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Ottawa, February 12, 2004
2004-010

Minister Introduces An Act Respecting Equalization and Authorizing the Minister of Finance to Make Certain Payments Related to Health

Minister of Finance Ralph Goodale introduced legislation in the House of Commons today to protect the continuity of payments to Canada’s Equalization-receiving provinces and to allow for the payment of $2 billion to the provinces and territories for health care from 2003–04 revenues, as announced at the January meeting of first ministers.

"We have taken the necessary steps to ensure that an additional $2 billion from this year’s surplus will be available to provinces for health care," said Minister Goodale. "This legislation is the logical next step in that it provides the necessary authority to make that money available."

The legislation allows the Government to transfer the $2 billion to the provincial and territorial governments as a supplement to the  Canada Health and Social Transfer.

This $2-billion supplement is in addition to the $34.8 billion over 5 years announced in support of the 2003 First Ministers’ Accord on Health Care Renewal, which was subsequently confirmed in Budget 2003.

The Equalization program is renewed every 5 years, following discussions with the provinces. On October 23, 2003, the Government tabled an amendment to ensure that the Government of Canada continues to have the authority to make Equalization payments in the event that renewal legislation, currently under discussion, has not been passed when the current legislation expires on March 31, 2004. This amendment is now being re-introduced. This precautionary measure will be superseded by the passage of full renewal legislation, which will be retroactive to April 1, 2004.

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