News release

Call for First Ministers' Meeting

Council of Atlantic Premiers

ATLANTIC PREMIERS--Call for First Ministers' Meeting on Equalization


The Council of Atlantic Premiers has called on the prime minister to hold a first ministers' meeting on the equalization program in January 2001. During a conference call meeting on Nov. 30, the Atlantic premiers focused on advancing their strategy for improving the equalization program.

Premiers John Hamm, Bernard Lord, Beaton Tulk and Pat Binns reported that they are firmly united in their position that the equalization program needs to be strengthened to fulfil its constitutionally mandated purpose.

The premiers agreed that the equalization program is a key expression of Canadians' belief in fairness, equality and opportunity for all and an expression of our belief in Canada. The premiers noted that a strong, healthy Canadian federation has the power to ensure quality living standards for all citizens regardless of where they live. The equalization program is the constitutional guarantee that all Canadians have access to reasonably comparable public services at reasonably comparable levels of taxation.

Equalization is an essential federal-provincial transfer for the delivery of critical programs such as health care and education in the Atlantic region. While the Atlantic premiers recognize the value of the existing program, they expressed concern that it does not equalize adequately. The fiscal capacity of the Atlantic provinces falls short of the national average, even after equalization. These shortcomings must be corrected so that all Canadians are provided with equal and fair public services at reasonably comparable levels of taxation.

The premiers also noted that an improved equalization program would make the economy of their region more competitive by easing pressure on taxation levels.

The premiers stated that the specific improvements required include the permanent removal of the ceiling on payments, the adoption of a 10-province standard and a broadening of the revenue coverage.

The Atlantic premiers appreciate the support across the country for strengthening the equalization program. At the annual premiers' conference in Winnipeg this past August, premiers unanimously called on the federal government to strengthen its commitment to the equalization program so that it meets its constitutionally mandated objectives.

The Atlantic premiers are also encouraged that at the September 2000 first ministers' meeting, the prime minister committed to reviewing the equalization program with the provinces. The Atlantic premiers reaffirmed their commitment to work collaboratively with the prime minister and the other premiers to improve the equalization program.

As a result of the conference call, the premiers sent the prime minister a joint letter stressing the importance of a timely and successful conclusion to these deliberations.


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