Supplemental Formula Financing Grant

4.9 In addition to the Formula Financing Grant referred to in section 4.8, the Minister may pay to a territory a Supplemental Formula Financing Grant equal to the amount by which

(a) the aggregate of

(i) the Minister’s calculation of the aggregate of the amounts of the Formula Financing Grants for the territory for the fiscal years in the period beginning on April 1, 2001 and ending on March 31, 2004, as set out in the Formula Grant Estimate made between February 12 and March 31, 2004 in accordance with the Agreement, and

(ii) the amount of the Grant Entitlement for the territory for the fiscal year beginning on April 1, 2004, as set out in Table A6.2 of the Budget Plan 2004 dated March 23, 2004,

exceeds

(b) the aggregate of

(i) the Minister’s calculation of the aggregate of the amounts of the Formula Financing Grants for the territory for the fiscal years in the period beginning on April 1, 2001 and ending on March 31, 2004, as calculated in accordance with the Agreement using the final calculation determined in accordance with section 4.6, and

(ii) the amount of the Formula Financing Grant referred to in subsection 4.8(1).

Marginal note:Time and manner of payment

4.91 (1) Subject to subsection (2), the Minister may pay to a territory the amount of any underpayment determined pursuant to the adjustment under section 4.7, and the amounts payable under sections 4.8 and 4.9, out of the Consolidated Revenue Fund at the times and in the manner that the Minister considers appropriate.

Marginal note:Underpayment

(2) Where it is determined in respect of a territory that the Minister has underpaid any amounts referred to in subsection (1), the Minister may pay the territory an amount equal to the underpayment out of the Consolidated Revenue Fund.

Marginal note:Overpayment

(3) Where it is determined pursuant to the adjustment under section 4.7 that the Minister has made an overpayment or where it is determined that an overpayment has been made in respect of any amounts paid under subsection (1) for a fiscal year, the Minister may recover the amount of that overpayment

(a) from any amount payable to the territory under this Act in the same fiscal year or as soon as possible after the end of that fiscal year; or

(b) from the territory as a debt due to Her Majesty in right of Canada.

Territorial Formula Financing Payment

Marginal note:Payment for fiscal year 2005-2006

4.92 (1) For the fiscal year beginning on April 1, 2005, the Minister may pay a territorial formula financing payment

(a) to Yukon, in the amount of $487,140,000;

(b) to the Northwest Territories, in the amount of $714,030,000; and

(c) to Nunavut, in the amount of $798,830,000.

Marginal note:Payment for subsequent fiscal years

(2) For each subsequent fiscal year, the amount of the territorial formula financing payments for all territories shall equal the product obtained by multiplying the aggregate of the territorial formula financing payments for all territories for the immediately preceding fiscal year by 1.035.

Marginal note:Territorial allocation for subsequent fiscal years

(3) The territorial formula financing payments referred to in subsection (2) shall be allocated to each territory in the same proportion as the territorial formula financing payments referred to in subsection (1) are allocated under that subsection.

Marginal note:Time and manner of payment

(4) In April and May of each fiscal year beginning after March 31, 2005, the Minister shall pay to a territory a monthly instalment of the territorial formula financing payment equal to 16 per cent of the territory’s allocation of the aggregate territorial formula financing payment for that fiscal year. In each of the remaining ten months of the fiscal year, the Minister shall pay to the territory a monthly instalment of the territorial formula financing payment equal to 6.8 per cent of the territory’s allocation of the aggregate territorial formula financing payment under this section.

Marginal note:Regulations

(5) The Governor in Council may make regulations to change the amount of the monthly instalments or the time at which they are paid.

Marginal note:Payment out of C.R.F.

4.93 (1) Any amount payable under section 4.92 shall be paid by the Minister out of the Consolidated Revenue Fund.

