Atlantic Finance Ministers present united front on equalization

Newfoundland and Labrador Finance Minister Lloyd Matthews welcomed his colleagues from Atlantic Canada to St. John�s today to discuss a range of issues of mutual concern to the region. Ministers attending were Pat Mella from Prince Edward Island, Neil LeBlanc from Nova Scotia and Norman Betts from New Brunswick.

The discussion focussed on a number of areas important to the Atlantic provinces, including funding for social programs, health care, the equalization program and ways of enhancing economic development and growth.

Atlantic Finance Ministers view the federal commitment to CHST as a good first step which will help stabilize health care while Health Ministers conduct a review of the system.

On the other hand, the cost of providing social programs continues to grow at a faster rate than our capacity to finance these programs. "For this reason," said Minister Betts, "the other major transfer program, equalization, which assists Atlantic provinces provide programs such as education, assistance to those in need, transportation, as well as health care, is of great importance to Atlantic finance ministers and to premiers. A strong equalization program is vital to both the region and the country."

 Atlantic Finance Ministers are pleased that the Prime Minister has asked Finance Minister Paul Martin to examine the equalization program with them. "A strong commitment by the federal government to an effective equalization program will ensure Canadians from all regions can participate in economic prosperity and growth," said Minister Mella.

 Atlantic finance ministers agreed that their focus in the coming year will be to vigorously pursue a strong equalization program that enhances the fiscal capacity of the region. "We are committed to working cooperatively and aggressively to advance this agenda," said Minister Matthews. "This new initiative marks a new era of cooperation between the Atlantic finance ministers."

Atlantic finance ministers will advance concrete options to strengthen the program and will develop comprehensive proposals for changes which will form a common approach for the Atlantic ministers to present to Minister Martin.

 Atlantic Canadians want an equalization program that fulfills the constitutional commitment of ensuring all Canadians have access to comparable services at comparable levels of taxation. "We also want an equalization system which does not discourage economic development and growth,"said Minister LeBlanc.

 The ministers discussed the fundamental disparities that exist in the region and felt the need to examine other models which address economic disparities, particularly in the European Union, and will be examining those models to assess applicability in the Atlantic region.

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 2000 10 06 2:40 p.m.