2005 Western Premiers’ Conference

LLOYDMINSTER, May 5, 2005 - Western Premiers met today in Lloydminster, “Canada’s Only Border City”. Lloydminster straddles the Alberta-Saskatchewan border, making it an appropriate setting in recognition of the centennial year shared by Alberta and Saskatchewan.

WESTERN PREMIERS’ PRIORITIES

Western Premiers reviewed the major economic development challenges facing Western Canada and the nation. They agreed that the top immediate economic priorities for the West and Canada must be major improvements in transportation infrastructure, trade, and training and post-secondary education. Addressing these priorities is essential to maintaining and improving Canada’s competitive position in international markets. Premiers called for a national response to the devastation caused by the mountain pine and spruce bark beetles impacting British Columbia and Yukon. They also gave special attention to the alarming spread of crystal methamphetamine across the country.

As follow-up to the Lloydminster conference, the Premier of Alberta will share the results of the Western Premiers’ discussions with the other Premiers and the Prime Minister. These priorities will be high on the agenda of this year’s summer Council of the Federation meeting in Banff in August.

WESTERN CANADA’S TRANSPORTATION GATEWAYS

Western Canada’s Premiers stressed the critical importance of transportation to the future competitiveness of Canada’s economy. Efficient transportation systems preserve and generate jobs and opportunities for Canadians. Immediate investment in transportation infrastructure is imperative to maintain the economic health of Canada. Premiers agreed that the federal government must significantly increase its reinvestment of federal fuel taxes in transportation infrastructure.

The Premiers supported the recent report of the Western Transportation Ministers Council, but agreed that the timeframe for investment must be 10 years and that the recommendations be extended to the transportation needs of the North. These include: the Yukon Transportation Strategy, Northwest Territories Corridors for Canada II, and the Nunavut Transportation Strategy.

British Columbia’s commitment to double container capacity is a good example of the power of this investment. Doubling container capacity in B.C. will produce an additional $6.6 billion in economic activity, across Canada, and it will produce 45,000 jobs Canada-wide.

Western Premiers asked British Columbia to lead in preparing a comprehensive strategy, with clear action items, that will deal with road, rail, marine ports, air, and strategically-placed inland container ports. As part of this work, British Columbia will identify the appropriate percentage of federal fuel tax revenue that should be invested in Western Canada’s transportation infrastructure. This strategy should include recommendations that will be advanced for consideration by Canada’s Premiers at their annual meeting of the Council of the Federation scheduled for August in Banff.

Through partnership, the federal government can assist western provinces and territories in meeting their transportation needs in 10 years. This will fuel the economy needed to keep social programs strong, to ensure market share in the world’s changing economy, and to take advantage of Canada’s natural assets as a Gateway to the world.

CANADA-U.S. AND INTERNATIONAL RELATIONS

Western Premiers discussed the vital importance of the Canada-U.S. trade relationship, noting that two-way trade between the two countries totals about $1.8 billion per day and about $550 billion annually.

In Canada, prosperity is highly dependent on access to the U.S. marketplace as the U.S. is the number one international export destination for goods from all Canadian provinces. The U.S. also depends on access to Canadian markets – Canada is the largest market for 38 states and about 3 million U.S. jobs depend on trade within the NAFTA environment. Canada absorbs more American goods and services than Japan, Great Britain, Italy, China and Hong Kong combined.

Western Premiers commended the Prime Minister for his efforts to consult them in advance of key meetings with the U.S. and Mexican Presidents as well as to include them in some of his direct discussions. They look forward to building on this progress towards a more formal coordinated strategy on Canada-U.S. relations as previously committed by the Prime Minister.

Premiers discussed the work of the governments of Canada, United States and Mexico through the new "Security and Prosperity Partnership" to enhance the North American economy. They welcomed the Prime Minister’s commitment to involve provinces and territories meaningfully in the development and delivery of key Partnership initiatives.

Premiers emphasized the importance to the West and to Canada as a whole of strengthening NAFTA, and in particular, urged that agreement be achieved on a dispute settlement mechanism that delivers non-political and final decisions.

