Briefing book for the Minister of Intergovernmental Affairs - November 2019 to August 2020

[ * ] An asterisk appears where sensitive information has been removed in accordance with the Access to Information Act and Privacy Act.

Part A: Introduction and basic information

Ministerial responsibilities

As Minister of Intergovernmental Affairs, you support Canadian federalism and promote national unity by maintaining open and collaborative relationships with provinces and territories (PTs). In this role, you are a key interlocutor with premiers and ministers of intergovernmental affairs in the PTs. You also work with your federal colleagues to assess implications of, and exercise leadership on, policies and programs with a significant intergovernmental dimension. You speak to and meet with PT counterparts on a regular basis on a range of topics with intergovernmental implications (e.g., fiscal transfers, energy, and environmental policies) and work with responsible federal ministers to address intergovernmental considerations (e.g., acting as co-chair for the Atlantic Growth Strategy). You support the Prime Minister in hosting First Ministers’ Meetings.

You have other roles and responsibilities related more generally to Canada’s system of responsible and parliamentary government, including your role on Cabinet committees. These roles will be communicated to you by the Prime Minister. You can also find guidance related to your ministerial role in Open and Accountable Government 2019.

Role of the Intergovernmental Affairs Secretariat, Privy Council Office

You are supported in your role as Minister of Intergovernmental Affairs by the Intergovernmental Affairs Secretariat at the Privy Council Office. The Intergovernmental Affairs Secretariat provides strategic advice and support to you and to the Prime Minister in matters related to federal, provincial and territorial (FPT) relations, including on the Indigenous agenda, and providing strategic support on issues related to municipalities. This includes providing advice and preparing material to support you and the Prime Minister in your bilateral meetings with PT ministers and premiers and in meetings with municipal officials. The secretariat also works with colleagues at the Privy Council Office and other government departments to advance priority areas and ensure that PT considerations are properly reflected in the federal agenda. The Secretariat also works with PT partners, as required, to advance shared objectives.

The Intergovernmental Affairs Secretariat is also responsible for supporting you and the Prime Minister at First Ministers’ Meetings, in close collaboration with your office and the office of the Prime Minister, other secretariats in the Privy Council Office, and federal departments, as required, on both logistics and substance.

Your Deputy Minister is Christiane Fox. You can reach her at Christiane.Fox@pco-bcp.gc.ca or 613-996-4937 (office) or [ * ] (cell). Additional contacts that may be of assistance are:

• Louise Baird, Assistant Deputy Minister, Intergovernmental Relations (Louise.Baird@pco-bcp.gc.ca or 613-944-5432 (office) or [ * ] (cell))
• Carolyn Dittburner, Chief of Staff to the Deputy Minister (Carolyn.Dittburner@pco‑bcp.gc.ca or 613-996-3458 (office) or [ * ] (cell))

Key provincial and territorial contacts

Part B: Managing the federation and issues shaping the FPT agenda

Overarching fiscal and economic context

In 2018, there was modest economic growth in nine provinces and in all territories, with only Newfoundland and Labrador posting a decline. Growth eased to a more modest pace across all provinces in 2018, with much less divergence between oil-producing provinces and others. Provincial labour markets are generally healthy, with job creation recorded in all provinces so far in 2019. Most employment gains have been recorded in Ontario and Quebec, while the unemployment rate currently stands at or near historical lows in other provinces. For the past several months, Quebec’s unemployment rate has consistently been among the lowest in the country.

[ * ]

PTs are facing fiscal challenges to varying degrees. Ontario, Manitoba, Alberta, Yukon, and Nunavut are in budgetary deficit positions, while Quebec, Prince Edward Island, New Brunswick, Nova Scotia, and the Northwest Territories are projecting budgetary surpluses. Although a surplus is expected in British Columbia, the struggling forestry sector is a challenge for the Province. Newfoundland and Labrador is also projecting a surplus this year due to the upfront booking of a $2.5 billion revenue stream from the newly-signed Atlantic Accord [ * ]

For more detailed information on regional economies and regional economic development agencies, please see Tab E.

National unity: Western alienation

There is evidence of growing dissatisfaction in Western [ * ]. Recent surveys have shown that close to 80 per cent of those in Western Canada (British Columbia, Alberta, Saskatchewan, and Manitoba) feel ignored in national politics. Alberta and Saskatchewan lead the country in terms of discontent, with the lowest percentage of Canadians believing that being a part of Canada has been good for their provinces. Residents in these two provinces are also the least likely to support equalization and are the most likely to believe that their Province does not receive its fair share of federal spending. [ * ]

While both Premiers Kenney and Moe have repeatedly expressed concerns about the policies of the Government of Canada, particularly with respect to fiscal transfers, energy and environmental issues [ * ]

Challenges and opportunities for the mandate

The Government’s collaborative approach over the last five years, including five First Ministers’ Meetings and regular calls with premiers on Canada-United States relations and other issues, produced a solid record of results despite increased recent FPT tensions around some issues. Achievements included alignment on Canada-United States relations and trade, support for the middle-class and job creation, agreement on improvements to the Canada Pension Plan, focused regional collaboration (e.g., the Atlantic Growth Strategy), and the conclusion of several bilateral agreements transferring significant dollars to PTs in areas such as housing ($5.3 billion over 10 years), health ($11 billion over 10 years), early learning and child care ($7.5 billion over 11 years), labour ($1.8 billion over six years), and infrastructure ($33.1 billion over 10 years).

[ * ]

In areas such as economic development, there has been general FPT alignment on priorities and ongoing cooperation is expected to continue. PTs have also been successful partners in advancing the international trade agenda. [ * ]

Environment and climate change

[ * ] with Alberta, Saskatchewan, Manitoba, and Ontario [ * ]. New Brunswick had also been a staunch critic of carbon pricing, but following the federal election, New Brunswick Premier Higgs shifted his position, stating: “people voted for it, so we in New Brunswick have to find a way to make it work.” [ * ]

Of note, all five provinces are intervening in a Supreme Court of Canada appeal that is scheduled to be heard March 17 and 18, 2020 [ * ].

Natural resources/energy

The new Impact Assessment Act for major projects [ * ]. Alberta has launched a legal challenge of the Act, with Saskatchewan seeking intervener status in the case. [ * ]

There is positive collaboration with PTs in areas such as electrification, forestry, wildfire management and mining. On electrification, there is broad consensus on the value of increasing electricity exports across jurisdictions, modernizing infrastructure and bringing clean power to communities that currently lack access to electricity from emissions-free sources. In December 2018, First Ministers agreed to lead the development of a Framework for a Clean Electric Future and work to deliver on this commitment is ongoing. Regional work with Atlantic provinces and bilateral work with British Columbia on electrification is also underway.

Fiscal transfers, cost-sharing and compensation

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Internal trade

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Working with Indigenous and municipal partners in the FPT context

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Proposed strategic approach

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First Ministers’ meeting

First Ministers’ Meetings are called by the Prime Minister and are one of the ways to engage with PTs on areas of collaboration and priorities. Relationships can also be managed effectively through bilateral and multilateral (e.g., regional) engagement. Throughout the years, Prime Ministers have used First Ministers’ Meetings in different ways.

Prime Ministers Mulroney, Martin, and Pierre Trudeau tended to favour large, high profile First Ministers’ Meetings to negotiate agreements. Prime Minister Chrétien, by contrast, preferred more business-like meetings to bring closure to issues that had already undergone extensive intergovernmental work at the officials-level. Prime Minister Harper had a strong preference for fewer and more low-key, private meetings, which tended to focus on consultations with premiers on broad issues.

During his first mandate, the Prime Minister chaired five First Ministers’ Meetings between 2015 and December 2018, respecting the Government’s 2015 electoral commitment to host annual First Ministers’ Meetings. These meetings sought FPT agreement, such as for the adoption of the Pan-Canadian Framework on Clean Growth and Climate Change and served as consultations/information sharing and discussions on horizontal issues. They also provided a forum for First Ministers to signal areas of concurrence or divergence and from which lead FPT ministers would then continue negotiations at the sector-level. The most recent First Ministers’ Meeting was in Montreal in December 2018, and covered issues such as trade diversification and internal trade, clean growth and jobs, environment and energy. [ * ]

The last three First Ministers’ Meetings included national Indigenous [ * ]. A distinct meeting of First Ministers and leaders of the three National Indigenous Organizations (NIOs): the Assembly of First Nations (AFN), Inuit Tapiriit Kanatami (ITK), and the Métis National Council (MNC) on the margins of the three First Ministers’ Meeting has been employed since 2016. [ * ]

A First Ministers’ Meeting represents an opportunity to demonstrate the Government’s leadership and commitment to intergovernmental collaboration with an agenda focused on areas of shared FPT priorities. [ * ]

Early issues with PT implications

There are a number of issues to be addressed in the early days of the mandate. Although most will fall under the responsibilities of your cabinet colleagues, you may wish to offer your support on these files as a number will have PT implications.

Pollution pricing

Based on the results of an annual verification exercise that was recently completed, the Minister of the Environment will need to determine what, if any, changes need to be made to where the federal carbon pricing system applies [ * ]

Major federal transfers

By November 30, 2019, the Minister of Finance will need to finalize claims made under the Fiscal Stabilization program. [ * ]

The Finance Minister is also required to determine the amounts of the major transfers (e.g., Equalization, the Canada Health Transfer) by December 31, 2019. Since 2016, the practice has been for the Minister of Finance to communicate these amounts to PTs in early December, coinciding with the meeting of FPT federal Finance ministers. [ * ]

Immigration levels

Within the first 30 sitting days, the Minister of Immigration is required to report to Parliament the multi-year immigration levels plan, which is established in consultation with PTs. The Immigration Levels Plan establishes the number of permanent resident admissions across four immigration categories: economic; family; refugee; and, humanitarian programs. [ * ]

Housing bilateral agreements

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Early learning and childcare

This first round of Early Learning and Childcare bilateral agreements will expire on March 31, 2020.

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Part C: Provincial and territorial overviews

In the days following the recent federal election, the Prime Minister had short bilateral conversations with each of the premiers. [ * ]

The Prime Minister met with Prince Edward Island Premier Dennis King on November 7, Manitoba Premier Brian Pallister on November 8, and Saskatchewan Premier Scott Moe on November 12. Highlights of these meetings are included in the following pages. The Prime Minister will meet with Ontario Premier Doug Ford on November 22. At the time of writing, the timing of upcoming meetings with other premiers is to be confirmed but they are expected to take place before the end of December.

In all jurisdictions (with the exception of Quebec who has a dedicated minister) the premier is responsible for intergovernmental relations. [ * ]

The following pages contain information by jurisdiction on relevant context and recent interaction between the Prime Minister and premiers and known or expected views by provinces and territories on federal priorities and other key bilateral issues.

British Columbia

The Premier of British Columbia, the Honourable John Horgan, was elected on May 9, 2017.

Next election (fixed date): May 11, 2021.

Context

British Columbia’s New Democratic Party government took office in July 2017 with the support of the British Columbia Green Party, with which it signed a Confidence and Supply Agreement following the general election that May, in which no party won a majority of seats in the legislature. British Columbia remains in a strong economic and fiscal position, and Premier John Horgan’s government has generally sought to foster constructive relations with the Government of Canada across shared priorities, including infrastructure, housing, and Indigenous reconciliation.

[ * ]

Alberta

The Premier of Alberta, the Honourable Jason Kenney, was elected on April 16, 2019.

The next election will be held between March 1 and May 31, 2023.

Context

The United Conservative Party took office in May after winning a majority in the legislature in the April general election. Since then, Premier Jason Kenney’s government has filed constitutional challenges against federal carbon pricing and environmental assessment with the Alberta Court of Appeal. Stabilizing Alberta’s fiscal situation is a priority, following a prolonged period of economic challenges in the oil and gas sector. The provincial budget was tabled on October 24 and notably reduces program spending by a total of 2.8 per cent over the four years.

Premier Kenney wrote to the Prime Minister on October 22 to share his demands and positions on a number of issues: energy market access, resources corridors, C-48, C-69, climate change, fiscal fairness (Stabilization, EI), Equalization, CMHC stress test, internal and international trade, health care, Indigenous, state of the federation). [ * ]

On November 9, Premier Kenney announced the creation of a Fair Deal Panel to consult Albertans on how best to define and to secure a fair deal for Alberta. Chaired by Preston Manning, the panel will consider whether a number of measures would advance the province’s interests, including establishing a provincial revenue agency to collect provincial taxes by ending the Canada-Alberta Tax Collection Agreement, creating an Alberta Pension Plan by withdrawing from the Canada Pension Plan, establishing a provincial police force, opting out of federal cost share programs with full compensation, and seeking an exchange of tax points for federal cash transfers. The panel will consult with experts, hold open town hall meetings across Alberta, and undertake research to inform its recommendations which will be completed by March 31, 2020.

[ * ]

Saskatchewan

The Premier of Saskatchewan, the Honourable Scott Moe, was elected on April 4, 2016.

The next election will be held on October 26, 2020 (fixed date).

Context

The Saskatchewan Party government was elected to a third consecutive term in office in April 2016. Premier Scott Moe will lead the party in the next provincial general election on October 26, 2020. Following several years of challenges, particularly in the oil and gas sector, but also on account of price declines for potash and uranium, Saskatchewan brought its fiscal position back into surplus in 2019. Saskatchewan has consistently opposed the federal carbon pricing regime, and is appealing the Saskatchewan Court of Appeal’s decision in its reference case, expected to be heard by the Supreme Court of Canada in March 2020.

On October 22, Premier Moe issued a statement calling on the Prime Minister to cancel the federal carbon tax, commit to negotiate a new equalization formula that is fair to Saskatchewan and Alberta, and commit to develop a plan to ensure Saskatchewan and Alberta can get its exports to international markets, including pipelines. [ * ] Premier Moe wrote to the Prime Minister on October 30 following up on that call, providing more specifics on the areas of concern that he had identified.

The Prime Minister and Premier Moe met on November 12. They notably discussed market access (pipelines and agriculture), pollution pricing, fiscal transfers, and environmental assessment. [ * ]

Manitoba

The Premier of Manitoba, the Honourable Brian Pallister was elected on September 10, 2019.

The next election will be held on October 3, 2023.

Context

Premier Pallister was elected on September 10 and the Legislative Assembly resumed sitting on September 30. On September 18, Premier Pallister unveiled his government’s 100-Day Action Plan which plans to move Manitoba forward to lower taxes, better services and a stronger economy. He directed his ministers to fulfill this plan by December 20. The plan is notably aimed at reducing taxes, and made investments in health care and education. On October 4, 2019, Premier Pallister wrote to all federal party leaders asking for their commitment to federal partnership and action on a range of priorities, including internal trade, health care, climate change and clean energy, infrastructure and reconciliation.

[ * ]

Ontario

The Premier of Ontario, the Honourable Doug Ford, was elected on June 7, 2018.

The next election will be held on June 2, 2022.

Context

Premier Ford was elected in June 2018 and he continues to prioritize reducing the Province’s debt, red-tape reduction to foster investment and create jobs, and growth in its export sector. In the April 11, 2019 Ontario budget, the province outlined planned spending reductions in post-secondary education, child and social services, justice, and Indigenous affairs, reflective of the government’s stated commitment to invest in health care, primary and secondary education, and infrastructure. The province has set out a five-year path to a balanced budget and has required Ontario to prepare an annual debt burden reduction strategy. On November 6, 2019, Ontario released its Fall Economic Statement, which reaffirms the government’s commitment to balance its budget by 2022-23 through prudent fiscal management while making strategic investments in critical public services, and strengthening the conditions for job creations. The Fall Economic Statement outlines capital investments of $144 billion over ten years and proposes to reduce the province’s small business corporate income tax rate to 3.3 per cent from 3.5 per cent, starting on January 1, 2020. Ontario is also proposing to reduce the aviation fuel tax rate in Northern Ontario to 2.7 cents per litre from 6.7 cents per litre.

[ * ]

Quebec

The Premier of Quebec, Mr. François Legault, was elected on October 1, 2018.

The next election will be held on October 3, 2022.

Context

Premier Legault was elected in October 2018. On November 28, 2018, he read the opening address at the National Assembly. Premier Legault stated that the new government he leads promotes inclusive nationalism, with the primary goal of ensuring Quebec’s economic development within Canada, while proudly defending its autonomy, language, values and culture. He stated that Quebec is a master in its own house in its areas of jurisdiction. Premier Legault established the top priorities that will guide the actions of his ministerial team: education, the economy, health, culture and the environment.

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New Brunswick

The Premier of New Brunswick, the Honourable Blaine Higgs, was elected on September 24, 2018.

The next election will be held on October 17, 2022.

Context

Premier Higgs was elected in September 2018 and leads a minority government. He has focused on establishing balanced sustainability for the province’s finances, energizing the private sector, making public health care accessible and dependable; building a world-class education system; and providing sustainable social services.

[ * ]

Prince Edward Island

The Premier of Prince Edward Island, the Honourable Dennis King, was elected on April 23, 2019.

The next election will be held on October 2, 2023.

Context

The minority government of Premier King was elected in April 2019 and is focused on political collaboration and an economic development strategy focused on skills development, entrepreneurship, innovation in farming, fishing, and tourism, investment in strategic regional infrastructure. With the Green Party as the Official Opposition, the environment and climate change are also area of focus.

[ * ]

Nova Scotia

The Premier of Nova Scotia, the Honourable Stephen McNeil, was elected on May 30, 2017.

The next election is expected sometime in 2021.

Context

Premier McNeil was elected in May 2017 and has focused on opportunities to sustain the province’s momentum. Priorities include reducing barriers for entrepreneurs who want to start new businesses; reducing inter-provincial trade barriers; and developing Nova Scotia’s role to drive inclusive economic growth and strategic economic infrastructure. A key priority of Premier McNeil is to ensure Atlantic Canada becomes more globally connected. Towards that end, he has been pursuing a direct air route from China to Halifax. Nova Scotia has also shown leadership on the internal trade file, consistently challenging provinces and territories to accelerate progress.

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Newfoundland and Labrador

The Premier Newfoundland and Labrador, the Honourable Dwight Ball, was elected on May 16, 2019.

The next election will be held in or before 2023.

