Provincial-Territorial Meeting of Finance Ministers

NEWS RELEASE – Provincial and Territorial Finance Ministers Stress the Need for Federal Tax and Social Program Competitiveness

Toronto, November 15, 1999 -- Provincial and Territorial Finance Ministers today unanimously agreed that a balanced approach to Ottawa's cumulative surplus of more than $95 billion over the next five years is necessary to improve economic competitiveness. The Ministers stressed the need for tax competitiveness; and the immediate full restoration of Canada Health and Social Transfer funding (CHST) with an appropriate escalator; in concert with the removal of the ceiling on Equalization payments.

The consensus was reached at a meeting hosted by Ontario Finance Minister Ernie Eves in preparation for the upcoming Federal/Provincial/Territorial Finance Ministers meeting in December. The Quebec Finance Minister Bernard Landry, Chair of the Provincial and Territorial Finance Ministers' work, presented a draft of the consensus paper that stresses the need for a balanced approach.

Ministers concluded that federal tax cuts should be a priority for Ottawa in the next federal Budget. The Ministers stressed that the federal government must look at ways to cut taxes that respect provincial and territorial fiscal plans and accountability to taxpayers. Federal income tax rebates and accelerating the potential starting date for the administration of tax on income for provinces and the territories into 2000, were cited as options.

The Ministers unanimously advocated the immediate full restoration of CHST payments to their 1994-95 levels of $18.7 billion. The Ministers called it "common sense" that the governments with the responsibility for the provision of services have the necessary funding to deliver those services.

Today's discussion builds on the agreement reached at the Annual Premiers' Conference in Quebec City in August. This consensus paper will be released prior to the meeting with the federal Finance Minister. Mr. Landry invited Provincial-Territorial Finance Ministers to reconvene on December 8, 1999 in Ottawa.

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