Hospitals and Patients Shortchanged by Federal Budget

FINANCE/HEALTH--Hospitals and Patients Shortchanged by Federal Budget

Finance Minister Neil LeBlanc said today's federal budget has failed to provide Nova Scotians with proper support for health and social programs.

"Yet again, Ottawa has failed to become a real partner in providing health and social programs to the people of Nova Scotia," said Mr. LeBlanc. "While I applaud the federal government's commitment to fiscal responsibility and new spending on the military and security, it's long since time for Ottawa to work with provincial governments to strengthen health care and social programs."

Since 1993-94, the federal government has cut federal transfers for health care, post-secondary education and social services in Nova Scotia a cumulative total of almost $1 billion. For the current fiscal year, Nova Scotia will receive $80 million less in federal transfers for health care and social services than it did in 1993-94. Next year, Nova Scotia will receive an estimated $40 million less than in 1993-94.

"Nova Scotia taxpayers are paying half a billion more for health care than they did in 1993, but the federal government is still paying less," said Health Minister Jamie Muir. "Unless Ottawa comes back to the table with long-term funding for health and social programs, we in Nova Scotia, and other smaller provinces, will keep struggling to provide a level of health care and other essential services comparable to rest of Canada."

Mr. Muir noted that Premier John Hamm delivered this warning at the conclusion of the First Ministers' Meeting on health care in September 2000. The premier indicated at that time that the federal government's refusal to meaningfully strengthen equalization as part of a broader health care funding solution would "condemn Nova Scotians -- indeed many Canadians -- to a lower level of health care than the rest of the country." Atlantic premiers have since reiterated the need for a strengthened equalization program.

"Ottawa's refusal to strengthen equalization means that Nova Scotia taxpayers will continue to shoulder more of the financial burden to provide quality health care for the people of this province," concluded Mr. Muir. "Thanks to Ottawa's inaction, it makes it that much tougher for Nova Scotia to maintain existing health and social programs."