40th Annual Premiers’ Conference
NEWS RELEASE – A BALANCED APPROACH FOR BETTER COMPETITIVENESS
Québec City, August 10, 1999 -- At their Annual Conference in Québec City, premiers and territorial leaders discussed the need, given the rapid changes affecting international trade, for a more competitive and more productive Canadian economy and examined the different ways governments could increase competitiveness.
Premiers and territorial leaders unanimously advocated a balanced approach to better Canadian economic competitiveness, through a combination of reduced federal taxes and full restoration of CHST to fund social programs, particularly postsecondary education.
The premiers and territorial leaders stressed that Ottawa now enjoys considerable and increasing budgetary surpluses, reportedly more than $10 billion this year. Federal tax revenue is growing faster than federal expenditure responsibilities, which is not the situation at the provincial level (See attached table on this matter). Given that all provinces are reducing their taxes, premiers and leaders concluded that, in the context of balanced budgets, sustainable tax reduction by the federal government is a priority to improve economic competitiveness. This would reduce the fiscal burden shouldered by taxpayers and stimulate economic growth and job creation.
Equally as important, in order to promote competitiveness, the premiers and territorial leaders, following on the consensus they reached in Saskatoon, stressed that it is necessary that the federal government fully restore transfer payments to fund postsecondary education, health and social programs under the current Canada Health and Social Transfer program.
Premiers reaffirmed the importance of equalization as outlined in the Constitution.
| PROVINCES - Health - Education - Income security - Public infrastructures Own-source revenue: $141 B |
FEDERAL - Old age security - Employment insurance - Transfers to the provinces - Defense Revenue: $157 B |