39th Annual Premiers’ Conference

  2. Newsroom

NEWS RELEASES

INDEX OF NEWS RELEASES ISSUED ON AUGUST 7, 1998

Ref: 850-070/16

HEALTH CARE FUNDING

SASKATOON, August 7, 1998 --

Premiers re-affirmed their commitment to maintaining and enhancing a high quality universal health care system for all Canadians. Premiers observed that every government in Canada but one - the federal government - has increased its funding to health care.

They expressed concern about unilateral federal cuts to the Canada Health and Social Transfer (CHST) beginning in the 1994/95 fiscal year that now represent more than $6 billion per year. This is the transfer to provinces which helps support core health care services, post secondary education and other social programs for Canadians. The federal government cut its funding for social programs through the CHST by 33% while at the same time spending on federal programs fell by just six percent.

In the face of these unilateral federal cuts to the CHST, provinces/territories have worked hard to manage and maintain a quality health care system for Canadians.

The federal government has now balanced its budget and is now collecting more in taxes than it will spend; yet the federal government has not restored funding to health care.

As their first priority for new federal spending, Premiers emphasized that the federal government must restore its funding to health care through the existing CHST arrangements. Premiers also agreed that funding for core health services, once restored, must be stable and adequate, before new health care programs are established.

Premiers are committed to directing additional federal funds to core health services.

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Ref: 850-070/17

EMPLOYMENT INSURANCE

SASKATOON, August 7, 1998

Premiers called upon the Prime Minister to reduce the fiscal burden on employers and workers, in view of the large surpluses of the Employment Insurance fund, projected at $19 billion by the end of 1998.

Premiers reaffirmed their call on the federal government to reduce employment insurance premiums to previous levels. Premiers agreed also that premiums should be eliminated for youth. These two measures could create up to 200,000 new jobs across Canada, including up to 50,000 jobs for youth.

Premiers also agreed that additional benefits for seasonal workers should be provided, the situation of older workers should be addressed and options for northern relocation assistance be examined. Premiers also called on the federal government to work with the provinces and territories to develop a "seasonal workers strategy" to address new measures to extend employment and to re-examine changes to Employment Insurance Regulations.

These actions would still leave a substantial annual surplus in the EI fund.

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Ref: 850-070/18

EDUCATION*

SASKATOON, August 7, 1998

Premiers discussed the issues of student debt, youth employment and the impact of Employment Insurance reform on post-secondary education.

Premiers expressed concerns with the rapidly rising student debt levels, and called on the federal government to do its fair share in helping students manage and reduce debt.

Premiers reiterated their serious concern about the lack of consultation with respect to the Millennium Scholarships. This federal unilateral initiative, created from funds freed up from CHST reductions, duplicates efforts undertaken by the provinces and territories in the area of student-aid programs. Premiers asked that federal, provincial and territorial governments work jointly to integrate the Millennium Scholarships with existing student financial assistance programs of the provinces and territories.

With respect to youth employment, Premiers noted the progress made by the federal-provincial-territorial Forum of Labour Market Ministers in the development of a national youth employment strategy. Premiers noted that the strategy should address the vital role of education and training, with an emphasis on partnerships, particularly with employers, to ensure that education and training are linked to economic development and employment opportunities.

Although significant work is currently underway, Premiers strongly believe that this issue still requires urgency and commitment by all governments to address problems faced by Canada's youth. One national measure that could be undertaken immediately is the elimination of Employment Insurance (EI) premiums for youth. This would create up to 50,000 jobs for young people nationally.

Premiers also expressed significant concerns about the federal attempt, in some provinces, to shift its responsibility to provinces and territories for training EI recipients in provincial/territorial post-secondary institutions. Premiers see this initiative as another example of federal off-loading. Premiers asked the federal government to provide for full cost recovery for training EI recipients.

*  With respect to the Millennium Scholarships Foundation, the Government of Québec asks that the federal government respect the unanimous resolution of the National Assembly and amend accordingly the Act that creates the Canada Millennium Scholarships Foundation.

With respect to Youth Employment, the Government of Québec, although it shares concerns about this issue does not intend to adhere to a pan-Canadian strategy. It considers that federal youth programs should be transferred to Quebec, along the model of the 1997 Canada-Quebec Labour Market Agreement.

