Executive Council
July 26, 2013
The following is being distributed at the request of Council of the
Federation:
Canada’s Premiers Continue to Work on Modernizing Fiscal Arrangements
Niagara-on-the-Lake - Premiers discussed their shared commitments to fiscal
responsibility and to protecting and sustaining essential public services,
including health care, education and social services. They also stressed the
importance of modernizing federal, provincial and territorial financial
arrangements to ensure that they reflect current realities and support
economic development.
Premiers call on the Federal Government to avoid further unilateral changes
to programs affecting provinces and territories, and particularly measures
involving cutbacks in financial support, including offloading or downloading
responsibilities. For example, last year's report of the Premiers' Fiscal
Arrangements Working Group estimated that the Federal Government's Canada
Health Transfer (CHT) would be reduced by almost $36 billion, in total, over
the 10-year period from 2014/15 to 2023/24 compared to the arrangements
currently in place, bringing the federal share of health care costs to less
than 20 per cent, compared to 50 per cent originally. Premiers also cited
recent changes in labour market agreements, Employment Insurance and Old Age
Security eligibility, and programs affecting Aboriginal communities as
examples of their concerns. They agreed to direct their Finance Ministers to
prepare a detailed inventory of these changes on a priority basis for review
at their next meeting.
Ongoing fiscal imbalances between governments affect the ability to deliver
quality public services. Premiers agree that fiscal arrangements must be
consistent with the provincial and territorial roles and responsibilities in
Confederation. Premier Selinger, Premier Redford, Premier Alward and Premier
Wynne will chair further work by Finance Ministers to develop a set of
specific options for Premiers’ consideration at their 2014 summer meeting
for modernizing both traditional fiscal arrangements and specific economic
programs.
Premiers agreed that Premier Wynne would lead work as part of the Fiscal
Arrangements Working Group regarding strategic infrastructure investment,
jobs and growth. Premier Wynne and provincial and territorial ministers
responsible for economic development and infrastructure will focus on the
critical role infrastructure investments play in creating good jobs and
attracting investments in such areas as manufacturing, transportation,
research and development and resource development.
Premiers reaffirmed that these options should reflect the principles agreed
to by Premiers at the January 2012 meeting to: find solutions that work for
the benefit of all Canadians in all provinces and territories; that every
province and territory must be able to provide its citizens with reasonably
comparable levels of public services with reasonably comparable levels of
taxation; that no jurisdiction should be made worse off; and that Canada's
fiscal arrangements should be a win-win for all Canadians regardless of
where they live.
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Media contacts:
Jennifer Tulk
Director of Communications
Office of the Premier
709-729-3960
jennifertulk@gov.nl.ca |
Tracey Boland
Press Secretary
Office of the Premier
709-729-4304, 697-3128
traceyboland@gov.nl.ca |
Premier’s Media Office
Government of Ontario
416-314-8975 |
2013 07 26
11:15 a.m.