Context

Premier Ball was elected in May 2019 and has emphasized the importance of collaboration, given the province’s minority government, and a commitment to return to surplus through sound fiscal management. Broad priorities – identified as “fundamental areas where every member of this House of Assembly can work together” – include job creation, education, the development of resources in an environmentally sustainable manner, better access to health care, and action to empower women and girls.

[ * ]

Yukon

The Premier of Yukon, the Honourable Sandy Silver, was elected on November 7, 2016.

The Yukon Legislature will expire on November 14, 2021 (no fixed date legislation).

Context

Yukon’s population has grown faster than any other Canadian jurisdiction over the past decade. The territory’s labour market is among the strongest in Canada and is experiencing record low unemployment rates, combined with a lack of skilled labour. The Eagle Gold Mine is the first of several expected to go into production in the coming years, fuelling Yukon’s forecasted economic growth.

[ * ]

Northwest Territories

The 2019 Northwest Territories general election was held on October 1, 2019.

Caroline Cochrane was sworn in as Premier on October 25, 2019.

The next election will be held in 2023.

Context

Premier McLeod, who served in the role since 2011, did not seek re-election in the Northwest Territories general election on October 1, 2019. Electoral outcomes were marked by a high rate of Members of the Legislative Assembly turnover and a historic representation of women elected to the Northwest Territories’ 19th Assembly. Select priorities of the 19th NWT Legislative Assembly include: settle and implement treaty, land, resources, and self-government agreements; implement the United Nations Declaration on the Rights of Indigenous Peoples; advance universal child care by increasing availability and affordability; reduce the municipal funding gap; increase the number of affordable homes and reduce core housing need; and increase food security through locally produced, harvested and affordable food.

[ * ]

Nunavut

The Premier of Nunavut, the Honourable Joe Savikataaq, was elected on October 30, 2017.

The next election will be held no later than October 2021.

Context

Premier Savikataaq has prioritized expanded in-territory supports for mental health and elder care, and has called for major investments in infrastructure and housing as part of his government’s focus on achieving a higher standard of living for Nunavummiut.

[ * ]

Part D: Issue sheets

Energy, environment and natural resources

Electrification

Issue

Pan-Canadian, regional and bilateral initiatives underway to promote the use of clean electricity.

Background

Nearly 80 per cent of Canada’s electricity is generated from emissions-free sources such as hydroelectricity, nuclear, wind and solar. However, electricity accounts for only 20 per cent of Canada’s overall energy use.

Increasing this share, including by converting industrial processes from fossil fuels to hydroelectricity and switching heating systems from high-emitting sources to electricity will help Canada reduce its greenhouse gas emissions. Opportunities also exist to modernize Canada’s electric grid, deploy smart grid technologies, improve infrastructure and build interties between jurisdictions that offer the potential to reduce costs and bring clean power to jurisdictions that currently lack access to electricity from emissions-free sources.

To help drive this transformation, pan-Canadian, regional, and bilateral work is underway. In December 2018, First Ministers “agreed to lead a discussion on the development of a framework for a clean electric future, including hydroelectricity, aimed at using clean, reliable, and affordable electricity and to promote access to domestic and international markets.” A progress report has been developed and collaborative work with provincial and territorial (PT) counterparts continues.

At the regional level, federal ministers and Atlantic premiers agreed to develop a Clean Power Roadmap for Atlantic Canada in March 2019. The Roadmap is intended to complement the Framework by outlining a collective vision for how Atlantic provinces can collaborate over the coming decades to build a clean power network across the region. The Government of Quebec and Hydro-Québec are also participating in this work.

Bilaterally, the Government of Canada and the Government of British Columbia signed a memorandum of understanding in August 2019 to support the electrification of the Province’s natural gas sector. In addition, Budget 2019 provided $18 million over three years to support planning by the Government of the Northwest Territories for its proposed Taltson hydroelectricity project, which is intended to reduce the Territory’s reliance on diesel-generated electricity.

Platform commitments

• Move forward with new clean electricity generation and transmission systems, in partnership with PTs and others.
• New $5 billion Clean Power Fund sourced through the Canada Infrastructure Bank’s existing resources, which will support electrification of industries and Indigenous communities.
• Work with Indigenous communities and move forward with investments that will see all Indigenous communities off diesel and instead powered by clean, renewable, and reliable sources of energy – such as hydro, wind, and solar – by 2030.

Provincial/territorial considerations

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British Columbia is interested in supporting the electrification of its natural gas sector. The August 2019 memorandum of understanding between the federal government and the Province calls for the establishment of a Canada-British Columbia Power Planning Committee, with a focus on: a CleanBC Facilities Electrification Fund; the Bear Mountain to Dawson Creek Voltage Conversion project; and, the North Montney Power Supply project. The memorandum of understanding also states that participants are examining $680 million in near-term electrification projects for joint funding, subject to necessary financial approvals by each participant.

[ * ]

Energy projects

Issue

Provincial and territorial (PT) views on specific energy projects such as the Trans Mountain Expansion (TMX) project, Energy East, and an LNG Canada facility in Kitimat, British Columbia, as well as positions on the idea of establishing national energy/economic corridors.

Background

The TMX project will twin the existing Trans Mountain pipeline, a 1,150 kilometre pipeline that carries crude and refined petroleum products from Edmonton to Burnaby, British Columbia, and expand the Westridge Marine Terminal in Burnaby. The project will nearly triple the capacity of the system, from approximately 300,000 barrels per day to 890,000 barrels per day.

In April 2018, the owner of the pipeline, Kinder Morgan, announced that it was suspending all non-essential work on the project. In the associated press release, the company stated “…that under current circumstances, specifically including continued actions in opposition to the Project by the Province of British Columbia, it will not commit additional shareholder resources to the Project.”

In May 2018, the Government of Canada announced that it had reached an agreement with Kinder Morgan to purchase the TMX and related pipeline and terminal assets for $4.5 billion.

In August 2018, the Federal Court of Appeal quashed the Government of Canada’s previous approval of the project in November 2016. The ruling found that the National Energy Board (NEB) had erred in its decision to exclude consideration of the environmental impact of project-related marine shipping and that Canada has failed to properly execute its legal duty to consult with Indigenous Peoples.

The Government of Canada subsequently instructed the NEB to reconsider its recommendation in support of the TMX project by taking into account the environmental effects of project-related marine shipping and relaunched consultations with Indigenous groups, appointing former Supreme Court of Canada Justice Frank Iacobucci as a Federal Representative to oversee the consultation process.

In February 2019, the NEB published its Reconsideration Report and recommended that the project be approved, subject to 156 binding conditions. The NEB also made 16 recommendations related to marine shipping.

In June 2019, the Government of Canada announced that it had approved the TMX project for a second time and that all revenue from the project would be invested in Canada’s clean energy transition. The same month, the Government of Canada announced an engagement process for Indigenous communities seeking an economic stake in the project. Linda Coady, former Chief Sustainability Officer of Enbridge Inc., was appointed to lead an associated advisory committee.

Energy East was a proposed project to transport crude oil from Alberta and Saskatchewan to delivery points in Quebec and New Brunswick. The project consisted of new pipeline and pipeline-related facilities, as well as plans to convert existing pipeline facilities from natural gas service to oil service.

In October 2017, TransCanada informed the NEB that it would no longer be proceeding with its Energy East application, citing factors such as regulatory delays and “changed circumstances.”

In October 2018, LNG Canada announced a $40 billion investment to build liquefied natural gas project in Kitimat, British Columbia. The project will include a natural gas liquefaction facility, a pipeline and a marine terminal to export surplus Canadian natural gas to emerging markets.

The project represents the largest private investment project in Canadian history. As part of the announcement, the Government of Canada provided $275 million in federal support. The project also has the support of the Government of British Columbia.

Platform commitments

• Invest every dollar that we earn from the TMX project in Canada’s clean energy transition. 
• Ensure energy workers and communities can shape their own futures by introducing a Just Transition Act, giving workers access to the training, support, and new opportunities needed to succeed in the clean economy.
• New $5 billion Clean Power Fund sourced through the Canada Infrastructure Bank’s existing resources, which will support electrification of industries and Indigenous communities.
• Move forward with a new national benefits-sharing framework to ensure that Indigenous communities directly benefit from major resource projects in their territories.

Provincial/territorial considerations

While PTs share the goals of responsible resource development, increasing Canadian competitiveness and reducing regulatory barriers, divisions exist on the merits of specific energy projects, as well as on the transportation of crude oil more generally.

[ * ]

In July 2019, the Council of the Federation issued a communiqué reaffirming that “robust energy transportation and transmission is critical to supporting Canada’s competitiveness, and a strong, sustainable and environmentally responsible economy.” The premiers also noted that some premiers expressed concern with new federal laws, such as the Impact Assessment Act and the Oil Tanker Moratorium Act, fearing that they would “severely affect Canada’s global competitiveness and its ability to reach growing new markets.”

On economic corridors, the Council of the Federation called for “…further discussions on pan-Canadian economic corridors, both east-west and north-south, to increase productivity by distributing energy, communications, and economic potential currently locked in a single province or territory to other jurisdictions.” [ * ]

Next steps

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Environmental assessment

Issue

The environmental assessment process for major projects and recent changes made through the Impact Assessment Act, the Canadian Energy Regulator Act and the Canadian Navigable Waters Act (formerly known as Bill C-69).

Background

In February 2018, Bill C-69 was tabled in the House of Commons, which proposed the following changes:

• Impact Assessment Act: establishes a single Impact Assessment Agency responsible for assessments; adds new early planning and engagement phases; updates the project list that defines what types of projects are subject to a federal impact assessment; establishes processes for Indigenous and public engagement; and, sets legislated timelines of 300 days for Agency-led impact assessments and 600 days for panel reviews.
• Canadian Energy Regulator Act: replaces the National Energy Board with the Canada Energy Regulator and makes changes in five areas: modern and effective governance; enhanced certainty and more timely decisions; more inclusive public engagement; greater Indigenous participation; and, strengthened safety and environmental protection.
• Canadian Navigable Waters Act: introduces new protections on all navigable waters; includes safeguards intended to provide greater transparency; and, provides opportunities for local communities to give input on projects that could affect navigation.

[ * ]

In December 2018, Bill C-69 was referred to the Standing Senate Committee on Energy, the Environment and Natural Resources. In its final report, presented to the full Senate in May 2019, the Committee recommended a total of 188 amendments. Of these, a total of 99 amendments were ultimately accepted by the House of Commons, either with or without changes. These amendments were focused on areas such as: clarifying Ministerial roles and Ministerial discretion; enhancing public participation and transparency; and, clarifying economic considerations and the role of regional and strategic assessments.

Bill C-69 received Royal Assent on June 21, 2019 and came into force on August 28, 2019.

Provincial/territorial considerations

A number of jurisdictions continue to have strong concerns with the new impact assessment regime.

In June 2019, the premiers of Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick and the Northwest Territories wrote a joint letter to the Prime Minister where they state that Bill C-69 “would make it virtually impossible to develop critical infrastructure, depriving Canada of much needed investment.” The premiers also criticized Bill C-48, now the Oil Tanker Moratorium Act, which prohibits oil tankers carrying more than 12,500 metric tons of crude oil from stopping, loading/unloading at ports along British Columbia’s north coast. In their letter, the premiers stated that Bill C-48 “threatens investor confidence, and the tanker moratorium discriminates against western Canadian crude products.”

Similar concerns were raised at the Council of the Federation meeting in July 2019. In a communiqué issued on economic competitiveness and responsible resource development, it notes that some premiers felt that laws such as the Impact Assessment Act and the Oil Tanker Moratorium Act “…severely affect Canada’s global competitiveness and its ability to reach growing new markets.”

In September 2019, the Government of Alberta filed a reference with the Court of Appeal of Alberta, challenging the constitutionality of Bill C-69. In a statement announcing the legal challenge, Premier Kenney characterized the legislation as “a flagrant violation of the exclusive constitutional jurisdiction of provinces and territories.” The Government of Saskatchewan has indicated that it will intervene in support of Alberta.

In May 2019, Premier Kenney appeared open to supporting Bill C-69 provided that all 188 amendments put forward by the Standing Senate Committee on Energy, the Environment and Natural Resources were accepted. In an open letter sent by Premier Kenney and all three Alberta opposition leaders to Senator Peter Harder on May 23, 2019, they wrote: “while we remain concerned about the overall spirit of Bill C‑69, we believe that with the inclusion of all these amendments, that the bill would be acceptable to the interests of Albertans.” [ * ]

Newfoundland and Labrador and Nova Scotia have previously emphasized the importance of ensuring that the joint management principles outlined in the Atlantic Accords are upheld under the new impact assessment regime. In June 2019, the Newfoundland and Labrador House of Assembly passed a resolution that calls on the Province to “take all reasonable measures, including Court challenges where necessary, to safeguard – against conflicting federal legislation – the hard-won joint management rights that Newfoundland and Labrador secured under the 1985 Atlantic Accord and its implementing legislation, and to refuse to enact any provincial law that will erode those rights.”

[ * ]

British Columbia is the strongest provincial or territorial proponent of the new impact assessment regime. Shortly after the Impact Assessment Act received Royal Assent, the federal and provincial governments finalized the Canada-British Columbia Impact Assessment Cooperation Agreement. Under the terms of the agreement, the Government of Canada and the Government of British Columbia would conduct cooperative impact assessments for projects that require an impact assessment by both levels of government.

Next steps

[ * ]

Climate change

Issue

Pan-Canadian and federal action to mitigate and respond to the effects of climate change.

Background

In December 2016, all First Ministers except Saskatchewan and Manitoba endorsed the Pan-Canadian Framework on Clean Growth and Climate Change (PCF). Manitoba subsequently adopted the PCF in February 2018. [ * ]

The PCF includes more than fifty actions and is intended to outline a collective plan to reduce emissions, grow the economy, and adapt to a changing climate.

One element of the PCF is pricing carbon pollution. In October 2019, it was announced that the federal fuel charge would apply in Saskatchewan, Ontario, Manitoba, and New Brunswick, effective April 1, 2019. These jurisdictions did not develop their own carbon pricing systems that met the federal benchmark. In June 2019, it was subsequently announced that the federal fuel charge would take effect in Alberta on January 1, 2020, stemming from the Province’s decision to repeal its own carbon levy. The federal fuel charge for large industry – the output-based pricing system – took effect in Ontario, Manitoba, Prince Edward Island, New Brunswick and partially in Saskatchewan (covering the electricity and natural gas transmission pipeline sectors) on January 1 2019.

Any direct proceeds from pricing carbon under the federal system were returned to the jurisdiction where they were collected. The majority of proceeds were returned to residents in the form of Climate Action Incentive rebates, with the remainder going to support other affected sectors.

Provinces and territories (PTs) that adopted the PCF had access to $1.4 billion of funding through the Low Carbon Economy Leadership Fund, intended to help jurisdictions reduce their greenhouse gas emissions. An additional $500 million was made available through the Low Carbon Economy Challenge to support initiatives led by provinces, territories, Indigenous communities, municipalities, businesses and not-for-profit organizations. In November 2018, it was announced that the remaining portion of Ontario’s Low Carbon Economy Leadership Fund allocation (up to $420 million) would be redistributed directly to Ontario institutions and businesses, as a result of the Province’s decision to cancel its climate action programs supported by the Leadership Fund.

A further commitment in the PCF was a pledge to develop a clean fuel standard to reduce emissions from fuels used in transportation, buildings, and industry. The federal government previously announced that regulations setting requirements for liquid fuels, such as gasoline and diesel, would come into force in 2022 and regulations covering gaseous and solid fossil fuels would come into force in 2023.

Through the Paris Agreement, Canada has committed to reducing its GHG emissions by 30 per cent below 2005 levels by 2030, to a level of 513 megatonnes (Mt) of CO₂ equivalent. [ * ]

Platform commitments

• Exceed Canada’s 2030 emissions goal by introducing new carbon reducing measures. Strengthen existing rules to cut emissions from Canada’s biggest polluters, including oil and gas.
• Additional $1 billion investment over the next decade in the Disaster Mitigation and Adaptation Fund.
• Invest every dollar we earn from the TMX project in natural based climate solutions and clean energy projects.
• Set legally binding, five-year milestones, based on the advice of the experts and consultations with Canadians, to reach net-zero emissions by 2050.
• Cut the corporate tax paid by companies that develop and manufacture zero-emissions technologies by 50 per cent over the next three years – from 9 per cent to 4.5 per cent for small businesses, from 15 per cent to 7.5 per cent for larger businesses.
• Retrofit 1.5 million homes, over the next five years, to help Canadians make their homes more energy efficient and better protected from climate-related risks, like flood damage and wildfire.
• Plant two billion trees over 10 years, as part of a $3 billion plan to use the power of nature to help fight climate change.

Provincial/territorial considerations

PTs are divided on the urgency of climate change, as well as the policies that should be adopted in response, with carbon pricing remaining the most polarizing issue.

Saskatchewan and Ontario both filed reference cases with their respective Courts of Appeal, supported by New Brunswick, challenging the constitutionality of the federal Greenhouse Gas Pollution Pricing Act. In both cases, the Courts of Appeal found the Act to be constitutional. Saskatchewan and Ontario have since appealed their respective cases to the Supreme Court of Canada.

[ * ]

The Saskatchewan and Ontario cases are tentatively scheduled to be heard by the Supreme Court on March 17, 2020 (Saskatchewan) and March 18, 2020 (Ontario). [ * ]

Despite these tensions, other aspects of environmental policy continue to have broad support across jurisdictions. These include support for climate change adaptation, energy efficiency and the development and commercialization of clean energy technologies.

Next steps

[ * ]

Plastics

Issue

Federal, pan-Canadian and international action to reduce plastic waste.

Background

Each year, Canadians discard over three million tonnes of plastic waste, with 89 per cent ending up in landfills and incinerators. According to an economic study commissioned by Environment and Climate Change Canada in February 2019, this represents an estimated $7.8 billion per year in lost value.

At the federal level, the Government of Canada announced additional actions to reduce plastic waste in June 2019. Specific commitments included:

• banning single-use plastics as early as 2021 (such as plastic bags, straws, cutlery, plates, and stir sticks) where supported by scientific evidence;
• taking other steps to reduce plastic pollution from plastic products and packaging; and,
• working with provinces and territories (PTs) to introduce standards and targets for companies that manufacture plastic products or sell items with plastic packaging.

