Conservative finance minister Jim Flaherty announces new formula for federal health transfers at finance ministers' meeting in Victoria

Conservative finance minister Jim Flaherty announces new formula for federal health transfers at finance ministers' meeting in Victoria

A brief history of health spending

Federal health transfers continue to increase by six per cent a year, an unsustainable level currently three times the inflation rate

The federal budget document began with an ominous warning about deep cuts. Social programs, justice and corrections would be spared as much as possible, but no department would escape the knife.

The stark truth was revealed in a table of figures. Health care spending, the core of the Canadian state, was cut by 3.8 per cent in just the first year of the fiscal plan, as population and need continued to grow.

No, this is not from the Stephen Harper budget of April 2015, or any other in the last decade. It’s from the Jean Chretien budget of 1995, more than 20 years ago. That’s the last time anyone actually cut health care spending.

But wait, you may say. Didn’t I hear that Harper has slashed health care spending by $30 billion? Yes, you probably did hear the biggest, most brazen lie of this election campaign, either from the government unions that advertised it or the politicians who parrot it.

If health care really is everyone’s high-priority issue, as pollsters have long assured us, voters should at least know the facts.

After cutting provincial health and social services transfers for years to end the string of operating deficits that began under Pierre Trudeau and continued under Brian Mulroney, Liberal finance minister Paul Martin rose briefly to the top job.

In 2004, Martin staged meetings with premiers, emerging with what was billed as “a fix for a generation,” with federal health transfers to rise six per cent each year into the future.

The future for Martin’s government lasted only two years, as his minority was replaced with one led by Harper.

These galloping increases continued until the Conservative majority of 2011, after which then-finance minister Jim Flaherty came to Victoria to inform provincial finance ministers of the new plan. (I was there, and the joke was that this was as far from Ottawa as Flaherty could get without leaving Canada.)

The six-per-cent increases, by that time triple inflation, would continue for another five years. Starting in 2017-18, increases would be tied to economic growth, with a minimum hike of three per cent, still well ahead of today’s inflation. That remains the Conservative plan today.

All provinces east of Saskatchewan pitched a fit. Manitoba’s NDP finance minister termed it “un-Canadian.” Lefties immediately called it a cut, to which Flaherty replied that transfers to provinces would rise from $30 billion to $38 billion in 2018-19, and continue to grow after that.

In B.C., then-finance minister Kevin Falcon praised the long-term approach, acknowledging that health spending was ballooning to half of the provincial budget and had to be brought under control as baby boomers start to retire. B.C. has largely accomplished that, with spending increases below three per cent and health care outcomes that continue to lead the country.

As the current election campaign turns into the home stretch, Statistics Canada has announced a milestone. For the first time in history, the number of seniors exceeds number of children. This demographic shift is inexorable, predictable and must be addressed by whoever wins the Oct. 19 federal election.

NDP leader Thomas Mulcair is on record that he will scrap the Conservative formula for growth-based increases that he pretends are cuts, returning to six per cent every year while balancing the budget. Little detail has been provided on how this would be done.

Liberal leader Justin Trudeau announced in Surrey last week that he will ante up an extra $3 billion over four years for health care, and “sit down with the provinces immediately” to renegotiate, a rerun of Paul Martin’s political theatre.

Tom Fletcher is legislature reporter and columnist for Black Press. Twitter: @tomfletcherbc

 

Just Posted

RCMP thanked the public for assistance in finding Benjamin Archie, last seen in Princeton. (RCMP)
Missing Chilliwack man found safe and sound

The 80-year-old had walked away from his home in Chilliwack

.
Princeton’s Spotlight wins two provincial awards for excellence

Publisher takes first place for investigative reporting

Princeton GSAR responds 24 hours a day, 365 days a year. In 2020 the crew was called out 34 times, and members spent 721 hours on calls, and 683 hours training. Photo Princeton GSAR Facebook
Teen missing in Manning Park found after 24 hours

Young man spends night on mountain and survives with just a few scrapes

The COVID-19 cases reported over the week of May 30 to June 5. (BC CDC)
South Okanagan sees second straight week of 17 new COVID-19 cases

Summerland, Keremeos and Princeton all recorded no new cases

The Regional District of Okanagan-Similkameen has hired a new FireSmart coordinator. (Black Press file photo)
FireSmart coordinator named for Regional District of Okanagan-Similkameen

Kerry Riess will provide assistance to mitigate potential wildfire hazards

At an outdoor drive-in convocation ceremony, Mount Royal University bestows an honorary Doctor of Laws on Blackfoot Elder and residential school survivor Clarence Wolfleg in Calgary on Tuesday, June 8, 2021. THE CANADIAN PRESS/Jeff McIntosh
‘You didn’t get the best of me’: Residential school survivor gets honorary doctorate

Clarence Wolfleg receives honorary doctorate from Mount Royal University, the highest honour the school gives out

A million-dollar ticket was sold to an individual in Vernon from the Lotto Max draw Friday, June 11, 2021. (Photo courtesy of BCLC)
Lottery ticket worth $1 million sold in Vernon

One lucky individual holds one of 20 tickets worth $1 million from Friday’s Lotto Max draw

“65 years, I’ve carried the stories in my mind and live it every day,” says Jack Kruger. (Athena Bonneau)
‘Maybe this time they will listen’: Survivor shares stories from B.C. residential school

Jack Kruger, living in Syilx territory, wasn’t surprised by news of 215 children’s remains found on the grounds of the former Kamloops Indian Residential School

A logging truck carries its load down the Elaho Valley near in Squamish, B.C. in this file photo. THE CANADIAN PRESS/Chuck Stoody
Squamish Nation calls for old-growth logging moratorium in its territory

The nation says 44% of old-growth forests in its 6,900-square kilometre territory are protected while the rest remain at risk

Flowers and cards are left at a makeshift memorial at a monument outside the former Kamloops Indian Residential School to honour the 215 children whose remains are believed to have been discovered buried near the city in Kamloops, B.C., on Monday, May 31, 2021. THE CANADIAN PRESS/Darryl Dyck
‘Pick a Sunday:’ Indigenous leaders ask Catholics to stay home, push for apology

Indigenous leaders are calling on Catholics to stand in solidarity with residential school survivors by not attending church services

(Heather Lueck image)
Crash north of Enderby knocks out power, slows Highway 97A traffic

A witness shared images of a medical helicopter landing at the scene

The RCMP presence in Central Okanagan public schools is being reviewed by the board of education. (File photo)
RCMP presence welcomed in Central Okanagan public schools

Staff survey feedback overwhelmingly positive from students, staff and parents

Most Read