39th Annual Premiers’ Conference

SASKATOON, August 6, 1998

Premiers discussed the status of negotiations on a Framework Agreement for the social union. They noted that both orders of government are involved in Canada's social union and emphasized that a stronger partnership between the two orders of government is needed to secure Canada's social programs for the future.

Premiers strongly believe that a Framework Agreement for the Social Union will provide all Canadians with a better opportunity to participate fully in our economic and social life. It is about governments working together, within their constitutional responsibilities, to ensure strong and sustainable health, education and social services for Canadians. It is not about more power for one order of government or another.

Premiers expressed their unanimous support for the provincial/territorial consensus negotiating position developed by participating Ministers.

Premiers welcomed the Prime Minister's recent public commitment to concluding negotiations on an Agreement. They recognized that the recent federal proposals on the Framework Agreement, although not a complete response to the provincial/territorial consensus negotiating position paper, permits the negotiations to proceed.

Premiers agreed that through negotiations they could accommodate many of the objectives of the federal proposals. The challenge now is for the federal government to work with the provinces/territories to resolve outstanding issues.

Premiers noted that the areas of common ground between the federal and provincial/territorial positions represent progress in the negotiations but stressed that collaborative arrangements on federal spending in areas of provincial/territorial jurisdiction, and a fair dispute resolution process are essential to a balanced and fair partnership. Premiers stressed that negotiations should now proceed with a view to concluding a draft Agreement by the end of the year.

Premiers noted that the federal proposals contain provisions for opting out. Premiers emphasized that the flexibility afforded to provinces/territories through the ability to opt out of any new or modified Canada wide social program in areas of provincial/territorial jurisdiction with full compensation, provided that the province/territory carries on a program or initiative that addresses the priority areas of the Canada wide program, is an essential dimension of the provincial/territorial consensus negotiating position.

Premiers also agreed that new mechanisms to prevent and resolve disputes are an essential element of their negotiating position. Premiers emphasized that disputes between governments undermine Canada's social union and that new cooperative mechanisms that both prevent disputes, and resolve them fairly when they arise, would strengthen Canadians' confidence in the ability of their governments to work together on their behalf.

Premiers emphasized that Canada's Social Union, and the programs that Canadians value most, particularly health care, must be supported by renewed fiscal arrangements that balance provincial/territorial program responsibilities with revenues.

Premiers concluded their discussions on the Framework Agreement negotiations by reiterating the negotiating ground rule that no element of the Framework Agreement is agreed to until everything is agreed to, and directed the Provincial Co-Chair of the negotiations, the Honourable Bernhard Wiens to set a date with the federal Co-Chair, the Honourable Anne McLellan, for a negotiating meeting of Ministers as soon as possible.

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