Through the Greening Government Strategy, the Government of Canada is also taking action to better manage the use and disposal of plastics in its own operations, including by setting a target to divert at least 75 per cent of plastic waste from federal operations by 2030.

In collaboration with PTs, a Canadian Council of Ministers of the Environment (CCME) Zero Plastic Waste Strategy was approved in November 2018. The strategy sets an overall vision for reducing plastic waste in Canada with a focus on: preventing plastic waste; collecting all plastics, including through clean-up, so they are channelled back into the economy; and, recovering value from all plastics.

The first phase of an associated action plan, focused on the strategy’s first five result areas, was approved by federal, provincial and territorial (FPT) environment ministers in June 2019. The second phase of the action plan, focused on the remaining five result areas, is expected to be presented to the CCME for endorsement in July 2020.

Internationally, the Ocean Plastics Charter was developed during Canada’s G7 Presidency and has since been adopted by 19 governments, as well as 57 businesses and organizations. The Charter outlines a number of targets and commitments related to zero plastic waste, including:

• 100 per cent reusable, recyclable or – where viable alternatives do not exist – recoverable plastics by 2030;
• increasing recycled content by at least 50 per cent in plastic products where applicable by 2030;
• recycle and reuse at least 55 per cent of plastic packaging where applicable by 2030 and recover 100 per cent of all plastics by 2040; and,
• reducing use of plastic microbeads in rinse-off cosmetics and personal care consumer products, to the extent possible by 2030, and addressing other sources of microplastics.

During Canada’s G7 Presidency, Canada also became a signatory to the Global Ghost Gear Initiative, which is focused on solving the problem of lost and abandoned fishing gear worldwide. In support of this commitment, the Government of Canada announced up to $8.3 million for a new Sustainable Fisheries Solutions and Retrieval program in August 2019. The program is intended to support fish harvesters, environmental groups and coastal communities retrieve ghost gear from the ocean and dispose of it responsibly.

Platform commitments

• Take steps to ban harmful single-use plastics.
• Move forward with new standards and targets for businesses that manufacture plastic products or sell items with plastic packaging, to make sure they take full responsibility for collecting and recycling their plastic waste.
• Move forward to further strengthen Canada’s Environmental Protection Act.

Provincial/territorial considerations

Despite differences of opinion in other areas of environmental policy, reducing plastic waste remains an area where there is broad support across jurisdictions.

[ * ]

In June 2019, the Government of Ontario appointed David Lindsay, President and CEO of the Council of Ontario Universities and former provincial Deputy Minister, as a Special Advisor on Recycling and Plastic Waste. In August 2019, based on the recommendations of Mr. Lindsay, the Government of Ontario announced that it would be transition the costs of the Blue Box Program to producers by 2023. By December 31, 2025, producers will be fully responsible for providing blue box services across the Province.

In July 2019, Prince Edward Island became the first jurisdiction to implement a province‑wide ban on single-use plastics bags. Newfoundland and Labrador, Nova Scotia and Manitoba have since followed suit by implementing, or announcing their intention to implement, provincial bans of their own. British Columbia is currently holding public consultations that could result in a similar ban.

[ * ]

Municipalities have also been active players, with many having introduced bans and other measures aimed at curbing plastic waste. In July 2019, a ban on single-use plastic bags imposed by the City of Victoria was overturned by the British Columbia Court of Appeal, on the grounds that the British Columbia Environment Minister is required to sign off on bylaws that deal with environmental protection. In September 2019, the City of Victoria announced that it intends to appeal this decision to the Supreme Court of Canada.

Over the past two years, plastic pollution has been the subject of five Federation of Canadian Municipalities resolutions. Among other requests, these resolutions have called for national strategies to: eliminate plastic pollution in Canada; address marine litter; and, educate Canadians on the long-term consequences of plastics.

Next steps

[ * ]

Species at risk

Issue

Application of the Species at Risk Act (SARA), including recent measures to protect southern mountain caribou, boreal caribou, the western chorus frog, and the greater sage‑grouse.

Background

The purpose of the SARA is to: prevent wildlife species from becoming extinct; provide for the recovery of wildlife species that are threatened as a result of human activity; and, manage species of special concern to prevent them from becoming endangered or threatened. Recently, particular attention has been placed on efforts to protect the habitat of southern mountain caribou, boreal caribou, the western chorus frog, and the greater sage-grouse.

Budget 2018 provided $1.3 billion over five years for a Nature Legacy Initiative. Of this, $500 million was provided to establish a $1 billion Nature Fund aimed supporting the protection of Canada’s ecosystems, landscapes, and biodiversity – including species at risk.

In September 2019, the Government of Canada announced that it is investing up to $7.6 million in 52 projects aimed at protecting and recovering species at risk. These projects were intended to complement ongoing species at risk conservation efforts in 11 priority places identified by federal, provincial and territorial (FPT) governments.

Southern mountain caribou

Southern mountain caribou, located in British Columbia and a small portion of Alberta, were listed as a threatened wildlife species under SARA in 2003. The current southern mountain caribou population is estimated to be approximately 3,800 caribou, a decline of 35 per cent from 2014. This decline is largely attributed to habitat alteration, destruction and fragmentation, primarily as a result of industrial activities such as forestry and mining. The majority of critical habitat is located on non-federal land, where the provincial governments of British Columbia and Alberta have the lead responsibility for its protection.

The Government of Canada, the Government of British Columbia and the West Moberly and Saulteau First Nations have been working collaboratively to develop a Partnership Agreement geared towards supporting habitat conservation, while mitigating potential socio-economic impacts in the Peace River Regional District of northeastern British Columbia.

[ * ]

A Leaders’ Forum – composed of Chiefs, Mayors, Chief Executive Officers from impacted natural resource companies and Deputy Ministers from the federal and provincial levels of government – is expected to be held in fall 2019, geared towards minimizing socio-economic impacts, while meeting caribou recovery objectives. The aim is to complete the Partnership Agreement in the fall/winter of 2019-20.

Boreal caribou

On boreal caribou, the species was listed as threatened in 2003 and a SARA recovery strategy for the species was published in 2012. This was followed by a federal action plan released in 2018. Unlike southern mountain caribou, which are concentrated in two provinces, boreal caribou can be found in nine provinces and territories (PTs), extending from Yukon to Newfoundland and Labrador.

In recent months, work has been undertaken to negotiate conservation agreements with PTs where boreal caribou reside to accelerate the development of range plans and support recovery actions.

[ * ]

Western chorus frog

On the western chorus frog, an emergency order was issued in July 2016 to protect the species in an area situated in the Bois de la Commune in La Prairie, Quebec. The emergency order places prohibitions on certain types of activities and is intended to address imminent threats to the recovery of the species.

[ * ]

Greater sage-grouse

On the greater sage-grouse, an emergency order was issued in February 2014, which imposes restrictions on the species’ habitat in southeastern Alberta and southwestern Saskatchewan.

[ * ]

Platform commitments

• Conserve and protect 25 per cent of Canada’s land and 25 per cent of Canada’s oceans by 2025, working towards 30 per cent in each by 2030.

Provincial/territorial considerations

Responsibility for the conservation of species at risk is shared by FPT levels of government. PTs are largely responsible for the protection of terrestrial species on non‑federally administered lands, while the federal government is responsible for the protection of terrestrial species on federal lands. Under SARA, there are also instances where the Government of Canada can protect critical habitat on non-federal land in specific circumstances.

British Columbia remains focused on finalizing a Partnership Agreement with the Government of Canada for the protection of southern mountain caribou. [ * ] In addition to the Partnership Agreement, the Province is also investing $50 million over five years (2017-2022) to develop a provincial Caribou Recovery Strategy. Central to the strategy is the development of herd plans that will outline how land will be managed to protect and recover caribou habitat.

There has been strong collaboration between FPT levels of government to develop conservation agreements for the protection of boreal caribou. As of October 2019, final agreements have been reached with: Saskatchewan, Quebec, Newfoundland and Labrador, Yukon, and the Northwest Territories; agreements in principle have been completed with Alberta and Manitoba; and, a draft agreement has been completed with Ontario. Agreements in principle have also been finalized with the Cold Lake First Nations and negotiations with the Mikisew Cree First Nation and the Athabasca Chipewyan First Nation are ongoing.

[ * ]

In June 2018, FPT Ministers responsible for parks, protected areas, conservation, wildlife and biodiversity “agreed to continue to advance progress in transforming species at risk conservation in Canada that will achieve multi-species and ecosystem benefits, without losing sight of single species recovery, by focusing our collective conservation efforts on priority places, species and threats.” Ministers also agreed to a new set of principles to guide collaborative work.

Next steps

[ * ]

Forestry

Issue

Challenges facing the forestry sector in British Columbia, softwood lumber and pan‑Canadian collaboration on forestry and wildfire management.

Background

In 2018, Canada’s forest sector contributed $25.8 billion to Canada’s GDP and provided 210,615 direct jobs.

The British Columbia forestry sector is currently facing challenges, owing to factors such as low prices, Mountain Pine Beetle infestations, record wildfire seasons and restrictions on the land base for habitat requirements.

[ * ]

In response, the Government of Canada announced the Softwood Lumber Action Plan in June 2017, a package of $867 million to support workers, communities and industry affected by the duties.

Canada has also initiated a total of five NAFTA Chapter 19 and WTO challenges related to U.S. softwood lumber duties.

In 2018, Canada exported $10.4 billion in softwood lumber, of which $7.6 billion went to the United States. It is estimated that U.S. duties have cost Canadian softwood lumber producers over $2 billion to date.

On wildfire management, Budget 2019 provided $33.8 million over five years to Natural Resources Canada help increase resilience to wildfires, as part of a broader effort led by Public Safety Canada to strengthen disaster management preparation and response.

On forest sector innovation, Budget 2019 provided $251 million over three years to support forest sector market diversification, product and process innovation, and Indigenous economic participation.

Platform commitments

• Launch an ambitious program to plant two billion trees over 10 years, as part of a $3 billion plan to use the power of nature to help fight climate change.
• Work with provinces, territories, Indigenous communities, municipalities, businesses and others, on a cost-share model to maintain and grow the amount of tree cover across Canada.
• Help communities create urban and regional forest plans and undertake studies and pilot projects.
• Support research and provide funding so municipalities have access to domestic sources of climate-resilient and genetically diverse trees that will increase the resilience of Canada’s urban forests.
• Set aside funds to support non-profits, governments, and private landowners in undertaking preventative measures to get ahead of emerging infestations, like the emerald ash borer and the spruce budworm, that threaten urban trees and Canada’s forests.
• Support reforestation efforts in the wake of climate-related disasters, such as major wildfires.
• Create a $3 billion fund for natural climate solutions that will support efforts across the country to better manage, conserve, and restore forests, grasslands, agricultural lands, wetlands, and coastal areas.

Provincial/territorial considerations

Forestry is an area where there is already strong federal, provincial and territorial (FPT) collaboration.

Through the Canadian Council of Forest Ministers (CCFM), FPT Ministers responsible for forestry have pursued collaborative work in areas such as: supporting the competitiveness of Canada’s forest sector; improving public perception; and, wildfire management.

In 2019, the CCFM endorsed a series of seven priority actions to increase wildland fire resiliency in Canada; continued the implementation of a Forest Bioeconomy Framework for Canada, which seeks to increase the use of forestry products throughout the economy; and, agreed to further collaborative work to position Canada as a global leader in sustainable forest management.

FPT collaboration is also evident with entities such as the Canadian Interagency Forest Fire Centre, based in Winnipeg, which supports the rapid deployment of wildfire resources across jurisdictions.

British Columbia is a leading jurisdiction in the forestry sector and is currently experiencing a downturn due to a combination of U.S. duties, low lumber prices, high log costs and low log supply, driven in large part by mountain pine beetle infestations and wildfires. [ * ]

Next steps

[ * ]

Fiscal transfers

Issue

Provinces and territories (PTs) [ * ] have expressed concerns about the level and structure of major federal transfers questioning their adequacy and fairness across jurisdictions, especially with respect to Equalization payments. [ * ]

Background

In 2019-2020, four major federal transfers provided $78.7 billion to PT governments:

• The Canada Health Transfer (CHT) is the largest major transfer to PTs, totalling $40.4 billion in 2019-2020. Payments are made to PTs on an equal per capita basis. The CHT provides long-term predictable funding for health care and upholds the principles of the Canada Health Act. PTs have the flexibility to spend the funds according to the needs and priorities of their residents, and are not required to report to the federal government on the CHT funds are disbursed. Since 2017-2018, the CHT has been legislated to grow in line with a three-year moving average of the rate of growth of nominal Gross Domestic Product, with a 3 per cent floor. Prior to this, CHT was set in legislation to grow at 6 per cent annually until 2016-2017.
• The Canada Social Transfer (CST) supports post-secondary education, social assistance and social services and early childhood development and childcare. The payments, which will total $14.6 billion for 2019-2020, are made to PTs on a per capita basis. As with the CHT, PTs have the flexibility to spend the funds and are not required to report their spending. Since 2009-2010, CST funding has been legislated to grow by 3 per cent annually.
• Equalization payments are made to provincial governments based on their ability to raise revenues. In 2019-2020, Prince Edward Island, Nova Scotia, New Brunswick, Quebec and Manitoba received equalization payments totalling $19.8 billion. The principle of Equalization is set out in the Constitution to ensure that governments can provide residents with public services that are reasonably comparable to those in other provinces, at reasonably comparable levels of taxation. The legislation governing Equalization is reviewed on a periodic basis to ensure the program is meeting its objectives. The next renewal must take place before March 31, 2024.
• Territorial Formula Financing (TFF) is the main source of revenue for the territorial government. TFF payments enable territorial governments to provide programs and services that are reasonably comparable to those offered by provincial governments, at reasonably comparable levels of taxation, taking into account the higher cost of providing services in the North. Payments made in 2019-2020 to the territories total $3.9 billion.

In addition to the four major transfers, the federal government can also support provinces through the Fiscal Stabilization program. Created in 1967, the program provides assistance to any province that faces a year-over-year decline in its non‑resource revenues greater than 5 per cent. (A decline in resource revenues is taken into account only if the annual decline exceeds 50 per cent. If resource revenues increase, this is also factored into the formula). Provinces must apply to receive payments and assistance is capped at a maximum of $60 per capita. In 2015‑2016, the federal government provided Alberta and Newfoundland and Labrador with Stabilization payments of $251.4 million and $31.7 million respectively. [ * ]

Platform commitments

• No commitments on Equalization.
• Commitment of an additional $6 billion for health care over the next four years, tied to outcomes negotiated with PTs.

Provincial/territorial considerations

[ * ]

The treatment of resources has been one of the most contentious aspects of Equalization. [ * ]

Provincial calls for changes to CHT and CST allocations have also remained consistent. At the July 2019 Council of the Federation Meeting, premiers called on the federal government to increase CHT funding [ * ]

Next steps

[ * ]

Health

Cannabis

Issue

The Cannabis Act came into force on October 17, 2018, creating a legal and regulatory framework for controlling the production, distribution, sale and possession of cannabis in Canada. One year later, on October 17, 2019, regulations in support of the legal sale of edibles, concentrates, and topicals came into force, however products will not be available until mid-December 2019.

Background

On October 17, 2018, Canada legalized and began regulating cannabis for non-medical purposes. The Cannabis Act is subject to three-year legislative review (beginning in 2021).

Federal leadership and joint federal-provincial-territorial (FPT) actions have occurred in a number of areas to ensure a smooth transition to the new regime.

Edibles

Regulation of cannabis edibles, concentrates, and topicals were published in Canada Gazette II on June 26, 2019 and came into force on October 17, 2019. Given the lag time needed for actions such as license holders submitting new product notifications (which can only happen after regulations come into force), products are not expected to be available until mid-December 2019. [ * ]

Provinces and territories (PTs) continue to review and amend their legislation or regulations as required to accommodate these new products, including any necessary updates to government-run stores. Manitoba has indicated they will change provincial law if need be to prohibit public consumption of cannabis in any form. Manitoba’s cannabis law was written specifically for smoking and vaping, but does not cover oils, capsules and other items that are already available, or edibles. The Premier said it was always his Government’s intent to ban all forms of public consumption and if a legal amendment is needed, it will come.

Quebec is further restricting the edible products available. Topicals will not be allowed as well as inclusion of any additives or other substances intended to modify the smell, flavor or color of the product. They will also limit the concentration of THC in cannabis extracts to 30 per cent. It is also banning the sale of any other product considered attractive to minors, including chocolates, confectionaries, and desserts.

Supply

Since legalization in October 2018, PTs have been vocal about shortage of cannabis supply, although increasingly less so. Health Canada has, as of August 2019, approved 220 cultivation and processing licenses, including six micro or nursery licenses.

[ * ]

The government continues to work with industry and PTs in an effort to identify and address supply chain constraints.

Public education

The government is investing more than $100 million over six years to support a sustained public education and awareness campaign, including $62.5 million to support community-based organizations and Indigenous-led projects. Extensive public education efforts continue in collaboration with PTs, Indigenous partners, and other organizations to help Canadians understand the health effects of cannabis use, the implications of possessing cannabis travelling and crossing the border, workplace impairment, and the risks and consequences of drug-impaired driving.

Enforcement

The government announced $161 million in new funding to support frontline officers and law enforcement capacity to enforce new and stronger laws related to drug impaired driving, allocating up to $81 million over five years to PTs to bolster training, training capacity, data analysis and to purchase approved drug screening equipment.

[ * ]

Indigenous engagement

[ * ]

Internal trade

Regulations that amended the excise duty framework set out under the Excise Act, 2001 to include cannabis edibles, concentrates, and topicals were published in CGII on April 3, 2019. These regulations also address two interprovincial trade related issues [ * ]: retailers are now allowed to possess cannabis products stamped for a different jurisdiction (where permitted by the PT); and, an individual is allowed to carry up to 30 grams of cannabis from one PT to another, regardless of which province it is stamped for.

[ * ]

Platform commitments

• Nil (no cannabis-related platform commitments were put forward during the campaign).

Provincial/territorial considerations

FPT governments share responsibility for overseeing the cannabis regulation system. Federal responsibilities are to set requirements for producers who grow and manufacture cannabis, and, industry-wide rules and standards, including types of cannabis products available for sale, packaging and labelling requirements for products, standardized serving sizes and potency, prohibitions on the use of certain ingredients, good production practices, tracking requirements for cannabis, and restrictions on promotional activities.

