Minister of Intergovernmental Affairs Transition Briefing Book - August 2020
[ * ] An asterisk appears where sensitive information has been removed in accordance with the Access to Information Act and Privacy Act.
On this page
- Recommended early ministerial actions
- Early issues with PT implications
- Managing the federation in the context of economic recovery
- The Safe Restart Agreement
- First Ministers’ meetings
- Key bilateral issues
- Overview of FPT policy issues and key dates
- Economic and fiscal situation of provinces
- PCO IGA research priorities
Recommended early ministerial actions
- Introductory calls: Provincial Premiers
- You may wish to reach out to premiers in the weeks following your appointment.
- In particular, you may wish to speak to Premier Moe, as outgoing Chair of the Council of the Federation, and Premier Legault, who will become the Chair of the Council of the Federation in September.
- You may also wish to reach out to Sonia Lebel, as Quebec’s IGA Minister. Premiers are also the IGA ministers in other PTs.
- PCO-IGA can prepare briefing material to support you for these calls.
- Introductory calls with municipal stakeholders
- Don Iveson, Mayor of Edmonton and Chair of the Big City Mayors
- Bill Karsten, President of the Federation of Canadian Municipalities and Councillor for the Halifax Regional Municipality
- Carole Saab, Chief Executive Officer, Federation of Canadian Municipalities
- Introductory calls with internal trade stakeholders
- Andrew Furey, Premier of Newfoundland and Labrador who, as Minister of Intergovernmental Affairs is also responsible for internal trade. Newfoundland and Labrador is Chair of the Committee on Internal Trade in 2020. The Province is determining the premier’s level of involvement in this work.
- Patrick Sullivan, President and CEO of the Halifax Chamber of Commerce and Chair of the Canada Global Cities Council (coalition of CEOs of eight of the largest urban chambers of commerce).
- Dan Kelly, CEO of the Canadian Federation of Independent Business.
- Dan Paszkowski, President of the Canadian Vintners’ Association.
- Participation in Cabinet Retreat – September 14–15, 2020
- Meeting of the Committee on Internal Trade – September 16, 2020 (TBC)
- Meeting with Minister Sonia Lebel, Chair of the Treasury Board, Quebec and Minister Pablo Rodriguez, Leader of the Government in the House of Commons and Quebec Lieutenant on housing in Quebec – September (date TBC)
Early issues with PT implications
Finalize the Safe Restart Agreement (SRA)
- On July 16, 2020, the Government of Canada concluded an agreement with provinces and territories with over $19B in federal funding to help provinces and territories restart the economy over the next six to eight months.
- Work is ongoing with provinces and territories (PTs) to finalize the letters required from them to access SRA funds. [ * ]
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- Further information on the Safe Restart Agreement is included at Tab D.
First Ministers meeting (FMM)
- Since the beginning of the COVID-19 pandemic, First Ministers have met on an almost weekly basis to discuss the federal, provincial and territorial responses to COVID-19.
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- Further information on the First Ministers’ Meetings is included at Tab E.
FPT discussions on fiscal transfers to PTs
- Provinces continue to press for changes to federal transfers, including the Canada Health Transfer, the Fiscal Stabilization program, and the Equalization program.
- The CHT is legislated to grow annually in line with a three-year moving average of nominal GDP, with funding guaranteed to increase by at least 3% per year. At the December 2, 2019 meeting of the Council of the Federation, Premiers unanimously reiterated previous calls for the escalator to be increased to 5.2%, notably to address long-term pressures on health care spending caused by population aging.
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- As the Government approaches a fall First Ministers’ Meeting on the CHT, [ * ]
Engagement with cities
- Although provinces have jurisdiction over local governments, cities have been increasing their appeals for a more direct relationship with the federal government and an increase in federal funding support.
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Specific bilateral priorities
New government in Newfoundland and Labrador
Andrew Furey was sworn in as the 14th Premier of Newfoundland and Labrador on August 19. Following the swearing-in Lt. Governor Judy Foote made a short address that touched on what will likely be reflected in some of the main priorities:
- Physical activity for kids – citing Twillingate as being chosen as Hockeyville Canada.
- The IT Sector – the #4 global marine tech company is NL based.
- How vibrant Social Enterprises alleviate poverty and support the most vulnerable.
- The importance of the artistic community.
Premier Furey provided remarks. He reiterated the importance of listening – calling it his most important skill. He said he was very humbled to become the Premier and was filled with optimism and hope, noting that he chose this path to be able to change the status quo and work towards economic recovery. He also touched on key priorities:
- “Shatter” the boom and bust economic cycles that have been the norm in NL.
- Build a sustainable, fiscally responsible economy for NL.
- Take a hard look at “where we are and where we want to be” and re-think ourselves from the oil and gas sector, to mining fisheries, IT, sport and aquaculture.