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Ref: 850-070/19

HALIFAX POST-PANAMAX CONTAINER TERMINAL

SASKATOON, August 7, 1998 --

Premiers agreed that the location of a post-Panamax container terminal in the Port of Halifax, Nova Scotia, is of importance to the whole Canadian economy. Post-Panamax ships are the newest generation of container vessels, able to move even greater quantities of containerized freight at progressively lower rates. Halifax is the only Canadian port which has been asked to bid on a post-Panamax terminal for the east coast: all the others are in the United States.

Premiers recognized that Canada must have an East Coast post-Panamax terminal if the Canadian economy is to be assured of rapid access to the most modern seaborne transportation systems. Location of a terminal in Halifax now will position Canada to be competitive in the 21st century for the next round of container superships, planned to be larger than the post-Panamax vessels.

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Ref: 850-070/20

INTERNATIONAL TRADE

SASKATOON, August 7, 1998

Premiers reviewed various international trade issues and expressed continuing concern about ongoing threats to Canadian exports from our international trading partners, and in particular from the U.S.

Premiers urged the federal government to be vigilant and to take strong action as required to ensure to Canadian rights under international trade agreements are not compromised.

Premiers noted the importance of the Canada-U.S. trading relationship and the need for a long-term strategy to manage and improve this bilateral relationship. Premiers noted that encouraging exchanges of information and informed discussions in non-confrontational settings can play a positive role in helping to defuse trade tensions.

Premiers welcomed recent action in the U.S. Senate to reduce to threat of entry and exit restrictions on the Canada - U.S. border. They noted that all provinces and territories had been active in opposing this threat, in cooperation with the federal and municipal governments as well as with municipalities and senior political leaders in the United States. They agreed on the need to continue to work together to ensure border restrictions do not undercut efforts to expand trade and tourism.

Premiers noted with concern the proposed U.S. legislation that would require labeling of imported beef and lamb products. To identify the country of origin, they observed that this would severely disrupt Canada-U.S. cattle and beef trade without serving any legitimate consumer needs. The cattle and beef industry operates in an integrated North American market with large two-way flows of cattle and beef, benefitting both Canadian and U.S. Producers. This free flow north as well as south should not be jeopardized by artificial non-tariff barriers, namely unwarranted labeling requirements.

The Premiers stressed the importance of rational and factual discussion with U.S. government officials and industry and strong action as necessary to protect Canadian access to export markets. They agreed that every effort should be made to ensure that non-tariff barriers are not used to restrict legitimate trade.

Premiers agreed that EU export subsidies and import restrictions are negatively impacting Canadian farmers. Premiers urged the federal governments to clearly outline to EU officials the trade distorting effects of these policies.

Premiers noted that the next round of WTO negotiations on agriculture expected to begin in late 1999, provide a critical opportunity to strengthen Canada's agriculture and agri-food sectors. Premiers urge the federal government to pursue agricultural trade liberalization in these negotiations, including the elimination of export subsidies and non-tariff trade barriers, as well as the overall liberalization of the world sugar trade.

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Ref: 850-070/21

CLIMATE CHANGE

SASKATOON, August 7, 1998

Premiers noted the risks of global warming and reiterated their view that Canada must do its part to address the issue of climate change. They also discussed the significant challenge of meeting the Kyoto Protocol target which, based on the growth of Canada's economy and population, would require a reduction in emissions of 25 - 30% by 2010.

Premiers stressed that responding to climate change will affect all sectors of the economy and all regions of Canada. They agreed that in responding to climate change, no region or sector should bear an undue burden. Premiers also stressed that dealing with this issue in a responsible matter will require the broad-based support and involvement of Canadians and their governments. Premiers asked Energy and Environment Ministers to engage Canadians in a dialogue on the issue.

Premiers stated that climate change is an area where a provincial and territorial role and cooperative federalism are critical. A cooperative federal/provincial/territorial approach is necessary to shape an effective international strategy and to ensure responsible domestic actions.

