Finance Ministers Call for Federal Meeting

Provincial and territorial finance ministers expressed their frustration and dissatisfaction over Ottawa's lack of progress on a new equalization formula. Nova Scotia Finance Minister Neil LeBlanc chaired a meeting of the ministers today, June 26, in Halifax.

"There appears to be a distinct unwillingness on the federal government's part to sit down with us and discuss meaningful ways to strengthen the program," said Mr. LeBlanc. "The time is right to push forward on building an equalization renewal agreement."

On behalf of his colleagues, Mr. LeBlanc is sending a letter to federal Finance Minister John Manley, requesting an immediate meeting to address equalization, especially transfer payments, as well as health-care funding.

"No progress has been made regarding the premiers' call for a stronger equalization program that benefits all provinces," Mr. LeBlanc said.

The equalization formula is reviewed every five years and is scheduled for renewal in April 2004, but federal legislation must be introduced this fall to meet that deadline. Equalization allows all provinces to offer their residents comparable services at comparable tax levels.

The provinces also want Ottawa to deliver on their $2 billion commitment to health-care funding. The February health accord saw the federal government designate a contingency fund of $2 billion for health care, depending upon the federal budget surplus. With Mr. Manley's recent statements confirming that there will be a surplus, provincial and territorial finance ministers urged the federal government to fulfill their commitment.

"The federal government should determine its priorities so that the $2 billion commitment becomes a reality and will be available to meet the number one need of Canadians -- and that's health care," said Mr. LeBlanc.