Minister attends meeting of Atlantic Finance Ministers

Finance Minister Lloyd Matthews today attended a meeting of Atlantic Finance Ministers held in Charlottetown, Prince Edward Island. Among the issues discussed was the pre-budget message they intend to pass along to federal finance minister Paul Martin.

"This meeting was a tremendous opportunity to meet with my Atlantic colleagues so soon after taking on the finance portfolio," said Minster Matthews. "We discussed the need to encourage the federal government to fully restore CHST funding and to reinforce the importance of equalization in our region of the country. It was a productive day, and a good introduction to the issues facing the Department of Finance."

Other topic discussed included: regional cooperation on key issues, items related to the Atlantic Lottery Corporation, and the need for regular meeting of the Atlantic ministers.

Media contact: Paula Dyke, Director of Communications, (709) 729-0329.

2000 014 4:15 p.m.

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JOINT COMMUNIQUE FROM ATLANTIC FINANCE MINISTERS

ATLANTIC PROVINCES' FINANCE MINISTERS MEET IN CHARLOTTETOWN

Today's meeting of Atlantic Provinces' Finance Ministers in Charlottetown has resulted in a new commitment to regional cooperation on key finance issues. They call on the Federal Finance Minister Paul Martin to fully restore the Canada Health and Social Transfer (CHST) funding to the 1994-95 level, effective April 1, 2000 and to strengthen the federal commitment to the equalization program.

Pat Mella, PEI's Provincial Treasurer, was pleased to welcome her Atlantic counterparts to Charlottetown to discuss a broad range of issues of concern to the region. The ministers in attendance included Neil LeBlanc from Nova Scotia, Lloyd Matthews from Newfoundland and Labrador and Norman Betts from New Brunswick.

The Finance Ministers' meeting provided an opportunity for ministers to prepare a joint report to Atlantic Premiers. Included in the discussions were reports on opportunities for regional cooperation on key finance issues, strategies to highlight the critical role of federal transfers to the region, the importance of having regular Atlantic Finance Ministers meetings, and provided an opportunity to discuss outstanding issues concerning the Shareholders Agreement of the Atlantic Lotteries Corporation.

Among the key finance issues discussed were the CHST, Equalization and Income Taxes.

Ministers resolved to convey a joint message to Paul Martin prior to the upcoming federal Budget and re-iterated the need to work together cooperatively as a region to foster Atlantic Canada's interests.

The key message to be conveyed to the federal minister was that: "The Atlantic provinces endorse the need for the federal minister to fully restore the CHST funding to the 1994-95 levels while also acknowledging the critical importance of the Equalization program to the region."

"We encourage the federal minister to commit to a strong equalization program which fulfils the constitutional requirement of ensuring comparable levels of service at comparable levels of taxation." Ministers expressed the view that the equalization program is subject to unacceptable constraints, particularly the ceiling on the program. "While we support the desire of provinces to see full restoration of the CHST program, this must be balanced with a commitment to strengthen the equalization program."

Ministers stated:, "It is critically important that we encourage the federal government to undertake policies that are not only in the interests of improving national economic performance, but also mindful of the interests of Atlantic Canada."

Ministers agreed that Minister Martin should be encouraged to reduce federal income taxes as part of a balanced approach consisting of tax reductions, CHST improvements, Equalization enhancement and infrastructure support.

Ministers said that the Charlottetown meeting was of significant importance in setting a course for the region to work together in moving forward on these key fiscal issues.