Western Premiers will aggressively promote the West’s vast economic assets in international markets. In advancing their common interest on a NAFTA-plus agenda, they will jointly:

   
• Meet with Western Governors in Colorado on June 12-14;
     
   
• Brief Ambassador McKenna, U.S. administration officials and legislators in Washington on their economic and trade priorities; and
     
   
• Lead efforts to promote a decisive, expedient, non-political dispute settlement mechanism for the NAFTA agreement.

Western Premiers congratulated the Prime Minister on his choice of Frank McKenna as Canada’s new Ambassador to the United States. They also extended their good wishes to Ambassador-designate David Wilkins upon his recent nomination as the next Ambassador of the United States to Canada and invited him to an early meeting to discuss priorities of Western Premiers. Western Premiers are looking forward to working effectively with Ambassador-designate Wilkins.

Finally, western provinces and territories continue to believe that it is critical to have a formal and certain agreement on the provincial-territorial participation in Canada's international activities that affect areas of provincial/territorial jurisdiction. Western Premiers wish to conclude a federal-provincial-territorial agreement in time for the August 2005 Council of the Federation meeting.

EMERGING MARKETS

Western Premiers also discussed key markets for Western Canada’s economies, including Latin America and the emerging economies of China and India. Premiers agreed to adopt a Team West approach to expand trade opportunities with these markets.

They agreed to build on Western Canada’s strategic location and growing trade ties with Asia and to foster a stronger relationship with Asian economies. These discussions are strategically linked to their recommendations for transportation investment.

Premiers agreed they would:

   
• Work together on a more coordinated approach to expanding opportunities for Western Canada in emerging markets with an initial emphasis on Asia;
     
   
• Task their respective Trade Ministers to develop, by June, recommendations for coordinated action to take advantage of the large untapped markets for Canadian goods and services in rapidly developing countries, including joint promotional activities. Initial emphasis is to be on Asia-Pacific;
     
   
• Make Western Canada’s cultural diversity a competitive advantage by more effectively utilizing the knowledge and contacts of Canadians with cultural and business links to the Asia-Pacific region; and
     
   
• Encourage the federal government to actively and concretely improve its engagement with Asia-Pacific and other emerging economies.

SKILLS TRAINING/POST-SECONDARY EDUCATION

Western Premiers discussed the critical linkages between skills training, post-secondary education and economic growth, noting that they all have an interest in ensuring Canada is able to compete globally. Approximately 70% of jobs in the knowledge economy require skills training and post-secondary education and provincial and territorial workforces need the right mix of skills and knowledge. The fundamental objective for provinces and territories as they consider means to enhance and extend opportunities for higher learning is for Canada to remain competitive in the global economy, and for barriers to access and achievement to be addressed.

Western Canada needs a large, skilled and responsive workforce to support ongoing development such as northern gas pipelines, hydro, oil sands expansion, the 2010 Olympics and large scale transportation infrastructure.

The West is already experiencing labour and skill shortages in many sectors and the challenges will only become greater as the Western economy continues to grow.

To deal with these shortages, the provinces and territories will lead the development of a national training strategy. Part of this strategy will be the coordination of western training resources to maximize the amount of training that can be delivered. Premiers will also invite Western and Northern Aboriginal leaders to a meeting this summer to develop a Western Canadian Aboriginal Training Strategy. Following this meeting, Ministers will continue to work with Aboriginal groups to implement the agreed strategy. Finally, the provinces and territories will work with employers and labour groups to identify best practices for the training and development of workers.

ADDICTIONS – CRYSTAL METHAMPHETAMINE

Western Premiers discussed the growing problem of addictions, and in particular the increased use of crystal methamphetamine (crystal meth). Western Premiers also noted they all are investing additional resources to take further measures to address drug abuse and crystal meth in particular. Western Premiers noted that further community based initiatives should be encouraged.

Western Premiers noted that western cooperation, including the sharing of best practices, has enabled western governments to make progress on issues such as fetal alcohol syndrome. Therefore, Premiers agreed that Premier Calvert will chair a meeting of Health, Justice and Public Safety Ministers in early June to continue to share best practices and develop strategies on education, prevention, treatment and policing for crystal meth.