Marginal note:Underpayment

(2) Where it is determined that the Minister has underpaid any amounts payable to a territory under section 4.92, the Minister may pay to the territory an amount equal to the underpayment out of the Consolidated Revenue Fund at the times and in the manner that the Minister considers appropriate.

Marginal note:Overpayment

(3) Where it is determined that the Minister has made an overpayment in respect of any amounts payable to a territory under section 4.92 for a fiscal year, the Minister may recover the amount of that overpayment

(a) from any amount payable to the territory under this Act in the same fiscal year or as soon as possible after the end of that fiscal year; or

(b) from the territory as a debt due to Her Majesty in right of Canada.

Marginal note:Coming into force — subsections 4.1(3) and 4.92(3)

(2) Subsections 4.1(3) and 4.92(3) of the Act, as enacted by subsection (1), come into force on a day or days to be fixed by order of the Governor in Council.

Marginal note:1999, c. 11, s. 3(1)

2. (1) Paragraph 6(1)(b) of the Act is replaced by the following:

(b) the revenue subject to stabilization of the province for the fiscal year, adjusted in the prescribed manner to offset the amount, as determined by the Minister, of any change in the revenue subject to stabilization of the province for the fiscal year resulting from changes made by the province in the rates or in the structures of provincial taxes or other modes of raising the revenue of the province referred to in paragraphs (a) to (y) and (z.1) to (z.3) of the definition “revenue source” in subsection 4(2) of the former legislation, as revised or altered in accordance with section 5 of the Federal-Provincial Fiscal Arrangements Regulations, 1999, from the rates or structures in effect in the immediately preceding fiscal year.

Marginal note:1999, c. 11, s. 3(2)

(2) Paragraph 6(2)(a) of the Act is replaced by the following:

(a) the total revenues, as determined by the Minister, derived by the province for the fiscal year from the revenue sources described in the definition “revenue source” in subsection 4(2) of the former legislation, as revised or altered in accordance with section 5 of the Federal-Provincial Fiscal Arrangements Regulations, 1999, other than the revenue sources described in paragraphs (z) and (z.4) of that definition, and

Marginal note:1995, c. 17, s. 47(4)

(3) Subsection 6(3) of the Act is replaced by the following:

Marginal note:Revenue subject to stabilization

(3) For the purpose of determining pursuant to subsection (2) the revenue subject to stabilization of a province for a fiscal year, subsection 4(4) of the former legislation applies, with such modifications as the circumstances require, in determining the revenue derived by the province for the fiscal year from personal income taxes, described in paragraph (a) of the definition “revenue source” in subsection 4(2) of the former legislation, as revised or altered in accordance with section 5 of the Federal-Provincial Fiscal Arrangements Regulations, 1999, except that no deduction may be made in respect of the tax abatement units referred to in subsection 27(2).

Marginal note:R.S., c. 11 (3rd Supp.), s. 5(4)

(4) The portion of subsection 6(4) of the Act before paragraph (a) is replaced by the following:

Marginal note:Revenues of a province

(4) For the purposes of subsection (2), the revenue of a province for a fiscal year derived from the revenue source referred to in paragraph (a) of the definition “revenue source” in subsection 4(2) of the former legislation, as revised or altered in accordance with section 5 of the Federal-Provincial Fiscal Arrangements Regulations, 1999, shall be deemed to be

Marginal note:R.S., c. 11 (3rd Supp.), s. 5(4)

(5) The portion of subsection 6(5) of the Act before paragraph (a) is replaced by the following:

Marginal note:Revenues of the province

(5) For the purposes of subsection (2), the revenue of a province for a fiscal year derived from that part of the revenue source described in paragraph (b) of the definition “revenue source” in subsection 4(2) of the former legislation, as revised or altered in accordance with section 5 of the Federal-Provincial Fiscal Arrangements Regulations, 1999, that consists of corporation income taxes, shall be deemed to be

Marginal note:1999, c. 11, s. 3(4)

(6) Paragraph 6(6)(a) of the Act is replaced by the following:

