Briefing for the Delegation of the Government of Canada, Conference of First Ministers

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for the

D1″? 11.

GATION OI-‘ ‘J‘lII:‘, G()Vl-3l’1’ to vary

the levels of allowances paid under certain federally
administered programs. A province could seek to

reduce the federal allowances payable under one progrmm
and apply the savings to increase the allowances paid
under another federal or 1@deral1y—Iinanced income $upport
program. ‘I‘h.i,s would represent. a major innovation

)n the field of federa1~provincial relations. It

will be obvious to all of you that‘ the ‘J1\\p].enI(~rx1.L-Itum

of this proposal w1.ll call [or ingenuit:y and forbearancq-3,
and will require the development of mutually satisfactory
arrangements. It will not of course be possible to

give effect to Proposition 12 until the many complex
issues to be covered in the review have been studied and
resolved. If these issues can be settled, and I am very
hopeful that they can, we wxll have solved a recurring
pr<)lJ1em that has plamxetti federal.—; r£—*7atim\.:: for many years and, umre irnportant, we will have found the way to give Canadxans the best possible social security system that can be devised. CONI" .lI)BI~1‘.PJ AL. NOTES FOR REMARKS BY MARC HALONDE; ON REVIEW 01" THE SOCLLAI. SE(lURI‘.I’Y SYSTJSM Mr. Chairman, 1 am pleased to be asked to speak on the subject of social sccurity — the fiyst itch on the agenda of this conference. Considering .~s importance to both the provincial and federal governments, its place on the agenda is altogether appropriate. I believe that there is a raasonable measure of harmony between the federal and provincial goals in this area, as demonstrated by the general spirit of co-operation that was In -' mitest at the recent Conference oi MADiStQIS of Weliare. The Conference was called in order £0 launch a critical review of Canada‘s social security §y5tem which we oxpect may take up to two years to complete._ For th;s joint federnlwprovincial undertaking, which was announoed in the Speech from the Throne, the federal-governmenfi prepared a working Paper setting forth a fieries of proposifions flowing Irom the five guiding principles announced in January. Tn the course o£ developing those propositions, 1 had the opportunity to test them out with ouch of my provincial colleagues ouring a visit to each province in early April. These talks were extremely helpful and enabled us to take provincial views into account in preparing our Paper. The Conference of We 'e Ministers was convened to review the propositions in the federal Working Paper and several proposals that were put forward by varioufi provinces} It was intended also that it would set in motion the machinery for the joint review proc 9 that would take place over the next two years. cow 11)E:N’1‘IZ§_I:_ once itsuli turned out to be A most The Conf useful and productive dne. wafi reaéhed that the propositioné in the Working Paper pypvidod an appropriate DLELS £0: aux overall review of the sociai security system. we agreed also to study the propbsitiqns and principles put forward by provincial govornmcntg at the same time. specific agreement was reach" on a igning priority to legislation to "a1 char 5 improve family allowancbs, and t0 the study of sevn firoposod in Lhe Canada Pension Flan. The Cohfcrgncc re¢ogni,ed also the need for action on the question of pohefitial lossws in provincial xovenue from thé Canada Assistance Plan when universal programs are introduced to brovide some service like nursing home care or day care for children. The pgovincos also voiced their concern about the tcxmination of certain LIP proj ts at the and of May; in response to their urging, the Par1iamcnLury secretary to the Minister of Manpower aqrécd that a number of these projects deserved to be continued and wquld be continued for a further period; he undcrtdok_fo eonéult the was approved province Concerned before any specific LIP firojcck for extension. , _ Perhaps the most important achievement of the Confexcnce was the agreement that was reached t) a joint study of Canada's total social security system should be undcrm Lakon by the 1] govvrnmonts. A structure {or ’his stud was Y $uCd and the focus oi the review was also ugrhed upvn. The Deputy Ministers will meoL as A Continuing Com KCEC uhdcr the Chairmanship of the Deputy Minister of Nationél Welfare to_work out a plan for the detailed review of the whole system. where required, the fe€.ra1 and provincial deputy mjnistc of Manpower and tha Chairman of the Unemployment Insn ance Commission would be added 113 this Group. cc‘:N1'-‘fi.I)1~.'N11‘=_1‘_g_x_1_.: It will be thne job of this Cf._7:{‘.fi1i_t2.C4-2 to set up Lhc neCc2!~:5;xry Z(2doraJ.—provinc5zx1 working ‘gar. .e to ur:c».i.: L’:\.Iery ihrttze 01,‘ four month‘-.1 dL‘n’i.z\g‘ L:?1‘c res‘/igzwg‘ .

’1‘l2(: Conf§erL=ncc- addry:c>sed in the icflcsral workin<_; Paper,‘ and t'.‘I1(".‘pI‘QpOS§.ti()1lS idxxss related to each st'ra:og‘_\/. '1‘hc:_‘131n;p1oyment Striztogy and (guess .a!.>li.<;h R <3ommum'.Ly ;I"IIT‘\j‘)]‘l':$.-"‘,".."‘si‘. §’>,.”:sa] to C.

those who have been without wm.’)< for an extended period, were both .~H..:*om_;ly su;z;:a(>rLc:d by the C<>nfz=r’vnce. ‘I’h_:,~krc*vicw <3? ¥.,h:?,:: (3113:: ‘ion wiftl includix all rc:].r,-vant, a:.;‘>c<:£:3 of axis ,ing <‘:Inplc.:;/mc2.";:: ;>r(Jy::;x’.{.<3, as well as a study of thc: job vacancy situation, and the .n;>act

of xxninimnum \-zrzgers on the social .e<:u1'ity sy.=st(2r.1’. '.'2(:. _x:evi(2w -/137.1], also include a\ r,e-examination of the role of social a'.nsu2.m':<~r.>, im

the total p.i(:(:ur:{>, w.1’th emphas. ;_ on lmth the. Camxzia !-‘(—;ris;i‘ : Plan

and 1Axxe111;>1c»}r1\\(=n{: j.ns-uramm, and perhap.<,< a Jqokat. ',\‘c>.r)’.m;~1’s‘
C:>mpcn.<:ai.imx. ,1-zgy and Lhcz 1'.,‘i,\/‘(.2 ion The Imzmne Si:[73’v1QIYi(':l712.. jvo intenzsivo ::tud;v'. '3,‘h«_,2 'ons rczlated Lo it w. p)‘<)p(>.<;i must. cons-‘,i>,:}:ir:g

” . .ng.’s arr» m:>t quj.t<.>. ezdzxgucxto to muot Umzir .‘:am.\’ly nc:L>.dL=, Z:
the income needs of .<:~ingle parent fanu'.l1'(.-5:, rlisalulul persons, and Tm " us‘-cad (;hos¢: who have be:a(~2n witikmut (mxployzaxcznt for a 1i,mg 1 \ns:Ldex.4i.1un <3-I .1 be .<;Ludy of :'nt.‘om<: sup;r«].:::m':nLaLjon w, a <,,'u/;uam:rvcd in<:<>1:\e jior people who are \m¢xble or are not (>:>.’pc>ci,cd

to w<3r!~:, :ror:ogn .j,ng L)':;1t the rm"ni:1'o;i.dcd. F‘iImli1=, U =

Ji.m.0 the :‘so<'iz\.‘z. wzur i ty :3y$t 3 t,:..~.;n. to \\- ich ;\z:1;)j(_: .':s;s:J's(;m<:L\ will «:<,\1’:L:z1me L0 be nooA-c:.i 51.! ssi tug: [ .i am; nmsi :1 I so i.u‘> con:: 5 dm'(:r3 .


J provinces havc,5u3.

in reducing poverty have

prevehtiveyand rehabilitative servica

on jncomc support nee

long bean overlooked in our emphasi

This view underlies the Social and Employment Services Strategy

which maintained that, for thh reat of the sy$tem to be 0 .3Ctiv0!

there would have fio be an adequate nc ark of social services
and employment services availahlé M ior subh things as counselling,
training, placement, rehabilitation, child cafie, homemaker, and

nursing home servjcbn. A comprehensive and covurdinated policy

on Lhrse rvicos must be developed as part bi the review proccs

The working Paper proposals for greqLcr_fleX,bi1$ty
on the part of the provinces in the social security field were
generally welcomed by the provincial Ministers. These proposals

were put forth as part of our Federa1—PrQvindial Relations

Strategy. They are intended £0 give flhe provinces more le

in determining their own income security priprities. Howe

the fedurhl governm&nL, too, E00 5 that certain national oh but

1 szzcurj ty systin. It‘is for {.3115 2742;.“

should he mot in the 5OCju

that one oi our pr0pOSiii0nS suggested that federal legislation

should scL rnorms which would repr out the doslrable levels


goint, ané also mini;

of<>mo sup;_>ort from the £<.»10 to make

will not be p0\

.oSa1. Kftcr fiho review

la jslatioh Lo qiuo {act to this 51

mt has h


has bucn completed, and agrucn- zen reached on thj

quoxtion, a numhcr oi fvderfil laws mny—huvc to be amended to

give Lull c£YacL to the new concept o{ flexibility. _For similar

the Contorcnce agreed to defer quvstions of jurisdiction

,tod. First we must

until the review process has been com

decide what should be done; only after that can we decide who

should do it.

