NEWS RELEASE
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NEWS RELEASE |
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Ref: 850-068/004
1998 Western Premiers' Conference
Yellowknife, Northwest Territories - July 2-4 1998For Immediate Release
July 3, 1998
COMMUNIQUÉ Northwestern Ministers' Report on Northern Economic Development
At the 1996 Western Premiers' Conference, Premiers agreed that western provinces and territories shared common concerns and interests relating to the northern economy. Recognizing that economic benefits from northern development must accrue to and remain in the north, the Premiers committed to establish a forum of Ministers with responsibility for northern economic development. Ministers were directed to develop a work plan for action on issues affecting northern economies, to be forwarded to the 1998 Western Premiers' Conference.
Premiers reviewed the Northwestern Ministers' Status Report for the period October 1997 - June 1998 and endorsed the following key recommendations:
- an action plan is needed to ensure completion of electronic highway infrastructure and that more attention be focused on the potential use of the Internet in northern business, as proposed by the Yukon on-line forum;
- northern trade corridors must be improved and affordable access provided to northern ports such as Prince Rupert and Churchill;
- there is a need for co-operative efforts to expand trade and tourism promotion; and
- a long term framework should be developed for improving and expanding northern roads.
As recommended by Northwestern Economic Development Ministers, Premiers also expressed their opposition to the federal government on any proposed changes to the NavCanada fee structure which would have an adverse impact on northern communities.
Premiers reaffirmed their support for the territories in their call for the federal government to transfer greater control over resource management and development to the territories. The territories need greater control of their resources in order to develop the north's economy in a way that is responsive to northern priorities, reduces dependency, increases efficiency and provides opportunities for the rapidly increasing young population. Premiers also supported the Yukon and the Northwest Territories in their call to receive adequate resources from the federal government to complete the devolution process and to manage their new responsibilities.
Finally, Premiers directed that the Northwestern Economic Development Ministers provide a status report on new and existing initiatives at the 1999 Western Premiers Conference.
Renewal of the National Infrastructure Program
Western Premiers once again reaffirmed their unanimous support for renewal of the national infrastructure program. Premiers agreed the program should be at least equal in value to the original program and have an emphasis on investments in strategic initiatives and transportation infrastructure, to enhance competitiveness and long-term employment growth and stability.
They noted that the Prime Minister recently commended the original program as one of the most important accomplishments of his government in its first mandate. Premiers also noted that it had served as an excellent model for the kind of cooperative partnership approach they believe should be followed in overall relations among the federal, provincial and territorial governments.
Premiers noted that Provincial and Territorial Finance Ministers have put forward an All Province and Territory Consensus Proposal to the Honourable Paul Martin. The consensus calls for a renewal of the program based on an October 1997 update of the Premiers' Proposed Guidelines for a New National Infrastructure Program.
Premiers are united in recognizing that Canada's infrastructure requires renewal. It is widely understood that strong infrastructure is one of the keys to economic prosperity and a high standard of living.
It was agreed that a renewal of the national infrastructure program should occur immediately in order to ensure a smooth transition in following up and sustaining the success of the current program which is slated to end March 31, 1999.
Western Premiers agreed that the issue of renewal of the national infrastructure program should be discussed once again at this year's Annual Premiers' Conference in Saskatoon in August.
National Highways Program
Premiers reviewed and endorsed the National Transportation Investment Strategy, a report on key transportation issues prepared by the Western Transportation Ministers. They reaffirmed their governments' strong, continuing support for a National Highways Program to strengthen essential east-west and north-south links. They noted that Canada remains virtually the only major industrialized nation in which the federal government plays only a marginal role in financing highway construction and maintenance, even though it collects substantial revenue from federal fuel taxes. Premiers noted that the federal government raises over $5 billion per year in fuel tax revenue across the country. Of that $5 billion, the federal government only spends about $13 million in Western Canada across the four provinces and two territories.
Adequate highway infrastructure is essential to economic growth. Premiers called on the federal government to bring spending on transportation infrastructure more in line with revenues raised through fuel taxes.
Federal Grain Review
Western Premiers discussed the recommendations of Western Transportation Ministers and agreed that reforms to the grain transportation system should:
- establish an appropriate legislative and regulatory framework that promotes modern logistics practices;
- promote competition and producer choices in the grain handling and transportation system; and
- enhance accountability to improve overall performance from farm to customer.
Western Premiers emphasized the important role western cooperation has played through phase 1 of the review process, and agreed to continue to work together to advance western interests through the final phase of the review process.
Western Premiers also called for a standstill on rail line abandonment until the completion of phase 2 of the Estey Grain Review, so that all options relating to grain transportation logistics can be fully examined.
Comprehensive Review of the Canada Transportation Act
Premiers reviewed the Western Transportation Ministers' collaborative work in preparing for the federal government's comprehensive review of the Canada Transportation Act, anticipated to commence by July 1, 2000. Premiers agreed that western provinces should continue to prepare together for this review. They endorsed the Ministers' recommendations that western provinces work closely with western industry to conduct a joint government/industry study to monitor the impact of key provisions of the Canadian Transportation Act.
Transparent Borders for Trucking
Premiers reviewed the status of the Western Transportation Ministers' work to support the efficiency of trucking in western Canada. Premiers agreed that further progress can be made in harmonizing weight and dimension regulations, and developing an appropriate regional approach to address permitting and compliance issues.
Premiers mandated the Western Transportation Ministers to continue management of this task and to report back if joint trucking initiatives have policy implications beyond the immediate transportation area.
