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NEWS RELEASE (CNS664) -->> PREMIER--NOVA SCOTIA IMPORTANT CONTRIBUTOR TO CENTRAL ECONOMY PREMIER--NOVA SCOTIA IMPORTANT CONTRIBUTOR TO CENTRAL ECONOMY ----------------------------------------------------------------- Canada's national well-being would be negatively impacted by transferring control of social programs from Ottawa to the provinces, Premier John Savage said today in an address to the Empire Club in Toronto. "If every have-not province paid full fare for its social programs, this country's existing disparities would be greatly magnified," the premier said. He said the result --- more discord, bickering and resentment --- would undermine the need for greater co-operation, "so vital for our national well-being." "As our east-west economic links slacken to take advantage of the continental north-south pull, it's generally agreed we must maintain social bonds, like Medicare, which Canadians recognize as national family traits -- as entitlements of citizenship and unifying features of the country," Premier Savage said. Premier Savage warned against the evolution of a Canada where Canadians in richer provinces have substantially better social programs than those in poorer provinces, thereby leading to two classes of citizenship in the country. "I'm certain Canadians won't buy that ... if they did 'Have Canada' would end up regretting it," he said, citing population migration that would upset the economic balance. The premier told the Toronto audience that Ontario's notion of getting 100 cents back in benefits for every dollar it puts into the kitty for national social programs, is unacceptable. "If we adopt that kind of attitude, we won't have to worry about the consequences of a Canada without Quebec; we'll already be well on our way to disintegration." Premier Savage took exception to the notion that provinces such as Nova Scotia don't pull their financial weight in the Canadian family. He said that federal taxes collected in Nova Scotia as a proportion of personal income were the highest in Canada in 1993. At the same time, he said, Nova Scotia is much less dependent on federal spending than was previously the case, noting the federal expenditures on goods and services in Nova Scotia experienced the fastest decline in all of Canada from 1980 to 1994. "It isn't true either to say we aren't economically important to central Canada," the premier said, citing a recent Statistics Canada analysis of inter-provincial trade which showed that Nova Scotia's inter-provincial imports were worth $6.5 billion, nearly twice as much as its exports. He pointed out that slightly over half the value of those imports comes from Ontario, with Quebec next in line with 24 per cent. "Don't tell me that isn't important to the Ontario economy!" Premier Savage made it clear he believes all of Canada will benefit from the current signs of new wealth in eastern Canada. "If current plans come to fruition about 30 per cent of Canada's oil and gas production will come from the east coast within the next five years," Premier Savage said. He said the combined effect of Hibernia and Terra Nova off Newfoundland and Sable gas off Nova Scotia present a big potential plus not only for the Atlantic region, but for the national economy. "We anticipate the Sable offshore project will play a significant part in our desire to reach greater economic independence ... in the meantime, we remain vigilant in our efforts to ensure that any changes to existing federal-provincial fiscal arrangements don't penalize any one part of the country," he said. -30- Contact: David Harrigan 902-497-3817 trp Oct. 15, 1996 - 5:05 p.m.