- Committed to being transparent moving forward. Providing fact-based answers and clarity on what the hard decisions are.
The new Cabinet was also sworn in on August 19. The first Furey Cabinet has 13 Ministers. [ * ] In addition to Premier Furey, there are 3 new Cabinet Ministers: Derek Bennett, Elvis Lovelace and Sarah Stoodley. Amongst the changes, the following are of note:
- Premier Furey will be the Minister for Intergovernmental Affairs.
- Siobhan Coady becomes Deputy Premier, Minister of Finance, Minister Responsible for the Public Service Commission and Minister Responsible for the Newfoundland and Labrador Liquor Commission.
- Tom Osborne becomes Minister of Education.
- Dr. John Haggie remains the Minister of Health and Community Services.
Major new portfolios announced today include:
- Industry, Energy and Technology
- Tourism, Culture, Arts and Recreation
- Children, Seniors and Social Development
- Fisheries, Forestry and Agriculture
- Environment, Climate Change and Municipalitie
Both Lt. Governor Foote and Premier Furey made short remarks following the swearing in of the Cabinet that echoed their earlier comments from the morning. Premier Furey spoke about the importance of thinking about “who is the team”. He told people to look around at “the faces of the change makers” who will help make the hard decisions and who know that things need to be done differently, because the old way of doing things is no longer affordable.
New Brunswick election
On August 17, Premier Blaine Higgs called a provincial election for September 14 after the Liberal Party pulled out of negotiations that would have delayed a vote until October 2022.
Premier Higgs had proposed a provincial all-party formal agreement not to trigger an election before the fixed election date in 2022 or no earlier than thirty days following the declared end of the COVID-19 pandemic in Canada, whichever comes first. The agreement would have included a supply and spending agreement, a formalization of the provincial COVID-19 Cabinet committee, and a mutually-agreed upon legislative agenda including proposals from each party.
During the first day of campaigning, Mr. Higgs laid out his rationale for calling the election. “I decided to call this election to give New Brunswickers a choice: a choice of stability, a choice for substance, a choice of progress.” adding that New Brunswickers will need to decide who can lead them through the unknown that will occur in coming years. In terms of election timing, he said the coming weeks is the best "window", since the province is in a relative lull with COVID-19 ahead of a possible second wave.
According to an Angus Reid Institute poll released in early June, Blaine Higgs had the highest approval rating of any premier in Canada at 80 per cent, a 32-point hike from February. Narrative Research, formerly Corporate Research Associates, says the government's satisfaction result is the highest it has ever recorded in New Brunswick since it began polling more than 40 years ago.
At dissolution, the Progressive Conservatives and Liberals each had 20 seats in the legislature, while the Greens and the People’s Alliance each had three. There were two vacant seats and one Independent.
Saskatchewan election
A general election will be held in Saskatchewan on or before October 26 in accordance with Saskatchewan’s fixed date election law. The law allows for the election to be rescheduled to April 5 of next year if the date conflicts with a federal election campaign. The Elections Act specifies that the writ must be dropped a minimum of 27 days before election day, meaning the election must be formally called no later than Wednesday, September 30.
Current standings in the 61-seat legislature are the Saskatchewan Party, 46 seats, and the New Democratic Party, 13 seats, and there are two vacancies. The most recent public polling, concluded in early July, showed the Saskatchewan Party with 57 per cent support and the NDP at 32 per cent, consistent with two polls conducted in May and with most other polls conducted since the 2016 election.
This will be Premier Scott Moe’s first election as party leader, and he will seek to lead the right-of-centre Saskatchewan Party, which formed government for the first time under Brad Wall in 2007, to its fourth consecutive term in office. The New Democrats, led for the first time in an election by Ryan Meili, a medical doctor, will seek to expand their support beyond the seats they currently hold in Regina and Saskatoon.
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Bilateral housing agreement with Quebec
For over two years, the Canada Mortgage and Housing Corporation (CMHC) has been negotiating, [ * ], a bilateral housing agreement with the Société d'habitation du Québec (SHQ). The financial envelope allocated for Quebec under the housing agreement represents a sum of $1.8 billion over ten years. This amount does not include the National Co-Investment Fund. Quebec wishes to reach an asymmetrical agreement, which respects its jurisdiction in the area of housing.
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Compensation for Quebec for irregular migration for 2019
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Electrification in Atlantic Canada
In March 2019, federal ministers and Atlantic Premiers agreed to develop a Clean Power Roadmap for Atlantic Canada that seeks to outline a collective vision for how Atlantic Provinces can collaborate over the coming decades to build a clean power network across the region.
Work is being led by the joint federal-provincial Atlantic Regional Clean Power Planning Committee, which also includes utility representatives. Of note, the Government of Quebec and Hydro-Québec joined this committee as observers, [ * ]
The Committee is focused on identifying the most cost-effective and critical transmission projects, including interprovincial interties, needed to move power across the region, as well as exploring options for the use of renewable energy and energy storage technologies.
