Trudeau declines to make big boost in healthcare spending, says government needs to focus on pandemic

'There is a lack of certainty of what our economic situation, or even our health situation, might look like in three months, let alone in three years,' Trudeau said

Nationalpost.com
Dec. 11, 2020
Ryan Tumilty

Premiers looking for a big increase to federal health transfers left empty handed Thursday, as Prime Minister Justin Trudeau said he could not make specific commitments to help cover growing healthcare costs until the pandemic was over.

Trudeau met with premiers virtually throughout the day Thursday, with the subject of health transfers front and centre on the agenda. Premiers have pleaded with Ottawa in recent months, warning the pandemic was only further demonstrating the need for a big investment in healthcare systems across the country.

The prime minister said the government needed to get past the initial pandemic before it could make broader commitments to transfer billions of dollars to the system.

“There is a lack of certainty of what our economic situation, or even our health situation, might look like in three months, let alone in three years,” he said.

Under Trudeau, the federal government has steadily increased health care funding every year, but the provinces have argued it is not enough to keep with the burgeoning demand from an aging population.

Trudeau said the government needs to keep an eye firmly on the pandemic.

“Canadians recognize that right now we are in an unprecedented crisis and the priority needs to be supporting Canadians, right now, ensuring that our healthcare system has the capacity to support Canadians.”

“We recognize that our healthcare system needs fresh injections of federal funds.”

Quebec Premier Francois Legault, the chair of the Council of the Federation, came into Thursday’s meeting demanding Trudeau increase the federal health transfer by $28 billion immediately.

That figure would bring the federal government’s contribution to 35 per cent of healthcare spending, up from the current 22 per cent.

Legault said those requests fell on deaf ears.

“We were very disappointed with the answer of Mr. Trudeau who refused to discuss that right now,” he said.

Legault said despite the record deficits from the pandemic, the federal government’s balance sheet is in better shape than the provinces. He said Trudeau needs to boost the health transfer.

“The federal government will in the coming years be in a better financial position,” he said. “Federal government revenues are growing faster than the provincial government revenues.”

He said premiers suggested another meeting on the subject in January or February, but Trudeau was non-committal on that as well.

Trudeau was keen to focus on his government’s support during the pandemic citing that 80 per cent of the emergency financial supports has come from the federal government.

“The federal government has already covered the cost of millions of pieces of PPE and million of rapid tests,” he said. “Eight out of every $10 to protect and support Canadians through this crisis has been spent by the federal government.”

He said that funding had been delivered to the provinces without few restrictions on how it was spent and he wasn’t about to dictate terms to them.

“The job of the federal government is not to judge how the provinces are responding to the pandemic, our responsibility is to support them,” he said.

Trudeau said his government would continue to support the provinces including by covering the costs of the vaccine rollout.

“Not only will doses be free for Canadians, but provinces and territories won’t have to use their funding to pay for this vaccine.”

On the vaccines, Trudeau said news that vaccinations could start next week was welcome, but it was important to keep in mind that it would take time to vaccinate everyone.

“This is the good news we all needed, but remember this is only the first step in what will be a massive project over a long winter.”

Trudeau said he also discussed a national pharmacare system, the vaccine rollout and potential improvements to long-term care homes during the afternoon of meetings with the premiers.