The Council of the Federation

OTTAWA, December 19, 2005 – Premier Ralph Klein, Chair of the Council of the Federation, wrote to the leaders of Canada’s major political parties to receive their parties’ official position on five outstanding priority issues:

1. Post-Secondary Education and Skills Training
2. Transportation
3. Role of Provinces and Territories in Canada’s International Activities
4. World Trade Organization Negotiations
5. Fiscal Imbalance

The text of the letter is attached.

The Council of the Federation believes that each of these five areas represents an important issue for Canadians, and that Canadians should know how each federal party intends to address these issues. The Council will make the responses it receives publicly available.

The Council of the Federation is comprised of all thirteen provincial and territorial premiers. It enables premiers to work collaboratively to strengthen the Canadian federation by fostering a constructive relationship among the provinces and territories, and with the federal government.

Text of Letter to the Leaders of Canada’s Major Political Parties:
(Liberal Party of Canada, Conservative Party of Canada, Bloc Québécois and New Democratic Party of Canada) signed by Premier Ralph Klein as Chair of the Council of the Federation, dated December 14, 2005)

Since December 2003, the Council of the Federation, which comprises the Premiers of all provinces and territories, has been working to address issues of mutual interest in a manner that enhances the strengths of the Canadian Federation.

The Council has identified a number of outstanding priority issues, and believes that it is important for Canadians to be aware of where the federal political parties and their leaders stand on these critical issues. As Chair of the Council, I therefore ask you to respond to each of these five areas below.

Post-Secondary Education and Skills Training

As Canada faces increasingly competitive forces from around the world, building and maintaining a highly skilled workforce will be essential to ensure Canada’s continued economic development and prosperity. To this end, the Council has identified post-secondary education and skills training, the cornerstones of Canada’s future prosperity, as a priority area of collaboration. Premiers Charest and McGuinty have already co-chaired a special meeting of provincial and territorial ministers responsible for post-secondary education, skills training and finance. The Council will also be hosting a Summit on February 23-24, 2006, that will engage a broad range of stakeholders as we consider the development of a Canada-wide strategy on the issue. It is our intention to invite each national party leader as an observer to the Summit. As part of our plan for moving forward, the Premiers would also like to meet with the Prime Minister in order to agree on a Canada-wide education and training strategy and an adequate level of federal funding through the Canada Social Transfer in order to collectively build a stronger, more prosperous future.

Do you support convening such a First Ministers Meeting on post-secondary education and skills training early in the new-year?

Transportation

The strategic importance of Canada's transportation system is key to provincial, territorial, regional and national productivity and international competitiveness. Despite substantial ongoing investment in transportation infrastructure by provinces and territories, Canada is facing a massive infrastructure challenge. To address this challenge, Premiers Campbell, Hamm and Handley have worked closely with all provinces and territories since August to develop a national transportation strategy. Under this strategy, the federal government would commit to timely action on policy and regulatory reforms that are needed in all transportation modes and reinvest unallocated federal fuel taxes to provide a stable and long-term core funding source for transportation infrastructure. A copy of the strategy, Looking to the Future: A Plan for Investing in Canada’s Transportation System, is enclosed for your information.

Do you support the Council of the Federation's proposal that the Government of Canada become a full partner with provinces and territories in the implementation of a national transportation strategy that is multimodal and inclusive of all regions?

Role of Provinces and Territories in Canada’s International Activities

The federal government is responsible for the conduct of Canada’s foreign affairs and signing international treaty obligations. Only the provinces and territories, however, can implement international obligations in areas of provincial and territorial jurisdiction. It therefore makes sense that provinces and territories have a significant and clear role in the development of Canada’s international position on areas within provincial and territorial responsibility. In this regard, despite the federal government commitment made in 2004 towards developing a federal-provincial-territorial agreement framework, provinces and territories are still waiting for results. Provinces and territories continue to support the development of a formal agreement with the federal government as a necessary step to provide clarity, certainty and continuity in their relationship with the federal government in Canada's international activities that affect provincial and territorial jurisdictions, responsibilities and interests.

What concrete measures would you take, and in what timeframe, to successfully complete the development of a formal federal-provincial-territorial agreement regarding the role of provinces and territories in Canada’s international activities that affect provincial and territorial jurisdictions, responsibilities and interests?

World Trade Organization Negotiations

Canada's economy is significantly dependent upon international trade; our continued prosperity and well-being depends upon continued and improved access to international markets. Provinces and territories are united in their commitment to the Doha Round of World Trade Organization negotiations and will continue to push for an ambitious outcome to these negotiations to ensure greater market access and a level playing field so that Canada can compete fairly and equitably in global markets. An ambitious outcome is the best way to ensure that Canada, and all other WTO members, will derive the maximum benefit from the WTO negotiations in all sectors.

Provinces and territories recognize that an ambitious result in the WTO negotiations holds the possibility for significant gains for Canadian exporters in all sectors, including export oriented agriculture producers. Provincial and territorial agriculture ministers have also strongly confirmed their support for the right of producers to choose to use orderly marketing systems.

What are your views on Canada's approach to the ongoing WTO negotiations and Canada's contribution to an ambitious outcome in these negotiations, including supply management?

Fiscal Imbalance

Significant structural deficits confront some jurisdictions while others have only recently shown progress in taming annual deficits. While the federal government will continue to run large surpluses in the years to come, provinces and territories will continue to be confronted with significant fiscal pressures. The Advisory Panel on Fiscal Imbalance has been tasked by the Council of the Federation to conduct an independent review of the factors underlying both the vertical and horizontal fiscal imbalances that exist in Canada and to recommend appropriate solutions.

Do you recognize the existence of structural fiscal imbalances, both horizontal and vertical, in Canada, and will you commit to working with provinces and territories to address this issue and to implement the necessary measures to resolve these fiscal imbalances?

As Premiers, we believe that each of these five areas represents an important issue for Canadians, and that Canadians should know how your party intends to address these issues. Accordingly, the Council will be making responses publicly available.

By advancing these priority areas, we believe that we are working to promote things that are important to Canadians: a strong economy, a skilled work force, effective transportation, sound coordination of policies and effective representation of Canadians’ interests on the international stage, and a fiscally balanced federation.

We look forward to your responses.

Yours truly,

Ralph Klein
Premier
Chair, Council of the Federation

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For more information:
Loretta O’Connor
Council of the Federation Secretariat
(613) 563-4066