FINANCE--Atlantic Finance Ministers Meet
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 focused 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 that 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 the capacity of government to finance these programs.
"For this reason 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," said Mr. Betts. "A strong equalization program is vital to both the region and the country."
Atlantic finance ministers are pleased that the prime minister has asked federal 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 Ms. Mella.
Atlantic finance ministers agreed that their focus in the coming year will be to pursue a strong equalization program that enhances the fiscal capacity of the region.
"We are committed to working co-operatively and aggressively to advance this agenda," said Mr. Matthews. "This new initiative marks a new era of co-operation 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 Mr. Martin.
Atlantic Canadians want an equalization program that fulfils 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 Mr. LeBlanc.
The ministers discussed the fundamental disparities that exist in the region and felt the need to examine other models that address economic disparities, particularly in the European Union. They will be examining those models to assess applicability in the Atlantic region.