Through this work, opportunities exist to build an Atlantic regional transmission loop that would bring greater quantities of clean energy from Quebec and Newfoundland and Labrador to other Atlantic Provinces. This could accelerate the shift away from coal-fired electricity in Nova Scotia and New Brunswick and help Canada reduce its greenhouse gas emissions above what is required by existing regulations (contributing to Canada’s 2030 and 2050 environmental objectives).
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[ * ] There is no dedicated funding allocated to the Roadmap process, although the Canada Infrastructure Bank (CIB) could potentially play a role in supporting projects. [ * ]
A draft interim report has been developed and is expected to be presented at the next Atlantic Growth Strategy Leadership Committee meeting (date TBC). A final report will be completed by March 2021.
The Leadership Committee could also discuss regional Atlantic approaches to advance electrification and strengthening the Atlantic Regional Transmission Loop as part of post-pandemic economic recovery.
Key electrification issues in the Atlantic Provinces
Newfoundland and Labrador:
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Nova Scotia:
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New Brunswick:
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Prince Edward Island:
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Electrification in British Columbia
In August 2019, the Prime Minister and Premier Horgan announced a new MOU to affirm the joint commitment to power British Columbia’s natural gas production and liquefied natural gas sectors with clean electricity. The MOU commits governments to jointly decide on overall resource levels to be devoted to the initiatives set out in the agreement, with participants currently examining $680 million in near-term electrification projects for joint funding, subject to necessary financial approvals by each participant.
The terms of reference for the Canada-B.C. Clean Power Committee state that an interim report analyzing the three projects identified in the MOU will be completed by summer 2020 and will “identify pathways to potential funding sources.”
A draft interim report has now been completed. The two priority projects at this stage are the North Montney Electrification Project and the CleanBC Electrification Fund. [ * ]
Federal officials will be reviewing and finalizing the interim report in the coming weeks to be followed by a call between federal and British Columbia Deputy Ministers in September.
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On June 17, Alberta Premier Jason Kenney released the Fair Deal Panel’s report, which recommends twenty-five ways to advance Alberta’s interests in Confederation, including changes to funding allocations from the Government of Canada, increased representation for Alberta in the House of Commons, and exploration of an Alberta Pension Plan and Alberta Police Force.
In a written response to the Panel’s report, the provincial government noted that it has already taken action or started work on a number of initiatives related to the Panel’s recommendations, such as moving forward on reforming the Fiscal Stabilization Program, establishing a provincial chief firearms officer, and working with other provinces and territories to explore the development of economic resource corridors to move products to market.
The Panel also recommended Alberta proceed with a referendum on equalization, asking a clear question along the lines of: “Do you support the removal of Section 36, which deals with the principle of equalization, from the Constitution Act, 1982?” In its response, the provincial government noted that a commitment was made in the government’s platform to hold a referendum on equalization, should significant progress not be made on the completion of the Trans Mountain Expansion Project and other critical issues. The government also indicated that it will undertake further analysis on what an appropriate question would be for an eventual referendum on equalization, and that this referendum could be held in conjunction with the 2021 municipal elections.
Due to the timing of its release in the midst of the pandemic, the Panel’s report drew little public commentary or debate. The Government of Canada has not publicly reacted to the report, [ * ]
On July 22, 2020, Alberta announced the establishment of a new research working group that will examine funding disparities, and engage the Government of Canada to get Alberta’s post-secondary institutions their fair share of research dollars.
Former federal Conservative minister Jay Hill was named interim leader of the Wexit Canada Party on June 23, following the resignation of party founder Peter Downing. The party, which was granted federal eligibility by Elections Canada in January, plans to nominate 104 candidates to federal ridings in British Columbia, Alberta, Saskatchewan, and Manitoba, and also plans to run candidates at the provincial level in those provinces, though Mr. Hill said the federal party will not be affiliated with the provincial parties.
On June 30, Wexit Alberta and the Freedom Conservative Party voted to merge as the Wildrose Independence Party of Alberta. At the end of June, Wexit Saskatchewan members voted to change the name of their party to the Buffalo Party of Saskatchewan.
A poll published by Innovative Research Group on June 1 found that 42 per cent of Albertans would support the United Conservatives if an election were held, compared to 28 per cent for the New Democrats, 11 per cent for the Alberta Party, and 14 per cent for the Alberta Liberal Party. These results are in line with the half dozen other polls conducted since the April 2019 general election, in which the UCP won with 55 per cent of the vote, compared to 32 per cent for the New Democrats. [ * ]
Specific sectoral priorities
Border restrictions
Restrictions on travel from the United States are set to expire on September 21, while restrictions on other international travel will expire August 31. Quarantine Act requirements for travellers from all countries are also set to expire August 31.