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Ref: 850-070/22

PROVINCIAL/TERRITORIAL COUNCIL ON SOCIAL POLICY RENEWAL:
PROGRESS REPORT #3

SASKATOON, August 7, 1998 --

Premiers, with the exception of the Premier of Quebec*, reviewed the Third Progress Report of the Provincial/Territorial Council on Social Policy Renewal and endorsed its recommendations. The Report provides information on all elements of the Social Policy Renewal initiative including: The Social Union Framework; National Children's Agenda; Health Issues; National Child Benefit; Benefits and Services for Persons with Disabilities; Financial Arrangements; Labour Market Matters; Federal Off-Loading of Services for Aboriginal Peoples; Education Matters; Status of Women; and Housing.

National Child Benefit

Premiers welcomed the implementation of the first phase of the National Child Benefit in July, and noted that, through their continued commitments, governments in Canada can firmly establish effective and credible measures against child poverty. Premiers acknowledged that positive cooperative efforts of all governments in achieving the initial objectives, and reiterated their agreement at the First Ministers' Meeting last December to cooperate in planning second phase contributions to ensure that federal and provincial and territorial programs are complementary and effective.

Premiers noted that future commitment to the National Child Benefit will be required to fully accomplish its major objectives and support families with children outside of the welfare system. Premiers expressed their support for the full implementation of the National Child Benefit.

National Children's Agenda - Developing a Shared Vision

Premiers acknowledged recent expressions of broad public support for a new national initiative and cooperative approaches to enhance the well-being of Canadian children, and reaffirmed their strong commitment to "fast-track" work on the National Children's Agenda. Premiers discussed the importance of addressing issues related to child abuse and child prostitution and noted Alberta's legislation on Protection of Children.

Premiers endorsed the work of the Council on Social Policy Renewal to strengthen public involvement through the development of a shared vision for the Children's Agenda. They encouraged the Council to finalize its discussion paper and develop options for engaging the public in developing a shared vision for enhancing the well- being of Canada's children.

Benefits and Services for Persons with Disabilities

Premiers acknowledged the progress of Social Services Ministers in developing an approach to improve benefits and services for persons with disabilities. Premiers encouraged Social Services Ministers to complete plans to work with other government sectors, disabilities organizations and other segments of the public, in developing a national consensus on disabilities issues. Premiers also supported plans for the public release of the discussion paper, In Unison: A Canadian Approach to Disabilities Issues, later this Fall.

Aboriginal Issues

Premiers support the position of National Aboriginal leaders regarding federal responsibilities for Aboriginal peoples. Premiers called on the federal government to accept full treaty, historical, constitutional and fiduciary responsibilities for Aboriginal people both on and off-reserve. Premiers expressed their continuing interest in the development of a comprehensive approach to ensure the federal government meets its constitutional and fiduciary obligations to Aboriginal peoples, and called on Ministers responsible for Aboriginal Affairs, in consultation with Aboriginal Leaders, to develop a consensus on this approach in advance of their next meeting with the federal Minister. In addition, Premiers asked their Ministers of Aboriginal Affairs and Labour Market Matters to work together, and with national Aboriginal organizations, in the development of a National Aboriginal Youth Strategy.

Premiers acknowledged the work of Ministers responsible for Aboriginal Affairs, in consultation with Aboriginal Leaders, in developing a process of cooperation between federal and provincial/territorial governments, and Aboriginal peoples, in developing a cross-sectoral action plan to improve social, economic and environmental conditions for Aboriginal peoples. Premiers directed Aboriginal Affairs Ministers to develop recommendations on the nature, structure, and priorities of an ongoing process for consultation among themselves, and with Aboriginal Leaders and the federal government.

Premiers agreed to invite the National Aboriginal leaders to meet with them in the near future to discuss these and other issues of mutual concern.

*Note: While sharing essentially the same concerns, the Government of Quebec does not intend to adhere to the federal/provincial/territorial approach or the provincial/territorial approach to social policies. Consequently, any reference to joint federal/provincial/territorial positions or provincial/territorial positions in this document does not include the Government of Quebec.

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Ref: 850-070/23

REPORT OF PROVINCIAL/TERRITORIAL FINANCE MINISTERS'

SASKATOON, August 7, 1998

Premiers received a status report from Provincial/Territorial Finance Ministers on their work over the past year on important issues and challenges on the fiscal, taxation and federal-provincial fronts. They acknowledged the substantive work by Finance Ministers on the key priorities of fiscal arrangements, employment insurance, and federal taxation policies as evidenced by the attached background papers. They also noted that Provincial/Territorial Finance Ministers stressed to their federal colleague the importance of existing health programs and that the federal fiscal dividend should be used to restore funding for these programs through existing fiscal arrangements.

