Prime Minister Chrétien and Premier Clark settle BC residency dispute and agree to new cooperation on mobility, immigration and Asia-Pacific

Prime Minister Jean Chrétien and Premier Glen Clark today announced that their governments had reached agreement on a range of issues including:

- a resolution to the B.C. residency dispute;

- new arrangements on immigration settlement;

- working together to enhance mobility within Canada; and,

- joint projects to enhance Vancouver as Canada's gateway to the Asia Pacific region.

In announcing the agreements the Prime Minister stated, "British Columbians, and all Canadians, want to see their governments working together both to solve the problems of today and to seize the opportunities of tomorrow. Premier Clark and I have taken an important step in that direction today. I am very pleased that we have found a way to remove barriers to mobility in Canada. Ensuring mobility for Canadians within Canada, better services for newcomers to Canada and enhancing Vancouver's capacity to act as Canada's Gateway to the Asia-Pacific region are part of preparing British Columbia and Canada for the 21st century."

"This agreement is a win both for Canada and for B.C.," said Premier Clark. "The Prime Minister and I have been able to work out a resolution to some long-standing issues which reflect both the Government of Canada's objectives and the special circumstances we face here in B.C."

The Premier also noted that, "This agreement enhances our ability to welcome newcomers to our country. It acknowledges that B.C. faces special challenges not encountered by other provinces because of its unique role as Canada's gateway to the Asia Pacific. This agreement will see the Government of Canada bear a greater share of the costs associated with that role. At the same time, it acknowledges the special pressures faced by B.C. as a result of internal migration. We have agreed to a two-year review of this issue and B.C. will be consulted on the terms of reference. In recognition of this acknowledgement, we are lifting our residency requirement."

To settle the residency dispute, the Government of British Columbia will withdraw its requirement that people reside in B.C. for three months before qualifying for social assistance. In turn, the Government of Canada will reduce the $46.9 million penalty imposed on B.C. in 1995 to $20.3 million. This sum is the actual savings realized by British Columbia and is consistent with penalties imposed on other governments under federal transfers to provinces such as the Canada Health and Social Transfer and its predecessors. British Columbia will receive a refund of the difference of $26.6 million.

The Government of Canada recognizes, however, that British Columbia does face particular challenges because of the exceptional inflow of new residents either from elsewhere in Canada or abroad.

In the area of immigration settlement, the Government of Canada recognizes the increased pressures on provincial and community services, owing to British Columbia's being a preferred destination for people coming to Canada. The Government of Canada will increase its immigration settlement funding in B.C. by $22.4 million this year and in each of the next two years, for a total of $67.2 million, as part of a new Canada-B.C. agreement. This funding will support existing immigration settlement services.

The Prime Minister and Premier agreed that there is a need for all provinces and the federal government to work together on issues related to mobility and how it can be promoted most effectively. The Prime Minister and the Premier agreed that a national multilateral process, with all parties consulted on its design, would advance everyone's interest in protecting and promoting mobility in Canada. The Government of Canada will raise the issue with all provinces and work toward a national solution within two years.

1997 is Canada's Year of Asia Pacific culminating in Canada's hosting of the APEC Leaders' Summit in Vancouver this November. The Prime Minister and Premier committed their governments to working together to enhance Vancouver's ability to perform its role as Canada's gateway to the Asia-Pacific region. Joint projects totalling at least $120 million have been identified with details to be finalized by April 1, 1997. The Government of Canada is setting aside $60 million over the next two years for this purpose.

PMO Press Office: (613) 957-5555