PTs are responsible for developing, implementing, maintaining and enforcing systems to oversee the distribution and sale of cannabis. They are also able to add their own safety measures, such as: increasing the minimum age in their province or territory; lowering the personal possession limit in their jurisdiction; creating additional rules for growing cannabis at home, such as lowering the number of plants per residence (Manitoba and Quebec have prohibited the growing of plants in private residences); and, restricting where adults can consume cannabis, such as in public or in vehicles. Quebec passed Bill 2 on October 29, 2019 which bans consumption in public places (although gives municipalities some leeway to permit consumption in public parks with conditions) and increases the legal age of consumption from 18 to 21 years. The increase in age will come into effect on January 1, 2020.

On September 3, 2019, Quebec Superior Court ruled that the provincial provisions prohibiting the cultivation of cannabis at home were unconstitutional as they encroach on federal criminal law powers. On October 10, 2019 the Quebec government indicated it would file an appeal.

[ * ]

Next steps

[ * ]

Health care

Issue

Provinces and territories (PTs) have called for the federal government to be a full partner in funding health care in Canada and have asked for a commitment for sustained and increased funds through the Canada Health Transfer (CHT).

Background

In Canada, PTs are responsible for the design, management, and delivery of health care services. Historically, the federal government has exercised its spending power to support PTs in the discharge of their responsibilities by providing funding through the CHT, which is the largest major transfer to PTs valued at $40.4 billion in 2019-20. The CHT represented 23.7 per cent of PT health expenditures in 2018.

Payments are made to PTs on an equal per capita basis. The CHT provides long-term predictable funding for health care and upholds the principles of the Canada Health Act. PTs have the flexibility to spend the funds according to the needs and priorities of their residents, and are not required to report to the federal government on how the CHT funds are disbursed. Since 2017-2018, the CHT has been legislated to grow in line with a three-year moving average of the rate of growth of nominal Gross Domestic Product, with a 3 per cent floor. Prior to this, CHT was set in legislation to grow at 6 per cent annually until 2016-2017.

CHT funds can be withheld for violations of the Canada Health Act but Budget 2018 announced legislative changes to allow for a reimbursement where a province has taken the steps necessary to eliminate extra-billing and user fees.

Following discussions with PTs on common areas of interest, Budget 2017 committed to $11 billion/10 years in targeted funding to improve access to home and community care and to mental health and addiction services. In August 2017, FPT Ministers of Health agreed to a Common Statement of Principles on Shared Health Priorities (CSoP) to guide this investment. The Government agreed to an asymmetrical arrangement with Quebec. Quebec is not a signatory to the CSoP although was involved in its development.

The CSoP includes principles and objectives for 10 years [ * ]. The specifics of performance measurement and reporting are detailed in the FPT bilateral agreements. The CSoP also included a commitment to continued FPT collaboration on Indigenous health. Two other areas for ongoing collaboration were identified – health innovation and prescription drugs – but no specific commitments were made.

Bilateral agreements with PTs include jurisdiction-specific commitments based on parameters in the CSoP and on PT action plans, including performance indicators, terms for reporting, and payment schedule and mechanisms.

All bilateral agreements with PTs were signed by March 2019. This first of two sequential bilateral agreements covers 2018-19 to 21-22; [ * ]

Platform commitments

• Invest an additional down payment of $6 billion over the next four years to support a stronger Medicare and public health system, negotiated in collaboration with PTs that Canadians will see transparently reported and tracked. Negotiations would:
  • ensure that Canadians have the access to a family doctor or primary health care team;
  • set clear national standards for access to mental health services;
  • continue to improve access to homecare and palliative care; and,
  • implement national pharmacare, guided by the recommendations of the Advisory Council on the Implementation of National Pharmacare (see Pharmacare issue note).
  • Strengthen the Canada Health Act to make sure the full range of mental health services required by Canadians are available in every PT.
  • Introduce new accountability standards so that Canadians can know what to expect from the public health system when they need it.
  • Continue to crack down on private delivery and extra billing.
• Move forward and work with PTs to make sure that sexual and reproductive health medications are covered under national pharmacare.
• Health care for women:
  • Work with the Canadian Institutes of Health Research to integrate sex and gender‑based analyses, as well as diversity analyses, to ensure research takes diversity factors into account to improve women’s health care.
  • Create a National Institute for Women’s Health Research, the first of its kind in Canada. The Institute would bring together experts in women’s health from across the country to tackle persistent gaps in research and care – taking an intersectional approach that includes race, ability, indigeneity, and more.

Provincial/territorial considerations

Since the August 2017 signing of the CSoP, governments have changed in almost all PT jurisdictions [ * ]

Next steps

[ * ]

Opioids

Issue

The severity and scale of the opioid crisis in Canada continues to grow: data released on September 25, 2019 shows more than 12,800 Canadians died between January 2016 and March 2019, with over 4,500 in 2018 alone (approximately equal to one overdose death every  hours). This mortality rate has impacted overall life expectancy in Canada, with data showing that life expectancy did not increase from one year to the next for the first time in over four decades.

Background

While the opioid crisis is often portrayed as a large inner city issue for regular users from vulnerable populations, it remains multifaceted: smaller communities saw almost 2.5 times higher rates of opioid poisoning per capita; 1/5 of deaths occurred among individuals who used drugs occasionally rather than regularly (illustrating risk from contaminated supply for anyone who uses drugs); the majority of those who overdosed resided in private residences (vs being homeless); however, certain groups such as Indigenous Peoples or those who experience mental health disorders continue to be overrepresented.

Opioid-related overdoses and deaths have risen dramatically due to a confluence of two factors: over-reliance on prescription opioids; and, more significantly, the poisoning of the illegal drug supply with fentanyl and analogues. Fentanyl’s high potency, ease of concealment, inexpensive production, and high profitability create strong economic incentives for its use to fill the demand for illegal opioids, which has led to increased contamination of the illegal drug supply. Recent federal funding to respond to the crisis, as well as a summary of federal vs provincial-territorial (PT) responsibilities are enclosed in Annex A.

[ * ]

Platform commitments

• $700 million for expanding access to drug treatment and combatting opioid and meth addiction.
• New investments to help PTs expand community-based services, build more in-patient rehab beds, and scale up the most effective  – such as extending hours for InSite and other safe consumption sites.
• Make drug treatment court the default option for first time, non-violent offenders charged exclusively with simple possession, to help drug users get quick access to treatment, and to prevent more serious crimes.

Provincial/territorial considerations

Although recent data suggests a downward trend in the number of illicit drug toxicity deaths in British Columbia and declines in opioid-related deaths in Alberta, at the national level, these declines are offset by the continued increase in the apparent opioid-related deaths in Ontario. Methamphetamine (meth) continues to be an increasing concern in Alberta, Saskatchewan and Manitoba. Meth is inexpensive to produce and purchase and is highly addictive, but has no drug equivalent like naloxone to reverse overdose symptoms, nor are there any currently approved medication-assisted therapies such as for opioid addiction (e.g., methadone, hydromorphone).

[ * ]. In October 2018 Ontario announced that supervised consumption sites (SCS) must provide treatment and rehabilitation services in order to receive support. [ * ]

In August 2019, Alberta announced that an eight-person review committee will be reviewing all supervised drug consumption sites across the Province to determine their social and economic impacts. The review encompasses all existing and proposed sites across Alberta. There are eight supervised consumption sites in Alberta, including four in Edmonton, two in Calgary, and one each in Grand Prairie and Lethbridge.

Bilateral agreements have been signed with all PTs under the Emergency Treatment Fund, funded under Budget 2018 for $150 million to improve access to evidence-based treatment services. All PTs are also dedicating resources to address the opioids crisis, with Manitoba and Saskatchewan are also including treatment for problematic meth use.

[ * ] In Quebec, provincial legislation (Loi sur le ministère du Conseil exécutif – M-30) requires that federal funding to any organization receiving 50 per cent or more of its funding from the provincial government, needs to be approved by the Conseil des ministres du Québec.

At the last Council of the Federation meeting in July 2019, premiers urged the federal government to increase work on interdiction of illicit drugs at ports and via the postal service; strengthen enforcement against traffickers; and fund programs for the Royal Canadian Mounted Police and other first responders. Premiers also seek culturally-appropriate and patient‑centred care for mental health and addiction service delivery. Care at the community level should focus on education, early intervention, treatment for those most in need, follow up and recovery services.

[ * ]

Next steps

[ * ]

Opioids - Annex A

Federal vs provincial-territorial responsibilities

Federal-provincial-territorial (FPT) engagement on opioids occurs through senior level tables, including ministerial (FPT Health Ministers meetings), which mainly makes policy decisions; or via an FPT special advisory committee which supports the FPT Council of Chief Medical Officers of Health; there is also an FPT committee on problematic substance use. These latter forums are mainly scientific in nature and are used to share knowledge, data, and technical best practices. [ * ]

The federal government is responsible for laying out the legal parameters for the control, importation, production, exportation, distribution and possession of controlled substances in Canada. It is also responsible for enforcement in partnership with provinces and territories (PTs) and municipal law enforcement.

PTs are primarily responsible for the provision of substance use treatment services, rehabilitation and harm reduction programs, as well as the regulation of health professionals, public health institutions, and pharmacies. This also includes naloxone procurement and distribution. The operation of long-term supervised consumption sites (SCSs) requires exemption from the Controlled Drugs and Substances Act, granted by the Minister of Health, but provision of these services is often administered by the province or municipal public health program.

In October 2018, HC simplified the application process for temporary Overdose Prevention Sites (now called Urgent Public Health Need Sites (UPHNS)) by permitting a broader range of organizations (including municipalities and regional and local health authorities) to apply for a site provided they could demonstrate the necessary oversight. This was originally open only to PT governments. Health Canada (HC) also no longer requires a formal PT letter of support for each SCS, and will also consider a variety of funding models for SCSs, including funding from third-party and private organizations. In July 2019 in Halifax, HC approved the first UPHNS to be operated by a non‑government entity.

Recent federal funding

The federal response to the crisis has been a people-first, evidence-based approach that is compassionate and centred on promoting improved health and well-being. The focus has been on enforcement and regulation, awareness and prevention, treatment, harm reduction and addressing stigma.

Budget 2018 announced $231.4 million for measures to address the opioid crisis:

• improve access to treatment services through an emergency fund for PTs (all bilateral agreements have been signed);
• address stigma towards people who use drugs;
• improve access to public health data to help inform actions;
• equip border agents with tools to intercept fentanyl and other dangerous substances; and,
• expand the Substance Use and Addictions Program to fund innovative approaches to treatment and prevention.

Budget 2018 also announced funding ($200 million over five years, $40 million per year ongoing) to enhance the delivery of culturally appropriate addictions treatment and prevention services in First Nations and Inuit communities with high needs.

Budget 2019 proposed additional funding of $30.5 million over five years, starting in 2019-20, with $1 million in ongoing funding, for targeted measures to address persistent gaps in harm reduction and treatment. Specifically, funding will support efforts to expand access to a safe supply of prescription opioids, and better access to opioid overdose response training and to naloxone.

In July 2019, Minister Petitpas Taylor announced an additional $76.2 million to support actions to scale up key lifesaving measures; circumventing the contaminated illegal drug supply; and identifying and addressing emerging drug threats.

[ * ]

Pharmacare

Issue

Options for national pharmacare.

Background

Budget 2018 announced the creation of an Advisory Council on the Implementation of National Pharmacare (the Council) which provided its final report in June 2019. The report calls for a universal, single payer, public pharmacare, supported by the creation of a Canadian drug agency, which would be responsible for developing a national formulary, beginning with an initial list of common and essential medicines by January 1, 2022.

Budget 2019 included foundational measures for national pharmacare including initiating the establishment of a Canadian Drug Agency to be responsible for the development of a National Drug Formulary, and developing a strategy for high cost drugs for rare disease.

Patented Medicine Regulations (PMR) were updated in August 2019 to mitigate excessive drug prices, with a coming into force date of July 1, 2020. This is the first major update since the introduction of PMRs in 1987. [ * ]. Subsequent to the publication of the regulatory updates, a constitutional challenge and a judicial review have been filed by the pharmaceutical industry.

Platform commitments

• Continued collaboration with the provinces and territories (PTs) to move forward with more accessible care, shorter wait times, and better health outcomes. Included in the suite of actions is the implementation of national pharmacare guided by the recommendations of the Advisory Council on the Implementation of National Pharmacare:
  • establish the Canada Drug Agency to make drug purchasing more effective and efficient;
  • implement a national formulary with provinces, territories and other stakeholders in order to further lower drug prices; and,
  • implement a rare disease drug strategy to help Canadian families save money on high-cost drugs.
• The above are part of a suite of health care commitments, all to be supported by an additional commitment of $6 billion over the next four years, tied to outcomes and negotiated with PTs.
• Move forward and work with PTs to make sure that sexual and reproductive health medications are covered under national pharmacare.

Provincial/Territorial considerations

PTs are responsible for the delivery of health care to eligible residents, including determining which drugs are publicly covered and under what conditions. In 2017, PT governments funded the vast majority of the $14.5 billion spent by the public sector on drug coverage, and vary considerably in terms of their relative level of public funding. For example, Quebec has implemented a mandatory drug insurance model requiring all residents to have prescription drug coverage through either a private or public drug plan. Smaller provinces tend to offer more limited formularies.

[ * ]

Updates to patented medicine regulations

In addition to strong concerns from the pharmaceutical industry and related constitutional challenges and judicial review, both Ontario and Quebec have raised publically [ * ] their concerns over the amendments to patented medicine regulations. Both provinces house large pharmaceutical sectors.

[ * ]

U.S. importation of prescription drugs

On July 31, 2019, the U.S. administration indicated they plan to introduce measures to make it easier to allow the importation of prescription drugs from countries with lower prices, including Canada. [ * ]

Canada-United States-Mexico trade agreement

[ * ]

Next steps

[ * ]

Immigration

Asylum migration

Issue

Canada has experienced a significant increase in asylum migration since 2017. This has put pressure on Canada’s asylum system and federal and provincial government relationships.

Background

The federal government has legislative authority for Canada’s asylum system and provides certain supports such as issuing temporary work permits and basic medical costs for asylum claimants. Provinces and territories (PTs) are key partners as they provide social services such as providing shelter, medical care and education to asylum claimants.

While most asylum claimants make claims at official ports-of-entry, since 2017 there has been a significant influx of asylum claimants entering Canada through unofficial entry points (e.g., irregular migration) from the U.S.

The total number of overall asylum claims in Canada has increased each year from 10,465 in 2013 to 55,388 in 2018. Irregular arrivals (e.g., RCMP interceptions) between Canada-U.S. land borders has increased significantly since 2016.

[ * ]

While numbers have decreased in 2018 and 2019 to date, irregular migration still accounts for approximately 26 per cent of overall asylum claims in Canada. The overall increase in asylum claims can be attributed to, in part, global migration patterns and Canada increasingly being seen as a desirable destination.

Budget 2019 proposed to strengthen the efficiency and integrity of Canada’s asylum system, with new funding that will support more timely processing of asylum claims.

United States

[ * ]

The 2019 Budget Implementation Act amended the Immigration and Refugee Protection Act to make a person ineligible for refugee protection if they had previously made a claim for refugee protection in another country.

Platform commitments

• Continue to work with the United States to modernize the Safe Third Country Agreement.

Provincial/territorial considerations

The overall increase in asylum claims places pressure on provinces to provide housing and social services to asylum claimants pending the final determination of their claims. Quebec and Ontario are most affected, however British Columbia and Manitoba are also implicated.

To help alleviate costs to provinces, in 2018, the Government of Canada made available $474 million over two years under the new Interim Housing Assistance Program (IHAP). This fund sunsets in March 2020.

In July 2019, following a meeting of the Council of the Federation, premiers requested the federal government to consider additional compensation to affected provinces for costs related to irregular migration and refugee claimants.

To date, through the IHAP fund, the federal government has paid the following amounts to affected provinces and municipalities for shelter costs associated with irregular migration:

• British Columbia - $6 million
• Manitoba - $8 million
• Quebec - $250 million
• Toronto - $73.2 million
• Ottawa - $17.1 million
• Peel region - $2.2 million
• Hamilton  - $220,000

In summer 2019, the Government also announced an additional $14.8 million to Toronto to lead an initiative to relieve pressure on its shelter system due to the increased number of overall asylum claimants with neighbouring municipalities (e.g., Peel, Durham and Hamilton). This leaves approximately $102 million in the $474 million IHAP funding envelope.

Ontario

[ * ], the 2019 Ontario budget announced reduced funding for legal aid. On July 18, 2019, Ontario Attorney General Doug Downey publicly released a letter addressed to the Prime Minister seeking funding for immigration and refugee legal aid services.

On August 12, 2019, the federal government announced that it would provide a one‑time investment of $26.8 million for immigration and refugee legal aid for 2019‑2020. This includes for: Ontario ($25.7 million), British Columbia ($1.16 million), and Manitoba ($0.02 million). This was in addition to Budget 2019 funding for legal aid that would allocate approximately $15.4 million to Ontario (representing almost 40 per cent of the funding the Province would need to handle 50,000 asylum claims – i.e. total number of anticipated claims based on the previous year’s figures).

Quebec

In 2018, Quebec publicly announced that it sought $294 million to offset costs incurred in 2017 and 2018 due to the influx of asylum seekers (including interim housing and other social services). [ * ]

In September 2019, an agreement in the amount of $250 million was accepted by Quebec. Despite a decrease in irregular arrivals, Quebec continues to receive the majority of irregular migrants (97 per cent). [ * ]

Next steps

[ * ]

Immigration multi-year levels plan

Issue

Approval of Canada’s immigration levels for 2020-2022.

Background

Section 94 (1) of the Immigration and Refugee Protection Act (IRPA) requires the Minister to table in Parliament by November 1 of each year, or within 30 sitting days if the House is not sitting, an annual report that includes the projected number of permanent resident admissions for the following calendar year—i.e., an “Immigration Levels Plan.” Cabinet consideration of the levels plan is required before it can be tabled in Parliament.

