Addressing Fiscal Arrangements:
Premiers noted the recent federal economic and fiscal update projecting that the federal government will have a larger surplus than anticipated, perhaps as much as $6.7 billion in 2015-16. The size of the escalating surplus that could be available to the federal government reinforces Premiers’ concern about the ongoing fiscal imbalances between governments that are affecting the ability of provinces and territories to deliver quality public services. This federal projection comes at a time when Premiers are witnessing an increasing pattern of federal decisions being made without adequate consultation, despite serious impacts on provincial and territorial policy and fiscal planning.
Premiers support the work of their Finance Ministers on modernizing fiscal arrangements and agreed on the need to update the fiscal imbalance study. Premiers directed ministers to continue work on specific modernization options. Premiers noted their desire for an enhanced federal-provincial-territorial fiscal relationship that ensures adequate and predictable transfers, which are essential to maintaining the conditions that promote economic growth and enhanced productivity in all regions of the country.
Enhancing Retirement Income:
Canada’s Premiers agree that Canadians’ retirement income security is a pressing issue for governments across the country. Premiers recognize the need for a strategy to address the adequacy of retirement income of today’s workers, including both the introduction of Pooled Registered Pension Plans and options for Canada Pension Plan/Québec Pension Plan (CPP/QPP) enhancements. Premiers directed their Finance Ministers to continue to assess options for CPP/QPP enhancement and that this work be guided by the following objectives:
- Be responsible and fully funded and focus on today’s workers;
- Analyze and evaluate both the short-term and long-term effects on business, families, and the economy should the enhancements proceed;
- Improve the future retirement incomes of middle-income earners; and
- Protect lower-income workers.
Premiers want to work with the federal government to enhance the retirement savings of Canadians. Accordingly, Premiers directed their Ministers of Finance to discuss the work on objectives and options at the December 2013 meeting of federal-provincial- territorial Ministers of Finance.