December 10, 2001

Our public health care system is a defining element in who we are. Canadians have worked hard to build it and we have the responsibility to preserve it for the future.

In September 2000, Canada’s first ministers reached a historic agreement on a shared approach and action plan for renewing health care services and reporting to Canadians on progress made. An agreement was also reached on increased support for early childhood development.

Budget 2001 confirms that, notwithstanding the current economic instability, the federal funding of $23.4 billion in support of these agreements is fully protected.

Re-investing in health care has been the number one priority of our government since balancing the budget. And with the September 2000 funding confirmed, the federal contribution to health care will remain at an all-time high.

With the money resulting from the September 2000 agreement factored in, the Canada Health and Social Transfer (CHST) now reaches the all-time high of $34.1 billion a year. Of this amount, $18.3 billion is a cash transfer, and $15.8 billion comes from tax points.

Provinces are receiving $2.8 billion more in CHST cash this year. Next year, the increase rises to $3.6 billion. And these amounts keep growing.

By 2005-06, CHST cash will have been increased by $5.5 billion to $21 billion. This is a 35% increase over the 2000-01 levels. By then, total CHST transfers to the provinces will reach $40 billion.

Federal involvement in health care includes not only health services, but also health information systems and health-related research and innovation.

Budget 2001 invests substantial additional funds in these areas, and more specifically for the Canadian Institute for Health Information, the Canadian Institutes of Health Research and Genomic Science.

Canadian Institute for Health Information (CIHI)

The CIHI was established in 1994. It is playing an increasingly central role in providing Canadians, health care providers and policy-makers with quality information on the health of Canadians and the health care system.

Budget 2001 renews CIHI’s $95 million funding for an additional four years. It also provides $5 million over two years to Health Canada so that it can produce health data on First Nations’ people on reserve.

Canadian Institutes of Health Research (CIHR)

Budget 2001 provides a $75 million increase in the annual budget of the CIHR. This brings the annual budget of the CIHR to over $560 million, more than double the funding provided four years ago.

This will further support the CIHR’s innovative and integrative approach to leading-edge research and its translation into economic benefits for Canadians.

Genome Science Research

Genomic Science – the study of the genetic code in people, plants and all other living things – is key to the advancement of biotechnology, a driving force in the new economy.

Budget 2001 builds on the $300 million our government has invested in Genome Canada since Budget 2000 with a contribution of $10 million to the BC Cancer Foundation in recognition of the seminal work of the late Dr. Michael Smith.