4 ‘ ‘ . .
Two QUCSLAODS however were r cognxzcd as-deserving of
immod1cLe action ~ increasing Lha fcfleral family allowances, and

‘Lain changes in thu Canada Ponsion Plan tb-recognize

making < racont fihjfls in earnings levels and 9 ice level». Discussions will sc:n bu undertaken with those provances who wish to vary, within thu 'amework of the federal legislation, the level of jamily allauancos according mily 5:293 or age of children. For the C da Pension Plan, the immediate concern is how high should the ceiling on pensionable earnings be $et. our Depuiv ‘Ler ill be holding their first meeting on May 29 anfl 30 to sat up the reviow machinery and to recommend apg xliate changes in Lhv Canaan Pu ion Plan which we would hope to include in lcgislaainn sometime this fall. Nonethmlcsm, Mr. Chairman, 3 am confident that, by the and of the review proc. ,, khrough our join? efforts, we will have devi ad a modern, comprehensive, logical, e£f5ctive Canadian and co~ordinated sysxcm of $0cial security £0: t people fhflt is second to no other in the wc*ld, ,w m.,¢_— ., u . , ML” w.. H . — Genera] NOTES yak Rnspowsns BX §R1M§ Mxm sigx rb PROVINCIAL PREMIERS on wu£.REv:x or Ti INCOME sscunzwy syswgm ;-as it may b Poznt 3 be 9w‘i5 sfieéié you and Mr‘ Lalonde may.wish:to réisc‘it_yo selvés} or‘so? Either you dr-Mn. Léldnde cohlafi following points: — a * (1) consjde wi1[‘be rsefi V, _ that woul ‘appropria and any 5 _ - er the fundamental pa sharing with all provin the éutcomé.of the stud (2)‘ provided for undér—CAP_ /_ of the L tra money will go to‘ welletow 3. Thi wonld be_pa t;cula:lyI true in areas 0 ” number of large provinces). ‘ :amili.s (the Aflanti Why not move forward the introduct on date 6: the new federal Family Allowances Prbgram from the proposed January 1, 1974 to Ju;y L973? ?9 2 nada with an above average The foderai-goverhment is f rm;y qqmmifitefi 3178‘ to the principle put-forward at thg We Ministers’ Conference that province: 5 permitted to vary the amount of_bené£_ _ . according to age and family size. .Cleaz1y it will take time to work out the details with ‘ any interested provinces so that the ‘ederal legislation can be adequately_dra _ administrative arrangements rgquixed‘ by the f exibility f*ature can be agr it will also be n sary to allow tim provincial legislative action. (3 LWh1Le following technical érgumént‘i‘ unlikely to imp: s the Premiers and prébably shL>uJ,d not but us it is nevC:rU1<.>—l<2ss true‘ that, mvan wxthou ' ' mod? C bn of cum ‘ be fid, ahd so_ :. ratas thvro would DE technical and admlnistrétivc problems which would prevent intrdductipn of the hifiher rates ofs_JanuaIy 1, 197§;_ For example, the fagt that allowan es will bé fedcr , new Ln such a po$Ati0n, why not ihll ué now the ox flexibility will be permitted under the new Family Allow ' Note The féiaral Qbjo‘f' Stem I is to CD n a dcepg' s anding of €h_ importance,o m_ ur ‘ and to ensure that Premx * und Land th‘ ' their Welfa of th 9 however, nothing dis _§ed by the We fare desirable theréfore 1f it 5 on the-spot '0 you anfi Mr. L on thé-out mm bf his current Mr. Castong y and-possibly 0 Mi istors) elther to Ia’ make an announcement (e.g, r $14.00 mjhimum) or to respond t0_a_pxd enquiry with such an announnomont._ §93§:* unless Mr. Lmlondo is that "all 15 1h roadines dangers 01 making such _ _ Conference, where it gduld-perhaps subje of bargaining, facetiousor _ otherwi e in the context of health, tax points etc. If it is advisable not to make_the ‘ announcement, it is easy to reply tfiat discussion$ ar0_now underway with the intére
maximum of three we ks’ . ‘ Under the prbposal,
left his job v0luntar.1y would have to re—o$iabli$h his eligibility
benetits by working eight wee ‘ (just as ; new entrant to the labour
force is required to wirk might weeks to establ ‘h an eligibility for
benefi 5). The other major amendment would empowe the UIC to make
regulations defining such terms as “capable and av lable“ for work,
“suitable employn C”, and “just Cause”. other amendme ts includ’ Lne‘
method of calculatxng rate of heme ‘, and the duration of bener. p Iiodfi,
There ha5 been a strong reaction in relation to the two majcr proposed
amendments. Employers and Employers‘ organizations have strongly
supported th Bill whereas social action_groups and labour unions have
strongly op>Osed the two main amendmentg/. ‘ ‘

“Bill C-125 is still on the Order Paper of the House_o£ Commons.
The amendments propo ed in the B111 were based 0 an analysis of the
‘ ‘ ‘ ommaydarxons in relation to tr Unemployment lnsuxance
tration. The majority of the critici$ms and recommen-
dat1on$ iell into two main categories: R

3) requests £01 a more claimantwoxiented approach in the
administration of the Act whic: would fle{ e the number
of delays, provide more pe ,1a3 cd—5@: and more
covopcratjon with Canada Mqnpowe: Centr

‘the way in which direct employme

b) a general desire for a tightening up pf certain sections
of the present legislation and a firmer control over
potential aubses. ‘

The main objective* of the unemployment insuran¢e program_
is to pravide insurance hex LC‘ to-those whg‘ – an inter:upt}on
of arnings through no fauli of th . _ __ _ . dmeuts proposed
in Bill C-125 are consistent with this ma dbjective.’

6. Complaints abnut the Qualit of scrvicé £0 Unémploymeht Insurance
gjaimants ‘ ‘ ‘ ‘ V

£¥here have been many complaints imperson , ice ~«
about deCi’ions being “made by computers“. ‘In ad”¢tion:thero w re
aflmznistrative problems Cans d by trygng to administer twé Ac until
July of 1972, There have also been critic1sm5 about insufii¢ent cpé
operation and cowoxdination between the Canada Manpower and Unemployment
Insurance Offices; ‘ ‘ ‘. ‘ ‘

“On December 1, 1972, the Chairman of the Unenwloyment

Insurance Commission announced certain intt‘im steps-to “humanize”
services to claimants. Then, on April l§, 1973, the Minister of Manpower
and Immigration announced the remrganization of the Unemployment Insurance
Commission to provide a more human and personal service, to en‘ure a more
efficient administranion( and to improve the dete< “The main featu'e of the new approach is the establishment of small working groups, called modules, which serve gs the basic units of operation within UIC offices. Each Claimant will he informed of the group Of module which will be concerned with hi§ claim and he will know exactly who to call upon for information §nd_ass;st use. as part bf this new approach, there will be more UKC District Uffices;_deventrali2ed services .oca1_oIf1C1a1 lmants in‘used.? to ihese offi¢es, and 3 system permitting emergency payments, within a few hours, to c 7. Adminifitrative Re5ponsibil;t* for Communitr Employment Programs "As the Working Paper an Social Swcurity in_Cfinada points gut, the first strategy in providing income security fior Cane ians_should be to provide ' 'ome through employment for those in a yositlon to work. The Paper also makes the point that this is a primary It government rconomic policy. By 1L5 mon,tar; ‘ * the stimujaL-Qn of the private s>cto: through mm _
‘ and, the Government CL Canada is workixg to expand jbb
at a rate which will bring about a rapid decline in the
ons unemployed.“ K ‘

“Th 59 30ng~tcrm fiscal and mane:
to be the main job L ation tools of the f
ni years w ha ai5o utilized a varie oi temp – job Loy
ur ‘ h.1p cover the lag until the longer term actlviti S nave taken
hold. recently community~based programs such as L.I.P. have been
us d to combat p sistent, high unemployment which stemmed, in part from
seasonal iactors and a continuing high labour force,

“Certainly the provinces have a real and la Atimate xnterest j~
t programs sudh ,.I.£h are admin $t
rns we e taken into account to substantlal cxtent in 1 .
. program when prior consu1ta‘1on waa held with provinces
concerning “ll pro3*cts being conside ed for approval, Also, aa you‘
already know the fed 31 government has indicated that there will be
prim; consultation with th@ provinces bwfore any new money is provided
to L.I.P. projects which are now scheduled to end may 31.