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The federal government and the Province of Alberta are engaged in a border testing pilot project, which is currently in the design phase. [ * ]
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Supreme Court of Canada hearing on carbon pricing
A Supreme Court of Canada hearing on carbon pricing is tentatively scheduled for September 22-23, 2020. This was postponed from spring 2020 due to COVID-19. The hearing is in response to appeals from the Governments of Saskatchewan and the Government of Ontario. Both provinces filed reference cases with their respective Courts of Appeal, supported by New Brunswick, challenging the constitutionality of the Greenhouse Gas Pollution Pricing Act (GGPPA). In both cases, the Courts of Appeal found the GGPPA to be constitutional. The Government of Alberta filed a separate challenge with its Court of Appeal. In February 2020, a majority of the Alberta Court of Appeal found the GGPPA to be unconstitutional.
[ * ] Alberta, Saskatchewan, Manitoba, Ontario and New Brunswick will be arguing against it. Quebec has also filed for intervener status and is expected to defend its provincial autonomy to design its own carbon pricing system.
In addition to the Supreme Court case, Manitoba has filed its own legal challenge with the Federal Court, seeking a judicial review of the decision to apply the federal carbon pricing system in the province.
Carbon pricing decisions/actions required
The Government of Canada will need to determine whether to accept or reject proposed provincial plans for large emitters developed by New Brunswick and Ontario. [ * ] The timing of the federal decision will also need to be considered in light of the Supreme Court hearing and upcoming provincial election in New Brunswick.
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An interim report on carbon pricing is to be completed by the end of 2020. This report is expected to be factual and relatively low profile. A more extensive expert review of carbon pricing needs to be completed by 2022. Environment and Climate Change Canada plans to engage provinces and territories on the terms of reference for this review in the coming months.
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Upcoming Committee on Internal Trade meeting
The next meeting of the Committee on Internal Trade is tentatively scheduled for September 16, 2020. The main agenda item will be the new Regulatory Reconciliation and Cooperation Table work plan. While the agenda is not finalized, it may include a decision point on timelines to conclude the negotiations of the financial services rules, updates on the implementation of a direct-to-consumer sale channel for alcohol, and a discussion on food inspection.
The meeting will provide opportunity for public announcements highlighting Canada’s leadership on internal trade in support of economic recovery, and for engaging provinces and territories on potential FPT initiatives.
Decisions on the removal of federal party-specific exceptions and an approach to conclude the financial services negotiations are required ahead of the meeting. Your views will also be sought on any mandate letter commitments for internal trade. Advice will be provided under separate cover.
Infrastructure COVID resiliency stream
On August 5, 2020, Catherine McKenna, Minister of Infrastructure and Communities, announced new steps to help provinces and territories deal with the pressures brought on by the COVID-19 health and economic crisis. Additional flexibilities were introduced into the Investing in Canada Infrastructure Plan (ICIP) through a new COVID-19 Resilience funding stream, to support a broader range of community infrastructure priorities. It would also be open to a wide range of “shovel ready” projects.
Provinces and territories that choose to participate in this new funding stream will benefit from an increased federal cost share: up to 80 per cent in the provinces, and 100 per cent in the territories and for projects with Indigenous recipients. The Government of Canada is also proposing increased flexibility through expanded eligibility criteria under the four existing streams, including mobile and cellular projects, pathways and active transportation projects, public sector commuter ferry infrastructure, public sector inter-city commuter transit, and energy efficiency or reliability projects. Infrastructure Canada is currently in discussions with the provinces and territories regarding the necessary amendments to their respective ICIP Bilateral Agreements.
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Early learning and child care
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United Nations Declaration for the Rights of Indigenous People (UNDRIP)
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Missing and Murdered Indigenous Women and Girls (MMIWG)
In response to the National Inquiry’s final report, in June 2019, the Government committed to conduct a thorough review of the report, and to develop a National Action Plan to address violence against Indigenous women, girls, and 2SLGBTQI, in partnership with Indigenous groups and provinces and territories (PTs). Over the past year, officials have been engaging with PTs through an FPT Working Group on MMIWG to explore opportunities for FPT cooperation in the development of a National Action Plan.
The original target date of June 2020 for the launch of the Action Plan was missed, resulting in criticism from Indigenous stakeholders. As a result, there is heightened sensitivity to fast-track the development and launch of the National Action Plan framework, including the federal component of the Plan, by fall 2020.
