Provincial-Territorial Finance Ministers’ Meeting

The Honourable Chrystia Freeland
Deputy Prime Minister and Minister of Finance
Department of Finance Canada
90 Elgin Street
Ottawa, Ontario
K1A 0G5
chrystia.freeland@canada.ca

Dear Minister Freeland:

I am writing on behalf of provincial and territorial (PT) Finance Ministers¹ regarding the upcoming federal Fall Economic Statement. With many Canadians facing economic challenges, it’s important that the federal government remains a critical partner, and we look forward to continued collaboration over the coming year.

As you are aware, on September 9, I chaired an in-person meeting of PT Ministers of Finance to discuss issues that affect all jurisdictions and explore ways to work together with the federal government on shared-priorities. This letter outlines those priorities with a focus on ways to promote economic growth and productivity across the federation, ensuring the best outcomes for Canadians.

Ahead of the federal Fall Economic Statement, PT Finance Ministers call for constructive and collaborative federal engagement and immediate action on the following priority issues.

Infrastructure

Provinces, territories, and the federal government have a long history of successful partnership to build critical infrastructure across our jurisdictions. With the end of the first Investing in Canada Infrastructure Program (ICIP) more than 18 months ago, all Premiers and jurisdictions continue to support a call for a new long-term predictable infrastructure program with sufficient funds to support the unique needs of provinces and territories. 

In the Federal Fall Economic Statement 2024, we ask that you and your federal colleagues ease conditions on and accelerate existing infrastructure funding commitments including the $6 billion Canada Housing Infrastructure Fund (CHIF) to allow more rapid deployment of funding, allowing urgent investment in shared infrastructure priorities that are driven by historic population growth and increased immigration.

In addition, all PT Finance Ministers remain concerned at the continued uncertainty regarding ICIP’s replacement and request that you and your colleagues seriously consider a new infrastructure program in the Federal Budget 2025 that would include the following: 

• Ensure predictable and long-term funding,
• Deliver funding on a base plus per capita provincial/territorial allocation basis rather than an application-based approach, minimizing red-tape and administrative duplication,
• Broaden the types of infrastructure in which the program supports through streams that reflect PT individual needs and priorities, and
• Flow federal funding through PTs rather than municipalities so that investment priorities between the restoration, repair, and maintenance of existing infrastructure and future growth projects can be balanced.

A federal infrastructure program that follows these principles would allow provinces and territories to support their local and diverse priorities and more quickly fund critical projects in a way that complements long-term capital planning and investments already being made by provinces and territories. This type of infrastructure program would allow all levels of government to work together to support a variety of infrastructure projects across the country that meet the needs of Canadians and build economic prosperity.

Predictable and Sustainable Federal Funding

The pressures that population growth have placed on infrastructure equally applies to programs and services. Adequate and predictable long-term funding is an essential component to ensuring provinces and territories can continue to meet the unique needs and priorities of their residents. Collectively, we are all concerned about the potential impact of funding areas that are not predictable or do not provide adequate levels of support relative to the needs or demands of the services it supports. Recent reductions in labour market funding through the Labour Market Transfer Agreements, long-term funding levels to support Canada-Wide Early Learning and Child Care agreements, adequate support for asylum seekers, and the growing need for disaster relief and mitigation support are areas where the federal government can take immediate action in collaboration with provinces and territories.

Again, we urge the federal government to address these priorities in the upcoming fall economic statement.

In addition, the federal government must refrain from overreaching into PT jurisdiction, particularly in the areas of health (pharmacare and dental care), education, and housing. Every government should have the right to receive ongoing financial compensation. This includes provinces and territories that reserve the right to require unconditional federal funding.

Economic Growth and Productivity

It is important we continue to work together to improve our nation’s economic competitiveness. Canada can and should be leading the way in productivity and innovation. Weak productivity growth is not unique to any individual provinces or sectors; this challenge spans the entire breadth of Canada’s economy. A comprehensive and successful response thus requires collaboration between federal and provincial governments. With global factors continuing to shape the world’s energy landscape, provinces and territories are seizing opportunities to supply the world with dependable and ethically produced energy and critical minerals. We request that the federal government work with us to reduce red tape, streamline project approvals to ensure an attractive investment climate to help enable these products to reach global markets.

We see enormous need and opportunity to develop our energy and electrification infrastructure for domestic consumption and for export. The federal government needs to support provinces and territories in developing this infrastructure by accelerating and simplifying the roll-out of the Clean Economy Investment Tax Credits and ensuring that tax-exempt utility companies are eligible to take full advantage of these incentives. We also see opportunities to collaborate with the federal government to expedite access to Indigenous loan guarantee programs, including aligning with existing provincial initiatives.

In addition, the prosperity and security of Canadians and Americans are integrated and mutually beneficial. It is important that we continue to work collaboratively with each other to ensure U.S. leaders and policymakers are fully aware of the benefits of the unparalleled North American relationship, including both trade and other strategic interests.

The upcoming federal Fall Economic Statement provides a significant opportunity for the federal government to join provinces and territories in our continued efforts to support Canadians. We look forward to engaging with you and returning to our traditional schedule of holding semi-annual FPT meetings in December and June and co-developing the FPT meeting agenda with you. Over the coming 12 months we will continue to meet and communicate regularly as PT Finance Ministers.

As always, I appreciate your willingness to work in partnership and I would appreciate an opportunity to speak once you have had time to review this letter, and well in advance of your Fall Economic Statement.

Sincerely,

Peter Bethlenfalvy
Minister of Finance

CC: The Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities of Canada

        The Honourable Anita Anand, President of the Treasury Board

¹ Due to impending provincial general elections, the Ministers for British Columbia, Saskatchewan, and New Brunswick did not participate in the September 9, 2024, Finance Ministers’ Meeting