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August 9, 1999
(Executive Council)


Atlantic Premiers and Northern Leaders set out common priorities for 40th Annual Premiers' Conference

The four Atlantic premiers and the three northern leaders joined together today to discuss issues related to the 40th Annual Premiers' Conference, being held in Quebec City. The theme of this year's conference is competitiveness. While some others are calling for tax cuts to be a priority, the Atlantic premiers and northern leaders agree that there is more to competitiveness than tax cuts. Tax cuts cannot take priority over the need for adequate and predictable federal funding to meet the needs of all Canadians; there must be a balanced approach.

Governments can do many things to improve the competitiveness of the Canadian economy. Canada's health care and social safety systems are essential to ensuring that we have a healthy, active and skilled population which can meet the growing and changing needs of our economy. Canadians want the security of an effective health care system. They need an education system that creates opportunity without burdening students with excessive debt. Canada also needs a national highway system and other public infrastructure that works. Together, these things are essential to building and sustaining our country, and our competitiveness, and they are the main priorities of Canadians.

Premiers and northern leaders also noted that federal tax cuts have a disproportionate impact on provinces and territories. While there is a need to re-examine fiscal relationships, a simple call for federal tax cuts ignores the key role of the federal government in redistributing wealth in our country. The federal government has an essential role in making sure that Canadians have access to reasonably comparable levels of services at reasonably comparable and therefore competitive tax levels. An across the board tax cut would be inconsistent with this responsibility, and it would create disparity by having a disproportionately negative impact on smaller provinces and territories.

The premiers and northern leaders also expressed their opposition to suggestions that funding arrangements for health and education be modified and based solely on tax point transfers. Increased federal cash transfers are essential to ensuring that these vital social programs are adequately and predictably funded.

For further information contact:

Heidi Bonnell, Government of Newfoundland and Labrador, (709) 685-3674
Amanda Harpelle, Government of New Brunswick, (506) 863-3804
Rob Batherson, Government of Nova Scotia, (902) 221-2421
Maurice Rodgerson, Government of PEI, (902) 368-4400
Rick Bargery, Government of NWT, (867) 444-1589
Angus Robertson, Government of Yukon, (867) 667-8997
Kimberley Bain, Government of Nunavut, (867) 979-4802

1999 08 09                              9:55 p.m.


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