Standing Up For Nova Scotians

Nova Scotia drivers will benefit from an auto insurance reform package adopted today, June 18, by Atlantic Canada's premiers.

"We will ensure that Nova Scotia drivers have the insurance they need, at a price all Nova Scotians can afford," said Premier John Hamm. "This Atlantic approach will complement Nova Scotia's plan for affordable, fair insurance."

Environment and Labour Minister Ron Russell will release Nova Scotia's auto insurance plan next week. Meanwhile, the regional approach adopted by the Council of Atlantic Premiers to lower automobile insurance rates will include the following: -- common rules to create a more efficient market in Atlantic Canada, reduce costs and ensure that cost savings are passed on to consumers in the form of lower premiums; -- common underwriting practices to protect consumers, such as seniors, from unfair and discriminatory practices; -- common solutions to addressing rising claims costs, balanced with a consumer's right to legal remedy; -- a basic, affordable insurance option for Atlantic Canadian consumers; and -- urging the federal government to review the rules surrounding investment practices by the insurance industry.

A regional insurance task force has been established to prepare a draft set of harmonized legislation and regulations by Sept. 30 to allow for introduction in the fall sitting of each provincial legislature. The task force will also conduct and complete a comprehensive cost-benefit study of an Atlantic public automobile insurance system.

"The Atlantic approach, in concert with Nova Scotia's plan for affordable, fair insurance, will provide a real, workable solution to the rate shock many Nova Scotia drivers are facing," added Premier Hamm.

Atlantic premiers supported several other Nova Scotia priorities, including:

• urging the federal government to fully fund the recommendations of the Romanow report on health care;
• rejecting the federal government's interim solution on softwood lumber, which would seriously jeopardize the Atlantic industry;
• strengthening Equalization and the Canada Health and Social Transfer (CHST);
• developing a more effective federal-provincial partnership, starting with regular first ministers' meetings and a code of conduct.

"By working with our Atlantic neighbours on the issues that matter most to Nova Scotians, like health care, education and growing the economy, this government is doing our part to build a stronger, more prosperous province," said the premier.

Premier Hamm also noted the Council of Atlantic Premiers' recognition of the importance of strengthening the Canada-United States relationship, citing the visit to Nova Scotia later this week by United States Ambassador Paul Cellucci.

"Over 50,000 Nova Scotians have jobs depending directly on exports to the United States," said the premier. "Our government must take a lead role in building a climate that protects these jobs and creates even more."