’J‘l3c-1:30, Co n (.7 (0
year > L.I.

“I certainly feel that in any future f deral gave nment
community employment program an even closer working relationship would
need to be established between the i deral and provincial agencies
concerned. Such couopeiation would be needed not only to make decisions
about the kind of projects to be supparted, but al 5 abqut the 3 oriti s
to be used in selecting people £or_employment. Questions concern;ng
working rela ionfihips and the bro __ issue of admin st ative, and
indeed finangiai responsibility WA 1, I understand; Le snudied by the
joint er} :‘a.l‘-provincial we ng groups now being ‘Set up. There ‘ore,
final decisions about the, matter$ will not be pqssible until our
respective governments have had an opportunixy td_study the recommendations
of these greups.“ ‘ . — _ ‘

8. Revision 01 the Federal Mxnimum wage

“The f~dera1 government will certainly bear in mind f
of the grovinces when r< sing the éegal minimum wage. The government also reCogni4eV the importance of trying to spell out intentions on the future level of mlnimum wages well in advance and by steps."~ “The federal government also realizes that the minimum-wage_ is a potent ant poverty measure, and_one which, if properly used‘ can reault in signif;cant}y lower welfare and Qther income maintenan' axpenditures.“ K * ‘ . 9. Research Studies I _"The federal government supports the need ior Careful research in this field and we note that some provinces, notably Ontario and British Columbia _are conducting studies dn the inpatt cf the minimum wag; as well as an the characteristics of workersiaffebied by the minimnm wage,". ‘ ~ ‘ . — “The federal government, Io; its part, is ready and willing go co-operate wi.h all the provincial governments in fine exchange of xnformation and research on this question.“ ‘ STATEMENT BY Tux»: MJINISTEJR 01: NATIONAL n1s..u:_rn Ann w1:“,1,Fz,m:; AT con<:Lm>ING ssssmn on THE

CONI«‘EREN(Z1E*OI~” —w13I.1«*7>._n¥; MlN1S‘J.‘I-LRS ‘
(APRIL 25 ~ 2/,

The Ministers of Welfare havp decified not to issnq a_

.cénferencb communiqué reporting on their achivvemFnt5}‘:1nstead

they have agreed to hold a gencfnl pre. _tn nnéwef

questions from the press represen1a1ives.. I mYTbann¢ify,as‘

~ Chairman of this conference, l_have been asked bv my colleagues

to chair the press conference and to read this onéning‘statement}
Following this statcnént, the manners of the,nfess,wii1 be fréé

to addresfi questions to any of the ”inisters_here, h

It is_onr View this has heen a most useful and‘nrouuct& u
Conferancc( Many helpful suggestions and nronosals have been

put forward both on {he genera1‘question 0? the revign Of the social

security system, and on specifié nnestions like t

of the Canada Pension Plan.

it wag gm .ral1—y ,ag’r‘ee”d the

nropositions put forward in the federal working panér voulé hé an

appropriate basis for uur review nf the zocial security system.i
It was agreed, too, that rhe propositions nut.fotwérd eaflicr
by other governments, such as Quebec, and the nrjncinies proposed

at the Conference by the Ontario Government and others wnnld ha

considered concurrently with the federal pronoSitipns‘in_the course:

of this review.

Specific agreement was reached on.a number_of issues:
1. There was unanimous agreemént that first nriority shnnld be_

assigned to legislation at an early date to increase family

allowance payments. Bilateral discusxions wnu1d_be nndértaken-

with Lho5c provinccs‘that wish to vary the level of these

allowances according to family size or ngb of childrbn,

within the framework of the federal legislation.

There was unanihous agreement, foo, thaf’yriof~t)‘shpu1d:
also be assigned t6 the study of the scvefnl cfiangés P §P050d
in thw Canada Pension Plan. Certain technical améndmenrs

will bu infifoduced as scan as pQSsib]m_ ‘Gyhar}

gf suhsténce put forwgrdiby warisus

I)’ all :15‘ xixgcnl g

there.was spme difference of tQ the prec 59

lorm that changes shbuld take add Lhé

hé as$ign€d to them._ Dur Depgty Ministc1‘.wi1l be ting

before the_end of May to cgnsider these qucéi; n

appropriate measures for inc1usion_ifi_1egis1é: én, i hQp&,

this fall. These discussions wiyl take p1atc_1n ih9_C0″§¢¥?

of tho total social $€CllTifY sysitem, i11c1ud.z1g <;}_\e'g'(éx'_x_:.:_1".'a1 f_i(2.h1 of income supplementation. /\g:c'oIxnt._=«:§_‘l.l-3315: _Dc_ Yakfm of the dcsirébility of maintaxning parallelism hotwe=‘_ the Canada and Quebec Pension Plans. A third area in which rapid awtaon was regbgni ed he;n necessary was the question of notential loésk‘ :fi.prov,nCié1 zcvenuc from the Canada-Assistance Plan whén u vérfihl programs are introduced to provide some service_1ike‘nuf5xng.hbme care or day cnré for children. I agreed to sgck A $'1fition which would ensure that such provinces would nut bclw,r§¢_off financially hy_introdu:ing a solution has been found , in cnnsuitafion with the nrovinccs, the Canada A stance Plan \-ct wr,n11=i h-wt: <2 .b.=~ A Iourth question that was rccognized_as urgent #a$_thc nroblem faced by provinces in the tcrminaiion on May 3igbf‘£ertain projects now financed under LYP. To ensure_their‘c6nzinuation, where desirable, the pravinces \«"()\lld have‘ Cd 1’ xigi The Parliamentary Secretary ;o the Minister of—Vénbower agreed that a number of these projects fleserve& £5 he éh§_wnu1d‘be xroxnimxod for 11 further r>c>r_i(.ui under the LT}; n§;of%rzxI1w,- and

undcrtonk to consult the provinces before an

fiedifié project

was approved for extension.

‘nd rccommenQ .

5uph_uniVersa1 proninmS.— when such

‘ shorld he added in thé continning_

-security in general.

‘ Wcrking parties would study each of the‘stratcg;‘

, focussing

first on the employment strategy and the propnsai
Community Employment Program. _To_m3ke this stndy
federal government agreed that the federal deputy

Manpower, and the Chéirman of the Unemployment in


t:;1a~m;s 5‘

appropriate. The rnvicy of the system‘

felevant aspécts of the emplcymént programs of t.‘

Manpower and Immigratipn, as yell as thgse of th p‘ vinfies,

study will include atso an examination of tbs job yacancy sitnation

as well as the implicatibn cf the minimum_nage‘bn hsoéial

A working party‘un social insnrance_won1d have as its first

task the cbnsidéra ion of the changes in the C?‘

that aré urgently
required, as‘l alréady mentioned. Questions relating fu‘UnemPl0YW0fi€

Insurance will also be considerefi by this-Wbrkinknpartyss

Thé working party on income supple; _tstion”wbu1fi:havc_L0‘

focus on the several questions raised undef this stfdtégyj-

including supplements for the working poor and add tibnslyinccme
Supplements, amounting to a guarantecd income, fqf-the disabled,
single parent families, and persons who_have been wlthout employment

for a long time. Further work will be required tn avbid the

reintroduction of categorical assistance in our socxa security

system. It was agreed that one objective of_Lhis zndy would be the
coordination and rutionalizntinn of the 1oveisynfKb8hCf1ts Psink
unner the various income supplement programs and.othefhre1atnd
nrograms such as Manpower Training allowancts. ‘ ‘I h

The working party on social and_emn1oyménf ssrvjtes n51}

have to consider nut only the extensidn and imnrdné‘ t f 1
» . —v,_ . men ‘9~ ‘ucx