Crown-Indigenous Relations has established a working group process for the development of a National Action Plan with external partners, and is working to develop the federal component of the Action Plan. The Action Plan would be evergreen and launched in phases, starting with the federal narrative. [ * ]
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In a related development, a proposed class action has recently been brought forward against the RCMP on behalf of family and community members of MMIWG, seeking $600 million in damages and other restitution for alleged impacts arising from the unsolved murders and disappearances of their loved ones. The claim alleges systemic negligence and Charter violations by the RCMP, and also seeks restitution as a result of alleged breaches of the Crimes Against Humanity Act making a civil claim for genocide against Canada. Justice Canada officials are currently conducting a legal analysis to inform recommendations in respect of the federal response.
Managing the federation in the context of economic recovery
Purpose
To inform strategic discussions among senior officials on how to manage federal‑provincial-territorial (FPT) relations as governments work together to advance economic recovery.
Context
The COVID-19 pandemic has been a historic economic shock, both globally and domestically. In Canada, physical distancing and the closure of non-essential businesses brought a large portion of the economy to a standstill. Within two months, more than 3 million Canadians had either lost their jobs or were working zero hours, the unemployment rate more than doubled (from 5.6 per cent in February to 13.0 per cent in April), and private sector forecasts estimate the economy will contract by 40.6 per cent (annualized) in the second quarter. [ * ]
While these indicators reflect a significant challenge, several experts, including the Governor of the Bank of Canada, have indicated that Canada was in a strong fiscal position heading into the pandemic, with a low debt-to-GDP ratio. This has enabled the federal government to take a leadership role and introduce bold measures to support Canadians and businesses. The federal government has announced more than $200 billion in direct support to Canadians, including the Canada Emergency Response Benefit (CERB) and the Canada Emergency Wage Subsidy (CEWS). [ * ] In the Snapshot, the Minister of Finance also announced that federal debt would reach 49.1 per cent of GDP in 2020-21, the highest level since 2002. [ * ]
The economic damage of COVID-19 will exacerbate this issue. [ * ]
Municipalities are also struggling financially as a result of the pandemic. [ * ]
At the beginning of the crisis, FPT governments were focused on managing the day-to-day spread of COVID-19, while implementing the economic supports needed to stabilize individuals and businesses through the pandemic. More recently, however, work has advanced towards a cautious and strategic restarting of the economy, supported by the necessary public health measures to mitigate and manage expected surges in the virus. Provinces and territories have now taken steps to loosen some of the public health measures, in a manner reflective of the circumstances within their respective jurisdictions.
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Of note in this context, FPT governments recently negotiated the historic Safe Restart Agreement, supported by over $19 billion in federal investments, to help PTs restart their economies over the next six to eight months. There are seven key areas of federal support to PTs covered in the agreement: health care capacity, including mental health; testing, contact tracing and data management; personal protective equipment (PPE); vulnerable populations, including seniors; child care; sick leave; and municipalities, including public transit. The experience of these historic intergovernmental negotiations punctuate an already extraordinary time for FPT relations in Canada.
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The Safe Restart Agreement
On July 16, the Prime Minister announced the Safe Restart Agreement, a federal investment of more than $19 billion over six to eight months in seven priority areas to help provinces and territories safely restart their economies and increase Canada’s capacity to prepare for possible future waves of COVID-19.
Background
The Prime Minister initiated discussions with premiers on the concept of a Safe Restart Agreement (SRA) at the May 28, 2020 First Ministers meeting. This was in recognition that the restarting of the Canadian economy would be – and remains – a complex process and that it would be critical to have the appropriate supports in place to maintain the confidence of Canadians and also help ensure their health and safety.
The SRA addresses seven priority areas, as agreed to by First Ministers:
- enhanced capacity for testing, contact tracing, and data management and information sharing to mitigate future outbreaks ($4.28 billion);
- investments in health care to respond to the pandemic, including support for Canadians experiencing challenges with substance use, mental health, or homelessness ($1.2 billion);
- support for vulnerable Canadians – including those in long-term care, home care, and palliative care – who are at risk of more severe cases of COVID-19 ($740 million);
- funding to secure a reliable source of personal protective equipment, and to recover some of the costs from previous investments made by provincial and territorial governments ($7.5 billion);
- support to ensure that safe and sufficient child care spaces are available to support parents’ gradual return to work ($625 million);
- support for municipalities on the front lines of restarting the economy, including by putting in place precautions for public spaces and essential services, like public transit, to reduce the spread of the virus [ * ]; and
- a temporary income support program that will provide workers with access to ten days of paid sick leave if they are unable to work due to the virus ($1.1 billion).
The above totals over $19 billion in support. The detailed notional allocation table and the term sheets setting out federal objectives for these streams will be provided separately.
Provincial/territorial considerations
In order to access funding, each premier needs to outline how they plan to invest these funds via a letter to the Prime Minister. [ * ]
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To help inform this discussion, PTs were asked to provide additional information on their health care costs associated with COVID-19. Although this information has not yet been provided, federal officials will be meeting at the end of August to discuss a fall FMM. Please see Tab E for further information on the First Ministers Meeting.
