Provinces get $2-billion health boost

By BRIAN LAGHI
From Saturday's Globe and Mail

(Ottawa) Prime Minister Paul Martin promised Canada's premiers yesterday
that he will discuss a permanent increase in health-care funding this
summer, as he delivered on the promise of a one-time $2-billion injection
into the system.

Mr. Martin made the pledge in his first federal-provincial meeting, which
officials had billed as an effort to construct a more co-operative
relationship between the two levels of government. The get-together was
characterized by most premiers as conciliatory, although a number of
smaller provinces complained that the Prime Minister failed to commit the
government to making the $2-billion an annual addition to their budgets.

In a wind-up news conference, Mr. Martin said federal and provincial
ministers of health and finance will soon meet to discuss ways to sustain
the system. That could include a number of items, including a formula for
more stable, long-term funding. First ministers will meet this summer on
the matter, he said. "We have to look at a number of facets," Mr.
Martin said. "And one of those is going to be increases in funding.
We're prepared to do it; we're prepared to do it this summer. It isn't a
question of does the federal government want to do it or not. It's a
question of how much money does the federal government have available,
given its numerous priorities."

Quebec Premier Jean Charest told reporters afterward that Mr. Martin
confirmed the $2-billion transfer early in the meeting and later said he
intends to increase Ottawa's base funding for health care. "The answer
I got on the meeting this summer evoked the federal government's
contribution. I asked Mr. Martin if he foresaw an increase in the federal
government's contribution in health-care financing, and he said,
'Yes,'." Mr. Charest said.

Several premiers said there was a new spirit around the federal-provincial
table after several years of bickering under previous prime minister Jean
Chrtien. "The tone of the meeting, I found to be tremendously
different," said Alberta's Ralph Klein, the longest-serving of the
first ministers. "Although the $2-billion wasn't put in the base .....
there was a commitment to discuss long-term sustainability and reform the
system."

However, other provinces said they were hoping for more. "We can't
build a health-care system, hire nurses, diagnostic equipment and waiting
lists with one-time-only money," Manitoba's Gary Doer said. "We
don't build MASH medical tents, put them up and take them down." Nova
Scotia's John Hamm said he was also disappointed. "Those issues that
are of prime importance to Nova Scotians will not be addressed in the
upcoming budget."

Mr. Martin acknowledged that there were disagreements around the table.
However, most premiers tried to focus on the positive tone. One source said
that British Columbia's Gordon Campbell tried to persuade Mr. Doer to take
a more upbeat view.

The $2-billion delivered yesterday was a one-shot injection that was part
of the health accord inked one year ago, but was initially only payable if
the federal surplus for 2003-2004 exceeded $4 billion  the amount Ottawa
puts in a special fund each year for emergencies. The health bonus was
imperilled when federal projections suggested the surplus would reach only
$2.3-billion.

After intense lobbying, Ottawa decided last November it would pay the
stipend anyway, but only on the condition that it not be thrown into a
deficit position, something that won't be known until the federal accounts
are completed in September. Mr. Martin dropped the condition yesterday.
Ottawa will transfer $21.8-billion to the provinces in 2003-2004, in
health-reform funding and as part of the Canadian Health and Social
Transfer.

For Mr. Martin, the meeting was crucial to establish that, as a new prime
minister, he could end the squabbling that so often marked
federal-provincial relations recently. Many of the provinces also looked at
the meeting as an effort to develop a closer working relationship,
particularly after having benefited from federal assistance during the
crises over SARS and mad-cow disease.

Mr. Martin first met with the premiers in November at the Grey Cup game in
Regina, one month before being sworn in. He agreed at the time to regular
meetings with them and territorial leaders. However, Mr. Martin's office is
still wary of getting involved in a situation that could end in a
provincial gang-up that would do Ottawa little good.

The first ministers also discussed Canada-U.S. relations and agreed there
is a need to better co-ordinate responses to national emergencies.


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