Services’ i”C1“di“S the evaluation of their effccti§eness,.hut_a15o

the need for closer coordina ” – – ‘ :-‘‘ . 1
‘W’ “ f~°d%’d1,8n%<1_,nroy nC1a1‘we]f;1re and employment services, " H t‘ ‘ ' « « —..\ , .“~; ‘§‘ ‘ ‘3‘“1“K “P4 P1dL0m¢ht,D1¢grn s, couns and rehabilitation services ‘etc ., , R ,inn— _ _ _ I k__‘ ‘ - . _.:.ym~,~»q{ Apnrfl from these ssccxfxc 1> A 1 1 * ; :7‘ ‘ K #sourcc3
have been soundly maimed and duvclorned Ann. 3:» ani uyhcn Kr; ‘

permit‘ it was ziggréed that‘ the I)oy)ut.7 _V_ini .’;_‘t’e_:‘rs‘ h0‘_xx1d_mcc_c/it 3,5
g gnmmitLcc under the Chairmanship of thé Denntylfljnistcr of-N3ti0fi3X

‘Welfare to formulate a plnn for the derailed_keviQw:pf_the-sbcnai

‘sécurify system. This Committee wQu1d_§stahl sh _hB.h¢C9$53?Y

jainr fedcra1«provincia1 wanking panties-to—und£ tak¢_t“° ”¢§
studies on which would be based reconmendations for Lhé~considcf3 ion
bf Minisccrs at subsequent Conferences; .It‘wask3gr¢§d fhayn

Ministers should aim to meet every 3 pr 4 m0nths;_thc next meeting

. would be held in early $2111.

The provinces genérally welcomed the ngn fedéfai.dndfidaidve in
the field of federal-nrovincial relations, de5d‘n$d:ip prbvidén ‘K
much greatef f1exibi3it§ fér-the prévinées in de£éfmining.§héif
own incone security priorities._ For this pfbnnsal £6 he most
effective, 3 working parxy will have to study nhé federal K
propositions which have been advanced, and thndhéét nays to achieve
the flexibility thcy_are designed to offer. Thié nonld entail

of the

careful study of alternative bakes fof the exert}.
provincial options contemplated, within the terms of the federal

. propositions, and the principles that should guide:tb_é:Goverxunctnt

of Canada in proposing to Parliament “norms”, and minimum or maxAnnm

levels for allowances.

All Gm/ernments agreed that the di‘s<:ussi<_>n ‘of

jurisdictional questions should he defgrred unfil afirdc ans ha:
bfipn reached on what changes in the cverall syétem fife necéssahy
and desirable. We must decide first on what shoudd bé done, and
then on who should do it. However, it was recognizéd that in re;
viuwing yhc seveya1 propositions, in particular fhqsc concerning

. income supplementation, alternative financing‘af—rnnkgensent_s: would‘

have to be considered concurfently.

All of us agreed that the general spirit ofjcbnncrétion
. /which was manifest throughout the conference augers j\ée1_-1 for

d fruitful and successful study of‘ Canada‘s sr,ucia;1~sec“ur”i W §ys1on\.


The Black Book

ITEM 2 — Financing of Health Programs TAB
(a)(i) Possible Scenario A
(ii) Notes for Remarks by the Prime


(b)(i) Notes for Remarks by Mr. Marc
Lalonde E

(ii) Notes for Remarks by Mr. Marc

Lalonde Thrust Fund

(c) Anticipated Remarks by Provincial
Premiers C

(d)(i) Notes for Responses by the Prime
Minister D

(ii) Note for the Prime Minister on
Possible Increase in
Federal Offer
(iii) Notes for Remarks by the Prime

Minister for use Towards
End 01 Discussion

(e)(i) Note Respecting Cross—Ovcr Points E

(ii) Note on Quebec’s Position

(iii) Additional Talking Points on Revenue-

(iv) Talking Points on “Principle” of
Equalization to Level of
Top Province
(V) Note on Indexation of the Personal
Income Tax System and the
Revenue Guarantee
The Yellow Book
ITEM 2 — Documents on Financing of Health Programs

(A) Financing of Health Services D

(B) Renseignements sommaires au sujet de
la taxation intergouverne-
mentale E

(C) Revised Proposal for New Financing F
Arrangements in the Health
Care Field

(d) Tables showing Estimated Amounts by G
Province and by Year for:

– Federal Payments for Health Services
— Equalized Tax Room that could be
— Cash Adjustments
The Green Book
ITEM 2 ~ Financing of Health Programs

Joint pross statement on “Health Care Financing”
issued May 81 1973 by the federal Ministers of Finance
and National Health and welfare. (FP—40Zl)

“Financing the Federal Share of Health Services” —
Notes for remarks by Finance Minister John N.
Turner to the Federal~Provincial Meeting of
Finance and Health Ministers, May 8, 1973.

…. »_4

The Green Book (cont‘d)


Letter from federal Minister of National
Health and welfare to provincial Ministers
of Health, dated April 18, 1973. (PP-4024)

Letter from federal Minister of Finance to
provincial Ministers of Finance, dated April
18, 1973. (FP—4025)



This a subject that is quite familiar to all of
1:53, .:md lhus requires: \rc~ry iltlile by way Of

:h om: 0! US is awarv of the

1. n 1: roduci ion . I-2,
<1'i1'fi(:u1tJ.<>:; <:1't-::.'-xt,ey’(,> largely r(:sspom;ibi<= for the federal, proposal in Decembnr, 3970, that thore be a remexamination of existing cost—sharinq legislation with a View to d@VGIOpLHq a new approach towards health care sinancinq. The federal obJoctiv<. outlined than 1m:1udL>\r1n(:(>s greatci.‘
jic-><1b1J2(’y in Irhri rI1n1’n,11ion of iilwir prir));.1L.iL‘»:§,
and the importance of creating Lhe incontivgs and
the means to rationalize the health care systems —
with the end result being more effective service

to Canadians at reasonable cost.

Provincial ministers at the time supported
the need for a new approach. They also concurred

oh the Miniscnr o£

1H the guiding principips wl
Natiurml l*lr».‘:lH‘n and Woliarr» had siliqgz’-stod an .-1
b.=x.~:i:: for such a now .’xppr‘0;1(:h. J-‘ollowincj nIont.h:3

of di.~?c\ ‘lOl’\S with Lhc ;.>:r_’o\r,>.s, i;:3t.

!\’\01′(;‘ etfc l’,IV(-T‘ progr.

A numJ’>r*-x‘ 01 provinces, how(.>vr.>r, did (—>xprO,<;s z:<>n(t<>rn lhal the proposml wmxld not provide

sui iicumt I odorai

‘1.‘3\.dYl(“(‘ ovmr tho coming

five years. 1-0 nxootz xm._)vO1dab]<'v Casi ir1<‘re.:a5;r3s In thv health fiold. They lelt that there might bn a tlme lag before the 1mprovomonLs in health care delivery systems produced the expocLed reductions 1n cost escalation. Nonetheless, we agreed that the fedoral and provinclal mxnlsters of health bo asked to work on Lhc propusals, having in mind the neod for rvanonablv DKOVJSLOHS to cope with unavoxdnbln and fincxpected Increases in hvalth costs. You are undoubtedly famlliaz with the numwrous federa1—provinv1al consultations that , ozlytléli’. if“ __ have taken sxnce then « hat§«fe oral oilor presented by Mr‘ L¢londe and Mr. Turner at the 3o1nL meetxng on May 8, 1973, 01 the MLnisturs of Health and the Federnl—ProvJnoia1 Committee of Mlnisters of Plnance and Prov1nc1al Treasurers. Tn thaL rcvlsed proposal, the federal govnrnment .veral modificatxons in r made ponsn to the princlpal provincial Concvrnm that werc stated during the various dxscussions. For example, the expected levels 0: the per Capita paymvnts by the Iuderal qovornmunl have been significantly xmproved by moving the base year {ram 1971-72 to L972—73, and by maklnq adjuxtmcnLs to tho prnpognd escalator. The (odnral proposal also 1nc1udes a risk~sharing fmafuru that would relieve provinces 01 a substantial porclon of any excess expendxtures that: they m1qhL J.llCLlI', i.(->._ the d1fJ:w2’m1c*o bc-*t.wm2n
tho rate of escalation in Lha federal paymenta
and the Into of growth in total provlncial health

costs. Fznally, the present federal proposal also

incorporates nsauranvz that provincvs will rotatn
lvdora! uhnrlnq now pajd undo: thv Canada Assistance

Plan when they switch a hoalth or hea1rh—r0lalOd program

from a needs test baa to A universal basls.