Smaller jurisdictions
During SRA negotiations, smaller jurisdictions (the three Territories and P.E.I.) requested the federal government consider additional supports for them in light of the distinct challenges they face as smaller and/or more remote jurisdictions. In their joint communique, First Ministers committed to addressing these unique needs.
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Next steps
PCO-IGA will continue to work with PTs to finalize their SRA letters, and prepare a response from the Prime Minister.
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First Ministers’ meetings
First Ministers’ Meetings are called by the Prime Minister and are one of the ways to engage with provinces and territories (PTs) and manage relationships. It is an opportunity to demonstrate the Government’s leadership and commitment to intergovernmental collaboration with an agenda focused on areas of shared FPT priorities. Relationships can also be managed effectively through bilateral and multilateral (e.g., regional) engagement.
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 last in-person 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.
Since 2016, First Ministers’ Meetings have been preceded by 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). [ * ]
Cancelled 2020 First Ministers’ meeting
Following their December 2, 2019, meeting, the Council of the Federation (COF) wrote to the Prime Minister inviting him to co-host a meeting of First Ministers, highlighting economic competitiveness, fiscal stabilization, health care, infrastructure, and northern priorities as key topics of interest. While COF’s request for a co-hosted the meeting was not met, a sixth in-person First Ministers’ Meeting, chaired by the Prime Minister, was planned to take place on March 13, 2020, focusing on COF and federal priorities. The planned agenda included the following topics: economic competitiveness, including Canada-US relations and getting resources to market, ensuring regulatory certainty in environmental assessment, economic immigration, strengthening internal trade and the diversification of international trade; actions to mitigate and address the impacts of climate change; FPT priorities on infrastructure and health care; northern priorities; and fiscal stabilization.
A distinct meeting of First Ministers and Indigenous leaders was also scheduled to take place, with a focus on: the United Nations Declaration on the Rights of Indigenous Peoples; the implementation of the Calls to Justice from the Final Report of the National Inquiry on Missing and Murdered Indigenous Women and Girls; and the implementation of C-92, An Act respecting First Nations, Inuit and Métis children, youth and families.
The meeting was ultimately cancelled on March 12, 2020 when the Prime Minister went into self-isolation for COVID-19. A First Ministers’ call on COVID-19 was scheduled in its place.
COVID-19 First Ministers’ calls
Since the beginning of the COVID-19 Pandemic, First Ministers have held 16 calls, normally on a weekly basis, to discuss the evolving pandemic and the measures taken by federal, provincial and territorial governments to limit the spread of the virus. Discussion topics have included border measures, testing, and contact tracing. Importantly, these meetings led to a joint statement by First Ministers on April 28, 2020 on principles for restarting the economy, as well as the FPT Safe Restart Agreement on July 16, 2020.
A 17th call could be considered for early September with a focus on preparing for a second wave and economic recovery measures.
Planning for a fall FMM
While there has been strong engagement through the COVID-19 First Minsters’ Calls, premiers remain focused on long-standing requests for increases in fiscal transfers. In May 2020 Premier Moe, on behalf of the Council of the Federation, wrote to the Prime Minister seeking significant increase to the Canada Health Transfer (CHT), reflecting the increased health care costs provinces and territories are facing due to the COVID-19 pandemic and “underlying imbalances in funding arrangements”. This request was also raised during the COVID-19 First Minister calls. In response, the Prime Minister has committed to a formal First Ministers Meeting with a focus on the CHT.
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A First Ministers’ Meeting organized around a clear objective or the announcement of a completed or well‑advanced proposal is more likely to result in a collaborative meeting with positive and predictable outcomes.
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Timing and logistics
The First Minister’s Meeting could take place in mid-fall (e.g. October/November). The potential public health impacts of a second wave may be better understood, enabling a potential in-person meeting. [ * ]
Should an in-person meeting take place, consideration will need to be given to how to ensure adherence to public health measures, including appropriate physical distancing, limiting the number of participants (reduced delegation size), and sanitization. Efforts should also be made to ensure that First Ministers and NIO leadership can participate remotely if they wish to, or need to.