Trade and Transportation Corridor Development
Premiers reaffirmed their 1997 Western Premiers' Conference statement that strengthening north-south highway links and promoting increased trucking efficiency would promote expanded trade with the U.S. and Mexico.
Premiers endorsed the joint western position paper on Trade and Transportation Corridor Development, directing that the paper be shared with other provinces and the federal government as a basis for discussing the development of a National Trade and Transportation Corridor program.
Financial Institutions
Premiers discussed the issue of the proposed bank mergers and the responsibility of the federal government to ensure that its decisions regarding the proposed mergers are in the best interests of Western Canadian consumers and small businesses.
Premiers acknowledged that in light of the proposed bank mergers it is necessary to chart a course of action that will ensure that Western Canadians continue to receive the best financial services available, be they rural or urban, large or small.
Premiers directed Finance Ministers, or other Ministers as designated, to examine the issues, problems and challenges for Western Canadians arising from a reduced competitive environment in the Canadian banking industry as a result of these proposed mergers.
Western Ministers will make recommendations on principles that should guide the federal government when assessing bank mergers. Premiers agreed to bring them forward to the Annual Premiers' Conference next month in Saskatchewan.
Youth Employment
Premiers restated their commitment to addressing, on a priority basis, the urgent problem of youth unemployment. They noted the progress made by the federal-provincial-territorial Forum of Labour Market Ministers. The Ministers' Four Point Agenda for Action on Youth Employment aims at:
- creating opportunities for all youth to develop the skills and knowledge needed for work;
- increasing work opportunities for youth;
- helping youth respond to the changing nature of work; and
- addressing the cultural and social barriers that may prevent youth from working.
Some examples of the strategies to achieve these goals are:
- reducing student debt;
- creating opportunities in trades, technologies and apprenticeable occupations;
- developing a strategy to encourage employers to support youth employees;
- develop social interventions to assist youth-at-risk; and
- improve labour market participation for Aboriginal youth.
There will be a further discussion on reducing student debt at the upcoming Annual Premiers' Conference.
Trade and International Relations
Premiers reviewed a number of issues related to trade and international relations. They noted that international trade agreements increasingly affect areas of provincial responsibility. Premiers reiterated their view that because of the direct impacts on the provinces, there needs to be a more formalized provincial role in international agreements.
While there have been some federal-provincial-territorial discussions on the formalization of a provincial role in international trade agreements, no agreement has been reached. Premiers called on the federal government to continue discussions with a view to reaching a formal agreement on provincial and territorial participation before the beginning of the new World Trade Organization negotiations in 1999.
Premiers cited the Kyoto Protocol as an area where a provincial and territorial role is critical. Climate change and actions to reduce greenhouse gas emissions could have sweeping impacts on the Western, Northern and Canadian economies.
Premiers noted that at the December First Ministers' Meeting there was a commitment to design a federal-provincial-territorial process to examine the consequences of Kyoto and provide for the full participation of the provincial and territorial governments in the assessment of the Protocol and the various implementation options open to Canada. Premiers urged Environment and Energy Ministers to continue their assessment of the Kyoto Protocol. Premiers stated that the federal government should not take a position on the ratification of the Protocol until the analysis of the costs and benefits are complete and until First Ministers have had an opportunity to discuss the implications for Canada. Provinces must have meaningful input into the development of Canada's negotiating position as Canada prepares for the next round of talks in Buenos Aires in November.
International Trade
Premiers reviewed Canada-U.S. trade issues and expressed concern about the continued U.S. threats to Canadian exports. Premiers urged the federal government to be vigilant and to take strong and expedient action to ensure that Canadian rights under international trade agreements are not compromised.
Premiers agreed the importance of Canada-U.S. trading relationship and the need for a long term strategy to strengthen this bilateral relationship. Premiers noted that encouraging exchanges of information and informed discussions in non-confrontational settings can go a long way in helping to reduce misunderstandings and bilateral trade disputes.
The issue of potential restrictive U.S. border entry and exit restrictions has provided opportunities for provinces to work with U.S. states to seek remedial measures. Premiers noted that the vital Canada-U.S. trade relationship would be seriously harmed by a new entry-exit control mechanism being considered by the U.S. Immigration and Naturalization Service. Delays of even a minute or two could be compounded to create lengthy waiting periods disrupting the efficient flow in the trade of goods and services and the cross-border movement of key personnel.
Western Premiers also called on the federal government to increase its efforts to engage Western Canadians on trade issues. In particular, Premiers directed Western and Territorial Ministers responsible for International Trade to work together to identify common interests and concerns and make recommendations on how to best advance these interests and concerns through upcoming international negotiations on the World Trade Organization, A Multilateral Agreement on Investment, and the Free Trade Area of the Americas.
Premiers agreed it is imperative that the federal government take immediate action to ensure that the United States and Europe abstain from further use of agricultural export subsidies in the short term and that Canada seek, through international negotiation, greater disciplines on the use and the eventual elimination of agricultural export subsidies.
Internal Trade
Premiers reviewed the status of efforts to reduce and eliminate interprovincial barriers to trade under the Agreement on Internal Trade. Premiers welcomed the significant progress achieved at the February, 1998 meeting of ministers responsible for internal trade, especially in the areas of MASH procurement and agreement on a work plan to reconcile extra-provincial corporate registration requirements.
Premiers acknowledged that the progress to date reflects their continued commitment to the Agreement on Internal Trade and pledged to continue their efforts to reduce and eliminate barriers to internal trade.
Premiers also reaffirmed their desire for effective provisions which ensure that governments within Canada do not engage in non-productive investment promotion activities and directed their Ministers responsible for internal trade to continue to examine potential improvements to the Agreement's "Code of Conduct on Investment Incentives".
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