38th Annual Premiers’ Conference

ECONOMIC AND FISCAL OUTLOOK

Premiers noted that the Canadian economy is in good shape and indicated that efforts should be made to ensure the sustainability of the current economic expansion.

Premiers expressed concern that the economic growth experienced across Canada is not evenly distributed among provinces and territories. As a means of ensuring that all regions of Canada are able to share in economic prosperity, Premiers expressed their continued support for the constitutional principle of equalization and directed that Finance Ministers review the formula with a view to improving it. Premiers reaffirmed that they would work cooperatively to reduce disparities and enhance opportunities for all.

Premiers noted that all provincial and territorial governments have worked to get their fiscal houses in order, and that much progress has been achieved.

Premiers noted that federal deficit targets have been achieved in large measure through reductions in cash transfers to provinces and territories. As a result Premiers believe that all provinces and territories should have a role in determining how any emerging federal fiscal dividend is allocated. A key priority for reinvestment of this dividend is funding for a modern and sustainable health system.

GST HARMONIZATION

Premiers again agreed that arrangements related to harmonization, including compensation, should be equally available to all provinces and territories.

Premiers also agreed that there should be a review by Federal. Provincial and Territorial Finance Ministers of federal tax policies to ensure consistency, non-discrimination, fairness and transparency.

EMPLOYMENT INSURANCE

Given the large and growing surplus in the EI account, which exceeds the amount needed to sustain the fund, Premiers called on the federal government to reduce employment insurance premiums paid by employers and employees. Premiers also agreed that a reduction in premiums should not lead to a reduction in benefits. Premiers further agreed that a reduction in premiums would improve the economic climate in Canada and that the reduction of premiums should be referred to Finance Ministers.

Premiers discussed the economic difficulties faced by seasonal workers and directed that Labour Market Ministers review the adequacy of benefits for low income seasonal workers with a view to dealing with their needs.

YOUTH EMPLOYMENT STRATEGY

Premiers discussed youth employment in Canada, and expressed serious concern that youth unemployment continues to be double the general unemployment rate across Canada. Premiers agreed that this situation was unacceptable and that increased efforts are needed to improve the employment prospects of youth.

Premiers welcomed the Western Best Practices Report that was tabled by British Columbia. The report complements and provides a Western perspective on the development of a national youth employment strategy. It proposes a number of objectives which Premiers agreed should be considered in discussions on a national youth employment strategy. Premiers also agreed the report serves as a good starting point for consideration of best practices in youth employment programs and initiatives that exist in other provinces and territories, nationally and internationally.

Premiers reviewed proposals developed by provincial/territorial labour market Ministers for the development of a comprehensive youth employment strategy. They directed labour market Ministers to develop a youth employment strategy by January 1998. This strategy should address the vital role of education and training in preparing youth for the economy of the twenty-first century and ensure the availability of up-to-date and locally relevant information about the labour market and career options. Premiers also agreed that emphasis must be placed on partnerships, particularly with employers, to ensure that education and training is linked to economic development and economic opportunities.

Premiers, with the exception of the Premier of Quebec, also agreed that appropriate federal government youth employment programs should be available for devolution to, or co-management or co-location with, interested provinces and territories. Premiers emphasized that the federal government must also meet its responsibilities for Aboriginal youth.

Quebec indicated that federal youth programs should be transferred to Quebec unconditionally, after the model of the 1997 Quebec Canada Labour Market Agreement.

STUDENT LOANS AND DEBT

Premiers examined the issue of student indebtedness and increased loan levels. Quebec indicated that it will exercise its right to opt out with the ensuing financial compensation in case of revision of loan levels or implementation of debt remission programs.

Premiers emphasized the importance of access to post-secondary education for all students, and expressed concern with the financial support available to students. Premiers noted that costs associated with post-secondary education have risen dramatically in recent years.

Premiers called on the federal government to work with provinces and territories to expedite the current review of the Canada Student Loans Program loans limits, and implement improvements recommended by the review in time for the academic semester beginning January, 1998.

Premiers also called on the federal government to implement grants for students with dependants, as quickly as possible.

Premiers expressed concern about the level of debt being acquired by students, particularly university graduates. Although most provinces and territories, have programs to help alleviate high debt, the federal government, which is responsible for about 60 per cent of student aid debt, has not introduced measures to help reduce debt.

