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NLIS 1
August 3, 2001
(Executive Council)

 

Premier Grimes pleased with consensus on a call for changes to equalization program

Premier Roger Grimes was successful in convincing other premiers at the Annual Premiers� Conference in Victoria, British Columbia, of the need for adequate funding for social programs through equalization as well as the Canada Health and Social Transfer (CHST).

"My position was clear going into the conference that I would not agree to a consensus on increased CHST funding unless a consensus was also reached on requests for improvements to the equalization program," said Premier Grimes. "I am pleased to report success on both accounts."

Premiers will call on the federal government to make immediate improvements to the equalization program including: immediate removal of the equalization ceiling that the federal government has arbitrarily imposed which restricts the normal growth of the program; immediate work on the development of a strengthened and fairer equalization program formula, including as one possible alternative, a 10-province standard that recognizes the volatility around resource revenues, and comprehensive revenue coverage.

"It is encouraging that all other premiers realize a strengthened and fairer equalization program formula is important for us as Newfoundlanders and Labradorians," said Premier Grimes. "Equalization is a critical issue for us, along with the CHST, and improvements to the program would help to meet the Constitutional commitment for provinces to have reasonably comparable levels of public services at reasonably comparable levels of taxation."

Premiers will also call on the federal government to restore federal health care funding through the CHST to at least 18 per cent, up from the current level of 14 per cent, and introduce an escalator, and to work on other CHST measures.

"This is a step in the right direction for Newfoundlanders and Labradorians and for all Canadians," said Premier Grimes. "If implemented, these changes would narrow the gap between provinces and help Newfoundland and Labrador provide better public services which would be comparable to those in Ontario or other provinces."

Premier Grimes is also pleased that all provinces/territories will work together to identify and share information, ideas and best practices for managing health care information and will focus their energy and resources on developing constructive approaches to pharmaceutical management, continuing care and human resources management. Premiers will meet again in mid-January 2002 to advance an inter-provincial/territorial action plan for better managing health costs.

Media contact: Carl Cooper, Office of the Premier, (709) 729-3960.

2001 08 03              1:10 p.m.


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