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Newfoundland and Labrador
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Nova Scotia
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Prince Edward Island
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New Brunswick
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Quebec
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Ontario
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Manitoba
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Saskatchewan
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Alberta
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British Columbia
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Yukon
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Northwest Territories
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Nunavut
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Overview of FPT policy issues and key dates
Department | Priority | Additional comments |
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Public Health Agency of Canada | COVID Response | Specifically SRA items on testing, vulnerable populations, and PPE |
Opioids | [ * ] | |
Health Canada | Medical Assistance in Dying (MAID) | Criminal Code provisions to remain the same across Canada in light of extension to December 18, 2020. Re-initiation of debate on Bill C-7 in fall. |
Preparation for the renewal of bilateral health agreements | Renewal slated for March 2022 | |
Canada Health Transfer discussion at the First Ministers’ Meeting | Discussions and planning are ongoing | |
Employment and Skills Development Canada | Early Learning and Child Care Bilateral Agreements Extension | ESDC nearing finalization of one-year extensions. Eight agreements either signed or signature pending. Agreements being finalized with NS, P.E.I., QC and BC. [ * ] |
Back to School Readiness / Universal Childcare | [ * ] | |
Amendments to Labour Market Transfer Agreements | Amendments to introduce new flexibilities (i.e. temporary change to definition of “insured participant”) and a proposal to flow funds to PTs sooner with option to carry-forward unspent funds. | |
CERB to EI Transition | Transition from CERB to three new COVID-19 Support Benefits in fall 2020, including the Recovery Benefit, the Sickness Benefit and the Caregiver Benefit. Under the SRA, the Government has sought PTs commitment to introduce legislation to ensure workers have job protection, in line with the Sickness Benefit. | |
Canada Mortgage and Housing Corporation | Quebec Housing | Bilateral housing agreement with Quebec. CHMC has drafted another version of the agreement to be shared with QC soon. |
Environment and Climate Change Canada | Revised Climate Plan | [ * ] If Canada chooses to set a more ambitious climate target, approach for engaging PTs will need to be considered. Minister Wilkinson to begin bilateral conversations with PT counterparts this fall. |
Carbon Pricing | Supreme Court hearing scheduled for Sept. 22-23, 2020. Decisions on the proposed plans for large emitters developed by Ontario and New Brunswick need to be made. An interim report on carbon pricing needs to be completed by the end of 2020. | |
Clean Fuel Standard | The first set of CFS regulations, covering liquid fuels (e.g. gasoline, diesel), were expected to the published in June 2020, but this was delayed until fall 2020 due to COVID-19. | |
Net-Zero | [ * ] Launch of the Net-Zero Advisory Body expected to occur by October. | |
Methane | Methane equivalency agreements with Saskatchewan and Alberta expected to be published in the Canada Gazette in mid-September 2020 and October 2020, respectively. | |
Boreal Caribou | ECCC in the process of negotiating conservation agreements with PTs to protect boreal caribou (section 11 agreements under the Species at Risk Act). Agreement-in-principle reached with Alberta, [ * ] No active negotiations with Ontario. [ * ] | |
Impact Assessment Agency of Canada | Milton Logistics Hub | [ * ] |
Roberts Bank Terminal II Project | [ * ] | |
Nova Gas Transmission Limited (NGTL 2021) | [ * ] | |
Tilbury Marine Jetty Project | [ * ] | |
Regional Assessments | Regional assessment in NFLD offshore, subject to legal challenge. Potential similar regional assessment in NS offshore. | |
Natural Resources Canada | Orphan Wells | Finalizing payment agreements with BC, AB and SK |
Electrification of Natural Gas Sector | Two priority projects identified in BC: North Montney Electrification Project and the CleanBC Electrification Fund. Will require between $150-$250M federal contribution. | |
Small Modular Reactors | Alberta recently signed on memorandum of understanding on SMRs, joining SK, ON and NB. NRCan expecting to finalize an SMR Action Plan by October. | |
Keystone XL | Future to be shaped by U.S. Presidential Election in November. | |
Hydrogen | Hydrogen Strategy for Canada in development with PTs, to be followed by regional blueprints. | |
Nature-based Climate Solutions | [ * ] | |
WAGE | Gender-Based Violence National Action Plan | [ * ] |
Agriculture and Agri-Foods Canada | Labour and Temporary Foreign Workers | Continued support for on-farm outbreaks and support for migrant farm workers. |
Changes to the Business Risk Management program suite | Review of suite of BRM programs ahead of annual meeting of FPT Mins of Agriculture in October. | |
Public Services and Procurement Canada | Procurement of Personal Protective Equipment and other medical supplies | |
Fisheries and Oceans | Big Bar Landslide | [ * ] |
Justice | Criminal Law Reforms | [ * ] canvassed on their priorities and the Department of Justice is reviewing the proposals. |
UNDRIP Legislation | Minister has confirmed intention to introduce legislation before the end of the calendar year. | |
Public Safety Canada | Firearms | [ * ] |