Mr. Lalondo will be olab0rnLing on those m0diiicatJon$

in a few men.

£1€Z*£\‘£”.1.lv_.”7._‘3‘ E4.’

SY MARC L1’\,I..O )1‘:

N()’l‘£‘..‘3 I”()1’¥ RYZMARK‘
ON l’INANClNG 01 !-JI\.L.’1‘li l’R(‘)(;x‘_R.‘u“:S_

The pxovision or quality health sex ices ta all

r eccnus ‘ or place cf
conati utes and providars of sfich
services a complux and ditL1cu1t chafilenga. The determination
of appropriate 3 vels of public support to ensure effe
‘ ‘ no less of a Chmllflflgb.

‘Hm snpr,-nv—:‘»:m’i(-~d type 01.‘ L‘L).\1,‘-:3}‘.E1l”jh(] s3r1″avuge1nc>x‘st
LJ’u’31 (–‘ und. Lh(> hosspj .x._1 ._ilL~3lJ.(‘dX3f ~ and medical (
programg undoubt qjy w: justiii wh(n 1 :0 prmgxams were
introduced, This approach made poasible the development oi
’bj1iLy to essential health érvic of acceptahl
un a nation~wide and prepaym(1t bafixs. The uniiormity
‘ n this appzoauh was an advantage in the early years of
health inburan‘ . As both my predec ssor and 1 have emphasized
on nume.>rr>u:: occasions, now bec<;unrs 2: (Ii. "vamqgr-3, particulxr y under h05pitaL lnsuxan in that it provxdes no inventive to shift from co:t1y hosf‘. services to lower cost altarnatlvu wh'ch are net eligible Lox c0st—sharing. with respect to the medical care program, it concentrates on insuring the services of the most highly trained and most expcn.ive typ- of b th professional, thereby di couraging the provision of services by qualified though less hizhly tr fined persons. M at provinces certainly have recoqn;' _ - ' sses of the cxisting arrangements, and to a ‘ .2onse to demands irom province. Llmt the 1" cx21m.1x “tion oi 22 n:'»>w 2ap;:>roé3(:1x was; propo:»’<3d. J will not take up you: time Today with quoting a 05‘ f'gur S (.211 h<:u.H'h <:;1rc- £<;m«_>ra1 hm ‘t.’a.i beds and the
:2 very large‘. pr<:p01‘tion of our L§.N.£7. on health Se: countries €XCteG our doctor to population ratio or I for every 667 p cons in Canada. The present form hzmixxg unqucasi « - improvement in the quality oi health «axe that ha» takcx plac uada in the past fifteen years. The qu.V ion is whether th. ' 1105 to Contin an arrangement at ‘ imarily , towards tle drv lopmenf and provision on . H expens v Lypes oi 2rvice5 and the levu CQSL @SkmJ8tjOH that we have been exp<. "mcing? Taxpayers ti/(:ntua.!].y will. It Lo’ l Lu. Lion the rapiil gzcmth h a}th ' x)om for 0th h1Qhly U the time oppnrtur* na(.1 ‘./O _ h aH,h n(Ac:d:; .rm<:‘ v<'on<:m1(‘ !’(*<)]J{.il'L: <21’ i,m3ay’,<: x2<—/ joym of ' bilmty, tho ¢nna3,,i 7.
of growth in cost

‘1‘! natu.r5 of cu: discuaaasionv. .,wii:h the pro\rincc~.vs
d\.=J:’ing the 1;; st two years has em‘.:oure_ .d _us to be‘,’Lieve that
mom, provinc: .2: ind¢=e<3 do want a 3: v: type: of financing a.xr2'angement. ' >~ rsta ed,

, H1971 agrnrrii on
_ C .~ progrzxrns: and

Q is the goal that has bca;=n
.opment of the fzropo 1
;inan<,e and llezaltlz M;3rx,i2te 5 srestrdint of cost. burne in xu.i.nd in the progr that was .~3ubnu'ti:ec1 to Pr<;vjncial on May (5. 1: outline of the y.>x:opo.~;a1 nxjgm, be in <')lfdC:)‘ at it continuczs to have as its spc-ci "10 _ this poim: . o)>J‘ec1..j.v<-2: 1. grt3€3t.e1 f,.1(,~xib,i _ ::LmL,1.i,l,>ut;iorx; tin 5‘
to a]’>]:vly the J
the oratiye r,am’;x‘> of he :9

.Of the iiczci rail

rev: 1c \«’.il_l be
<.:«.mLm1mV1or: €'hrough<>ui.
3 prc> that

hospj.i.A1 and
:ar<-:r mainta .m:~d; 3. <>ptin\um use of all heal th I(.‘SOL1I‘CES;

reduction in tzhe rate of health cost escalation;

‘£’i.ca1′ on of 1′:’inamt1a1 2az:’;czzngen\<~:nts betwcesz and pJ'ovjnc:i .1 go m(mt.<.;. . :5 i mp 1 mi car the pro 123,] 91.1.11 ]')!'()\J.l,U1(?S for 3: fG(_3€Ii:i] payment , ' i on a _p capita ha. in x,e1,a1_;ion to a base year 1:1 <->.rsce:l1i,<éd th rcaH:<:»r by a <'5.;-1.1‘. rain: of: growth plus an upward a ya: ’ iL.a pexyments would be in; thcr
adjustrsd annua ly . Llmi. at 1: c~ end 03. _§_cfl, they would

‘ equ¢1l for all ]>r<)v.’\m,c»2:.s, ‘The i'orznu1:x for c::s 1’.’inancc~. the reuarzjanzzation of the
care dc.»’1ivm’y -no armoxding (.0 prcv.‘;i.5=.]. priori\;.’

Si mrez the

d‘I11.U’<*:-J hm/c~, d in .it:,; ¢.0nl.« , J,‘.>‘/.L. ‘rm: I-‘rm
xxly. ‘H:-.>.y arv:

‘1‘ 0 KIIHJOT ff
;.>1‘op(>:.=a} an <11. ~u~ ~ !~ .1 tors in Nm,>v(iu<:tmn (:1, £3 “ri.«~.\' .):ar_ing" aturce that would jnvznlvr: :n.1dj,L onal ((‘d(.>)‘I3l Cont Lbutionss to
1.xx’oVim‘x7:3 n inrxiwimttz whc }’>J:()Vi1 1,Lthspm’r<:1ing grm.r,«:. mm. 1’a.1;x.i.d1y i.ha2'1 tin; late of q.rL>\-Jth in fcédelal

K\.”l‘.I Ali

‘. Iranr: that a }.>1fovin. participat,ifK_] under

H > new ‘qr 5mge1m;~nts which (:hoosr2.s or ma r;hc>r3(en
to makn avai1abl= he¢1th or health xnlat d benefits
on 4;. un.1vcax’:saJ. ‘ ,<‘lx i;h<>
In 5 Lx.:c.»y1 1fca.’iex‘a] no.5 the Canams
A3515 ance Plan, will receive similar
levc of contribution a» it would have zcccivnd
had it not introduL.1 the universal program.


with respect to risk~shaxing, The proposed fiormula contains
two elements ~ the flrfit relating to shag ng of exce
expenditures in the year in which they axq incurred,
second providing for a diminishing cumulative paym nt wi

ending incurred fin th g
year of the agr.ement. A detailed deQ*ription oi the formula
with illustrations was at oint pr releas

°tanCc Pian
obje _ Ljnq tho
provinclal aim of introducing morv effective and ncon,—; of C.I\.P. r:. jntI‘on‘u<:e:; changes 0: thi nature would b . ant with the concept for example, 01 increa: ‘ at 1 ‘ ostly instituLLona1 x of care to reduce uLil1.aL.on of acute care haspitals, 1 have now covr the ESSOD federal proposal. A d( led desc ption, xich th‘ federal contribution would escalate each included in the papers that were distzibuted_to you. Thin is the iederal proposal for determining the ' al support in the health , as submitted he the provinces under Cover of my letter dated April 18 and aa pr . on May 3 to the joint meeting of J-‘in;-m<:e and uczxlth Nlnlffl, ’ , As » ’ dated May 8, i believe the proposal now providus 3 full - aonud p0n$o to th( y 'n jpal concerns th * were pfoa , ed by <:(:«x‘1»x.Ln g<)\m.rnnu‘2nt. . ' that the npproacth inhtzru at in it appc to provide an 01 zatxonaljzing the i Jth care s)stem d of containing cost lation w.\.1'.h<>uL impair L 1.0 the qualit ‘ oi S(.:rViC(3S. The
use 0! the federal contributio
con r wxth the inLL)dUC ion of moze economical systemi 0;
health delxvery that will be {ac 11! >4 through the use of
thxust funds sfiwuld mgxe possible the achievement of that goal.