Premiers underscored the need to ensure that provincial and territorial governments have the resources to carry out their responsibilities, especially the delivery of social programs and directed their Finance Ministers to continue work on redesigning current arrangements to achieve this goal.

*  Although Quebec shares these objectives, it will never accept solutions that lead to a reduction of its taxation autonomy.

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Ref: 850-070/24

TRANSPORTATION AND INFRASTRUCTURE

SASKATOON, August 7, 1998

Premiers noted the importance of developing a national transportation strategy. Premiers called on Ottawa to bring its support for transportation infrastructure more in line with the revenues it derives from federal fuel taxes throughout Canada.

Specifically, on grain transportation, Premiers agreed that reforms to the grain transportation system should:

       
  • establish an appropriate legislative and regulatory framework that promotes modern logistics practices;
    •    
  • promote competition and producer choices in the grain handling and transportation system; and
    •    
  • enhance accountability to improve overall performance from farm to customer.

Premiers also called for a standstill on rail line abandonment until the completion of phase 2 of the Estey Grain Review to ensure that all options relating to grain transportation logistics can be examined fully.

In view of their stated funding priorities, Premiers agreed to defer their call for the renewal of the national infrastructure program, until the federal government has restored its funding for health care.

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Ref: 850-070/25

DISASTER FINANCIAL ASSISTANCE ARRANGEMENTS

SASKATOON, August 7, 1998

At their August 1997 Conference in New Brunswick, Premiers directed responsible Ministers to develop recommendations for improvements to the federal government's Disaster Financial Assistance Arrangements (DFAA). While work has proceeded since that time, possible improvements have not yet been discussed at a Ministers' Conference. Premiers agreed that in light of the importance of the DFAA to all provinces and territories, a Ministers meeting should be held in the near future.

They directed responsible provincial and territorial Ministers to meet within the next one to two months to complete work on preparation of consensus provincial-territorial positions in anticipation of a federal-provincial-territorial Ministers' meeting in the late Fall.

They also requested that Premier Romanow, as Chair of this year's Conference, advise the Prime Minister immediately of their strong concern about suggestions that the federal government may be contemplating substantial changes to the key provisions of the Disaster Financial Arrangements in order to cut back future federal support for emergency assistance and disaster recovery.

They also reaffirmed their agreement on the need for permanent, ongoing arrangements to support disaster protection and prevention across Canada and for special problem areas.

In addition, they urged the federal government to engage in federal-provincial-territorial negotiations with a view to jointly assess prospective impacts and disasters related to climate change.

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Ref: 850-070/26

RESEARCH AND DEVELOPMENT

SASKATOON, August 7, 1998 --

Premiers agreed that investment in research and development is important to attracting and sustaining good jobs. Both orders of government need to work together and in partnership with the private sector to ensure that the necessary investments in research and development are made to nurture the knowledge- based economy of the 21st century in Canada.

Premiers reiterated their call for Federal-Provincial-Territorial Ministers responsible for science, technology and innovation to develop a national approach to R&D.

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ANNEX

SCIENCE AND TECHNOLOGY ISSUES
REPORT ON PROGRESS SINCE THE PREMIERS' CONFERENCE OF 1997

BACKGROUND

In the final communique of the 36th Annual Premiers' Conference, the Premiers agreed on the need to reinvigorate federal-provincial-territorial discussions and cooperation on building a culture of innovation and developing a national approach to increasing innovative activity.

Premiers agreed that the federal government should undertake early and full consultations with provinces and territories prior to announcing new R&D programs that might impact existing provincial and territorial initiatives or where there may be implications for matching funding.

Premiers also agreed to renew their call for a meeting of federal, provincial and territorial ministers responsible for science, technology and innovation policies and asked that the agenda focus on:

       
  • working with the private sector to increase investment in R&D and double, over the next 10 years, the number of small and medium enterprises (SMEs) investing in R&D in Canada;
    •    
  • developing a national approach to R&D;
    •    
  • improving intergovernmental cooperation on sharing information and best practices and encouraging networks and linkages in support of innovation;
    •    
  • ensuring sufficient prior consultation with provinces on national initiatives.