Western Premiers emphasized that penalties for the production and trafficking of crystal meth must be the same as for other dangerous drugs such as cocaine and heroin.

Western Premiers noted that the Federal-Provincial-Territorial Working Group, co-chaired by British Columbia, is currently exploring options for addressing the supply of methamphetamine, including dealing with the precursors used in the production of crystal meth. Western Premiers would like to see this work accelerated and request that this Working Group report to the early June meeting of Ministers of Health, Justice and Public Safety in Regina.

Premiers agreed that federal legislative and regulatory changes are required that would provide judges with the ability to hand out stiffer sentences for people convicted of producing and trafficking in crystal meth and that additional products used in the production of crystal meth should be brought under the Controlled Drugs and Substances Act.

Western Premiers emphasized that crystal meth is also an important issue for Western Governors. Western Premiers intend on raising this as a priority when they meet with Western Governors on June 12-14. Western Premiers also asked Premier Calvert to bring this issue forward to the annual Council of the Federation meeting August 10-12 in Banff.

MOUNTAIN PINE BEETLE AND SPRUCE BARK BEETLE

Western Premiers discussed the current state of Western Canada's boreal forests and the importance of keeping pest epidemics in British Columbia and Yukon from destroying the nation's boreal forests. They acknowledged the importance of Canada’s forests during this, National Forest Week.

The pine beetle infestation in British Columbia currently impacts seven million hectares of that province's Interior forests and is expected to kill 80 percent of British Columbia's pine forest by 2013. The widespread loss of pine forest in British Columbia is threatening the stability and economic well being of forest-dependent communities and will have serious consequences for water tables, stream flow regulation, erosion, water quality, fisheries, forest fires and wildlife habitat.

The spruce bark beetle now affects 400 thousand hectares or about 70 percent of the forest cover in southwestern Yukon and is spreading rapidly into other watersheds. As in British Columbia, the effects of the infestations are broad and diverse, from increased fire hazards and lost economic opportunities to long-term impacts on fish, wildlife and water quality.

Premiers agreed to continue efforts to control the spread of the mountain pine beetle and the spruce bark beetle and to identify ways to restore forests in areas affected by the epidemics. This would be aimed at ensuring long term sustainability for affected communities and First Nations and addressing significant fire hazard and other environmental effects. Over $200 million has been committed by British Columbia over the last five years to control the mountain pine beetle.

Premiers also agreed that the spread of forest pest epidemics is a growing national problem that requires a full national response. While welcoming the federal government's preliminary commitment of $100 million in support of British Columbia's pine beetle efforts, they expressed unified support for British Columbia’s Mountain Pine Beetle action plan and for significantly greater financial support from the federal government to respond to both the pine beetle and spruce beetle infestations.

AGRICULTURE

BSE

Western Premiers urge the federal government to continue working collaboratively, with provincial and territorial governments, towards the ultimate goal of restoring a normal cattle market in Canada, including an open U.S. border to both live animals and meat from animals over thirty months of age.

Western Premiers are unanimous in their commitment to the BSE recovery strategy and the potential to extend that programming if necessary.

Western Premiers urge the federal government to give high priority to international market access and market development initiatives to reduce our dependence on the U.S. market.

Western Premiers urge the federal government to improve the slaughter and processing expansion component of the recovery strategy to more effectively meet the needs of niche market entrepreneurs.

AFFORDABILITY

Western Premiers call on the federal government to work collaboratively with provinces and territories to address affordability issues associated with the 60:40 cost-sharing formula for nationally available agricultural programs.

WTO NEGOTIATIONS

Western Premiers are united in the view that the federal government must push for the best possible WTO Agreement for our export orientated sectors.

Until real gains are achieved in leveling the international playing field, the federal government must provide assistance to sectors hurt by international subsidies and unfair trade practices of other countries.

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For information:
Jim Law
Communications
Office of the Premier
Government of Alberta
(403) 510-7182