The People’s Party of Canada will help reform the Health Care system and help reduce wait times. By using the GST as a dedicated Health Care fund and by simply returning all the GST that Alberta pays, this will significantly increase Health Care funding for Alberta, since Alberta pays the most GST per capita of any province.
It is up to the provinces to implement reforms in line with the more efficient and less costly mixed universal systems of other developed countries. Throwing more federal money at the problem is not the right approach. On the contrary, it is part of the problem. Provincial governments will never make the tough decisions if they can always blame Ottawa for not sending enough money. We must end the current confusion over who does what and who is responsible for the problem.
A People’s Party government will:
- Replace the Canada Health Transfer cash payments with a permanent transfer of tax points of equivalent value to the provinces and territories, to give them a stable source of revenue. In practice, Ottawa will give up its Goods and Services Tax (GST), and let provincial and territorial governments occupy this fiscal room. In 2019-20, the GST is expected to bring in $40 billion in revenues, the same amount currently transferred by Ottawa.
- Establish a temporary program to compensate poorer provinces whose revenues from the tax will be lower than the transfer payments they used to receive.
- Create the conditions for provincial and territorial governments to innovate. They will be fully responsible for health care funding and management, and fully accountable to their citizens for the results, while Ottawa will respect the Constitution and stop meddling.