Kenney declares success in securing backing from premiers on fiscal relief, health care

Leaders reach consensus on issues at Council of the Federation meeting

Premier Jason Kenney said a premiers’ meeting in Toronto was a win for the province when his counterparts agreed to back his call for more relief from federal transfers during tough economic times.

“Through these meetings, the provinces and territories of Canada have shown we’re willing to stand together on the issues that matter most to Canadians,” Kenney said in a statement Monday. “It’s time for the federal government to step up and show that it’s listening.”

Premiers attending the Council of the Federation meeting in Mississauga, Ont., on Monday, said they are unanimous in their call for the federal government to change the fiscal stabilization program to include a softer cushion against rapid downturns in natural resource sectors.

The program, which is supposed to give provinces a buffer from federal transfers when their revenue tanks, is capped at $60 per capita — a three-decade-old limit the

Alberta government says should end.

In a joint statement, Canada’s premiers said removing the per-capita cap and giving back payments retroactively from past years are possible remedies.

It was one of four priorities where the premiers found consensus. They also agreed to “continuing to develop resources in a responsible manner” and ensure Canadian products can access markets.

The British Columbia and Quebec governments oppose expansion of oil pipelines, such as the federally owned Trans Mountain expansion pipeline from Edmonton to Burnaby, B.C.

In addition, the premiers agreed to push the federal government for improvements to environmental assessments for large natural resource projects. Bill C-69, proclaimed into law in late August, replaces the National Energy Board with a new regulator and changes rules for project approvals.

In September, the Alberta government launched a court challenge of Bill C-69, saying it’s unconstitutional. Last week, Alberta’s Finance Minister Travis Toews wrote to his federal counterpart, Bill Morneau, asking for several of the changes that the premiers consented to on Monday.

He said in 2015, when oil prices plummeted and the province’s revenue tanked by $7 billion, Alberta transferred a net $24.8 billion to the federal treasury, but received just $251 million in relief through the fiscal stabilization program.

Had there been no per-person cap, Alberta would have qualified for $1.6 billion in relief that year, Toews said.

“I believe with all of the premiers making this recommendation, it provides considerable weight to our argument, and I’ll be pressing this issue as hard as I can,” Toews told reporters in the legislature on Monday.

The premiers also want the federal government to increase health care transfer funds and allow provinces to opt out of any national pharmacare program.

They reiterated their call for a 5.2 per cent increase in annual health care transfer payments from the federal government.

Provinces should be able to opt out of the federal government’s proposed pharmacare program with full compensation, they said.

The leaders have invited Prime Minister Justin Trudeau to cohost a first ministers meeting early in the new year.

The federal election campaign laid bare some regional divisions, and the premiers of Saskatchewan and Alberta — where the Liberals did not win a seat — have been especially vocal about their asks from Ottawa.

Kenney and Saskatchewan Premier Scott Moe want Trudeau to change the equalization formula, but there is unlikely to be consensus on that around the premiers’ table.

Climate policy is another tough area to get all parties on side. Ontario, Saskatchewan, Alberta and Manitoba have all launched legal challenges against the federal carbon price, while others have accepted it or launched their own programs.

The premiers of Ontario, Saskatchewan and New Brunswick met Sunday to sign a memorandum of understanding to collaborate on developing nuclear reactors known as small modular reactors.

They say it could help meet emissions-reduction targets.