38th Annual Premiers’ Conference

Premiers discussed rebalancing in non social policy areas as a follow-up to their discussion at the 1996 Annual Premiers' Conference. The Premier of Quebec presented his views and did not participate in the consensus reached in rebalancing in non social policy areas.

Premiers agreed that rebalancing remains a key priority for Canada. A more rational distribution of roles and responsibilities is necessary:

   
• to deliver quality government services at an affordable price;
   
• to demonstrate that the Canadian federal system is flexible; and,
   
• to allow Canada's economy to compete in a globally interdependent economy.

Premiers reviewed a paper prepared by Ministers Responsible for intergovernmental Affairs which provides a status report on ongoing rebalancing initiatives outside of the social policy sector. The paper identified three key provincial/territorial rebalancing priorities:

Harmonizing Environmental Management

Provinces and Territories are united in the need to move forward on the environmental harmonization initiative. Premiers, in particular, indicated their support for the current text of the Environmental Assessment sub-agreement and directed Environment ministers to finalize and sign the sub-agreement as soon as possible.

Premiers also expressed concern about the federal government's apparent lack of commitment to environmental harmonization. Premiers stressed the need to develop a cooperative federal-provincial-territorial relationship on environment and resource management issues.

There is also a shared concern about the federal government's recent unilateral and intrusive legislative initiatives on endangered species and the proposed Canadian Environmental Protection Act. As originally drafted, these Bills intruded on the ability of the provinces and territories to manage effectively their natural resources. The federal government must not re-introduce these measures without prior consultation with the provinces and territories in the development of a national consensus.

Developing Guidelines for Fiscal compensation

Premiers agreed that as roles and responsibilities are rebalanced in non-social policy areas, appropriate resources need to be transferred between governments. Ministers Responsible for Intergovernmental Affairs provided Premiers with a preliminary exploration of the principles that should guide the fiscal compensation arising from rebalancing. Premiers directed Finance Ministers, in consultation with ministers Responsible for Intergovernmental Affairs, to prepare a set of guidelines and to develop a strategy for advancing the guidelines with the federal government.

Premiers directed Ministers of Intergovernmental Affairs to continue their work in the area of non-social rebalancing. In particular, Premiers asked Ministers to identify any cross sectoral issues and to report to Premiers at the next Annual Premiers' Conference.

DISASTER FINANCIAL ASSISTANCE ARRANGEMENTS

Premiers congratulated the Federal government and the people of Canada for the Saguenay region of Quebec and the Manitoba flood relief assistance and directed responsible ministers to update the arrangements with the Government of Canada in reviewing the Disaster Financial Assistance Arrangements.

Premiers reviewed the effects of recent floods and other natural emergencies and cited the critical importance of the federal-provincial-territorial Disaster Financial Assistance Arrangements (DFAA) to governments' ability to respond cooperatively and effectively. They agreed that these longstanding arrangements, and especially the basic funding formula, remain vital to the ability of provinces, territories and municipalities to meet the burdensome costs of emergency work and rebuilding. They noted, however, that some recent disaster situations such as floods in Manitoba, Alberta and Quebec, had revealed problems in the application of certain of the federal DFAA guidelines, including inconsistencies among provinces and territories and some out-dated definitions concerning eligibility for compensation.

Premiers agreed to refer these problems to their responsible Ministers and to direct them to prepare consensus recommendations for presentation to the federal government.

Premiers agreed that permanent, ongoing arrangements should also be in place to support disaster protection and prevention across Canada.

JUSTICE REFORM ISSUES

On Criminal Procedure Reform

The Premiers agreed today to press the federal government to make the modernization of criminal procedure a legislative priority for the next Parliament. The package of criminal procedure reforms, supported by all the provinces and territories, will streamline the system and make the prosecution of criminal charges more efficient and effective.

On the Young Offenders Act

The Premiers, with the exception of the Premier of Québec, agreed that the federal government should move expeditiously to introduce meaningful amendments to the Young Offenders Act to combat youth crime, protect communities and restore public confidence in the youth justice system. Premiers also agreed that the federal, provincial and territorial governments should cooperate to improve preventative and rehabilitative programs for young offenders.

RECOVERY OF HEALTH COSTS FOR TOBACCO RELATED ILLNESSES

Premiers of British Columbia and the Atlantic Provinces informed their colleagues of their intention to proceed with initiatives in the area of the recovery of health costs for tobacco related illnesses. They further agreed to share information on developments in this area as appropriate.

The Premier of the Northwest Territories provided his colleagues with an update on planning for the creation of Nunavut and a new western territory from the existing Northwest Territories in 1999. Premier supported the Northwest Territories in their call for adequate federal funding to support the two new territories.