LETTER BY THE PRIME MINISTER TO PREMIERS AND TERRITORIAL LEADERS

November 3, 2003
Ottawa, Ontario

Enclosed is the text of a letter sent today by Prime Minister Jean Chrétien to the Honourable Patrick G. Binns, Chair of Premiers.

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PMO Press Office: (613) 957-5555

Dear Premier Binns:

This is in response to your letter of October 24, 2003, on behalf of premiers and territorial leaders, in which you refer to premiers' discussions on health care, reaffirm support for the Health Council, and ask for early confirmation of an additional $2 billion to the provinces and territories.

On February 5, 2003, we as First Ministers renewed our collective commitment to work together, with Canadians, and with health care providers in shaping the future of our public health care system. We agreed that all Canadians must have timely access to quality health services based on need, not ability to pay.

For its part, the Government of Canada has followed through on its promise to invest $34.8 billion over five years to support essential reforms, including $16.5 billion dedicated to assist provinces and territories to achieve objectives in each of the three priority areas: home care; primary care reform; and catastrophic drug coverage. We committed to Canadians to work together to ensure that their health care system is efficient, responsive and adapts to their changing needs now and in the future. The establishment of the Health Council is key to involving Canadians in the implementation of the Accord. It is our collective responsibility to implement our agreed plan of action and achieve these results for Canadians.

Today, the Economic and Fiscal Update being delivered by the Honourable John Manley, Minister of Finance, outlines the more constrained fiscal situation of the federal government associated with the weaker-than-expected economy, and our support for sectors so adversely affected by Severe Acute Respiratory Syndrome, a single isolated case of Bovine Spongiform Encephalopathy, and natural disasters. The budget surplus is now forecast to be $2.3 billion in 2003-04, down from the $4 billion surplus anticipated in the February 2003 Budget. The Update also reaffirms the Government's commitment to the sound management of Canada's finances through the achievement of a balanced budget, expenditure control, and a continuing reduction in the ratio of debt-to-GDP.

You will recall that as part of the 2003 First Ministers' Accord on Health Care Renewal, the Government of Canada committed to put up to $2 billion more into health for the provinces and territories, if there was a sufficient surplus above the $3 billion contingency reserve this fiscal year. However, as the Economic and Fiscal Update details, the forecast surplus is below the threshold outlined in the Accord.

In the spirit of mutual trust and collaboration, and to ensure the successful implementation of all aspects of the Accord for Canadians, the Government of Canada is now prepared to provide up to the first $2 billion of any federal surplus this fiscal year for health care spending when the federal government closes the books. This is possible because we were able to pay down far more debt in the last fiscal year than originally projected.

I welcome the engagement of all premiers and territorial leaders on agreed health care reforms and encourage your future efforts in the interests of all Canadians. I am forwarding our exchange of correspondence to the premiers and territorial leaders.

Yours sincerely, [Original signed by the Right Honourable Jean Chrétien]