Something jumped out at me yesterday while doomscrolling, which was New Brunswick crowing that they have a bigger-than-expected surplus thanks to all of the additional federal dollars that were sent to the province because of the pandemic. And it stuck in my craw a bit – provinces have been crying poor when it comes to healthcare dollars and around doing things like improving long-term care, and then they turn around and pat themselves on the back for running surpluses as a result of federal dollars. It doesn’t quite add up.
The fact that certain provinces have been using federal pandemic dollars to pad their bottom lines is a problem for Confederation, particularly as these very same provinces are demanding that the federal government turn over even higher healthcare transfers, and justifying it with historically inaccurate talking points about the original share of healthcare spending without also recognizing the other agreements made in the late 1970s. The current federal government is certainly willing to spend the money, but they have also learned that they don’t want to get burned by it like previous governments have. Recall that when the health transfer escalator was at an unsustainable six percent per year, provincial healthcare spending growth was in the low two-percent range, meaning those additional dollars were spent on other things that did not improve the healthcare system. Similarly, when Stephen Harper tried to buy peace with Quebec and sign a huge cheque to correct a fictional “fiscal imbalance,” the provincial government turned around and cut taxes, which wasn’t the intent of said funding, and yet it happened.
It’s with this in mind that Trudeau has promised that there will be strings attached to future health transfers, and he laid out what many of those strings will be in the campaign, whether it’s hiring targets for doctors and nurses, or minimum salaries for long-term care workers. And yes, premiers will bellyache about it, and the opposition parties will take up those cries in the House of Commons, but we have seen repeatedly over this pandemic that the provinces will demand money and then not spend the money they do get. Time for some accountability for dollars – because it’s all coming from the same taxpayer in the end, regardless of which level of government is trying to make their bottom line look better.