Finance Ministers to Send Joint Message to Paul Martin

Finance ministers in Atlantic Canada have renewed their commitment to co-operation on key issues at a meeting in Charlottetown today.

The ministers called on federal Finance Minister Paul Martin to fully restore the Canada Health and Social Transfer funding to the 1994-95 level, effective April 1, 2000, and to strengthen the federal commitment to the equalization program.

The meeting was attended by Nova Scotia's Finance Minister Neil LeBlanc, Pat Mella, Treasurer of Prince Edward Island, Lloyd Matthews from Newfoundland and Labrador and Norman Betts from New Brunswick.

The meeting provided an opportunity for ministers to prepare a joint report to Atlantic premiers. Included in the discussions were reports on opportunities for regional co-operation on key finance issues, strategies to highlight the critical role of federal transfers to the region, the importance of having ongoing meetings of finance ministers from Atlantic Canada and an opportunity to discuss outstanding issues concerning the shareholders agreement of the Atlantic Lotteries Corp.

Among the key finance issues discussed were the health and social transfer, equalization and income taxes.

Ministers resolved to convey a joint message to Mr. Martin prior to the upcoming federal budget and repeated the need to work together co-operatively as a region to foster Atlantic Canada's interests. They said the following:

"The Atlantic provinces endorse the need for the federal minister to fully restore the Canada Health and Social Transfer 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 also 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 Canada Health and Social Transfer program, this must be balanced with a commitment to strengthen the equalization program," they said.

"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.

"Mr. Martin should be encouraged to reduce federal income taxes as part of a balanced approach consisting of tax reductions, Canada Health and Social Transfer improvements, equalization enhancement and infrastructure support."

The finance 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.