(a) the total revenues, as determined by the Minister, derived by the province for the immediately preceding fiscal year from the revenue sources described in paragraphs (l) to (w) of the definition “revenue source” in subsection 4(2) of the former legislation, as revised or altered in accordance with section 5 of the Federal-Provincial Fiscal Arrangements Regulations, 1999, and the part of the revenue source described in paragraph (z.5) of that definition that relates to natural resources

(7) Section 6 of the Act is amended by adding the following after subsection (10):

Marginal note:Definition of “former legislation”

(11) In this section, “former legislation” means this Act as it read on May 13, 2004.

Marginal note:1995, c. 17, s. 49(2)

3. (1) Subparagraphs 16(1)(b)(i) and (ii) of the Act are replaced by the following:

(i) the equalization payment referred to in subsection (1.1) that would be payable to the province for the fiscal year, and

(ii) the amount of equalization that would be paid to the province in respect of the federal income tax reduction in all the provinces in respect of the Canada Health and Social Transfer for the fiscal year, if the method of calculation of fiscal equalization payments as set out in Part I, excluding subsections 4(6) and (9) of this Act as it read on May 13, 2004, were to be applied to the value of the income tax reduction in all the provinces in respect of the Canada Health and Social Transfer for the fiscal year, except that

(A) for the purposes of the calculation under this subparagraph the relevant revenue bases are to be determined in the prescribed manner, and

(B) where subsection 4(6) or (9) of this Act as it read on May 13, 2004 applies in the determination of the fiscal equalization payment to the province for the fiscal year, the amount determined under this subparagraph is to be adjusted in the prescribed manner.

(2) Section 16 of the Act is amended by adding the following after subsection (1):

Marginal note:Equalization payment payable

(1.1) For the purposes of subparagraph (1)(b)(i), for each fiscal year in the period beginning on April 1, 2001 and ending on March 31, 2004, the equalization payment shall be

(a) in the case of a province that receives an additional fiscal equalization payment under subsection 4(3), the estimate that was made by the Minister on February 23, 2004 in respect of the fiscal year in accordance with section 8 of the Federal-Provincial Fiscal Arrangements Regulations, 1999; and

(b) in the case of a province that does not receive an additional fiscal equalization payment under subsection 4(3), the final computation in respect of the fiscal year.

Marginal note:Amount recoverable

(1.2) Where the cash contribution in respect of the Canada Health and Social Transfer to a province for the fiscal year beginning on April 1, 2001 that was determined in accordance with the final computation made in September 2004 exceeds the cash contribution payable to the province under this Part for that fiscal year and calculated in accordance with subsection (1.1), the Minister may recover the amount of the excess from the province from any amount payable under this Act.

Marginal note:Amount payable

(1.3) Where the cash contribution in respect of the Canada Health and Social Transfer to a province for the fiscal year beginning on April 1, 2001 that was determined under this Part and calculated in accordance with subsection (1.1) exceeds the cash contribution payable to the province for that fiscal year that was determined in accordance with the final computation made in September 2004, the Minister may pay the excess amount to the province out of the Consolidated Revenue Fund at the time and in the manner that the Minister considers appropriate.

Marginal note:2003, c. 15, s. 8

4. (1) Subparagraphs 24.7(1)(b)(i) and (ii) of the Act are replaced by the following:

(i) the equalization payment referred to in subsection (1.1) that would be payable to the province for the fiscal year, and

(ii) the amount of equalization that would be paid to the province in respect of the federal income tax reduction in all the provinces in respect of the Canada Health Transfer and the Canada Social Transfer for the fiscal year, if the method of calculation of fiscal equalization payments as set out in Part I, excluding subsection 4(6) of this Act as it read on May 13, 2004, were to be applied to the value of the income tax reduction in all the provinces in respect of the Canada Health Transfer and the Canada Social Transfer for the fiscal year, except that

(A) for the purposes of the calculation under this subparagraph, the relevant revenue bases are to be determined in the prescribed manner, and

(B) where subsection 4(6) of this Act as it read on May 13, 2004 applies in the determination of the fiscal equalization payment to the province for the fiscal year, the amount determined under this subparagraph is to be adjusted in the prescribed manner.

