March 28, 2000
Ottawa, Ontario
Attached is the text of a letter sent today by Prime Minister Chrétien to Premier Mike Harris concerning the health care advertising campaign that was recently launched by the Government of Ontario.
PMO Press Office: (613) 957-5555
Dear Premier:
In recent weeks, I have engaged in a serious correspondence with Premiers on the subject of health care. My letters have been in a spirit of real exchange on a serious issue. I committed to working together to plan the future of our health system with a view to a First Ministers' Meeting later this year. I clearly indicated that the federal government will provide additional financial support for such a plan.
I did not expect, and can only deplore, a partisan and misleading advertising campaign in response.
This is no way to conduct federal-provincial relations. It is especially unhelpful when, as now, most Premiers and I have accepted to work together to address the needs of our health system. We will ensure Canadians are aware of the facts.
As my letters have indicated, the federal government's support for health care goes far beyond what your advertising claims.
In particular, it is not true that federal support is now only 11˘ out of every dollar of provincial spending. It is not true that the value of the Canada Health and Social Transfer to Ontario has been cut by $1.7 billion. These claims require a willful neglect of the unanimous request by provinces in 1977 that part of the federal contribution to established programs be through transferred tax points. These tax points are worth $14.9 billion nationally this year and rising; they are an integral part of the Canada Health and Social Transfer. You are aware that the federal government has made additional cash for health and the CHST its biggest new spending commitment–an additional $14 billion in cash over five years has been added in the last two budgets. In fact, you congratulated us on the 1999 budget.
Your government also benefited from our action to eliminate the disparities in CHST entitlements which went back to the cap on Canada Assistance Plan transfers imposed by the previous federal government - a measure that you had always strongly criticized. The equal per capita entitlement will add about $440 million annually to your government's revenues. Given that your spending on social assistance spending and post-secondary education is down by about $1.25 billion, these enhanced transfers should be available to support health needs.
Overall, these measures mean that value of Ontario's CHST entitlement in 2000-2001 will be $11.571 billion, fully 12% higher than it was when my government came into office. It will continue to rise in each of the coming years as both the tax and cash elements grow.
The federal government has assisted provincial finances in other ways. Our success on the deficit helped lower interest rates and boosted the economy. The $4.5 billion increment in the Canada Child Tax Benefit will have benefits for provincial social costs. The federal government has made $1.4 billion in new investments in health research and information systems.
Of course, Canadians do not want a sterile debate about numbers. They want us to get on with working together to improve our health system. Most political leaders, Ministers of Health and Canadians recognize that our health system will not be cured by additional funding alone. We must work to adapt it to such challenges as expensive new technologies and an aging population if we are to succeed in ensuring a sustainable regime for all Canadians.
For my part, I have committed the federal government to work with provincial governments in this direction. I very much hope that your government, which has much to contribute, will do likewise. You should put an end to this misleading advertising and redirect your efforts towards cooperation.
Yours sincerely,
(ORIGINAL SIGNED BY THE RIGHT HONOURABLE JEAN CHRÉTIEN)
c.c.: Premiers and Government Leaders