Provincial government to receive extra $66 million over three years in CHST

Premier Tobin said today that he welcomes news from the federal government that beginning in 1998-99, the Canadian government will raise the cash floor of the Canada Health and Social Transfer (CHST) from $11 billion to $12.5 billion for the period of the existing legislation through to 2002-03. This will result in an increase in CHST entitlements to Newfoundland and Labrador of $66 million over the three year period 1998-99 to 2000-01.

"Many people have asked when the dividends from fiscal restraint would be seen," said Premier Tobin. "This is the answer. Today the federal government has shown that through fiscal prudence and sound financial management, strategic investments can be made in the areas where the most pressing concerns and needs of Canadians lie." The money will assist Newfoundland and Labrador in meeting and overcoming some of the demands which currently exist in the sectors served by the CHST.

"The health, education and social sectors, like all sectors in this province, face challenging times with limited resources. The additional $66 million will provide extra fiscal flexibility to the province, and will enable us to put more money specifically into our health care system which is currently under strain," said the premier. "This makes the Health Care Forum which I announced last week all the more urgent. I can assure you that in consultation with sector representatives, we will determine our priorities, and we will spend this money wisely." Health Minister Lloyd Matthews will outline the details of the Health Care Forum later this week.

The CHST cash component will remain stable at $12.5 billion in 1998-99, rather than fall to $11.8 billion as projected in the 1997 Budget. In all, CHST will increase by about $3.5 billion over the three year period.

The premier indicated the provincial government's commitment to the health, education and social services sectors by allocating money for various initiatives in this year's Budget. The extra $66 million will greatly assist government in further developing and meeting the demands in these areas.

Contact: Heidi Bonnell, Premier's Office, (709) 729-3570.