(2) Section 24.7 of the Act is amended by adding the following after subsection (1):

Marginal note:Equalization payment payable

(1.1) For the purposes of subparagraph (1)(b)(i),

(a) for each fiscal year beginning after March 31, 2005, the equalization payment shall be the equalization payment that would be payable to the province for the fiscal year under Part I; and

(b) for the fiscal year beginning on April 1, 2004, the equalization payment shall be

(i) in the case of a province that receives an additional fiscal equalization payment under subsection 4(3), the estimate that was made by the Minister on February 23, 2004 in respect of the fiscal year in accordance with section 8 of the Federal-Provincial Fiscal Arrangements Regulations, 1999, and

(ii) in the case of a province that does not receive an additional fiscal equalization payment under subsection 4(3), the final computation in respect of the fiscal year.

Marginal note:1999, c. 11, s. 5

5. Paragraph 40(a) of the Act is repealed.

6. Section 41 of the Act is replaced by the following:

Marginal note:Payment out of C.R.F.

41. The amounts authorized to be paid by Part I and by sections 5 and 9 shall be paid out of the Consolidated Revenue Fund at such times and in such manner as may be prescribed.

CONSEQUENTIAL AMENDMENTS

2004, c. 8Appropriation Act No. 1, 2004-2005

7. (1) Section 4 of the Appropriation Act No. 1, 2004-2005 is amended by adding the following after subsection (2):

Marginal note:Non-application

(3) This section does not apply to the Formula Financing Grants for the fiscal year ending March 31, 2005 set out in item 15 for the Department of Finance in the Estimates referred to in section 2.

Marginal note:Coming into force

(2) Subsection (1) comes into force on a day to be fixed by order of the Governor in Council.

2004, c. 22Budget Implementation Act, 2004

8. (1) Subsections 8(1) to (3) of the Budget Implementation Act, 2004 are replaced by the following:

Marginal note:Payment for fiscal year 2004-2005

8. (1) For the fiscal year beginning on April 1, 2004, the Minister of Finance may make a cash payment to the Province of Nova Scotia in an amount equal to the aggregate of twenty-one million dollars and an amount equal to 20 per cent of the Province’s offshore minerals revenue for that fiscal year included in the description set out in paragraph (z.5) of the definition “revenue source” in subsection 4(2) of the former legislation and subparagraph 5(1)(z.5)(ii) of the Federal-Provincial Fiscal Arrangements Regulations, 1999.

Marginal note:Payment for fiscal year 2005-2006

(2) For the fiscal year beginning on April 1, 2005, the Minister of Finance may make a cash payment to the Province of Nova Scotia in an amount equal to 10 per cent of the Province’s offshore minerals revenue for that fiscal year included in the description set out in paragraph (z.5) of the definition “revenue source” in subsection 4(2) of the former legislation and subparagraph 5(1)(z.5)(ii) of the Federal-Provincial Fiscal Arrangements Regulations, 1999.

Marginal note:Determination of offshore minerals revenue

(3) The offshore minerals revenue of the Province of Nova Scotia for each of the fiscal years referred to in subsections (1) and (2) shall be determined by the Minister of Finance after the end of that fiscal year at the time of the final computation of the amount, if any, of the fiscal equalization payment that is payable to the Province for that fiscal year under Part I of the former legislation.

(2) Section 8 of the Act is amended by adding the following after subsection (4):

Marginal note:Definition of “former legislation”

(5) In subsections (1) to (3), “former legislation” means the Federal-Provincial Fiscal Arrangements Act as it read on May 13, 2004.
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