The IRPA also requires the Minister to consult with provinces and territories (PTs) on Canada’s immigration levels prior to Cabinet consideration of the Immigration Levels Plan. This process is governed by a joint Federal-Provincial-Territorial (FPT) framework of Ministers and senior officials.

The Immigration Levels Plan establishes the number of permanent resident admissions across four immigration categories: economic; family; re-settled refugees; and, humanitarian programs. Generally, the economic category accounts for over 50 per cent of total admissions.

A range of considerations come into play in setting annual immigration levels, including how to balance human capital with regional labour market needs, how to balance growth in admissions with capacity to integrate newcomers, and how to maintain the integrity of programs while meeting international commitments. The federal government also considers the views of stakeholders who want to see more refugees resettled and more families reunited. Programs where the federal government controls the number of applicants are counted toward annual immigration levels.

In 2017, the Government tabled its first multi-year immigration plan in 15 years, which set out admission targets for 2018 to 2020. The 2019-2021 plan tabled in 2018 included adjustments to the 2018-2020 plan and committed to increasing admissions to 350,000 by 2021—equal to approximately 1 per cent of Canada’s population:

• 2019: Targeted admissions increase by 800 for a total 330,800;
• 2020: Targeted admissions increase by 1,000 for a total of 341,000; and,
• 2021: Targeted admission increase by 9,000 for a total of 350,000 admissions.

The current levels plan sets out targets across three years [ * ]. In addition, as a past year lapses (e.g., 2019) a new year will be added to the plan.

Platform commitments

• Move forward with modest and responsible increases to immigration, with a focus on welcoming highly skilled people who can help build a stronger Canada.
• Create a Municipal Nominee Program and make the Atlantic Immigration Pilot permanent. Dedicate 5,000 new spaces in each program.
• Create a dedicated refugee stream for journalists and human rights advocates.

Provincial/territorial considerations

Immigration is a shared FPT responsibility, and is characterized by well-developed relationships and active engagement with both levels of government on immigration issues. The federal government has individual agreements with PTs that prescribe how responsibility is shared for immigration in each jurisdiction. Some PT agreements cover a range of immigration issues, while others focus on regional selection of economic immigrants via the Provincial Nominee Program.

[ * ]

Quebec

The relationship with Quebec is governed by the Canada-Québec Accord relating to Immigration, [ * ]

Following the Quebec election in 2018, the new Quebec government tabled its own 2019 immigration levels plan that introduced a 20 per cent reduction in immigration targets for the province.

On September 17, 2019, Premier Legault wrote to Federal leaders to ask that Quebec obtain more immigration powers to decide, on its own, the number of immigrants in each category (e.g. economic immigration family reunification, and refugees); choose the conditions required before granting permanent residence, including an assessment of the level of French and an assessment of knowledge of Quebec values; and, to fully manage the Temporary Foreign Worker Program.

On October 30, 2019, Quebec tabled its 2020 immigration levels plan in the National Assembly. The overall range will be 43,000 to 44,500 admissions. This represents a modest increase compared to 2019 (i.e. 38,000 to 42,000). The major increase is in the economic category, modest growth in family class and no growth in resettled refugees.

Quebec also announced amendments to the Quebec Immigration Regulations that would provide Quebec more control in the selection of economic immigrants by requiring them to complete a French language evaluation test and knowledge of Quebec values before they can receive a Certificat de Sélection du Québec (CSQ). Economic immigrants require a CSQ before they can apply for permanent resident status under the federal program. In addition, the amendments require international students (in the Programme de l’expérience Québécoise (PEQ)) to complete a prescribed hours of training or six months employment, and only graduates in high-demand occupations will now be eligible to the PEQ. Spouses and dependents of international students and the worker stream in the PEQ will need to meet a prescribed level in the French language.

After stakeholders expressed significant concerns over the amendments, the Quebec government suspended the provisions amendments access to the PEQ and to consult and review the list of high-demand jobs and jobs where there is a deficit.

[ * ]

Next steps

[ * ]

Indigenous issues

The Act respecting First Nations, Inuit and Métis children youth and families (Bill C-92)

Issue

Engaging provinces and territories (PTs) in the implementation of the Act respecting First Nations, Inuit and Métis children, youth and families, Bill C-92.

Background

On June 21, 2019, the Act respecting First Nations, Inuit and Métis children, youth and families, received Royal Assent. The legislation will come into effect on January 1, 2020.

The Act affirms the inherent rights of First Nations, Inuit and Métis to exercise jurisdiction over child and family services and establishes national principles such as best interests of the child, cultural continuity and substantive equality to help guide the provision of child and family services in relation to Indigenous children, which are binding on all federal, provincial, and territorial (FPT) governments and Indigenous governing bodies. The Act also contributes to the implementation of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).

The Act is designed for Indigenous Peoples to exercise partial or full jurisdiction over child and family services at their own pace. It sets-out a complex multi-jurisdictional regime, whereby PT and Indigenous laws for child and family services would co-exist with the take-up of Indigenous jurisdiction. Indigenous laws would also apply extra‑territorially and inter-provincially across regions. In the absence of fully implemented Indigenous systems, PTs would be responsible for the provision of child welfare services in accordance with the federal legislation and Indigenous laws. The federal legislation does not require negotiated intergovernmental agreements as a pre‑requisite to the exercise of Indigenous jurisdiction. Depending on the path chosen, the exercise of Indigenous jurisdiction could result in Indigenous laws prevailing over PT laws.

The Act was co-developed with an Indigenous Reference Group comprised of the Assembly of First Nations, the Inuit Tapiriit Kanatami and the Métis National Council. Engagement with PTs was limited, with no direct or substantive participation of PTs in development of the legislation.

Under the First Nations Child and Family Services Program, the Government of Canada provides funding to 105 First Nations child and family services agencies, which are First Nations established, managed and controlled and provide prevention and protection services under delegated provincial authorities. [ * ] The program does not provide funding to Inuit or Métis led service providers.

Platform commitments

• Ensure the Act respecting First Nations, Inuit and Métis children, youth and families is fully implemented. Move forward with long-term, predictable, and sufficient funding to support the full implementation of the Act.

Indigenous considerations

Generally, there is broad support for the principles and objectives of the legislation, which recognizes the inherent right of Indigenous communities in respect of child welfare and will facilitate the implementation of their jurisdiction and systems for child and family services. [ * ]

Provincial/territorial considerations

During engagement on Bill C-92, PTs expressed support in principle for the legislation, [ * ]

On July 9, 2019, in advance of the meeting of the Council of the Federation, premiers and the National Chief of the Assembly of First Nations discussed implementation of the Act. In his media statement, Saskatchewan’s Premier Moe, Chair of the Council, stated that turning over child care jurisdiction to First Nations communities across Canada will not be easy and there needs to be a plan. He acknowledged the need for PT leaders to work harder and engage with Indigenous groups to remain focused on the well-being of the Indigenous children.

[ * ] fiscal issues in several jurisdictions have resulted in budget cuts to social and child welfare programs (Ontario), and a trend toward divestment from cost-sharing on Indigenous services, including health costs for First Nations children in care (Manitoba), Inuit health transportation costs (Nunavut) and costs for First Nations attending K-12 provincial schools (British Columbia).

[ * ]

Next steps

[ * ]

National Inquiry into Missing and Murdered Indigenous Women and Girls

Issue

Engaging provinces and territories (PTs) in the development and implementation of a National Action Plan to address violence against Indigenous women and girls, and LGBTQ and Two-Spirit people, in response to the final report of the National Inquiry into Missing and Murdered Indigenous Women and Girls (MMIWG).

Background

The final report of the National Inquiry into MMIWG, “Reclaiming Power and Place”, was presented to federal, provincial and territorial (FPT) governments on June 3, 2019. The report delivers 231 Calls for Justice that focus on human and Indigenous rights and government obligations; culture; health and wellness; and human security and justice.

The Calls are directed at all governments (FPT, municipal, and Indigenous); health, child welfare, policing, transportation and hospitality service providers; educators; attorneys and law societies; court workers and the justice system; resource extraction and development industries; media; and all Canadians. The final report also outlines specific recommendations for Inuit and Métis.

The Inquiry’s overarching recommendation calls on all governments to work in partnership with Indigenous peoples to develop and implement a National Action Plan to address violence against Indigenous women and girls, and LGBTQ and Two-Spirit people.

In receiving the Inquiry’s final report, the Government committed to thoroughly reviewing its recommendations, and developing and implementing a National Action Plan, with Indigenous partners and PTs, to address violence against Indigenous women, girls, LGBTQ and Two-Spirit people.

Platform commitments

• Continue to work in partnership with First Nations, Inuit and Métis Peoples to implement the Calls for Justice of the National Inquiry into MMIWG.

Indigenous considerations

[ * ]

Provincial/territorial considerations

As key partners in the Inquiry, all PT governments amended their respective inquiries acts to enable the Inquiry’s national scope and support the Commission’s work across jurisdictions. They also identified their participation as a key reconciliation commitment within their jurisdictions.

[ * ]

Next steps

[ * ]

United Nations Declaration on the Rights of Indigenous Peoples

Issue

Engagement with provinces and territories (PTs) on the implementation of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).

Background

Passed by the United Nations General Assembly in September 2007, the UNDRIP is an international human rights instrument that sets out minimum standards for the treatment of Indigenous Peoples with the aim of re-balancing the relationship between States and Indigenous populations through self-determination, self-government, agreements, and cooperative and inclusive decision-making. The Declaration describes the economic, social, cultural, civil and political rights that “constitute the minimum standards for the survival, dignity and well-being of Indigenous Peoples” through 24 preambular statements and 46 articles. While not creating new legal obligations on States, the Declaration calls upon States to take measures to achieve the objectives of the UNDRIP, in consultation and cooperation with Indigenous Peoples.

In May 2016, the Government of Canada announced it would fully support the UNDRIP, without qualification, and that it would implement the Declaration in accordance with the Canadian constitution.

In November 2017, the Government announced its support for Private Member’s Bill C‑262, the proposed UNDRIP Act, which was introduced in April 2016 by New Democratic Party Member of Parliament Romeo Saganash. The goal of the Bill was, among others, to acknowledge the Declaration as a universal human rights instrument with relevance to Canadian law and commit the Government to develop a national action plan to implement the UNDRIP. Passed by the House of Commons on May 30, 2018, the Bill died on the order paper in the Senate, on June 19, 2019, at Second Reading Report Stage.

Since the Government’s endorsement of the UNDRIP in 2016, several concrete steps have been taken to advance the Declaration’s implementation through initiatives that respond in whole or in part to specific articles of the UNDRIP, including: the Principles Respecting the Government of Canada’s Relationship with Indigenous Peoples; the Directive on Civil Litigation Involving Indigenous Peoples; response to the Truth and Reconciliation Commission Calls to Action; the National Inquiry into Missing and Murdered Indigenous Women and Girls; joint priority-setting and co-development through the Permanent Bilateral Mechanisms with the Assembly of First Nations (AFN), the Inuit Tapiriit Kanatami (ITK) and the Métis National Council (MNC); the negotiation and implementation of comprehensive claims and self-government; federal legislation recognizing Indigenous rights and jurisdiction relating to Indigenous languages, through the Indigenous Languages Act (Bill C-91), and child and family services, through the Act respecting First Nations, Inuit and Métis children, youth and families (Bill C-92); environmental impact assessment legislation (Bill C-69); and, new approaches to self‑determination in health and education.

Platform commitments

• Within the context of continuing on the road to reconciliation, a commitment to move forward with the introduction of co-developed federal legislation to implement the Declaration before the end of 2020. The legislation would fully respect the intent of the UNDRIP, and establish Bill C-262 as the floor rather than the ceiling regarding the legislation’s substantive scope.

Indigenous considerations

[ * ]

Provincial/territorial considerations

Several articles of the Declaration deal with issues that fall within the purview of PT jurisdictions in such areas as, education, health, housing, socio-economic programs, labour standards, land management and natural resource development. Some principles of UNDRIP may also be applied by other levels of government in their own areas of jurisdiction, such as the principle of free, prior and informed consent (FPIC) in relation to Indigenous consultation and decision-making on resource development.

[ * ]

• British Columbia: In keeping with commitments outlined in its February 2018 Speech from the Throne, on October 24, 2019, the Government of British Columbia introduced the proposed Declaration on the Rights of Indigenous Peoples Act (Bill 41) to implement the UNDRIP in the Province. Co-developed with the British Columbia First Nations Leadership Council, the proposed legislation is in keeping with section 35 of the Constitution Act, 1982 and affirms the objectives of the Declaration. Similar in scope and content to Bill C-262, it provides for the provincial government to take measures to align provincial laws with the Declaration and to develop, implement and report on an action plan to achieve the objectives of the Declaration, in consultation and cooperation with Indigenous Peoples in British Columbia. The proposed legislation also provides for the ability of the provincial government to enter into agreements with Indigenous governments whether for the purposes of the Act or, more broadly, reconciliation.

[ * ] Alberta has committed $1 billion to encourage First Nation participation in energy and other resource sectors through the Alberta Indigenous Opportunities Corporation, and $10 million through the Alberta Indigenous Litigation Fund to help First Nations defend their economic development rights. Manitoba has announced the $20 million Manitoba Mineral Development Fund (MMDF) to jump-start mineral and economic development initiatives in the north and throughout the Province allowing municipalities, communities and businesses, including Indigenous groups, to apply for funding for activities that help advance new mining opportunities and outreach, including for collaborative resource development with First Nations to support responsible mineral exploration and mining, and reconciliation. The Ontario government has announced the dissolution of the 2014 Regional Framework Agreement with the Matawa Tribal Council on the Ring of Fire, [ * ]

Next steps

[ * ]

International trade

Canada-United States-Mexico Agreement

Issue

Provinces and territories (PTs) will seek to ensure continued federal engagement of any developments under the Canada-United States-Mexico Agreement (CUSMA).

Background

Following signature of the CUSMA on November 30, 2018, all three countries have focused their efforts on preparing for the domestic ratification and implementation of the Agreement. For Canada, this includes the preparation of the necessary legislation and regulatory measures required to implement the Agreement. [ * ]

U.S. Democrats have called for changes in the Agreement before implementing legislation [ * ]. Discussions between Democrats and Republicans continue.

Platform commitments

• As CUSMA is ratified, the Government will take the same approach as for CETA and CPTPP to provide supports to supply managed sectors. Pledged $1.75 billion over eight years to compensate dairy farmers affected by free trade agreements with Europe and countries on the Pacific Rim; a similar program is promised when CUSMA comes into force.

Provincial/territorial considerations

Federal trade officials regularly engage PTs through the Federal-Provincial-Territorial (FPT) Consultations Committee. [ * ]

Agriculture

Overall, PTs are supportive of expanded market access for Canadian agricultural commodities via international trade agreements. [ * ]

Following the conclusion of the CUSMA negotiations, Canada created three working groups – two dairy and one poultry and egg working group – to develop strategies to maintain and support supply-managed sectors, in relation to CUSMA, CETA and CPTPP.

On August 16, 2019, the federal government announced $1.7 billion over eight years ($345 million in the first year) to compensate dairy farmers in relation to CETA and CPTPP. Discussions on compensation for poultry and egg farmers will resume after the election. Canada has also committed to compensating supply-managed producers and processors once CUSMA is ratified.

In July 2018, the U.S. government issued an Executive Order to increase U.S. domestic content in steel and other products purchased by the U.S. government. The U.S. is expected to issue regulations for comment in January 2020. [ * ]

Pharmaceuticals

The pharmaceutical intellectual property (IP) commitments under CUSMA are twofold:

• Biologics: provides an additional two years of data protection for biologic drugs (from 8-10 years), which may lead to delayed market entry of lower-cost generic drugs during the additional period of data protection. This patent extension may have cost implications on public drug plans arising from the longer period of market exclusivity for brand-name drugs.
• Patent-term adjustment: provides an extension of the 20-year patent term to compensate patent applicants for “unreasonable” delays in the issuance of patents by the patent office, which may delay the entry of generic or biosimilar versions of patented medicines on the market.

[ * ]

Upon the conclusion of the CETA, the federal government made a commitment in 2014 to fully compensate PTs for incremental costs arising from the terms of CETA relating to pharmaceutical patent extension (from 20 to 22 years).

[ * ]

Next steps

[ * ]

Canada-China relations

Issue

Federal, provincial and territorial (FPT) engagement on Canada’s relationship with China.

Background

[ * ]

China’s key foreign policy priorities include: greater private sector investment, innovation (e.g., artificial intelligence), and domestic consumption. China has also stated plans to open to more foreign companies to serve growing domestic consumer demand. China’s “Made in China 2025” policy seeks to source manufacturing inputs domestically.

[ * ]

In 2018, China unveiled its new Arctic Policy, describing itself as a “Near-Arctic State.” The Policy elaborates on the concept of a “Polar Silk Road” as part of China’s Belt and Road initiative. [ * ]

Canada relations with China

[ * ]. China is Canada’s second largest single-country merchandise trading partner, and an important market for Canadian businesses. [ * ]

[ * ]

Meng extradiction

On December 1, 2018, Canada provisionally arrested Meng Wanzhou on the basis of an extradition request from the United States. The United States alleges that Meng, as Huawei Chief Financial Officer, misrepresented facts to HSBC regarding Huawei’s business dealings in Iran. On March 1, 2019, the Department of Justice formally began extradition proceedings against Meng. The hearing started in late September 2019 at the British Columbia Supreme Court. In Canada, a person may only be extradicted if the offence is a criminal offence in both countries. If the Court decides this is the case, Meng’s extradition hearing is scheduled to begin in January 2020 and to continue in the fall of 2020. If the judge rules that Meng should be committed for extradition, then it will be the Minister of Justice who will eventually make a final decision on her surrender to the United States. The decision on surrender is to be made by the Minister of Justice for all extradition cases, and cannot be delegated to officials.

Meng civil suit

On March 1, 2019, Meng Wanzhou filed a civil action against the Government alleging a violation of her Charter rights during her arrest in December 2018. While documentary and oral discoveries have taken place, [ * ].

Canadian canola exports to China

In March 2019, the General Administration of Customs of China (GACC) suspended imports of canola seed from two Canadian companies, and increased inspection of all other shipments of Canadian canola seed to China.

