The provinces have decided to accept the Trudeau government’s offer to increase health transfers by $46.2 billion over the next 10 years. But the common front they have displayed on this issue over the past two years is beginning to falter, with Ontario increasingly standing apart.
At the end of a meeting of the Council of the Federation, the Premier of Manitoba, Heather Stefanson, announced on Monday that the provinces and territories accepted the offer from Ottawa, although it remains “insufficient”.
“We had a very good meeting today. We have a very united front and we will accept the money from the federal government,” said Ms.me Stefanson, who is chairing the Council of the Federation this year. “But it must also be recognized that this offer does not cover the long-term funding needs for health systems across the country,” she said in an interview with the CBC network.
She said she plans to send a letter to Prime Minister Justin Trudeau on behalf of her provincial counterparts to confirm the provinces’ position.
Quebec Premier François Legault will therefore accept the federal offer under which Quebec will get some $9 billion more over the next decade.
An accepted offer, although insufficient
But at the same time, he continues to urge the Trudeau government to revise upwards its proposal for health care funding.
The offer, which was submitted last week by Justin Trudeau, is equivalent to an annual transfer increase of around $4.6 billion. This is well below the $28 billion that the provinces have been asking for for over two years.
During the meeting of the Council of the Federation, Mr. Legault reiterated to his provincial counterparts that the federal government’s offer is “disappointing, clearly insufficient”, indicated his entourage in a statement sent to The Press.
“It in no way solves the issue of financing long-term health care. Despite the 5% over 5 years for Canada health transfers, the federal government will only contribute 24% to provincial spending. This means that more than 75% of expenses will be borne by the provinces. The imbalance will therefore persist,” his office said.
“The Quebec government wants federal funding to be increased. The demand has always been and remains to reach 35% of health care costs in Canada,” added Mr. Legault’s office.
Of the $46.2 billion that Ottawa has put on the table, $25 billion will be used to conclude bilateral agreements with the provinces.
To get their share of the pie, provinces will need to commit to improving the way health information is collected, shared, used and communicated to Canadians. They will also have to invest the money in so-called common priorities by expanding access to family health services, increasing access to mental health services and reducing delays in surgical procedures.
Although the provincial premiers had set the bar very high before the approximately two-hour meeting with Justin Trudeau, some premiers quickly indicated their intentions to accept the additional sum proposed to be invested by Ottawa.
This is notably the case of the premier of Ontario, Doug Ford, and of certain premiers of the Atlantic provinces, according to information obtained by The Press.
Ontario wants to be served first
“Doug Ford has made it clear to us that he wants Ontario to be the first province to enter into a bilateral agreement. He doesn’t want Ontario to be last, as was the case with child care funding agreements,” said a credible federal source, who spoke on condition of anonymity because he was not authorized to speak publicly about this case.
Less than 48 hours after the First Ministers’ meeting with Justin Trudeau, Ford and Ontario Health Minister Sylvia Jones met in Toronto with federal Health Minister Jean-Yves Duclos and Minister of Intergovernmental Affairs, Dominic LeBlanc. The meeting aimed to lay the foundations for a bilateral agreement with the province.
Monday, Messrs. Duclos and LeBlanc, who are the ministers responsible for negotiating with the provinces, were in Halifax to meet Nova Scotia Premier Tim Houston.
The only real gain the provinces made last week was in the annual increase in health transfers. It will be set at 5% for a period of five years, as the provinces wished, starting in 2024-2025. But thereafter, the current formula – either a minimum of 3% or a rate equivalent to inflation if it exceeds the threshold of 3% – will be in effect again.