RCMP Modernization | Building on the contract policing analysis and development of options to make the program more responsive. Engagement with contract partners has not yet begun. The RCMP is likely to continue face pressure to address systemic racism and excessive use of force. | |
RCMP Collective Bargaining | [ * ] | |
Indigenous policing | [ * ] enhance community support and safety, co-development of legislation that recognizes First Nation Policing as an essential service. | |
Infrastructure | Investing in Canada Infrastructure Program | FPT negotiations to amend integrated bilateral agreements to introduce flexibilities through the COVID Resilience stream of the Investing in Canada Infrastructure Program. |
Pont de Québec | Special negotiator Yvon Charest has submitted preliminary report and cost estimates. PM direction being sought. | |
Global Affairs Canada | Economic Recovery through International Trade | Minister Ng will host a roundtable with PT counterparts in early September on international business development, investment promotion and innovation. |
CUSMA | Engagement with PTs to ensure smooth transition to CUSMA. | |
International Students | Promoting Canada as a destination for post-secondary studies, given this is an important source of revenue for PTs. | |
Aluminum Tariffs | ||
Finance Canada | Safe Restart Agreement | |
Reviewing Equalization Program and Fiscal Stabilization Program | This work responds to pressures from PTs and to commitments made by the Minister of Finance prior to the pandemic. | |
Canada Health Transfer | PM has committed to a First Ministers’ Meeting on the Canada Health Transfer, and PT pressure to increase level of federal support will continue. | |
Transport | Essential Remote Air Carrier Supports | Seek bilateral agreements with provinces and territories to ensure continuity of service for at least six months, and establishing a $75-million funding program for the federal contribution for the first six months and maintaining these essential services through an investment of up to $174 million over 18 months, if needed. PCO-IGA is also considering further air carrier support for the Territories under the small community restart plans. |
Fall 2020 – Key dates
- Summer: Manitoba Fiscal Update (TBC)
- Inuit Tapiriit Kanatami Annual General Meeting (TBC)
- Fall: Meeting of federal ministers and Inuit Tapiriit Kanatami leaders (TBD )
- Fall: Forum of Ministers responsible for Immigration (Minister Mendicino) (TBC)
- Fall : FPT Ministers of Infrastructure (Minister McKenna), Yukon (TBD )
- Fall: Ontario Fiscal Update (multi-year provincial budget) (TBD – before November 15, 2020)
- September: Council of the Federation meeting (transition of COF Chair from SK to QC)
- September: FPT “Recovery Through Trade” Roundtable (Minister Ng) (teleconference)
- September: Canadian Council of Fisheries and Aquaculture Ministers (Minister Jordan) (virtual meeting) (TBC)
- September: Committee on Internal Trade, Newfoundland (Minister LeBlanc) (TBC)
- September 9: Canadian Council of Ministers responsible for Tourism (Minister Joly) (TBC)
- September 10: FPT Ministers of Justice (Minister Lametti) (teleconference)
- September 14: New Brunswick Election
- September 15-16: Canadian Council of Forestry Ministers (Minister O’Regan) (virtual meeting)
- September 22-23: Supreme Court of Canada hearing on carbon pricing (TBC)
- Late September: Energy and Mines Ministers’ Conference (Minister O’Regan) (videoconference) (TBC)
- October: FPT Ministers of Justice and Public Safety (Ministers Blair and Lametti), Yellowknife (TBD )
- October 13-15: FPT Ministers responsible for the Status of Women and Gender Equality, Newfoundland & Labrador (TBC)
- October 17: Nova Scotia Municipal Elections
- October 26: Saskatchewan Provincial Election
- November 9: Saskatchewan Municipal Elections (urban municipalities and reeves and councilors representing odd-number divisions in rural municipalities)
- End of Fall: Quebec Superior Court Hearing on the merits of Quebec’s secularism law Bill 21
Economic and fiscal situation of provinces
[ * ]
PCO IGA research priorities
Proposed Research Priorities – Fall 2020
PCO-IGA has begun to build a research capacity – both to inform more immediate policy priorities, but also to support longer-term thinking on cross-cutting issues involving federalism and national unity. Planned projects for fall 2020 currently include:
- Internal Trade – estimates of the magnitude and economic sequences of internal trade barriers between Canada’s provinces
- Fiscal Federalism – an overview of major federal fiscal transfers to PTs, both individually and collectively, and in the context of fiscal and economic recovery
- The Role of Cities in the Federation – additional scoping on international models (especially City Deals in Australia), the fiscal capacity of cities, the longer-term impacts of COVID on urbanization, and strategies for more direct federal engagement with cities. Further work streams to be determined, triggered by the recent meeting between senior federal and city officials
- Pushes and Pulls of Centralization/Decentralization – a snapshot of recent trends and what they mean for regional divisions and asymmetric federalism, including the context surrounding the recent Fair Deal Panel in Alberta, and expected pressures for asymmetric arrangements similar to those that have characterized the Government’s relationship with Quebec
- Nation-Building Projects – an assessment of how past crises have created opportunities for national, transformative projects, with lessons learned for how the levels of government can work together on a historic legacy post-COVID
- Lessons learned from the COVID-19 response in other Federations – a review of the intergovernmental dynamics of the response to COVID in other federations
- Culture, Race and Identity – an examination of the FPT dynamics, including a scan of existing efforts and initiatives and an identification of possible areas of collaboration
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