Canada has since been seeking to resolve this issue through technical discussions with China. On September 9, 2019, Canada filed a request for consultations with China at the World Trade Organization (WTO) in an effort to regain full market access for Canadian canola seed. WTO Consultations took place on October 28, 2019. [ * ]

Provincial/territorial considerations

[ * ]

Canola

[ * ] On April 1, 2019, Canada announced the creation of a canola working group that includes representatives from the Canola Council, the Canola Growers Association, Richardson, Viterra, the federal government and the Alberta, Manitoba, and Saskatchewan governments. The objective of the working group is to look at ways to resume market access for Canadian canola seed to China and to look at alternative markets.

In addition, the Government announced measures to address the primary cash flow challenges associated with the trade disruption facing canola, through amendments to the federal Advance Payments Program, which was aimed at increasing the availability of low- and no-cost cash advance lending for canola farmers. Canada also announced $150 million in insurance support for Canadian canola producers.

[ * ]

Meat export certificates to China

[ * ] FPT Ministers at their recent annual meeting discussed the current trade challenges and recognized the need to continue to work with the sector to support industry's sustainability, profitability and growth. Some provinces and territories had requested compensation for meat producers and processors.

[ * ]

Provincial trade missions and diplomacy

Atlantic premiers and federal ministers undertook a joint mission to China in November 2018 to promote the region’s food, clean growth, education, and tourism, sections under the Atlantic Growth Strategy, Trade and Investment Pillar. In parallel with this mission, more than 70 Atlantic Canadian businesses and organizations participated in expositions and trade shows. This mission resulted in at least 11 confirmed agreements with a projected value of $321.6 million.

In May 2019, Premier Stephen McNeil returned from a three-week trade mission to Europe and China. He also travelled to China, Japan and South Korea from November 8-23, 2019 for a trade mission, which represented the Premier’s eighth mission to China in the past six years. While in China, he participated in meetings to discuss trade and investment opportunities related to transportation, tourism, culture and education. A key priority of Premier McNeil is to ensure Atlantic Canada becomes more globally connected. [ * ] In 2018, Nova Scotia companies exported $793 million worth of goods (i.e., fish and seafood, wild blueberries, wood pulp, tidal, energy, and mineral resources) to China, as compared to $64 million in 2007. Seafood – particularly lobster – accounts for most of the Province’s export revenue.

On September 9-10, 2019, Premier McNeil hosted a delegation from China’s Guangdong province to discuss how Nova Scotia and Guangdong can continue to collaborate. Key areas of discussion included the potential for a direct flight from China to Halifax, education, transportation, culture, seafood, agri-food and tourism. There were also discussions about the potential for an exhibit of Chinese artwork to come to Nova Scotia. The work of Maud Lewis and six contemporary Nova Scotia female artists are currently on display at the Guangdong Museum of Art. [ * ]

Premier Moe from Saskatchewan travelled to South Korea, Hong Kong, and Japan from October 7-18, 2019 to attract investment and advance Saskatchewan trade interests. Ontario also went on a trade mission from October 12-24, 2019. Provinces have been working with Canadian missions abroad in planning trade missions.

Next steps

[ * ]

Municipalities

Issue

Intergovernmental considerations relating to municipal governments.

Background

In Canadian federalism, the powers of the Crown are divided between the federal government and provincial-territorial (PT) governments. Canadian municipalities are seen as “creatures of the provinces”, as their powers are delegated by the PTs. As a result, federal-municipal engagement is typically mediated by PTs, through joint governance or federal-provincial-territorial (FPT) agreements.

Largely through the efforts of the Federation of Canadian Municipalities (FCM), municipal governments have drawn increasing attention of federal policy-makers to municipal priorities in recent years. However, federal policies are typically defined by federal officials and refined by PT officials during agreement negotiation. Despite the significant role municipal governments play in delivering on these programs, they are of the view that the Government should engage more closely with municipalities.

In 2015, the Government of Canada committed to renewing relationships with municipal governments, which opened the door to greater engagement between federal and municipal officials. In the lead-up to Budget 2019, the FCM proposed a series of measures aimed at increasing municipal influence on federal policy, including the creation of an intergovernmental forum for engagement between federal and municipal leaders.

Budget 2019 introduced a number of measures aimed at addressing municipal priorities, including a one-time $2.2 billion top-up to the Gas Tax Fund (GTF). During the Prime Minister’s remarks at the FCM’s Annual Conference Tradeshow on May 31, 2019, he highlighted progress the Government of Canada has made in working directly with municipalities and committed to working more closely with municipal leaders should provincial governments not accelerate the pace of project identification. [ * ]

On Thursday, September 12, 2019, the FCM released its election platform entitled “Building Better Lives”. Through its platform, the FCM reiterated its request for a formal intergovernmental forum, and highlighted a number of municipal priorities, including:

• permanently double the annual GTF transfer, and then increase its annual growth index to 3.5 per cent;
• launch a permanent $3.4 billion per year public transit fund;
• broaden the scope of the National Housing Strategy by investing an additional $830 million per year to expand the supply of supportive housing (shelters), culturally-appropriate housing for Indigenous Peoples, to support the repair/renewal of existing rental supply and help seniors age in place;
• launch a new intergovernmental forum including municipalities to discuss the issue of housing affordability;
• double the Disaster Mitigation and Adaptation Fund and launch a new 20-year, $20 billion disaster mitigation program; and
• invest $500 million over five years to support PTs in updating their floodplain maps.

In addition, the FCM called on all parties to commit to making a rural lens part of all federal policies. The FCM suggested that, through a rural lens, the Government adapt federal policies and programs to rural realities, increase investments in rural broadband and promote rural economic development. Other priorities for rural communities include: increasing federal funding to the Disaster Mitigation and Adaptation Fund and lowering the minimum threshold for project eligibility, investing in affordable housing with a focus on helping rural seniors age in place, and, introducing new flexibility into federal public transit programming to recognize the unique transit needs of rural communities.

Provincial-territorial considerations

The Government of Quebec has a legislative framework, known as Loi M-30, which governs relations between municipalities in Quebec and the Government of Quebec. According to this law, no municipality can enter into any agreement with any federal government agency without the Province’s approval. However, in 2018 the Government of Quebec granted municipalities authority to enter into funding agreements with the Government of Canada where the amount is less than $100,000. Otherwise, municipalities in the Province of Quebec are required to seek authorization of the Government of Quebec, by way of a Cabinet Decree, to enter into any agreement with another level of government.

[ * ]

On October 16, 2019, the Government of Ontario and the City of Toronto came to an agreement under which the Province would cease its efforts to upload the TTC assets and the City would agree to surrender its public transit allocation to the Province in support of Ontario’s new public transit priorities. On October 25, 2019, the Province also announced the end of its review of regional municipalities without any significant changes.

[ * ]

In its budget of October 24, 2019, the Government of Alberta cut transfers to cities and rural municipalities by 9 per cent, with the most significant cuts being made to Calgary and Edmonton: the cities are expected to see a 50 per cent reduction to the Grants in Place of Taxes program by 2020-21, amounting to a reduction of $81 million. In addition, the Province committed to ending the City Charters Fiscal Framework, under which Calgary and Edmonton had negotiated with the previous NDP government for a share of the up-side and down-side of changes in provincial tax revenues.

[ * ] However, there are national, merit-based programs through which municipalities can access funding directly from the Government of Canada. Some examples include the federal Gas Tax Fund (GTF), the Disaster Mitigation and Adaptation Fund (DMAF), the Smart Cities Challenge, and the National Housing Co-Investment Fund (NHCF).

The FCM engages directly with federal ministers and the Prime Minister to advocate for the priorities of local governments and federal representatives from all parties often appear at meetings of the FCM’s Big City Mayors Caucus and its Annual Conference and Tradeshow. In 2018 and 2019, the FCM began to advocate for a formal forum for engagement between the federal government and municipalities, but the Government has not committed to such a forum.

Municipal considerations

On October 22, 2019, FCM President Bill Karsten issued a statement indicating that the FCM looks forward to working with the Government to continue building on progress made in public transit, affordable housing, rural broadband, and local energy efficiency projects. Mr. Karsten indicated that the FCM intends to initiate discussions with the Government on new funding tools to renew core infrastructure, to protect Canadians from climate extremes, and to build on the National Housing Strategy.

On October 16, 2019, Mayors Iveson, Tory and Stewart, with the endorsement of Mayor Plante, produced an op-ed in the Toronto Star in which they reiterated the importance of investing massively in public transit, local roads, recreation centres and other community infrastructure. They argued that cities have an important role to play in decisions of national importance, indicating that the knowledge they have about local issues has helped shape national policies. They urged federal leaders to continue working in partnership with municipal leaders. The mayors also reiterated the importance of long-term predictable funding for public transit, as well as the FCM’s recommendation to double the federal GTF transfer. Following the election, the mayors each released their own statements.

As Chair of the Big City Mayors’ Caucus, Mayor Iveson committed to continue working with all mayors to engage with the Government on issues related to infrastructure, housing, climate change resilience, and regional prosperity.

Toronto Mayor John Tory has been advocating for a federal handgun ban, including a federal handgun database to track the source of handguns. He has raised this issue to the Prime Minister in writing in 2018 and in bilateral meetings in 2019 following a series of deadly shootings in Toronto. In his statement on October 22, 2019, Mayor Tory also indicated that he looked forward to continuing to work with the Government on public transit and housing solutions.

During the election, Montreal Mayor Valérie Plante expressed her expectation that the federal government would provide support for: public transit projects, including the pink line and other public transit system expansion projects; environmental initiatives including improvements to solid waste management; affordable housing investments; and better supports to help newcomers integrate into their communities. Mayor Plante is in favour or measures to reduce gun violence. Mayor Plante’s statement following the election reiterated these priorities.

Calgary Mayor Naheed Nenshi has indicated that the results of the election reflect deep and real issues that have to be addressed. In his statement following the election, Mayor Nenshi committed to fighting to make sure Calgary’s priorities are heard. During the election, Mayor Nenshi expressed his expectation that the federal government would provide support for: Phase II of the Green Line LRT project; Calgary’s economic recovery; streamlined regulatory review for energy projects; better results from immigration planning; a share of cannabis taxation revenue; and, regional flexibility in the mortgage stress test.

The Calgary and Edmonton Chambers of Commerce issued a joint statement that “Canada is at a crossroads, and we must take advantage of the opportunities that are presented to us. We can make bold choices now to boost competitiveness or risk watching from the sidelines as other nations compete and win.” The Chambers’ five priorities for the election campaign were contributing to the global fight against climate change, boosting trade, increasing tax competitiveness, closing the skills gap, and addressing fiscal imbalance.

Vancouver Mayor Kennedy Stewart has noted that the results of the election indicated a rejection of austerity measures. He challenged the Government to ensure Vancouver’s priorities – including rental, cooperative and modular housing, a safe and regulated drug supply and funding for the Broadway subway extension – are included in the Speech from the Throne. During the election, Mayor Stewart expressed his support for the delegation of additional powers to ban handguns in cities, noting that he would work to apply a handgun ban in Vancouver.

Mississauga Mayor Bonnie Crombie supports efforts to reduce gun violence. She is of the view that the Government of Canada is in the best position to enforce gun control measures, but supports exploring municipal and regional restrictions.

Since the election, the Prime Minister has had calls with mayors from a number of cities from Western Canada, including Calgary, Saskatoon, Regina and Winnipeg. [ * ]

North

Arctic and Northern Policy Framework

Issue

On September 10, 2019, the federal government released the Arctic and Northern Policy Framework. The framework sets out a long-term vision to guide the Government of Canada’s activities and investments in the region to 2030 and beyond and aligns Canada’s national and international policy objectives with the priorities of Arctic and Northern residents. Release of the framework laid the groundwork for the development of an investment strategy and governance mechanism to promote a more integrated federal-provincial-territorial and Indigenous approach to the opportunities and challenges facing the region.

Background

On December 20, 2016, Prime Minister Justin Trudeau announced that a new Arctic Policy Framework would be co-developed in collaboration with Indigenous, territorial, and provincial partners. The framework would be a long-term vision to 2030 for the Canadian Arctic and North to replace Canada’s Northern Strategy (2009) and the Statement on Canada’s Arctic foreign policy (2010). These policies were criticized as overemphasizing Canada’s Arctic sovereignty, failing to sufficiently consider elements such as the environment, northern governance, and social and economic development, and for being developed without meaningful input from Arctic residents and their governments.

The framework was developed in collaboration with provincial and territorial (PT) governments and Indigenous partners. It applies to Yukon, Northwest Territories, Nunavut, the Nunatsiavut region in Labrador, the Nunavik region in Quebec, and northern Manitoba (including Churchill). The framework includes a comprehensive set of co-developed goals and objectives to guide federal policy and ongoing collaboration with partners to 2030 by:

• accelerating economic development in the Canadian North;
• promoting ongoing environmental stewardship and adequate measures to adapt to and mitigate changing climate;
• strengthening and empowering Indigenous and Northern Peoples and communities;
• developing reliable and comprehensive infrastructure in the Arctic, including energy, transportation, and telecommunications;
• reinforcing Canada’s commitment to ongoing reconciliation with Indigenous Peoples;
• fostering decision-making that is founded in Arctic science and Indigenous knowledge;
• enhancing Canadian diplomacy and leadership in support of a strengthened rules‑based international order in the Arctic; and,
• ensuring the Canadian Arctic and its people are safe, secure, and well defended.

In addition to the overall policy statement, partners (e.g., PT governments and Indigenous governments and organizations) have the opportunity to write their own chapters to define their objectives and outline their priorities to reflect the needs and goals of the Northern and Arctic region and its communities and illustrate how the Framework’s goals should be pursued in their respective region. The governments of the Northwest Territories and Nunavut as well as the Inuit Tapiriit Kanatami released chapters on September 10 2019 along with the policy statement. Yukon and Yukon First Nations are also developing chapters but the timing of their release has yet to be confirmed.

In addition to the framework and partner chapters, the Government of Canada also released chapters on international goals and objectives, to position Canada as an international leader on Arctic issues, and a chapter on Canada’s safety, security, and defence position in the North and Arctic.

Budget 2019 announced $700 million over 10 years in new funding to support the Framework’s objectives. This includes funding for key partner priorities: $18 million for the Government of the Northwest Territories’ Taltson hydroelectricity expansion project and $26 million for Yukon College for the construction of a new science building. These investments were seen by partners as a “down-payment” on further investments in the objectives of the Framework. Budget 2019 also committed funding to support construction and operational costs for a Nunavut wellness centre to support trauma treatment and substance abuse in the Territory.

Platform commitments

• In Canada’s north, continue to move forward toward a future where northern and Arctic people are thriving, strong, and safe. Work closely with partners through the Arctic and Northern Policy Framework to make this a reality, and to protect Canada’s rights and sovereignty in the Arctic, and to strengthen continental defence, move forward with better-developed surveillance and rapid-response capabilities.

Provincial/territorial considerations

[ * ]

Public safety

Guns and gangs

Issue

Reducing violent crimes and access to firearms.

Background

An Act to amend certain Acts and Regulations in relation to firearms, which received Royal Assent on June 21, 2019, aims to tighten controls on the transfer and movement of firearms by reinstating licence verification prior to the transfer of a non-restricted firearm and repealing some elements of the automatic authorization to transport restricted and prohibited firearms. The Act would also enhance the criteria for licencing and that consideration of a person’s eligibility for a licence spans the history of a person’s life.

Through Budget 2018 the Government invested $327.5 million over five years, of which over $200 million is being made available to the provinces and territories (PTs) through the Gun and Gang Violence Action Fund targeting initiatives to reduce gun and gang crime in their communities. [ * ]

During the fall of 2018, consultations were held with provinces, territories, municipalities, Indigenous groups, law enforcement, community organizations, and industry on whether to ban handguns and assault style firearms. Canadians were also invited to provide comments through written submissions and an online questionnaire, which received nearly 135,000 responses. Additionally, eight in-person expert roundtable sessions were held.

Consultation participants were polarized on the issue of banning handguns and assault‑style firearms. Many participants felt strongly that any ban on firearms targets only the law-abiding owners and not criminals. However, there were some suggestions that further restrictions on certain firearms (e.g., assault-style) could help reduce the number of diverted firearms to the illicit market and further diminish their use for criminal activity and mass shootings. The summary report on these consultations was made public in April 2019.

Platform commitments

• Ban all military-style assault rifles, including the AR-15, and introduce a buyback program for all military-style assault rifles legally purchased in Canada, with fair market prices for owners and more resources for law enforcement to administer the program.
• Work with PTs to give municipalities the ability to further restrict or ban handguns.
• Fight gang-related violence, by investing an additional $50 million each year, for five years, in a dedicated funding stream to help municipalities meet the needs of communities at risk.
• Work to expand diversion programs to keep at-risk youth out of the criminal justice system.
• Make sure the Canada Border Services Agency (CBSA) and Royal Canadian Mounted Police (RCMP) have the resources they need to detect and stop the flow of weapons at the border.
• Require everyone importing ammunition to show proof of a valid firearms license.
• Make it harder for legal weapons to get into the hands of criminals by further strengthening safe-storage laws.
• Address the problem of gender-based and intimate-partner violence by temporarily suspending firearms licenses for people who are suspected of posing a danger to themselves or others, including their partners or kids.
• Introduce a system for flagging bulk purchases of guns.
• Strengthen penalties for people seeking to smuggle firearms into Canada.
• Change the way firearms are advertised, marketed, and sold in Canada.

Provincial/territorial considerations

Chief Firearms Officers (CFO) and Firearms Officers are responsible for the issuing and administration of firearms licences and for inspection of firearms businesses which includes inspecting storage and display. In Ontario, Quebec, Newfoundland and Labrador, Prince Edward Island, Nova Scotia and New Brunswick, the CFOs are provincially appointed. CFOs in British Columbia, Alberta, Saskatchewan, and Manitoba are federally appointed.

Following mass shootings in 2018, Toronto and Montreal City Councils called on the federal government to ban the possession of handguns and assault rifles, other than for police and armed forces personnel. The Toronto City Council re-iterated this request and included a request to ban the sale of handguns in Toronto through their pre-budget submission to the Government of Canada. The Mayors of Mississauga and Vancouver have also expressed support for a handgun ban.

