Minister Attends Meeting in Newfoundland

Nova Scotia Finance Minister Neil LeBlanc welcomes Paul Martin's acknowledgment that health-care funding is a problem that must be fixed. He spoke after a federal-provincial-territorial finance ministers' meeting that took place today, April 26, in Corner Brook, Nfld. The provinces have been pressing the federal finance minister to return to the negotiating table as a full funding partner for health care.

"The federal government has a role to play in providing health- care funding and today they acknowledged that spiralling health- care costs are a problem," Mr. LeBlanc said. "Next we need to see some money to combat the problem."

Provincial finance ministers were unanimous in their agreement about the existing fiscal imbalance between the federal government and the provinces.

"While the federal government is growing its surpluses, the provinces are dealing with escalating health-care costs," Mr. LeBlanc added. Ottawa currently contributes only 14 per cent of Nova Scotia's health-care costs.

Mr. LeBlanc also urged the federal government to adopt the recommendations of the Senate Finance Committee on Equalization. The provincial finance minister appeared before the Senate committee last November, and the recently released Senate report echoed most of Nova Scotia's recommendations. Nova Scotia's main arguments called for the removal of the cap on equalization and restoration of the 10-province standard for the equalization formula.

Mr. LeBlanc also asked Mr. Martin to speed up the process of re- examining the offshore accords -- also known as Campaign for Fairness -- to ensure they are meeting the original intent of allowing the provinces to benefit from offshore revenues.

"Our government has always advocated a solution outside of the equalization formula to ensure that the commitments undertaken by the federal government are honoured," Mr. LeBlanc said.

All finance ministers pressed Mr. Martin to remove the cap on equalization payments to the provinces.

"Paul Martin should seriously consider the advice of the Senate and their recommendations to restore the integrity of the national equalization formula," Mr. LeBlanc said.