Study Confirms Widening Gap

A new study released by the Conference Board of Canada confirms that the federal government's ability to pay for health care is growing, while the provinces' is declining, said Nova Scotia's Finance Minister Peter Christie.

"This study proves that the gulf between the federal government and the provinces is widening, and will continue to grow if the federal government does not soon step up to the plate on health care," Mr. Christie said today, March 8, in Halifax.

The study shows that over the next 16 years, all provincial and territorial governments are headed for deeper deficits, while federal budget surpluses will increase dramatically.

"They get richer while we become poorer," said Mr. Christie. By 2020, the 10 provinces and three territories can expect to post a collective deficit of $11 billion, while the federal government surplus should reach $78 billion.

A growing and aging population will drive up health-care costs, which will continue to be the biggest fiscal challenge for the provinces and territories, according to the Conference Board report.

Nova Scotia Premier John Hamm, along with premiers from across the country, is calling on the federal government to make the $2- billion supplement to health-care funding permanent, starting in 2004/05.

"This is a non-partisan issue. Premiers of all political stripes are urging the prime minister to recognize Canadians' number one priority in the upcoming federal budget," said Premier Hamm.

The provinces are asking Ottawa to meet Roy Romanow's recommendation that the federal share of health-care funding be increased to 25 per cent, from its present 16 per cent.