Fight over health care funding heating up
OTTAWA — Provincial health ministers from opposite ends of the country are less than enthused about flying to Ottawa for healthcare talks next week, saying there’s nothing on the table yet that could break the stalemate over federal spending levels.
British Columbia’s Terry Lake said Tuesday that for now, he sees no reason to board a plane on the taxpayer’s dime in order to discuss the issue — at least not until he sees the federal government budge from its position. “Until I get something a little more concrete, I really don’t feel the justification to be going all the way to Ottawa,” Lake said.
Finance Minister Bill Morneau is expected to invite the health ministers to next week’s talks with his provincial and territorial counterparts. But Lake and others aren’t sure they see the point.
At the other end of the country, Newfoundland and Labrador’s John Haggie said while he had yet to receive an invitation, there’s no guarantee he’d show up. “We’ve heard the same thing at each meeting,” said Haggie, who added that his fellow health ministers have had about four group discussions with the feds on the matter over the last year.
With the annual six per cent increase in Ottawa’s transfers scheduled to fall to three per cent in April, the provinces and territories have warned they will soon be staring at significant holes in their upcoming budgets.
Ottawa is concerned transfer payments currently flow into the general revenue pools of the provinces and territories, which have responsibility under the Constitution for the delivery of health care services.
The federal government has said it would require an additional level of detail for any extra investment in order to be able to measure results.
Federal Health Minister Jane Philpott admitted Tuesday that there’s still a lot of “back-and-forth dialogue” to be done before an agreement can be reached.
On Tuesday, Ontario proposed a new 10-year federal funding plan that would see Ottawa’s health transfers increase by 5.2 per cent a year.
Premier Kathleen Wynne called the idea a starting point. In exchange, she said the provinces would commit to spend the money on priority areas agreed on with Ottawa, such as mental health and home-care services.
A three per cent annual increase “is not going to cut it,” Wynne said, especially when Ottawa provides only 23 per cent of the total amount spent on health care. She said there was a “fair bit of consensus that (5.2 per cent) was the kind of increase that we need to look at.”
Haggie said the 5.2 per cent proposal was discussed by the provinces earlier in the year, but the idea faded. He heard that Prime Minister Justin Trudeau sent a “fairly definitive message” to premiers last week by insisting he wasn’t willing to budge from three per cent.
Without an agreement on health care, Manitoba Premier Brian Pallister refused to sign Trudeau’s pan-Canadian climate change framework.