Ceci hopeful health-care funding deal still to come

Alberta Finance Minister Joe Ceci says he’s hopeful a new deal on federal health transfers to the provinces can be reached in the new year, despite the failure of talks in Ottawa on Monday.

The Trudeau government pulled billions of dollars off the negotiating table after failing to reach a long-term health-care funding agreement with frustrated provincial and territorial health and finance ministers.

But Ceci said in an interview from Ottawa he believes the unanimity and resolution of the provinces means the impasse isn’t permanent.

“There was a common cause amongst all the provinces that now they’re going to have to pay attention to,” said Ceci.

After facing criticism that they weren’t bargaining in good faith, federal Finance Minister Bill Morneau and Health Minister Jane Philpott had offered $11 billion over 10 years for home care and mental health, on top of a 3.5 per cent annual increase in health transfers. That offer now appears to be off the table.

“We were disappointed that the provinces and territories did not feel that they could accept this offer,” Philpott said.

Alberta’s NDP government had signalled before the meeting that it was open to the federal government setting conditions on where additional dollars must go, as long as Ottawa was prepared to ramp up its spending.

However, Ceci said the deal offered by the Liberal government “wasn’t adequate.”

“The problem is, nationally, we all sensed the federal government would be reducing their contribution over time to health care. And as everyone around the table acknowledged, health care is the most significant investment we make.

“It’s hard to sign up for something when you know you’ll see less money.”

An analysis conducted for the provinces said that the federal share of health funding under either of the government’s offers would drop from 22.9 per cent this year to about 20 per cent or lower.

The NDP government’s budget assumptions are based on a three per cent increase, with Alberta expecting $4.3 billion in 2017-18.