Released on December 19, 2002
Health funding and equalization were the main issues advanced bySaskatchewan at the Federal/Provincial/Territorial Meeting of Finance
Ministers held in Ottawa over the last two days.
Finance Minister Eric Cline said the recent Romanow Report urges the
federal government and provinces to work together to strengthen and sustain
the health system. "As part of this, there is an urgent need for increased
federal transfers in support of health services."
"Our experience in Saskatchewan bears out rising provincial costs," Cline
said. "Thirty years ago (1972-73) health accounted for 18 per cent of
Saskatchewan's total spending. Now it acounts for 40 per cent. No
province can sustain that, and this was made clear to the federal minister."
The dramatic and shocking reduction in Saskatchewan's 2002-03 equalization
payment was also raised. It is occurring while Saskatchewan deals with its
second consecutive year of devastating drought. The Mid Year Report showed
a $600.3 million reduction in equalization. A federal change to the mining
component of equalization was a significant factor in the decrease.
"The results of this change were significant and unexpected, surprising
both us and the federal government," Cline said. Federal Finance Minister
John Manley assured that federal officials are actively reviewing the
matter and committed to further discussions with Saskatchewan in the new
year.
"No province can afford surprises like this," Cline said. "We are dealing
with it as best we can. We need to look at how the program can be made
more fair and predictable while retaining its underlying principle of
giving all provinces the ability to provide quality public services such as
health care."
Cline also urged the federal government to end taxation policies which
discriminate against non-renewable resource industries, which are a vital
part of Saskatchewan's economy.
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For more information, contact:
Roy Schneider
Saskatchewan Finance
Regina
Phone: (306) 787-8109