Although generally supported, some PTs have noted that An Act to amend certain Acts and Regulations in relation to firearms does not go far enough in addressing gun and gang violence. [ * ]

The Assembly of First Nations has expressed concerns regarding arbitrary changes in classification to firearms, currently classed as non-restricted and which are used by Indigenous Peoples in exercising their right to hunt.

Next steps

[ * ]

Social development

Early learning and childcare

Issue

Implementing commitments on early learning and childcare.

Background

On June 12, 2017, the Federal-Provincial-Territorial (FPT) ministers responsible for early learning and childcare (ELCC), except Quebec, announced the Multilateral Early Learning and Childcare Framework, which committed to enhancing provincial and territorial (PT) ELCC systems and set the foundation for FPT bilateral agreements that would enable the Government of Canada to invest a total of $7.5 billion over 11 years.

The multilateral framework was a reassertion of federal leadership in child care across Canada. It committed PTs to demonstrating the impact of federal funding against the federal objective of increasing the number of high quality, accessible, affordable, flexible, and inclusive early learning and child care spaces.

The Government of Quebec [ * ] maintains sole responsibility in this area on its territory.

The Minister of Families, Children and Social Development has negotiated bilateral agreements with each PT outlining their respective allocations for the period 2017-18 to 2019-20. The multilateral framework and bilateral agreements include a commitment that the federal government will invest at least the amounts committed to in the first three years over the remaining period of 2020-21 to 2027-28 to facilitate long-term planning and support long-term commitment.

Bilateral agreements include key components of the multilateral framework, such as the shared vision, principles, objectives and areas of investment. They also include a requirement that PTs will produce an action plan outlining their vision for achieving the objectives in the bilateral agreement.

The Minister of Families, Children and Social Development also worked with the three national Indigenous organizations to co-develop a distinct Indigenous ELCC Framework with a separate funding envelope of $1.8 billion over 11 years to address the unique cultures and needs of First Nation, Inuit and Métis children across Canada.

Platform commitments

• creating up to 250,000 more before- and after-school spaces for children under the age of 10 and to lower parent fees for existing before- and after-school spaces by 10 per cent across the country. A target of 10 per cent of the new spaces would be dedicated to providing more child care options for parents who work overtime, late shifts, or multiple jobs;
• investing $25 million per year to help cover the costs for further training for early childhood educators (ECEs) and to lower tuition costs for individuals getting their ECE degree; and,
• establishing a national secretariat to work with the PTs to lay the groundwork for a pan-Canadian child care system. The secretariat would help establish national standards for future agreements under the Multilateral ELCC Framework; promote best practices; advance gender equality; and work closely with the recently established Expert Panel on Early Learning and Child Care.

Provincial/territorial considerations

Federal support for ELCC is currently being delivered through FPT bilateral agreements. Three-year bilateral agreements with all PTs have been signed, to flow $1.2 billion in support of PT priorities for ELCC. This first round of ELCC bilateral agreements will expire on March 31, 2020. [ * ]

The Government of Quebec [ * ] preserves its sole responsibility in this area on its territory. The Province has had universal, subsidized daycare since 1997, and has committed to reviewing its regulatory framework for private, in-home day care facilities in 2019-20. The Governments of Canada and Quebec signed an asymmetrical agreement outside the multilateral framework. The Canada-Quebec agreement recognizes the Government of Quebec’s exclusive jurisdiction over early learning and childcare, [ * ]

Several provinces, including Ontario, Nova Scotia, and Newfoundland and Labrador have introduced measures to increase wages for eligible childcare workers. Yukon is introducing full-day pre-kindergarten for four-year olds. Affordability and availability of childcare facilities are lowest in Nunavut. [ * ]

Bilateral ELCC agreements currently focus on children aged zero to five years, and grant PTs the flexibility to achieve outcomes through the childcare system or the education system. However, the new commitments focus on school-aged children.

[ * ]

Next steps

[ * ]

Housing

Issue

The Government of Canada announced the $40 billion 10-year National Housing Strategy (NHS) on November 22, 2017. Through Budget 2019, the Government increased its support for housing initiatives to $55 billion over 10 years.

Background

On November 22, 2017, the Government announced the NHS, a $40 billion, 10-year commitment to build 100,000 new housing units, repair 300,000 existing units and lift 530,000 Canadians out of housing need.

On April 9, 2018, federal, provincial and territorial (FPT) governments, except Quebec, endorsed the Multilateral Housing Partnership Framework. The Framework recognizes that FPT governments are primary partners in housing and that they have a shared responsibility and complementary roles for housing. The Framework also set the foundation for negotiating bilateral agreements between the federal and PT governments to work toward delivering on NHS outcomes.

From April 2018 through September 2019, the Government of Canada negotiated bilateral housing agreements with PTs. At the time the election was called, agreements had been signed with 12 PTs representing $5.3 billion in federal investments, to be cost‑matched by PTs for a total of $10.6 billion over 10 years.

The governments of Canada and Quebec have not yet signed a bilateral housing agreement. [ * ]

The NHS also includes the $4 billion Canada Housing Benefit (CHB), and the $13.2 billion National Housing Co-Investment Fund (NHCF). The CHB will provide direct, portable income support to renters and is being co-developed with PTs, with funding expected to begin flowing as early as April of 2020. The NHCF is a federally-led initiative through which the CMHC is providing contribution funding and low-interest loans directly to housing proponents.

The cost of housing has experienced a sharp rise in recent years, driven largely by certain markets that have been experiencing overheating for several years. The challenge of affordability applies to homeowners and renters, and is the result of multiple factors, including insufficient supply and speculation.

Platform commitments

• Housing affordability emerged as a major priority in the 2019 election, with both leading parties making significant commitments to intervene in the housing market.
• The Government has committed to:
  • expanding the First Time Home Buyers Initiative in Toronto, Vancouver and Victoria, and introducing a national vacancy and speculation tax on residential properties owned by non-residents;
  • making homes greener by offering a free home energy audit and an interest-free loan up to $40,000 to undertake home energy retrofits based on the audit; creating a $5,000 grant to help homeowners buy net zero homes; investing $100 million to ensure there are enough qualified workers to keep up with demand for energy efficient homes; and, making Energy Star certification mandatory for all new appliances by 2020; and,
  • taking measures to protect homeowners who are at high risk of flooding by creating a national flood insurance program; and working with PTs on a national action plan to assist homeowners who are highest risk of flooding with possible relocation.

Provincial/territorial considerations

[ * ]

The Government of Quebec has not yet signed its bilateral housing agreement [ * ]

Federal officials transmitted a generic addendum on the CHB to all PTs in July 2019. [ * ]

Next steps

[ * ]

Infrastructure

Issue

Provinces, territories (PTs) and municipalities have a key role to play in achieving federal objectives in infrastructure; they own and maintain the majority of Canada’s infrastructure assets and have an important role to play in planning and funding critical projects.

Background

Through the Investing in Canada Plan (ICP), the Government of Canada is investing more than $180 billion over 12 years in infrastructure projects across Canada. The Plan is being delivered by 14 federal departments and agencies, who are investing $95.6 billion in new funding and $92.2 billion in existing funding through five streams:

• $28.7 billion for public transit;
• $26.9 billion for green infrastructure;
• $25.3 billion for social infrastructure;
• $10.1 billion for trade and transportation infrastructure; and,
• $2 billion for rural and northern infrastructure.

Under the ICP, $33 billion is being transferred to PTs through Integrated Bilateral Agreements (IBAs) to support their priorities in public transit ($20 billion), green infrastructure ($9.2 billion), social infrastructure ($1.3 billion) and rural and northern infrastructure ($2.4 billion).

The federal Gas Tax Fund (GTF) is a permanent source of funding provided up front, twice a year, to PTs, who in turn flow this funding to their municipalities to support local infrastructure priorities. Municipalities can pool, bank, and borrow against this funding, providing significant financial flexibility.

The GTF delivers over $2 billion every year to 3,600 communities across the country. In recent years, the funding has supported approximately 4,000 projects each year. Communities select how best to direct the funds with the flexibility to make strategic investments across the following 18 different project categories.

The Disaster Mitigation and Adaptation Fund (DMAF) is a national merit-based program that is investing $2 billion to support large-scale infrastructure projects to help communities better manage the risks of disasters triggered by natural hazards. DMAF funding is allocated through public intake processes until the funding envelope has been exhausted.

The Canada Infrastructure Bank (CIB) will use federal support to attract private sector and institutional investment to new revenue-generating infrastructure projects that are in the public interest. The CIB will invest $35 billion from the federal government into infrastructure projects. $15 billion is sourced from the ICP, including:

• $5 billion for public transit systems;
• $5 billion for trade and transportation corridors; and,
• $5 billion for green infrastructure projects, including those that reduce greenhouse gas emissions, deliver clean air and safe water systems, and promote renewable power.

Platform commitments

• Require PTs to identify and approve all of their long-term infrastructure priorities within the next two years. Funds that are not designated for specific projects by the end of 2021 will be reinvested directly in communities through a top-up of the federal Gas Tax Fund.
• Create a National Infrastructure Fund, which will seek out and support major nation‑building projects, such as the Newfoundland-Labrador fixed transportation link.
• Invest an additional $3 billion per year, permanently, to support public transit priorities. The fund would be made permanent and would be indexed to keep up with the cost of inflation in the construction industry.

Provincial/territorial considerations

IBAs have been signed with all PTs, and Infrastructure Canada has committed over $9 billion to 472 projects submitted by PTs, which have total eligible costs in excess of $22.5 billion.

[ * ]

On February 22, 2019, [ * ] the Minister of Infrastructure and Communities introduced flexibility to the IBAs to make them more responsive to PT priorities by:

• simplifying the process by which proposed projects are approved;
• supporting more infrastructure renewal in rural and northern communities;
• increasing broadband access in rural communities;
• recognizing the eligibility of costs related to consultations with Indigenous Peoples; and,
• expanding the types of energy retrofit projects that are eligible for federal funding.

In the spring of 2019, following the severe flooding that impacted communities in Ontario, Quebec, and New Brunswick, the Minister of Infrastructure and Communities also introduced flexibility into the DMAF to ensure PTs could access funding under this program on a priority basis to support flood remediation activities. [ * ]

In Budget 2019, the Government of Canada committed to doubling the annual GTF transfer for 2019. [ * ] municipalities requested that the doubling of the GTF be made permanent.

[ * ]

The CIB has committed up to $3.35 billion in 7 projects, including:

• $2 billion to support the expansion of Go Transit in the Greater Toronto and Hamilton Area;
• $1.28 billion for construction of the 67km long automated light-rail transit system in Montreal – the Réseau express métropolitain;
• up to $55 million to Via Rail to support due diligence around the possibility of high frequency rail in the Quebec  – Toronto corridor;
• up to $20 million to support construction of the new water and wastewater facility in Mapleton, Ontario;
• advisory services to the Government of Northwest Territories to support expansion of the Talston generating station;
• a new terminal at the Montreal Port Authority to expand container handling capacity; and,
• expansion of the City of Richmond, British Columbia’s district energy system.

[ * ]

Next steps

[ * ]

Part E: Background

Regional economic overviews

Western Canada

Western Canada encompasses 2.7 million square kilometers and is the region with the fastest population growth. Over half (55 per cent) of Canada’s Indigenous Peoples live in the West and over 40 per cent of the population are recent immigrants. The region’s economy accounted for 36 per cent of Canada’s gross domestic product in 2017. Accounting for almost 40 per cent of the economy and nearly one-third of the population, the west drove Canada’s economic growth for over a decade. However, in the wake of weak potash, uranium, and oil prices, western Canada’s overall economy has slowed considerably. Commodity prices are not expected to rebound to the highs experienced in 2014 and continued delays on pipeline projects are contributing to business closures and job losses. A recent report calculated that nearly 300 western Canadian oil and gas firms have disappeared since 2014. This overall economic uncertainty is pulling on the social fabric that binds the west, and has lowered confidence in Canadian federalism, particularly in Alberta and Saskatchewan. Despite an effort to diversify the economy through opportunities in cluster growth (clean tech, health data analytics, food and ingredient manufacturing, and electrification of heavy equipment vehicle manufacturing), many sectors and communities remain vulnerable to fluctuating commodity prices or are reliant on one economic driver. With the majority of western exports (70 per cent) destined for the United States and Asia (15 per cent), the region has been impacted by global trade action and tariffs (United States imposed aluminum and steel tariffs, trade action from China on canola seed and meat products and India’s tariffs on pulse crops affecting pea and lentil exports). In addition to trade disputes impeding commodity exports, transportation bottlenecks further limit economic growth. British Columbia, Alberta and Saskatchewan account for nearly 60 per cent of all Canadian rail shipments. Increases in the movement of oil by rail creates competition with other commodities and places significant pressure on the system. Without significant investments in key ports, rail, road, and air infrastructure to move more western products to market, global instability in trade and investment will continue to limit the ability of western firms to export products, attract foreign capital, and establish business partnerships.

Ontario

Ontario is home to nearly 39 per cent of the Canadian population. It has a growing and increasingly diverse population. Nearly 30 per cent of Ontario’s population was born outside of Canada and 40 per cent of all new permanent residents in Canada choose to call Ontario home. The region is a major driver of the Canadian economic engine, accounting for close to 40 per cent of the country’s gross domestic product, exports, venture capital and high-growth firms. The automotive, mining, manufacturing, agriculture, financing, information and communications technology, and pharmaceuticals and medicine sectors are key to Ontario’s economy. Despite strong recent performance, medium to long-term growth is expected to slow, with rising trade frictions and global monetary policy creating headwinds for the Province. Population diversity, growth, and economic prosperity is concentrated in the major metropolitan areas. Smaller, rural and manufacturing communities are facing decline, with income inequality in Ontario the highest of any of the provinces. The diverging growth between urban and rural areas is exacerbated by an acutely felt shortage of skilled labour in rural communities, particularly in skilled professionals and tradespeople. Northern Ontario faces a different outlook than its southern counterparts. The region experiences slower population growth, higher rates of unemployment and lower immigration levels when compared to the Province as a whole. Northern Ontario covers 90 per cent of the Province’s landmass but only holds 6 per cent of its population (840,739). More than half of the population lives in the region’s five urban centres, with the remainder living in small and dispersed communities, most of which have a population of less than 2,000. The region is home to 105 of the Province’s 126 First Nations Communities, of which 30 are remote and accessible only by air or winter road. Population growth has been small and is expected to decline in the next decade due to aging, low fertility rates, out-migration and limited immigration (approximately 6 per cent of the population immigration from outside of Canada, much lower than the 22 per cent national average). Northern Ontario’s strong resource-based industries such as mining and forestry are key contributors to the provincial economy, with demand for natural resources (precious and base metals, wood products, biofuel, minerals, and forestry) rising over the last decade. That said, resource-based industries remain susceptible to global economic influences and fluctuations and high costs of energy and transportation as well as lack of reliable and affordable broadband are barriers to business growth and community development. Infrastructure expenditures are higher than the provincial average due to climate, geographic size and remoteness and a more limited tax base making necessary improvements more expensive and difficult to execute, limiting potential development and growth. Attracting funding and investment to businesses is more challenging given the perception that the risk of doing business is higher than in other parts of the country.

Quebec

Quebec is home to nearly 23 per cent of the Canadian population, with 80 per cent living in only 10 per cent of the region. Immigrants make up 14 per cent of the population (below the national average of 22 per cent). The economy is strong, but does not yet equal its demographic weight at only 19 per cent of the country’s gross domestic product (GDP). Quebec is nearing full employment and unemployment is at an all-time low (5.5 per cent in 2018). Labour shortages will continue to put small and medium sized enterprises (SMEs), which make up 87 per cent of private sector jobs, under pressure as many SMEs have had to postpone projects or refuse contracts due to a lack of workers. The economy is also expected to continue to feel the effects of an ageing population, which is a drag on GDP growth. Quebec boasts a diversified, small business economy, focused on services, manufacturing, construction, and natural resources. Services are the most important sector of the Quebec economy, both in terms of employment (80 per cent) and production (72 per cent). Manufacturing also plays an important role and generates significant economic spinoffs, accounting for 14 per cent of Quebec's GDP and more than 80  per cent of the value of exports. Advanced, emerging and green technologies as well as start-ups play an increasingly important role. Agriculture, mining, forestry, and fisheries carry less overall weight, but these industries continue to be important in rural communities. Montreal is considered to be the economic engine of the Province of Quebec. Several indicators show that its economic weight is higher than its demographic weight. Outside the major urban centres (Montreal, Quebec City, Gatineau, and Sherbrooke), the demographic and economic outlook is worrisome as there is both a decline in the population and an exodus of young people. Many rural communities lack the infrastructure to cope with technological, economic, and climate change and many are dependent on industrial activities that are in decline or at risk of decline.

Atlantic Canada

Energy, oceans, and fisheries are the key sectors in Atlantic Canada. Energy accounts for more than 12 per cent of regional gross domestic product, more than 18,000 direct jobs and nearly 60 per cent of regional exports. The energy sector has been the largest source of major capital investment in the last 10 years, and it is estimated that eight indirect and induced jobs are created in the region for every direct job in oil and gas extraction. Atlantic ocean sectors are projected to grow by $10 billion between 2015 and 2030, in large part driven by activities in the aquaculture and oil and gas sectors, with the possibility of aquaculture growth exceeding $3 billion over the coming decade. Overall economic growth may be hampered by a number of factors including a declining labour force (between 2012 and 2018 the workforce declined by 31,000 workers and 229,000 are set to retire over the next decade), an aging population (the number of people over age 65 has increased by more than 6 per cent since 2001), and a higher share of rural population (nearly 50 per cent of the region lives in rural areas). Rural areas remain critical for key sectors such as extraction industries and food, but these areas face acute labour declines and shortages, with a mismatch between positions offered and the available labour force. The population is growing for the first time in many years, due largely to the influx of immigrants, supported by the Atlantic Immigration Pilot. That said, retention has been a challenge and immigration will not address the labour shortage, particularly if outmigration continues. Less access to financing is also cited as a limiting factor, with most companies (98 per cent are considered small businesses) lacking the scale required to access national business programs and other financing options, typically located outside the region. While Atlantic Canada benefits from a strategic geographic location close to major North American markets and easy access to international markets, the region has critical aging infrastructure that requires remediation and rehabilitation, including highways, air access, ports and reliable broadband. Provincial spending in these areas is constrained by competing pressures on budgets, including debt obligations.