PROGRESS TO DATE

1.      Federal Consultation with the Provinces

The federal government introduced the Canada Foundation for Innovation (CFI) without consulting the provinces and territories. The CFI's approach to funding supports "hard" research infrastructure, without taking into account the need for increased operating funding to support that infrastructure.

Provinces such as Alberta, Manitoba and Ontario were obliged to develop programs in response to the predetermined criteria of the CFI in order to facilitate access to the federal funds. Québec is using its regular programs to facilitate access by its own institutions to the federal funds. More thorough consultations with the provinces and territories by the federal government in developing future initiatives will enhance the effectiveness of policies and programs and make the best use of scarce fiscal and human resources.

2.      Meeting of Federal, Provincial and Territorial Ministers Responsible for Science,
         Technology and Innovation Policies

A meeting of federal-provincial-territorial deputy ministers responsible for industry, trade and science and technology was held in Ottawa on November 12-13, 1997.

There was mixed support for an immediate meeting of federal-provincial-territorial ministers responsible for science and technology (S&T). Newfoundland considered that deputy ministers should meet to do preparatory work and that a future meeting should be targeted within the year. New Brunswick felt that deputy ministers' meetings would be more useful and that there was not enough for ministers to discuss at the present time. Manitoba expressed the need to respond to the Premiers' call for a ministers' meeting within a reasonable time frame. Quebec supported a S&T ministers' meeting and was concerned that it could be delayed 2-3 years. Alberta called for a meeting of S&T ministers between March-June 1998 and suggested the following agenda topics:

       
  • encouraging SME's to become more innovative;    

     

       
    •    
  • developing and retaining a qualified work force;    

     

       
    •    
  • better linkages between business and universities;    

     

       
    •    
  • competition within Canada;    

     

       
    •    
  • ability of provinces and territories to respond to and participate in various federal programs.

Ontario supported a S&T ministers' meeting and offered to co-chair the meeting with the federal government. Ontario further suggested the need to address coordination of provincial S&T initiatives.

3.      Next Steps

It is suggested that, at the meeting being organized for September 17-18, 1998 by Industry Canada for the federal-provincial-territorial deputy ministers responsible for S&T, the deputy ministers determine the need and potential agenda for a meeting of ministers responsible for S&T.

Ref: 850-070/27

PROVINCIAL PARTICIPATION IN INTERNATIONAL AGREEMENTS

SASKATOON, August 7, 1998 --

Premiers reiterated their support for formal federal/provincial/territorial consultations in the negotiation and implementation of international agreements. They noted that international agreements, such as the upcoming negotiations in the agricultural and services sector, under the auspices of the WTO, which are expected to begin in 1999, increasingly affect areas of provincial/territorial responsibilities. Since provincial/territorial participation would strengthen Canada's negotiating position, Premiers called on the federal government to consult with provincial and territorial governments, by the next meeting Ministers responsible for International Trade before the new negotiations in the World Trade Organization in1999.

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Ref: 850-070/28

CREATION OF TWO NEW TERRITORIES

SASKATOON, August 7, 1998

Premier Morin updated his colleagues on progress for the creation of two new territories on April 1, 1999. Premiers look forward to the participation of the new Nunavut premier, at the 1999 Annual Premiers' Conference.

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Ref: 850-070/29

DEVOLUTION

SASKATOON, August 7, 1998

Premiers reaffirmed their support for the territories in their call for the federal government to transfer greater control over resource management and development to the territories. The territories need greater control of their resources in order to develop the north's economy in a way that is responsive to northern priorities, reduces dependency, increases efficiency and provides opportunities for the rapidly increasing young population. Premiers also supported the Yukon and the Northwest Territories in their call to receive adequate resources from the federal government to complete the devolution process and to manage their new responsibilities.

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Ref: 850-070/30

40TH ANNUAL PREMIERS' CONFERENCE

SASKATOON, August 7, 1998

At the issuing of the 39th Premiers' Conference in Saskatoon, the Premier of Quebec, announced that the 40th Conference will be held in Quebec, in August 1999. Mr. Lucien Bouchard declared that Quebec will be honoured and pleased to welcome provincial Premiers and Territorial Leaders in Quebec's capital city.

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