with regard to the financial implications, the proposal
or cours. i.clude$ the $6fi0 million thrust funds which would
be vailablc under .1 ting ax-xangcsnxonts. Se:.:onci1.y, our
nulculatiuns inqicatc that the basic 1 ieral contributiens
during the five year period ofi the ini al arrangement would
be nearly $500 million gr ‘V ‘ would he 1f P Jbtifig
axrangnments were retain casts of st .eab3e
COSL and axbumptions regarding G.N.1h V ormance ware expefiencQd_

per od up to l976~77 with respect to medical servir s and

up to 1975 with respect to hospital serv ces. Proj,ckions
beyond these ‘ y ‘ J by my Department and no .
to the proving , . . ‘
as well a the SL assumpL’ons con<. be 5; can 1231 t the Icxxoral 1 ‘oposal. puts funds iz\Lo the lie-alizh (.'I1)'( >11 1 during
of (.110 arrangexnent. .1 i: 1:: am xg thus p‘
be adj 11 Had to < 12,»; Lo )0 pr):-;.iI,:i,<;un whm <.-~ ient. and ' cw . “ czm witzh a A: a matter 01 L ct, w late that bution will escalate “L an approximate national of 11% pc annum during init1a1 period. thrust funds wi.l be available, and there is also the sharing provislon. M1‘. Chairman, I though I should mention these figures to emphasi that the Ledoral. prop«>.<.saIl. should not under any circumstanc be construed a a federal withdrawal of financial .-su‘r_>po.rt to Lhe hc« care: Lxeld.

the .pub_ _c
1 s_ummo_r of
_Cabin’_et min

_ falbnde,
p__r¢_>}_:~_os ls ..

_ Bk’1;:E1NG* 0
vr-21;: P0


a>_>.».L:5_n 15…?

E2 _ _

__ fixn

_ ha 2:. 3. £5 5

p;_1 m._;ru \
– (I; amnu

n?.bf;thé Q _, _

, Vex/en‘ houg
13:; gal lzihg J

_ .‘ “ w_fifi,mm

_m_~,c._m_S _

_m…,_u ou,w,_, «Au


_ v_r._m_.,mm~_ wumxmm _ ucwum,

_ _<_B .fi m__2.._.d ucm.%_r.n,om3w"n mymww __m in on. __ _ maxim www_nw_> W.L…od,% M5 _,w _,mww,wm _ _ _ __
, m _w«aB_ mu_§uwm._.._fi_.ampow _ _»um_mw_m,..Q._ a («E noun. ,w,£_u_w,M
_E,$e_.$m cofiwfiwmav mo uS8E<, E_.ofi.:%<__v3mnflmm_ Summary of Contents of Briefing Books ITEM 3 (a) (b) (c) (d) (e) ITEM 3 (a) (b) ITEM 3 The Black Book - THE FINANCING OT PO°T-SECONDARY EDUCATION TAB Notes for Remarks by Prime Minister A [21 Notes for Remarks by Mr. Faulkner Anticipated Remarks by Provincial Premiers Notes for Responses by the Prime Minister Quebec Claim about Loss of Revenue E under Present Program vis~a-vis other Provinces (i) (ii) Table for Percentage Increases in operating Expenditures - Present Plan and Proposed Formula Table of Estimated Values of Transfers under Proposed Conversion Formula (iii) (iv) Post~Secondary Education Fiscal Transfer ~ Estimated Cross—Overs The Yellow Book — DOCUMENTS ON FINANCING OF POST—SECONDARY EDUCATION Position taken by Federal Government at H the Federal-Provincial meeting of Finance, Health and Education Ministers, May 8, 1973 Federal Transfer of Resources to the I Provinces 1967-1974 The Green Book —— FYNANCING OF>_l>OS’1‘»~rSECONl)ARY EDUCATION“

“Financing Federal Aid to Post~secondary 4
Education” ~ Statement by federal Minister

of Finance, the Honourable John N. Turner,

May 8, 1973. (FP-4026)

Department of the Secretary of State news
release regarding proposed new formula for
aid to post-secondary education, May 8,
1973. (FP-4027)

“Historical Notes on Federal General
Support to Post-Secondary Education”,
Department of the Secretary of State,
May 7, 1973. (FP-4028)

Letter from the Secretary of State regardinq
the financing oi post—secondary education,
dated May 1, 1973. VFP—4029).

CON I-‘I L‘:l5l\’ T [A1,


1 would now liko to introduce the noxt topic
on our agenda. Financing of posl—5econdary oducatlon
is a subject whxch has lmportnnt impllcatlons lor
“ll of us around this table. IL 15 ulna n subje’t
which has impmrLant lmplicntxons lor the tuturu 01
this P0untry.. This 13 ospncaally true today, as we
approach fhn oxplry of the (13031 support measures

conceived seven years ago.

I take if that all First Ministers have reviewed
Ln detail with their own Ministers of Finance and
Minlstexn of Education the proposal whxch my colleague,
the Svcrotary of Statn, forwarded to all provincial

Ministers of Education some three weeks ago. As

.t much lntervst

wc all know, thls proposal difl not elic
when 11 was disrussed nl Lhn fodRral—provinc1al
conference held in Otinwa oarllor Lhls month by the

Ministers of Fxnance, Health and Education.

T regret this turn of events and I remain
oonvnnced that the proposal submitted to you on
behalf of the federal government by Mr. Faulkner
represents a responsible and realistic answer to the
neods of the sector, as W011 as to the Criticisms
which have been levelled against tho present
arrangements. 1 had hoped that provinces would see
in A favourable light thoso features of the proposal
what would leave each provincial qovvrnmcnt with
increased resources in the years ahead to respond,
according to its own judgement, to the challenges
that may bo in store in the complex world of higher


Let me recall Lhe Circumstances in which my
prvdrcvssor, Luster Pearson, uskwd Lho Parliament 01

Canada to nuLhor1zv thv prosvnL 5 ztvm oi fiscal transfers

in supporL of post condary oducntlon: a dramatic

‘ondary school

r150 in Canada’s populatlon of postm
age; university enrolments growing (aster Lhan ever
before; and the g9nera11y accepted belief that the
number of Canadlans seeking higher education would

double in less than a decado.

It is against this background that the government
of my prodvcossor fashionod a program dosxqned to
qroarly assist Lhv provincos to fjnnnch tho rapidly
rising demands tor post—seC0ndary hducation. This
was the commitmont oi the icdvral qovOrnmonL sovon
years ago and I feel cortaln there is general agreement
that the program introduced than accomplished its

[.>LU”p0S(.‘ .

we are prepared to remain committed to continue
support to the provincos {or nost—socondary education
and the proposal made at thv Finance and Education
M1nistors’ Conlvrenco, we {no}, is mnru that adequate
in this regard. As was Lndicdtnd, however, at that
meeting we are prepared to conL1nu0 the present
nrrnngcments for a few morv years 1f that is what most

provinces wish.

post—secondary sector, —now_ and in the-n‘ea.r_:£‘ ti ‘

18-24 will actually produL:4,= 21 nathionalayefzage ‘.
years of some‘ 9.4 per ceht per a,nn’um.‘_a‘s cépmp red .w3.

‘ élyigible ope ra ti ng e§q;$endi‘1:u ‘on _ po $3’t—ksec_ondSa{r‘y-

‘ éducation in ‘the last ‘year of”1;Iie ‘}t‘)x_‘esenL‘; p_ ogram.

wzbsizahlzially closer £0 par_ity in‘t;héir

‘ _mr:2<:-ts in full measure the argument, advanced By‘ _.1:; Hwy woro with tho .\<:tu;xJ <*xp<\!1<1iLx2,rr>._u‘ on -hjhgt


1 would be less; than ‘candid if I diazi hnyo
that 1 share with t_hc>—Prim€* Mihistor h’

at the un(:m.Ims_iastic respon::r—> g.i’\/(in to our‘

in this <:onf:<>.r‘<‘:nc‘e room th <5 ‘wc.>e_kr. ago. _ Tlwr

named to be an um;lerly.’L_r1g fooling’, _pc:rhap£: i;

question _if I had an indication of. the—;1_m<_:\1_xits -fchat the jnrovinces wouldjfiegard as aioprbpri: K AS I mentioned in my letter t._c_> _y<_>u:r-:Mi

of Education, an esca1_m:oi.’. of 7 per cent pézh armum

1n the federal cdntfibxztions during thejnex

the latest estimate-of a 7.9 per -‘cent in

, “Furthe1_rn1orz-2, i;‘o‘~r(«>duc(= the presént {iisphahitifles

among provinces, Q1‘ ten-year Jm/elling pr}0y.is_ibn ,

cont(—2mp.1atod. All prov_inc<.\s wohld 1;h:>ref9r§: ‘(k

.<.>ntit‘Jen\<>n1:s in the fifth year of 1;hc-:.coI_1‘\/z:§rt:e_d_

program. At that pointhalfof the dispfiritifis.

would have been corrected.

