Premiers demand true partnership in federalism and want an end to federal funding with strings attached
The recent Premiers’ Council of the Federation meeting in Halifax had a bold new tone. Instead of begging for federal handouts, they talked about rejecting them. Is this the start of real change?
During the meeting, the Premiers expressed intense frustration over the lack of federal support and partnership in healthcare, which remains their top priority. This frustration comes just four months after Quebec signed its own side deal with the federal government, finalizing details from last year’s $196.1 billion healthcare funding agreement.
Since the Council was formed in 2003, meetings have centred on money and control. Provinces want more federal money with less federal control, while the federal government wants more control and to pay as little as possible. This year, discussions seem to have gone beyond funding to address deeper frustrations.
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Alberta Premier Danielle Smith highlighted the provinces’ rejection of federal funding for boutique programming, noting that provinces end up funding the “lion’s share” of operational costs. Historically, provinces have grumbled but accepted federal funding – bribes designed to build unaffordable programs – with one exception.
The final pillar of medicare, the Medical Care Act of 1966, came with an offer from the federal government to fund 50 percent of medical services through a new ‘social development’ tax. This tax would increase regardless of whether provinces accepted the new funding. Ontario Premier John Robarts criticized this move, calling it “the greatest Machiavellian fraud ever perpetrated on the people of Canada.”
The current group of Premier rejects federal bribery cloaked in the constitutionally questionable use of federal spending power. If they stick together, the provinces can neutralize federal power. The federal government is aware of this dynamic, which might explain why it used “side deals” in the 2023 federal-provincial funding agreement mentioned above.
In fairness, not all funding is bribery. It hinges on how it is structured.
Nova Scotia Premier Tim Houston, Chair of the Council, sent a letter to Justin Trudeau on behalf of the premiers, calling for “true partnership to revitalize co-operative federalism in Canada.”
A true partnership, according to Peter Block, an organization development expert, includes an exchange of purpose, the right to say no, joint accountability, and absolute honesty. This means provincial and federal leaders should meet to build a shared purpose before planning new programs. Each party should have the right to stop plans, share accountability for performance, and be honest about resources and intentions.
True partnership captures the essence of what federalism was meant to be in Canada. Federalism provides a foundation for negotiation, not a power play for forcing governments to take actions they otherwise wouldn’t.
In his book American Covenant: How the Constitution unified our nation – and could again, Yuval Levin makes a similar point about the American Constitution. It exists to facilitate peace and co-operation despite diverse interests. Though different from American republicanism, Canadian federalism serves the same purpose – peace and compromise, not power and force exerted by one government on another.
The Premiers’ call for “true partnership to revitalize co-operative federalism in Canada” will require compromise from all parties. We cannot tolerate one level of government wielding power over the other. Governments must embrace true partnership, or Canadian federalism will become a charade.
The Premiers have taken the high ground and asked for change.
Will Justin Trudeau listen?
Shawn Whatley is a physician, past president of the Ontario Medical Association, and a Munk senior fellow at Macdonald-Laurier Institute. He is the author of When Politics Comes Before Patients – Why and How Canadian Medicare is Failing.
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