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

Federal Conservative leader Erin O’Toole speaks during a virtual South Surrey & White Rock Chamber of Commerce town hall on Saturday, March 6, 2021.
O’Toole says South Surrey, White Rock face ‘acute’ challenges during pandemic

Federal Conservative leader speaks at local chamber town hall

A sign encouraging COVID-19 safety steps, with the Bayside rugby clubhouse – located adjacent to Semiahmoo Secondary and the South Surrey track – in background; Jan. 6, 2021. (Photo: Tracy Holmes)
Surrey sees 2,400 new COVID-19 cases in February

This is the lowest monthly increase since last fall

Liberty roses – created by acclaimed rose breeder Brad Jalbert – will be planted in White Rock later this month. (Contributed photo)
‘Liberty Rose’ to be planted along Johnston Road and at White Rock City Hall

Poppy-like rose created by acclaimed rose breeder Brad Jalbert

South Surrey’s Kirk Arsenault has started a new company, Str8laced, that sells cleat wraps that aim to keep athletes’ shoes from coming untied during games and practices. (Contributed photo)
South Surrey sports equipment entrepreneur tying up loose ends before Alberta move

Str8laced wraps keep laces from coming loose in the middle of play, says Kirk Arsenault

Volunteers from Semiahmoo Secondary joined with members of the Lower Mainland Green Team and the White Rock and South Surrey Naturalists Wednesday to remove invasive plants from White Rock’s Ruth Johnson Park. (Contributed photo)
Students, volunteers remove invasive plants from White Rock’s Ruth Johnson Park

Day-long project a collaboration between city, Lower Mainland Green Team

The James C Richardson Pipe Band marches in a Remembrance Day parade on Nov. 11, 2019 in Chilliwack. Wednesday, March 10 is International Bagpipe Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of March 7 to 13

International Bagpipe Day, Wash Your Nose Day and Kidney Day are all coming up this week

Victoria man Brett Andersen is asking for people’s help to secure him one of eight free tickets to the moon. (Screenshot/@brettandersen Instagram)
Victoria man wants your help securing a free ticket to the moon

Japanese billionaire offering eight people a trip to the moon

The Conservation Officers Service is warning aquarium users after invasive and potentially destructive mussels were found in moss balls from a pet store. (BC Conservation Officers Service/Facebook)
Aquarium users in B.C. warned after invasive mussels found at pet store

Conservation officers were told the mussels were found in a moss ball from a Terrace pet store.

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

Hockey hall-of-fame legend Wayne Gretzky, right, watches the casket of his father, Walter Gretzky, as it is carried from the church during a funeral service in Brantford, Ont., Saturday, March 6, 2021. HE CANADIAN PRESS/Nathan Denette
Walter Gretzky remembered as a man with a ‘heart of gold’ at funeral

The famous hockey father died Thursday at age 82 after battling Parkinson’s disease

The family of injured Willoughby resident Ronald Gerald Jesso is hoping someone saw something that will help solve the mystery of how he came to be so badly hurt on the morning of Feb. 22. Jesso is still in hospital. (Jesso family/Special to Langley Advance Times)
An appeal to help solve the mystery of an injured Langley man

Family of Ronald Gerald Jesso asks witnesses to come forward

Donald Alan Sweet was once an all star CFL kicker who played for the Montreal Alouettes and Montreal Concordes over a 13-year career. Photo courtesy of Mission RCMP.
Ex-B.C. teacher who was CFL kicker charged with assault, sexual crimes against former students

Donald Sweet taught in Mission School District for 10 years, investigators seek further witnesses

During a press event on March 6, Const. Alex Berube, media relations officer for the West Shore RCMP, addressed a deadly shooting that occurred in Metchosin the night before. (Devon Bidal/News Staff)
VIDEO: One man shot dead on Vancouver Island in ‘targeted incident’

Highway 14 reopens following multi-hour closure for investigation

Most Read