Okalik: Premiers back the North

IQALUIT — Except for the only government that counts, Paul Okalik and his two territorial counterparts have won the support of every government in Canada.

Nunavut’s premier emerged from last week’s premier’s conference in Victoria, B.C., in an effervescent mood, saying Canada’s provincial leaders understand Nunavut’s infrastructure-funding problems better than ever before.

“I’m very happy with the outcome. It’s probably the best so far that I’ve attended,” Okalik said.

The only problem is that the federal government isn’t part of the consensus that Canada’s 10 provinces and three territories reached Aug. 3.

Premiers agreed that Ottawa should increase its health contributions from 14 cents to 18 cents for every dollar spent on health care in Canada, a demand that federal Intergovernmental Affairs Minister Stephan Dion rejected immediately.

But Okalik is still pleased with Ontario Premier Mike Harris, who agrees that Ottawa’s “per capita” method of calculating its infrastructure contributions doesn’t generate enough dollars for northern and remote regions of Canada.

“Mr. Harris was very clear throughout the conference that per capita funding does not work in terms of infrastructure,” Okalik said.

Okalik said Harris showed “real statesmanship” for agreeing to changes in federal funding formulae that would correct this inequity.

“They’re willing to make a concession to the North by losing a bit of funding, because they understand that when it comes to per capita funding of any program, the North does not get their share,” Okalik said.

Under federal shared-cost funding schemes like the Canada infrastructure program, Ottawa transfers a given number of dollars per person to each province and territory.

“I’m very happy with the outcome. It’s probably the best so far that I’ve attended.”
— Premier Paul Okalik
on last week’s provincial-territorial premiers meeting

This works well for heavily populated provinces like Ontario, but produces much less for the northern territories or the Atlantic provinces.

Ottawa’s tool for transferring health money to the provinces, the Canada Health and Social Transfer program, or CHST, works the same way.

That’s why Nunavut will only receive an extra $2-$3 million a year from last year’s social union announcement, under which Ottawa increased the amount of health money it transfers to the provinces and territories.

British Columbia Premier Gordon Campbell, the chair of the conference, highlighted the per-capita issue in a statement made at the end of the gathering.

“An equitable approach to infrastructure development and infrastructure planning must recognize that the capital funding formula that has been in place in the past does not provide for the needs of our northern and remote communities,” Campbell said.

Early indications are that Ottawa isn’t impressed with the premiers’ work.

Okalik said he wonders what it will take to convince Ottawa that Nunavut needs more money for infrastructure and health care.

“The most populous region in the country is willing to offer up a portion of their funding and sacrifice their own projects. When they’re offering that, what else can the federal government do?” Okalik said.