Newspaper article The Canadian Press

Ottawa Cutting Health Funding by $36 Billion over 10 Years, Premiers Say

Newspaper article The Canadian Press

Ottawa Cutting Health Funding by $36 Billion over 10 Years, Premiers Say

Article excerpt

Health funding cut by $36 billion: premiers


HALIFAX - Canada's premiers and territorial leaders say they stand to lose almost $36 billion in health transfers over a 10-year period if Ottawa proceeds with its disputed plan to alter how it calculates the payments to the provinces and territories.

Manitoba Premier Greg Selinger released the figures Friday on the final day of the Council of the Federation meeting in Halifax, saying the federal formula will cut billions out of equalization and health funding.

He took a fresh swipe at Ottawa for imposing the controversial funding scheme without consulting the provincial and territorial leaders, some of whom have long complained that the federal government is taking a unilateral approach to policy development.

"There is a very significant impact," Selinger said. "We remain very committed to the notion of co-operative federalism where there ought to be discussions about these matters before the decisions are taken because it does have a big impact on Canadians. Those resources will mean less money available for nurses and doctors and health care."

The report assesses the impact of Finance Minister Jim Flaherty's plan to change the calculation for how much money provinces receive in health transfers, which would take effect in 2014. He announced last December that health transfer payments would increase six per cent annually until 2017.

After that, the transfers would be tied to the rate of economic growth and inflation -- currently estimated to be about four per cent -- but the government wouldn't let the amounts fall below three per cent.

Under that scheme, the premiers estimate that the provinces will receive $36 billion less in federal transfers from 2014 to 2024, compared to the arrangements now in place.

Selinger said the new scheme reduces Ottawa's contribution to the health-care costs of provinces and territories to less than 20 per cent.

"The next thing we will do is have a further examination and further look at the impacts and the need for a deepened relationship on these issues with the federal government," Nova Scotia Premier Darrell Dexter said, adding that the premiers will discuss the issue at a meeting of provincial finance ministers this fall. …

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