News release

Framework Agreement on Canada's Social Union

Council of Atlantic Premiers

Atlantic premiers took the opportunity at a conference in Fredericton to review the progress by federal, provincial and territorial governments in developing a framework agreement on Canada's social union.

Last December, the prime minister and all premiers, except for the Premier of Quebec, mandated ministers under the Council on Social Policy Renewal to develop the framework to establish a new partnership approach to planning and managing the social union.

The Atlantic premiers acknowledged that while provincial and territorial governments are responsible for delivering core social programs, such as health and education, the federal government has a significant role in the social union.

"Atlantic Canada does not have the ability to respond to cuts in transfers for social programs as they do in other provinces," Nova Scotia Premier Russell MacLellan stressed on behalf of the premiers. "If Atlantic Canadians are to have access to quality social programs that are reasonably comparable to those across the country, the federal government must commit to adequate, stable and predictable funding for these programs."

The Atlantic premiers called on the federal government to restore funding for core social programs, primarily health care, before considering new social programs.


REDESIGN OF FISCAL ARRANGEMENTS

The federal government's major fiscal priority should be restoring and enhancing long-term federal-provincial financing arrangements in support of provincial health and social programs, Atlantic premiers said at a conference in Fredericton.

They noted that the 1996 and 1997 Annual Premiers' Conferences asked that provincial and territorial finance ministers work with their federal colleague to ensure that redesign of fiscal arrangements was co-ordinated with the work on social policy renewal.

The premiers said a significant portion of federal dollars not applied to the federal debt should be used to strengthen the major existing transfers of equalization and the Canada Health and Social Transfer, or CHST.

The premiers expressed serious concerns with the concept of rebalancing the CHST toward an equal per-capita funding formula. Fiscal arrangements should be sensitive to the specific circumstances and needs of the region, they said.


POST-TAGS INITIATIVE

The four Atlantic premiers have reaffirmed their support for a new initiative to replace the Atlantic Groundfish Strategy, or TAGS, and called upon the federal government to immediately establish an effective successor.

The premiers said that TAGS has represented a lifeline for nearly 40,000 individuals in Atlantic Canada and Quebec. The program is due to expire at the end of August.

At their meeting in Fredericton, the Atlantic premiers said the scope and seriousness of the challenge cannot be met through the normal programs of government. They stressed that a comprehensive and effective post-TAGS program is essential to the futures of individuals and communities in Eastern Canada.

The premiers reaffirmed the fundamental objective of any new initiative should be individual and community adjustment. They said the timing is becoming critical and that a fair and adequate new program needs to be implemented immediately.


SURPLUS IN EI ACCOUNT

Atlantic premiers today called on the federal government to be flexible in the use of the growing surplus in the employment insurance account.

Recent reports have indicated the surplus has exceeded $15 billion. The premiers said they support reinvestment of a substantial portion in the workforce.


TRADE MISSION TO EASTERN U.S.

Atlantic premiers will conduct a trade mission to the eastern United States in the fall of 1998.

The premiers, meeting in Fredericton on Monday, have created a planning group to ensure appropriate focus, participation and successful arrangements.