New Brunswick Telegraph-Journal (November 30, 2010)
Premiers pledge united front on federal transfer talks
By Quentin Casey
PICTOU, N.S. – The Atlantic premiers are pledging to face Ottawa with a united front in upcoming – and possibly contentious – negotiations over federal transfers.
On Monday, the four leaders met in Pictou, N.S. for regular meetings of the Council of Atlantic Premiers. All four emerged from the talks promising to stand firm – and together – in seeking sufficient health and social transfers from the federal government.
“There’s a need for a common voice. United we are stronger,” said outgoing Newfoundland and Labrador Premier Danny Williams.
“We need to make sure we’re in the face of the federal government,” continued Williams, who last week announced he is retiring from provincial politics. “We’re going into an uncertain economic world. That’s why it’s so important that this region stands strong together.
“We have to make sure that when the federal government comes a cutting that they’re not cutting in Atlantic Canada.”
In 2014, funding arrangements will expire for the three main federal transfers: equalization, the Canada Health Transfer and the Canada Social Transfer.
Those funds are essential for the provinces to deliver health care, education and other social services, the premiers argued at their press conference.
In 2009-10, New Brunswick received $2.5 billion in major federal transfers, which represented roughly 35 per cent of the province’s revenues that year.
The health transfer is of particular concern to premiers. With health care costs rising by six to 10 per cent a year, the federal government must ensure the transfer is rich enough to provide appropriate health services in Atlantic Canada, they argued.
“It’s their role as a federal government to ensure equitable health care in all regions of the country,” said Prince Edward Island Premier Robert Ghiz after the meetings, which were held at the Pictou Lodge. “We’re going to make sure our voices are heard loud and clear, in a united front, as we approach the re-negotiations in 2014… With four premiers speaking together, we’re going to be much stronger than we would be divided.”
Ghiz also warned that efforts aimed at restoring fiscal order in Ottawa cannot come at the expense of the Atlantic provinces.
“They’re not going to get rid of their deficit by taking it out of health care and education,” he said. “Let’s face it, federal governments will look to play us off against each other so they can do less. This is about making sure they can’t do that.”
Nova Scotia Premier Darrell Dexter argued that Atlantic Canada is unique in its circumstances, and must be treated accordingly by Ottawa.
For instance, he said the region has an aging population, meaning its health costs are more pronounced than in other regions of the country. As well, the Atlantic region has a declining population, yet federal immigration policy does not benefit the eastern provinces.
“It’s absolutely imperative that we work together to ensure the federal government responds appropriately to the realities of Atlantic Canada,” Dexter said. “The tougher the times get, the more important it is for us to work together.”
The premiers plan to meet again in May to form their joint position on the federal transfers. The session will be held in lead up to the annual meeting of all Canada’s premiers and territorial leaders.
New Brunswick Premier David Alward, the self-described “new kid on the block”, will host that crucial session in Sussex.
On Monday, Alward said the premiers also agreed to boost co-operation between their Crown liquor corporations. Senior government officials will meet to discuss possible areas of collaboration, such as in bulk purchasing, warehousing and distribution. The idea is to reduce costs and boost revenues.
“We can all raise our boats if we work collectively,” Alward said.