Let me conclude by saying thatkt11is‘p‘;ropo_sa’1h

::ornc2 provincz-.<:, that the prc?s;(}rxL arrungonleri ‘ K 1iIn‘l<<‘:~d“ cduc;\|‘jon, may have rvprosonted a pr(=:

n } hig

education. If you believe that onr pfoposnl doe‘ n

not meet your wishes,-we are prenared Eextondo

present arrangeménts,-withoutymoditicaiion;.for”

I would now,_Mr.:Pr;mc Minister, épbreciaiekhé

the views of the firovinces on this sul

Novas #03 RE_ ists av THE kxxmaimrnlsv _I0 ékcvincxni car 375

efence of Nuns
kg ue_nts*__a’9ainst_the edera
‘an{wer8 ‘_!“a1‘s‘ed V 3/‘ the

rguments might :be —;:1ass’ed _n.

the ‘fin_ancing‘_of_ ppstésecondary‘ _e
ofprovincial governnhents, _T_he_se__ V

– _—dz’sa_gre’ement_s about nfc>v~ma;ion uxnderlyihg theies
_— Ljhe federal ——pw7opo‘sa3vm_ each_—_p V ‘
._ ~ the,;princip1e,s’of‘the7s,ggges1;ed far

. Fog“ u bn E5121 ma

. _Tu‘r*n .
‘q_ _5_L1’oned-,the
The ‘popu1,at*1’, ,
in _‘our.fop__in‘§on.‘

guy-Q ~pv-nvidedfep serrt a masona
‘ Ix-~:F1’.gu‘r‘e ela”!:e_‘;tg;

f ” ~ , mjnjsi 5’quia5It1foy;ed
— the ‘1;as,e‘y _ ____1‘groposa1.r, The a‘r’gu_mentj
ycia} ‘gov_er5nm€n“c’s have, med _t‘o*’ho_1d’down post-seCondar,y~
‘ athuss; hat 19 374 r’epr:éSen_ts_.anj‘!abnormaI“year PI-t ,1‘
*year:s‘hofu1d r§ye_‘fe’:‘s‘~_the‘_base‘year ‘ .Using‘1973—‘74_ ,
the,_fe‘d_er _gov_e}*nn»e_nt‘ent_it’le_ment er*pev7son1’n’the‘18
. bresultslin thei_.high,e’st”pe’r’cap1. _ ‘—t1emeflt;in’—a]] _
_ . ,. th‘e_1rwst‘1ibe lxp
)i1’ch.th_e present pvfogranhas opera
re calcmated onf_a, per~fs_tud_ent b_a ‘

. happjy . .1 f. ‘gut? t1_emen1_;s we

1 = 4, Efiett éf,For¢igd Studénts and in’ A

– , 11; was ‘suggested hy pr_0_v_’irIc5_ T~xniniste‘r’;_
~did,‘not~c(m_sjiqer they (2 fact of fOf§_=’§g1I ;s‘tudc-nts __ ‘
~ H in‘s_ti_t‘utidns,r;the ‘nxobi ityof students abross -pray
‘ ‘ “s of pa:~_t~h‘iyje_stun of ‘for_e’2‘gn’_a’nd out—_of-prom’ cqstude ts
o_ epresent the ‘same‘proport_1’on as in the base


The _ red: of the Bropg

Contl butions;to-each

.secdndary’Eduq t;o

and Nova scoti
~advahtégeou$ pas;
‘extent of $200 mi

N va sdotia miuist
, for these c1aimS is
. The prcposéd fédera
‘ I 9.4 per ¢ent5na

.. —P°[—
§7.9 per cent 1n the

-better po$ition
~ Studies, _H§w
‘ c oose,p§rt:time

_ ~—While 1
rechlléd t t
that the,ag
postésecdndary le

_ _ _ erLa;n—H¢al£h_ I C
the Health Program to the Post-Seéondary E ucatlon Frog am

Bxtractxng from the base yea
‘and nursing eduéation costs V,
eJ’gib1e for 005 yshating unae;
Eaucat16n‘Prog am.‘ Th $“ ‘ ,
.part_6over £he $a1ar’

support_$taf and éd


k _M£,-Turner!s response-are incl dad
‘ _briefing book under Tab 4. ‘ —

fl_tténsfer to a per Capita baa
jMay 1, 1973 letter to Pzoyi

.w¢réfattached.t0 Mr)“
‘ is in the general (green) bfieflng be

Highesf Province ,s

_—. —._ 5 Mr, Mill r ‘Manitofia Educ
oi the CQunc;17o E _ ion M’ st
to thé May ’ A

secondary fi
equalized t

be highest proyin

-1 deral Offer

The federal profioSal‘tO éofiv¢ft

showing the value of the poSt—seCo déry tr

_’”yBJECT: :Téb1é;ofi_Percefitdg
– ‘ ~‘Trahsfers.;o Pro ‘

,_‘:Ihe ncféases_
the~first_co1umn; by
0 two fac _r5‘~ th

Séc}*ét‘ary‘ o Stat







p.m.~_.Sm_p L I. _ . ,R-u§ V V _
_ _ A , _mw,om_o_»_u_,w_m=_fo+__mn go_mw_,_m__f_wm_m_:€___
S om _.,mm_ouo.&_ .635 m.,mw…:,m_.c.__

.3 22«._wm:m_,m~m%.w §>zo 8,:
V H ,mTm§ o*_J.$2 ,S2_%…, L

_ pos’r ‘ECOI‘\ID’AkR!(.,.iEDliCA\’I‘ on. .
PRESEN ‘rAxz;=o1N:rs.)


The Black Book

ITEM 4 — Regional Economic Development TAB
(a) Introductory statement by the A
Prime Minister
(b) Statement by Mr. Jamieson B
(c) Anticipated Remarks by Provincial C


Regional Economic Development

(ii) Transportation and Freight Rates
(iii) Federal Energy Policy.
(dl Notes for Responses by the Prime D
(1) Regional Economic Development
(ii) National Industrial Strategy
(iii) Existing Industrial Sector
(iv) Philosophy behind IT&C Assistance
(v) Small Business Assistance
(vi) Tied Financing
(vii) GATT Multinational Trade
Negotiations-Provincial Involvement
(viii) Foreign Investment Policy
(ix) Transportation Freight Rates
(X) Federal Energy Policy

The Yellow Book

ITEM 4 — Documents on Regional Economic Development

(a) Summary Record of Industry, Trade J
and Commerce Conference.

(b) The “Multi—Dimensional Approach” K
to Regional Economic Development

(C) Industrial Assistance Programs K

(d) Table showing Manufacturing Activity K

by Province by Program (1970)

(e) R&D Assistance by Province by K
Program (1971-72)





The Yellow Book (cont’d)

Small Business Assistance

Federal Policy on Foreign

Transportation and Freight Rates

Federal~Provincial Relations in the
Energy Field

Federa1—Provincia1 Meeting of Mines
Ministers, April 13.

The Green Book



Excerpts from a statement by the federal Minister of Regional
Economic Expansion, the Honourable Don Jamieson, to the
Standing Committee on Regional Development of the House of

Commons on April 10, 1973.




This item has been included on the agenda to provide
an opportunity for discussion of a variety of matters which
are, directly or indirectly, associated with regional economic

One of the basic goals of federal and provincial
governments over the last several years has been to ensure
that all regions of Canada participate as fully as possible
in the economic and social development of the nation. 1 think
also, that all of us would agree that this goal can only be
achieved by full co~operation between our governments. There-
fore, I welcome this opportunity to discuss the various
regional development policy issues that are of concern to
all of us.

