Provincial finance ministers divided on top priority for meeting with Morneau

Expanding the fiscal stabilization program is top priority, says finance ministers

Provincial finance ministers divided on top priority for meeting with Morneau

Provincial finance ministers appeared divided into two camps going into a Tuesday meeting in Ottawa with federal Finance Minister Bill Morneau, who indicated that few concrete decisions would be made at the gathering.

Ministers from Alberta and Newfoundland and Labrador declared the need to expand the fiscal stabilization program as their top priority in talks with the federal finance minister.

“We believe that the fiscal stabilization program needs fundamental change in order to deliver on its purposes,” Travis Toews, the Alberta finance minister, declared on his way into the meeting.

“Our No. 1 priority is to request that the caps be lifted.”

The fiscal stabilization program is easier to change than the more complex equalization program, and amendments could be worth billions to provinces whose finances have been hit by low oil prices.

The stabilization program provides financial assistance to provinces facing a year-over-year decline in its non-resource revenues, but the money available to eligible provinces is capped at just $60 per resident.

Toews said those rules left Alberta to pretty much fend for itself when it was facing a budget deficit resulting from cratering oil prices.

READ MORE: Five highlights in the 2019 federal budget

Prior to attending a working dinner Monday evening with his provincial and territorial counterparts, Morneau acknowledged the program, which has not changed since 1995, needs some adjustments to how stabilization payments are calculated.

“The calculations are antiquated and no longer reflect the priorities of provinces, especially resource-producing provinces,” said Newfoundland and Labrador Finance Minister Tom Osborne.

Meanwhile finance ministers from some other provinces, including Manitoba, Prince Edward Island and Quebec, said increasing federal transfers for health care was their most pressing concern.

“I know from talking to my colleagues, and I know from talking to Minister Morneau, that health care is a key priority of this government and additional support from the federal government is going to be critical to doing that,” said Ontario Finance Minister Rod Phillips.

For his part, Morneau said it came as no surprise that the provinces would be requesting more funding at their meeting. He suggested, however, that the Trudeau government would not be making any near-term commitments to additional spending on the stabilization program.

“I think it’s important for us to listen to the issues that we hear today and to take that back, and consider how we can look at the program in a way to make sure it continues to be effective,” Morneau told reporters.

None of those going into the meeting Tuesday morning expressed strong concerns about the federal government’s ballooning budget deficits, saying they believe Ottawa has more room to manoeuvre.

Figures released Monday showed the federal deficit is slated to hit $26.6 billion this fiscal year, up from last spring’s projection of $19.8 billion.

Terry Pedwell, The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The Port Alberni Train Station is located outside the entrance to Harbour Quay, on Harbour Road in Port Alberni. (AV NEWS FILE PHOTO)
Port Alberni gets funding to restore heritage train station

Historic train station needs seismic upgrades

Raw logs are loaded onto a logging ship from a log sort down the Alberni Inlet in March 2019. SUSAN QUINN/ Alberni Valley News
Port Alberni light on industrial land

Report finds few suitable locations for new industry

Cowichan Valley writer Jennifer Manuel will headlining YakFest on March 1. (SUBMITTED PHOTO)
Cowichan Valley writer to headline next YakFest on March 1

YakFest is a B.C.-based monthly women’s event held online via Zoom

The North Island College campus in Port Alberni is located on Roger Street. (SUBMITTED PHOTO)
North Island College plans tourism networking event

The COVID-19 pandemic has had a dramatic impact on Vancouver Island’s tourism industry

Members of Alberni Valley Rescue Squad were at the Alberni Valley Regional Airport on Saturday, Aug. 8, 2020 to practice helicopter hover exit training with Ascent Helicopters out of Parksville. When executing a search in difficult terrain, it isn’t always possible to land a helicopter, so volunteer searchers must be certified in hover exits. (BILL MCLEOD/ Special to the AV News)
Alberni Valley Rescue Society receives much-needed $40K gaming grant

Bamfield volunteer fire department also funded

Dr. Bonnie Henry leaves the podium after talking about the next steps in B.C.’s COVID-19 Immunization Plan during a press conference at Legislature in Victoria, B.C., on Friday, January 22, 2021. THE CANADIAN PRESS/Chad Hipolito
COVID: 589 new cases in B.C., and 7 new deaths

No new outbreaks being reported Feb. 26

The first of 11 Dash 8 Q400 aircraft's have arrived in Abbotsford. Conair Group Inc. will soon transform them into firefighting airtankers. (Submitted)
Abbotsford’s Conair begins airtanker transformation

Aerial firefighting company creating Q400AT airtanker in advance of local forest fire season

RCMP say a woman turned herself in to police after hitting a pedestrian and fleeing the scene of the accident in downtown Nanaimo on Friday morning. (File photo)
Driver flees, then turns herself in after hitting pedestrian in downtown Nanaimo

RCMP say woman was struck in marked crosswalk after driver ran red light

The Canada Revenue Agency says there were 32 tax fraud convictions across the country between April 2019 and March 2020. (Pixabay)
Vancouver man sentenced to 29 months, fined $645K for tax evasion, forgery

Michael Sholz reportedly forged documents to support ineligible tax credits linked to homeownership

Then-Liberal leader Andrew Wilkinson looks on as MLA Shirley Bond answers questions during a press conference at Legislature in Victoria. (Chad Hipolito / THE CANADIAN PRESS)
B.C. Liberal party to choose next leader in February 2022

Candidates have until Nov. 30 to declare whether they are running

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

After nearly 10 months of investigations, Mounties have made an arrest in the tripping of an elderly woman in Burnaby this past April. (RCMP handout)
VIDEO: Mounties charge suspect for tripping elderly woman near Metrotown in April

32-year-old Hayun Song is accused of causing bodily harm to an 84-year-old using her walker

British Columbia provincial health officer Dr. Bonnie Henry arrives to view the Murals of Gratitude exhibition in Vancouver, on Friday, July 3, 2020. THE CANADIAN PRESS/Darryl Dyck
Death threats mount against Dr. Bonnie Henry, sparking condemnation from Horgan, Dix

Henry has become a staple on televisions in homes across British Columbia since January 2020

Several BC Ferries sailings are cancelled Friday due to adverse weather. (Black Press Media File)
All B.C. Ferries sailings cancelled due to winds, adverse weather

Adverse weather causes cancellations across several BC Ferries routes

Most Read