Finance ministers to discuss CPP, health transfers and improving stabilization program today

Finance Minister Bill Morneau will meet with his provincial and territorial counterparts today to discuss the state of the economy and how they can all work together to boost the strength of some key government programs, including the Fiscal Stabilization Program. 

While heading into closed-door meetings Tuesday morning, Morneau said these types of gatherings always come with financial asks.

“We’re open to listening to the issues and challenges that provinces see around the fiscal stabilization fund; we’ve not gotten to any conclusions,” he told reporters. 

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

The Fiscal Stabilization Program is a relatively small federal program. It provides financial assistance to provinces facing a year-over-year decline in non-resource revenues that are greater than five per cent. 

The maximum a province can receive under the program is $60 per person and the provinces of Alberta, Saskatchewan and Newfoundland and Labrador, which have been struggling economically since global oil prices began declining in 2014, want that cap lifted so stabilization will better reflect today’s realities. 

Update needed

Alberta’s finance minister said the program needs a fundamental change, and he’ll be pushing for that change when he sits down with Morneau.

Alberta has been arguing the cap is inadequate given the size of its budget deficit in the wake of slumping oil prices.

“In our view, the cap should be removed,” said Travis Toews ​on Tuesday. “That ultimately would have resulted in a $1.7-billion fiscal stabilization payment to Alberta, which we believe would have made a difference and would have served the program’s intentions adequately.”

On his way to a dinner with the finance ministers Monday evening, Morneau said he was also looking forward to discussing potential changes to the Canada Pension Plan.

“We have some issues of national concern that we want to talk about; the Canada Pension Plan and how it can be enhanced, potentially, for the benefit of Canadians,” he said. 

Ontario’s Minister of Finance Rod Phillips said he was also looking forward to speaking with Morneau about increasing the federal health transfer as well as presenting the premiers’ requests on stabilization.

“I think we have something to put forward, a great starting point,” said Phillips of stabilization. “It reflects, particularly, the emphasis that Alberta and Saskatchewan and Newfoundland and Labrador have brought forward.”

“I thank minister Morneau for putting it on the agenda, which was a request that we made. Obviously the federal government will need a chance to look at it, evaluate it and then respond.”

Phillips said that more has to be done to help provinces that are facing economic challenges. 

Quebec’s Finance Minister Eric Girard told reporters Monday that his province is backing the demand for changes to stabilization that have been asked for by oil producing provinces.

The finance minister is scheduled to address the media Tuesday at 3:30 p.m. ET after his meetings. CBC.ca will carry the event live. 

Article source: https://www.cbc.ca/news/politics/morneu-ministers-meeting-stabilization-1.5398667?cmp=rss