As you know, the establishment of the Department of
Regional Economic Expansion in 1969 stemmed from a determination
on the part of the federal government to attack the problems
of regional economic and related social disparities in an
integrated way. Since then I believe real progress has been
made. For example, the recently renewed vigour of its economies
of the Atlantic provinces and Quebec give evidence that the ‘
special efforts of the federal and provincial governments are
beginning to have a positive effect. Regional economic
disparities, however, have persisted over a long span of years
and it is not reasonable to expect that they will be eliminated

All provinces are aware that we have been reviewing
our regional development policies over the past year and that
Mr. Jamieson is now carrying forward discussions with provincial
governments on the approaches to be taken for the future.
I feel certain it is the hope of all of us that these discussions
will result in more effective regional policies which will be
beneficial not only to the lower income regions but to the
economy as a whole.

Our review of the economic circumstances across
Canada suggests that development of economic opportunities
in every region can add to the total wealth of the nation,
encouraging closer interregional ties and mutual support.
we are therefore suggesting to gll_provinces that we work
co—operatively to identify those areas in which growth lags
behind economic and social potential and take concerted action
to develop that potential. It is our hope that through such
actions, regional development policies and programs will
contribute to the attainment of high levels of employment all
across the country.


1 am Coniident that working together will make
it possible for both orders of government to contribute
with maximum effectiveness to the development oi opportunities
in the various regions of Canada. The process cannot be
expected to be an easy one and there will be occasions on
which Lhere will be disagreement on priorities or methods.
IL is our hope, however, that by dlscu sion and co~operation
we will find that in m it situations a concerted approach
will load to the greatesL poasible benefit for the citizens
we seek to serve.

zit Lhis point you t n call upon Mr. Jamieson to
give a report on his consultaL.ons with the provinces and to_
expand on Lhe points mentioned in your introductory remarks;/

.it in the way most bnnefi cial to the nation


‘_hav¢ had an opportunity_fio meet with Ministers of s_x

‘quickly to a continuous process by which our gover)m n

.development. Experienco of the past four.yoaro-an8_th

1 The Prime Minister has already referred to phé ncedkfor

~A£Jantic provinces and eastern Quebec wh to empioy

hincnmos are suhstant

no-was won comwncms BY ‘mz~: HOXJO(}RABL‘E’DOn1:’JAM1 son”

’:)_Ii_R13GI<)NAL ECONOMIC bnvgohrarin - The Prime Minisoer has indi¢ated~£he_impo tance_ hich‘ ‘—k this government athaches to regional Qconom o and our renewed and.strengthaned commitmént_ o disparities among tho roqions of Canqda. The irsn Over the push year-regional ocnnom of the federal government have huon_under_intonsive‘rév To a considerable extent, the review process has b a éerios of working papers which were provldcd to 111 early this month. As you know, a process of_conop1ta_;on f now underway with all provinces. Prior to thié conf rénc and look forward Lo meeting with tho romaxningnptovinceo n week. The consultation which is now beginning will{ develop a cooperative and concerted approéch to r( conducted as part of our policy review suggest that pol_cip contribute to the atfiafnment of economic and éociai Kb‘ of each province and to the strength, indopondenc of lift» of (‘.m:ul:; n:,: .r wholn. siqnificnnt arena of tho Canadian economy which app,ar to need special government action to develop their economic pofiéntia increased efforts in economic development in areas su illy below notionnlfi ;uIr)i.t,_i-or: I.0:(l1(‘S§‘- :1 rural and northern areas of Ontario; Albexta and~ r t1‘h Colfimbia -a few major bontres fend go become mdré x m fie -Ways can be found in which regional 5 onomic can asisaist in achievincj ‘:cconomic grnwth. real contribution to total de§e1opment in‘C f—:belieVe that dcyelopment_ifi ofie part of Canad ‘n gébgraphica11y‘s¢léqtivé economié s£.mfilafiioh‘ a —the essential elements in economic policies aes _emp1‘oynu2nt in a $o<:i(2t:y i:J1£ir:1c1'.orizr>.d luv‘ ‘roasoyna

_isolation from other national economic pdlici

‘hationél policies gbverning°fiéca1, monetary,

_5i_gnifJ’,cant part; of an effective regional deVe‘;L‘opii1ent.po’lic‘y‘
must he an ability to identify regional‘
‘with ,1 c1o:1rL>17 und(:rsl,umh’nq of timzsc impnc

,—_1|,j 1,31,‘! In ad jm;I In n.’H i<_m.‘1l gm) icfiix-:4 I45 .u‘hi_«-v- importance in the coming years if SaskatCh£:wa_h, E<:0n_omic_ forces at work both w.ithj_,_n tended to ‘re_j.rLfor<:e*akpa€t:érfi of grdv cohcéntratibn in a few major Centre.%.-‘ In‘ ‘geography ithese gézntterns‘ of growth téfiglkyflp. on _rural and smalier urban <:omrn\;nJ'l_ by great distances from centres of re‘1pid 'gr_ow, 3. In ‘our discussions d\ the coming‘k§iionkth_S ::at:t.~1' balance "in, one (SI. the basic l.}.:he('.s of_thc- prop‘o‘_sal‘ new rule $io‘n§kw.1'.th you ‘is 1-hat reqionnl ‘eponoaninz deveinoment. expense of another paft. ‘' indeed, -effective 1rie¢h_ all"Ce‘:u1:1ii.i.ax1s ‘with ‘the oppr)flflmit;y yfor uéke ulk stab.i.1i.ty. Regional «acdnomic devc-: 1opment policies <_:;n)nb activity in any patt Qf Céinada operates ,with_in'_h_ c_n e_ in {EM 1»-«3u>II:: 1)! (,’.m.:-I.) ur in £.xI;nI:’:ul~~«”l i\‘/«gnu
,|L7(7(1Iv|xI|1)A( :10 Hm v.xri.xl‘iun ‘Ha an-ayi,m\.‘z.l‘ ‘

that .-._1 n ‘:,\1″—foc_t:jv<- rug i,m1:d dx~\u§}«w; _t:— w_i tn j K Who process of'con$u1tation—with_the.provin¢é$ now ‘ will, 1 hope, establish a oontinuihq_meoh —cial governmenfis. ‘It.seems clear, however, tha k_of much greater impact. equally clear, however, that the coordination of federal god ppovincial Policies and programs will be ossontinl i£ Sign is to be made in_fe§iona1 UoyelopmonL,: Th. releyant to economic develofiment cuts across-ju _so1c ;oha;:. lines and is constantly_chahgihg throuoh eimehanqe ‘ of opportunity ho another._V K K ‘with these oonsifierétions in mind {he ofiooess‘ regional development policies_is beihg oarried oh w; deoree of pgrticipation by ahdkconsu1tatioh‘Wi@h ho departments responsible for the various eéonomi policies and proqramo o£_bo£h‘1ovals_of govc nme t to bear upon spoci£ic_oppb:tunities for eoohomfio , affecting elow-gfowthiareasf K K I I I believe that the firocess o£‘§overnmeh€L1 K 'stimulate regional eoonomio growth mfisfi be cont dimensional and flexib;e; Some of.the proorese can no effort between the fedérél and provinuiai gov coordinated way to limitedgbut agreed objectiv s, K ‘K: . of’ the Depé {the 'region.a jNoT1?:s ‘FOR Rasiéousrzs rm _ ‘ " o2mu»:a1oNAL‘.12coNoMI,c DL ELDPM in need of ' 1 _p'os_s_;ib'.1y ‘_'r_epl moms‘ FOR mzspomsxzs‘ _ * NA'r_1omAL ‘mnusawz 2. ,Wb$t1wor§Uis_being I strategy for. a ada . é§QQY. n;ngs‘depend1ng ‘It has many dif 'talks_to._, :_qoTz~:s 3022 § voxészé _ Existing lndu ‘Responses "Some of th :have‘been_develop _process‘of'be’ ws:— _§uiE and Pag htm _ 3fetIime’n’t 5
:m‘_ C ada

. 1‘!
‘uss_e _ _ y,_:Ca_b not no de i_
g n’e1-_al_agreyen\ n

NOTES ‘wok Rgspoaisss _R;M_;i ,
GATT M_ULTINAT_IO,N_A_L _:vRAnE—’_mseou~1 ‘

sfiment‘ Reviem “Bi m;u1r.1nc_;
to the pivovinc-<2 Cone‘ n¢:d*za'x1y‘ i -be“-inve.stor~. rid A’ _.byr,=,:_r_t‘ ‘ 1 ‘bed fig. _h1.pped or :'the. governn suppdm fig‘ _ntfr‘gy ‘:1 ads] [/show_more]

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