Premiers agreed to ask the federal government to pay its proportional share of debt reduction or management programs, in a manner that is consistent with and supportive of the preferred programs of each jurisdiction. This includes grant and bursary programs which help students avoid debt, and measures to reduce debt or make it more manageable.

RESEARCH AND DEVELOPMENT

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. Investments in innovation and excellence lay the groundwork for stronger economic performance and for generating the right kinds of jobs for the future — high-quality and high-paying jobs that are permanent.

Increasing coordination among all governments in Canada on such investments can have an even bigger positive impact on growth and jobs. Premiers agreed that recent federal initiatives on R&D, such as the Canada Foundation for Innovation, are a step in the right direction. Premiers agreed that an important way to increase coordination and ensure flexibility is for the federal government to undertake early and full consultations with provinces and territories prior to announcing new R&D programs that might impact existing provincial/territorial initiatives or where provincial/territorial funding is requested. National initiatives in R&D require a level of coordination that reflects the shared jurisdiction of federal and provincial governments.

As a result, Premiers 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 for this meeting focus on the objectives of:

   

   

• Working with the private sector to increase the total national investment in R&D and double, in the next ten years, the number of small and medium-sized firms investing in R&D in Canada;    

   

     

   

     
   
• Developing a national approach supporting R&D and innovative activity, building on local, provincial, and territorial research and sectoral strengths and strategies;    

   

     

   

     
   
• Improving inter-governmental cooperation on sharing information and best practices and encouraging networks and linkages in support of innovation; and,    

   

     

   

     
   
• Ensuring that on national initiatives like the Canada Foundation for Innovation program there is sufficient prior consultation with provinces. And once introduced, that these initiatives are flexibly administered to reflect and complement provincial and territorial strategies and priorities.    

   

     

INTERNATIONAL TRADE, TREATIES AND AGREEMENTS

Premiers reviewed a wide range of international trade priorities, including building on the successes of the first three Team Canada missions to Asia. They reaffirmed their strong support for the continuation of the Team Canada approach to international trade and investment promotion, including similar First Ministers' joint missions annually until at least the end of the decade.

Premiers agreed that Team Canada has exemplified the partnership approach they regard as essential to meeting Canada's principal economic, fiscal and social policy objectives.

Premiers confirmed their agreement with the Prime Minister that the next Team Canada mission, in early 1998, should focus on South and Central America, as currently planned. They noted that future Team Canada missions could become important for the promotion of domestic events and attractions such as the Pan-American Games to be held in Manitoba in 1999. Other events of this kind can be featured in future years, including those emphasizing opportunities in other provinces and the territories.

Premiers believe that emerging markets such as Eastern Europe and South Africa should be considered as priorities for future Team Canada missions. While such missions could not be expected to generate immediate contracts and agreements on the same scale as the first three, they are essential to creating new opportunities and to strengthening Canada's cooperative links around the globe.

Premiers expressed hope that the Prime Minister will work with them to find ways to apply the Team Canada spirit and approach in arrangements for November's Asia-Pacific Economic summit in Vancouver.

Premiers also reaffirmed the provinces' and territories' longstanding objective of achieving formal confirmation, through a federal/provincial-territorial agreement, of their role in trade agreement negotiation and implementation.

They called for the federal-provincial and territorial Committee of Ministers of International Trade to be reactivated as soon as possible to finalize such an agreement as well as to review a number of other trade issues such as:

   

   

• U.S. protectionist measures including, the Helms-Burton legislation;    

   

     

   

     
   
• actions and threats directed at specific Canadian industries such as agriculture and agricultural products;    

   

     

   

     
   
• the proposed Multilateral Agreement on Investment.    

   

     

Premiers reiterated the necessity of firm, vigorous and consistent action by the federal government in defending Canadian interests, including those of all sectors and all regions internationally. They believe it is essential that provinces and territories support and complement these efforts wherever possible.

Premiers noted the importance of international treaties and the fact that in many cases these treaties can have profound impacts in areas of provincial and territorial jurisdiction and on communities and workers. Accordingly, Premiers jointly call on the federal government t

   

   

• protect BC and Yukon salmon, communities and jobs from US overfishing by taking action to obtain US adherence to and implementation of the principles of the Pacific Salmon Treaty;    

   

     

   

     
   
• ratify the 1995 Agreement on Straddling Fish Stocks and Highly Migratory Fish Stocks; and, protect grain exports to the United States in view of US demands to cap these exports; including, if necessary, taking action under NAFTA and WTO dispute settlement procedures.