The Territories

The territories account for nearly 40 per cent of Canada’s landmass, and constitute a large part of the world’s longest coastline, but hold less than 1 per cent of Canada’s population with approximately 114,000 residents, half of whom identify as Indigenous. The region’s population is young (over 60 per cent is under the age of 40) and highly dispersed. The territorial economies are forecasted to grow an average rate of 4.4 per cent in 2020 before averaging 1.5 per cent between 2021 and 2025, although this growth is not evenly distributed. Strong growth forecast in Nunavut and Yukon, largely driven by their mining sectors, whereas the Northwest Territories outlook is comparatively modest with growth expected to decline over the medium term due to mine closures. While the public sector and resource industry (in particular, mining) remain the cornerstones of the territorial economies, new opportunities for growth are emerging across a number of sectors that include tourism; renewable energy; northern food systems; commercial fisheries; and cultural and traditional services and products. Despite this overall regional growth in the short-term, the lack of skilled labour and high unemployment rates outside of territorial capital cities pose broader, systemic challenges. In addition, the region’s infrastructure deficit, including connectivity, has created a premium cost to doing business, impacting the ability to attract industry and promote economic development. The cost of living in the region is among the highest in the country, particularly in communities that lack year-round road access, making it difficult to attract and retain a labour force, professionals in areas such as health and education, and new immigrants. The infrastructure deficit is increasingly shaped by the rapid impacts of climate change in the North as a region that has had to, and continues to, adapt more quickly and intensely than southern Canada.

The balance of approaches between economic development and environmental sustainability further defines the territories’ regional economic landscape. There is recognition that the North contains world-class mineral deposits (e.g., the Slave Geological Province), which could provide significant national and local economic benefits if developed on a sustainable basis and leveraged to promote the growth of other sectors. As a means to improve resource development activities but also to facilitate territorial participation in the digital economy, northern innovation ecosystems present both opportunities (e.g., nimbleness given its relatively small size) and challenges as access to the necessary expertise, capital and markets may be limited. Strengthening northern companies, including Indigenous ones, involves enhancing the region’s internal capacity as well as its linkages to southern systems.

Regional Development Agencies

Canada’s Regional Development Agencies help to address key economic challenges by providing regionally-tailored programs, services, knowledge and expertise that:

• build on regional and local economic assets and strengths;
• support business growth, productivity and innovation;
• help small- and medium-sized businesses effectively compete in the global marketplace;
• provide adjustment assistance in response to economic downturns and crises; and,
• support communities.

The Regional Development Agencies help to deliver Canada’s Innovation and Skills Plan and the Regional Economic Growth through Innovation program.

Western Economic Diversification Canada

Western Economic Diversification Canada (WD) was established in 1987 to promote the development and diversification of the economies of British Columbia, Alberta, Saskatchewan and Manitoba and to advance the interests of the west in national economic policy, program and project development and implementation. For 2019-20, WD will focus on helping innovative western clusters scale-up and capture global markets, and increasing economic participation of Indigenous peoples, women and youth. A key activity for WD is the coordination of the Western Canada Growth Strategy (Grow West Strategy), launched in June 2019. The Strategy has four pillars:

• Diversification: growing emerging sectors and regional economic partnerships, investing in cleaner resource development and supporting high-growth firms.
• Trade: getting western energy to new markets, modernizing trade infrastructure, leveraging trade agreements, and strengthening regional export markets.
• Skills: developing essential skills that keep pace with change, strengthening career pathways, attracting global talent and include and empowering Western Canadians.
• Communities: partnering with Indigenous communities and organizations, strengthening rural communities, building smart communities, building resilience to natural disasters, and improving broadband.

Organizational profile

• 2020-21 planned spending – $193,780,857
• 2020-21 planned full-time equivalents – 211
• Headquartered in Edmonton, Alberta, with offices in Vancouver, British Columbia; Calgary, Alberta; Saskatoon, Saskatchewan; Winnipeg, Manitoba; Ottawa, Ontario.

Federal Economic Development Agency for Southern Ontario

The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) was created in 2009 to work with communities, businesses, not-for-profit organizations and other levels of government in southern Ontario, to strengthen the region's capacity for innovation, economic development and growth.

In 2019-20, the Agency will promote the inclusive growth and vitality of southern Ontario communities by making targeted investments and leveraging regional strengths. The agency will also look to eliminate barriers for underrepresented groups such as the region’s Indigenous Peoples, women, Francophones, and youth.

The agency is currently in the process of developing a Southern Ontario Growth Strategy, with consultations concluding earlier this spring.

Organizational profile

• 2020-21 planned spending – $212,086,979
• 2020-21 planned full-time equivalents – 233
• Headquartered in Waterloo, with offices in Toronto, Peterborough and Ottawa.

Federal Economic Development Initiative for Northern Ontario*

The Federal Economic Development Initiative for Northern Ontario (FedNor) was established in 1987. In 2018, FedNor launched the Prosperity and Growth Strategy for Northern Ontario (PGSNO). The PGSNO builds on ongoing federal and provincial programs and collaborations to address the needs of Northern Ontario’s communities in three priority areas:

• supporting innovation by expanding and strengthening the regional innovation ecosystem and providing support for incubators, accelerators and clusters;
• growing companies by enhancing supports for business start-ups and scale-ups, promoting the adoption of advanced technologies, and increasing the capacity of companies to export; and,
• building stronger communities by helping municipalities and Indigenous communities better respond to economic development opportunities and challenges.

(*FedNor is an initiative within the Innovation, Science and Economic Development portfolio and not a standalone regional development agency.)

Canada Economic Development for Quebec Regions

Canada Economic Development for Quebec Regions (CED)’s mission is to promote the long‑term economic development of the regions of Quebec by giving special attention to those where slow economic growth is prevalent or opportunities for productive employment are inadequate. Created in 2005, CED is the key economic development player for small and medium-sized enterprises, fostering business start-ups and growth and attracting investments that will help boost the economic well-being of Quebec and Canada.

In 2019-20, CED will focus on supporting the growth and expansion of businesses and contributing to inclusive growth by supporting women entrepreneurs and Indigenous people.

CED is also responsible for the implementation of the Federal Strategy on Innovation and Growth for the Quebec Regions (FSIGQR). Announced in November 2018, the FSIGQR is based on the following four pillars:

• Innovation and clean technology: support for regional clusters, incubators and accelerators, development and adoption of ground-breaking clean technologies and disruptive technologies and their adoption.
• Growth and exports: increasing the digitalization and automation of businesses, the number of exporters, export revenues and access to markets; enhancing knowledge of large contracts and facilitating entry into value chains; and attracting international investments through a favourable business environment.
• Entrepreneurial talent: promoting skills development among underrepresented groups of entrepreneurs and attracting qualified entrepreneurs; developing skills and talents to foster clean tech and digital skills in businesses.
• Inclusive growth in all regions: enhancing regional assets through innovation and competitiveness; supporting local entrepreneurship and social economy in rural and remote regions; and promoting investments in regions renewable resources.

Organizational profile

• 2020–21 planned spending – $223,522,522
• 2020–21 planned full-time equivalents – 191
• Headquartered in Montreal, Quebec, with offices throughout the Province.

Atlantic Canada Opportunities Agency

The Atlantic Canada Opportunities Agency (ACOA) was established in 1987 and is responsible for the Government of Canada’s economic development efforts in New Brunswick, Prince Edward Island, Nova Scotia, and Newfoundland and Labrador.

ACOA is co-leading, with the Privy Council Office, the implementation of the Atlantic Growth Strategy (AGS), which focuses on accelerating the growth of Atlantic Canada’s economy, creating well-paying middle class jobs, strengthening local communities and growing innovative companies in the region. Since its launch in 2016, the AGS has helped to create more than 18,000 jobs, increase exports and market diversification, attract international visitors, immigrants and students, and promote innovation of Atlantic Canadian companies. Going forward, Atlantic premiers and federal ministers have prioritized the advancement of the Atlantic Clean Power Roadmap, consistent with the electrification priority outlined at the December 2018 First Ministers’ Meeting, and accelerating action on a food strategy.

In 2019-20, ACOA will support business investments in the development and commercialization of innovative technologies, invest in the innovation and growth of Atlantic Canadian businesses and in the economic diversification of communities. 

Corporate information

• 2020–21 planned spending – $267,187,006
• 2020–21 planned full-time equivalents – 382
• Headquartered in Moncton, New Brunswick, with regional headquarters in St John’s, Newfoundland and Labrador; Halifax, Nova Scotia; Fredericton, New Brunswick, Charlottetown, Prince Edward Island.

Canadian Northern Economic Development Agency

The Canadian Northern Economic Development Agency (CanNor), established in 2009, works to help develop a diversified, sustainable, and dynamic economy across the Northwest Territories, Yukon and Nunavut, while at the same time contributing to Canada's prosperity.

In 2019-20, CanNor will deliver economic development programming and work with Indigenous communities in the territories to increase their capacity to participate in and benefit from economic opportunities. CanNor will also continue to implement the Pan-Territorial Growth Strategy (PTGS). Launched in August 2019, the PTGS is centered on four areas of action:

• Skilled workforce: strengthening the northern workforce and equipping Northerners with the tools, skills, and experience they need to succeed in the workforce, now and into the future.
• Infrastructure investments and development: leveraging upcoming investments and the ongoing operation of major infrastructure projects to maximize local and regional economic opportunities.
• Resource development: supporting the sustainable development of the mining and energy sectors, throughout the development cycle, in a manner which increases community capacity, maximizes jobs and wealth within the territories, and produces positive economic impacts in communities.
• Diversification and innovation: fostering the sustainable growth of other economic sectors with a focus on strengthened entrepreneurship and northern innovation.

Organizational profile

• 2020-21 planned spending – $36,218,304
• 2020-21 planned full-time equivalents – 48
• Headquartered in Iqaluit, Nunavut, with offices in Whitehorse, Yukon; and Yellowknife, Northwest Territories.

Intergovernmental machinery

In Canada, important public policy issues cut across jurisdictional lines. Various mechanisms exist to manage this jurisdictional overlap and facilitate intergovernmental cooperation. These mechanisms are formal and informal, multilateral and bilateral, and exist both between the federal, provincial, and territorial (FPT) levels of government, as well as among provincial and territorial (PT) governments themselves. Recently, municipalities have also been exerting greater influence on FPT relations, primarily through the Federation of Canadian Municipalities and direct bilateral engagement by mayors.

The main formal processes and mechanisms at the level of First Ministers are First Ministers’ Meetings, the Council of the Federation, the Western Premiers’ Conference, the Council of Atlantic Premiers, and the Northern Premiers’ Forum. Of these, only First Ministers’ Meetings include any presence in the form of the Prime Minister’s participation.

At the sectoral level, FPT ministers, deputy ministers and senior officials meet on a regular basis to deal with sector-specific issues (see annex).

Bilateral relations

Prime Ministers typically use extensive bilateral engagement with PT premiers to build and maintain positive relationships across the federation. The bilateral approach enables governments to address specific PT issues, and foster key partnerships and advance federal interests with willing partners. Bilateral engagement is also critical to managing challenges and tensions, particularly on key regional issues, and thus helps to uphold national unity.

It should also be noted that various provinces have cooperated bilaterally through holding joint cabinet meetings, often culminating in signing agreements for joint cooperation. These meetings are somewhat infrequent, with the last one held between Ontario and Quebec in September 2017.

First Ministers’ Meetings

First Ministers’ Meetings (FMMs) are the apex of intergovernmental machinery. Throughout the years, Prime Ministers have used them in different ways. Prime Ministers Mulroney, Martin and Pierre Trudeau, for example, tended to favour large, high-profile, high-stakes meetings to negotiate agreements. Prime Minister Chrétien, by contrast, preferred more private business-like meetings to bring closure to issues that had already undergone extensive intergovernmental work by officials. Prime Minister Harper had a strong preference for fewer and more low-key, private meetings, which tended to focus on consultations with premiers on broad issues.

Prime Minister Justin Trudeau chaired five FMMs between 2015 and December 2018. The Trudeau government made an electoral commitment to host annual FMMs. The most recent meeting was held in Montreal, Quebec, in December 2018 and covered issues such as trade diversification and internal trade, clean growth and jobs, environment and energy. These meetings sought FPT agreement and served as forums for consultations/information sharing, as well as discussions on horizontal issues.

Annual Premiers’ Conference/Council of the Federation

Provincial and territorial premiers have met regularly over the years to work together on shared priorities, and to present common priorities or approaches for discussion with the Government of Canada. In 2003, premiers established the Council of the Federation to formalize their collective work. The Council meets on at least an annual basis and is supported by a steering committee of provincial and territorial deputy ministers of Intergovernmental Affairs and a small secretariat. Decision-making is consensus-based and the Council is chaired on an annual rotational basis. The most recent meeting of the Council of the Federation took place in July 2019 in Saskatoon, Saskatchewan. The next meeting will be hosted by Quebec Premier Legault from July 22-24, 2020.

Federal-Provincial-Territorial sectoral tables

Approximately two dozen intergovernmental sectoral tables (e.g., FPT Ministers Responsible for Immigration, the Canadian Council of Ministers of Environment) exist to facilitate collaboration and the sharing of information between governments (see annex). While sectoral tables have proven to be effective at identifying and moving forward on shared priorities and finding innovative approaches to resolving differences, there can also be difficulties in achieving consensus. To resolve such difficulties, officials could be tasked by Ministers to work together in national working groups or bilaterally to advance key objectives.

There are ministerial tables covering almost every major policy area. An exception is Intergovernmental Affairs, where there is no sectoral table. Most sectoral tables hold regular (annual or biannual) Ministers’ meetings. To support ministers, working groups of deputy ministers and other officials also meet periodically.

Most sectoral tables have representation from all jurisdictions, are co-chaired, and have agendas that are developed collectively. Certain sectoral tables have expanded their representation to include municipalities, such as the FPT Ministers responsible for Infrastructure. However, there are some exceptions, such as the Finance Ministers’ Meetings, which are chaired by the federal Minister of Finance, and the Canadian Council of Ministers of the Environment and the Canadian Council of Forest Ministers, the chairs of which rotate among the fourteen responsible ministers. Communiqués, if issued at the conclusion of meetings, tend to reflect the consensus position of all governments.

Meetings of FPT Clerks and Cabinet Secretaries

Since January 2010, Canada’s Clerks and Cabinet Secretaries have met semi annually to discuss common challenges they face with respect to public sector management. The meetings provide an opportunity to establish strong personal connections and working relationships, and have enabled the Clerks and Cabinet Secretaries to share information and best practices on how Canada’s public services can improve their overall efficiency and effectiveness. Clerks and Cabinet Secretaries use these meetings to discuss common issues and share best practices in the management of Canada’s governments. The most recent meeting was held in April 2019 in Toronto. The agenda included discussions on foreign relations, digital government and public service renewal. The next meeting is expected to take place in late fall 2019/early winter 2020.

Western Premiers’ Conference

The Western Premiers’ Conference is comprised of the four Western and three territorial premiers and meets annually in the spring. Western and Northern premiers have often been effective at using these meetings to formulate regional positions on priorities in advance of the annual meeting of the Council of the Federation. The most recent meeting was held in June 2019 where premiers discussed internal trade, sustainable development, climate change, responsible resource development, expanding export markets and mental health and addictions.

Council of Atlantic Premiers

The Council of Atlantic Premiers (CAP), which was established in May 2000, consists of the premiers of the four Atlantic provinces, with the Chair rotating annually. The CAP meets at least once a year and sometimes more frequently to discuss issues of common interest. In general, CAP meets prior to meetings of First Ministers and the Council of the Federation to establish a united Atlantic view on key issues. The most recent meeting was held in January 2019 where premiers discussed energy, regulatory alignment, health reform and funding, and expanding international trade.

Northern Premiers’ Forum

The Northern Premiers’ Forum is comprised of the premiers of the three territories and was established under the Northern Cooperation Accord signed in 2003. This forum aims for greater cooperation among the territories and is used to develop common positions in advance of multilateral meetings. The most recent meeting of June 2019 was hosted by Yukon Premier Silver in Dawson City, where Northern premiers underscored the need for strategic investments from the federal government in economic and energy infrastructure, as well as wellness, safety, and well-being of Northerners. Premiers also identified several priority areas, including: strengthening Canada’s position in the Arctic; climate change; community infrastructure and disaster mitigation; energy; transportation; and, missing and murdered Indigenous women and girls.

FPT Ministerial tables and upcoming meeting dates

This list not intended to be a comprehensive list of all multilateral sectoral tables, but identifies tables that are supported by Deputy Ministers, have participation from all jurisdictions, and are presently active. 

Forum of Federations

The Forum of Federations is a non-partisan international organization headquartered in Ottawa. The Forum develops and shares comparative expertise on the practice of federal and decentralized governance through a global network. The Forum was established by the Government of Canada in 2000. The mission of the Forum is to strengthen inclusive and responsive governance, including pluralism and gender equality, in federal, decentralized, and transitioning countries. The Forum is concerned with the contribution that federalism and multilevel governance can make to the consolidation of democracy. In addition to Canada, nine other governments have signed long term funding agreements as partners of the Forum. These countries are Australia, Brazil, Ethiopia, Germany, India, Mexico, Nigeria, Pakistan, and Switzerland. Two others, Argentina and Nepal are expected to join in the future. Forum also receives program based support from the Denmark, the Netherlands and the Republic of Ireland.

Forum’s programs are designed to generate cutting edge comparative knowledge on current issues of federal and decentralized governance and respond to policy debates in the Forum’s member countries. Some of the current programs include:

• the interplay between gender and federal governance;
• fiscal federalism;
• federalism and natural resource management;
• federalism and river water management;
• federalism and health care;
• federalism and education;
• federalism and public security;
• federalism and emergency management; and,
• federalism and service delivery.

In recent years, the Forum’s work has expanded to include support for emerging federations, including post conflict counties considering federal forms of governance. The Forum currently supports the processes of federalization/devolution and democratization in Ethiopia, Somalia, Jordan, Morocco, Myanmar, Nepal and Tunisia. The Forum’s expertise has also been requested for Cuba, Cyprus, Iraq, Peru, the Philippines, Sri Lanka and Yemen.